Sen. Lois Wolk calls for stronger safety inspection regulations

Repost from The Vacaville Reporter
[Editor: See also coverage in The Daily Democrat, The Davis Vanguard.  – RS]

Wolk urges more regulation on rail crude oil shipments to Solano refinery

By Reporter Staff  |  06/09/2014

The battle over local crude oil rail shipments moved to Sacramento late last week as Senator Lois Wolk, D-Solano, called on legislators Friday to support a proposal to strengthen the state’s railroad safety inspection force.

Wolk is seeking the inspection upgrade in light of the growing volume of crude oil shipments through heavily populated areas of California and numerous crude oil rail accidents in recent years.

In a letter sent in advance of today’s scheduled release of a draft Environmental Impact Report on a proposal to transport crude oil through the heart of the Capitol Corridor to the Valero Refining Company in the city of Benicia, Wolk laments a lack of increased regulatory oversight for such shipments. Rail shipments of crude oil in California like those proposed by Valero are slated to increase 25-fold in the next few years, according to the California Public Utilities Commission (PUC) and California Energy Commission.

“However, there has not been a corresponding increase in regulatory oversight capacity to address this significant increase in risk to California’s citizens,” Wolk wrote in the letter to members of the Legislature’s Budget Conference Committee, scheduled to hear Governor Edmund G. Brown’s budget proposal to add seven inspectors to the PUC’s railroad safety staff. “Additional oversight is needed to provide some assurance that these shipments are made safely and in compliance with federal and state regulations, as well as other known safety practices.”

Several destructive crude oil rail accidents have taken place in the U.S. and Canada in recent years, including the July 2013 derailment of 72 tanker cars loaded with 2 million gallons of flammable crude oil in Lac-Mégantic, Canada, that resulted in 47 deaths, more than $1 billion in damages, and 1.5 million gallons of spilled crude oil, Wolk noted.

Valero’s proposal has elicited concern from public and elected officials regarding the safety risks of transporting crude oil through Benicia and other densely populated areas of Northern California. Other concerns include the potential for increased commuter traffic.

“An event such as Lac Mégantic could have catastrophic effects if it occurred in any populated area of California,” Wolk said.

The Valero proposal seeks to add three rail tracks and an off-loading track on Valero’s property to allow crude oil to be transported into the refinery. Currently, crude oil is delivered into Valero Benicia through pipeline and ships.

During a meeting in Benicia earlier this spring, company officials said that the railroad addition would make the refinery more competitive by allowing it to process more discounted North American crude oil. They insisted that the railroad traffic up to 100 tank cars per day would not affect the region’s air quality, and safety standards would be met.

“It would not increase crude delivery, just make it more flexible,” John Hill, vice president and general manager of the refinery, told citizens at the meeting.

Another point of contention was the type of crude oil that would be transported into Benicia by rail.

An opposition group, Benicians for a Safe and Healthy Community, said the project will allow the delivery of the highly flammable Bakken crude from North Dakota. Concerns also have been raised about the possible use of Canadian tar sands oil, regarded as more polluting than other crudes.

However, officials said there will be no change in the delivered type of crude. They said the refinery can, and will be able to, handle any blend of crude oil as long as it meets density and sulfur requirements for its facility. They did not disqualify Bakken crude as a possible part of a blend.

Times-Herald, Vallejo staff contributed to this report.

Shale Daily – Keystone XL less deadly than Crude by Rail

Repost from Natural Gas Intel’s Shale Daily
[Editor: Maybe the publisher of this story hopes to promote pipeline delivery of crude with a favorable comparison to crude delivery by rail.  We might prefer neither.  The article nicely lays out numbers on injuries and fatalities in the Class I rail freight industry over the last 10 years, suggesting in paragraph 2 that the numbers refer to petroleum by rail, then clarifiying in paragraph 5 that the stats cover injuries and fatalities connected to all Class I freight.   Interesting, but not very helpful unless you want to sell the Keystone XL.  For the State Department’s errata sheet, go here.  – RS]

State Department: More Deadly Rail Wrecks if Keystone XL Not Built

Charlie Passut  |  June 9, 2014

rail_crude_injuries_fatalities_20140609

The U.S. State Department has corrected several errors to its initial study examining the impact of the proposed Keystone XL pipeline, including a more than fourfold increase in the estimated number of deaths and injuries from rail accidents over a 10-year period without the pipeline.

In an errata sheet released Friday, the State Department said the Final Supplemental Environmental Impact Statement (FEIS) it issued in January had underestimated the number of injuries and fatalities that could occur with oil shipments via rail (see Shale Daily, Jan. 31).

“Subsequent to completion of the rail incident analysis, the department identified that the data obtained for the analysis from the Federal Railroad Administration [FRA] online safety data and statistics query system were incomplete due to an error in the search parameters used,” the State Department said. “As a result, the rail analysis was based on 40.6% of the 2002-2012 available incident data recorded on the FRA database. Therefore [several figures in the original FEIS] underreport the injury and fatality incident frequency…”

According to the State Department, the number of reported injuries increased from 700 to 2,947, and the fatalities increased from 92 to 434, after using a full annual incident dataset from FRA covering the 10-year period of 2002-2012. Using the updated statistics, the department increased its estimates for injuries from 49 to 189, and fatalities from six to 28.

“The rail incident analysis is based on nationwide statistics for Class I freight rail data obtained from the FRA database,” the State Department said. “Class I railroads are those with annual carrier operating revenues of $250 million or more, before adjustment for inflation. Because the dataset does not distinguish petroleum or crude oil rail transportation from that of other cargo, the statistics include all Class I rail freight.”

The State Department also clarified that 260 acres of land — not 190, as stated in the original FEIS — would be needed for aboveground facilities for the project, after including permanent access roads. The department also confirmed approximately 15,296 acres of land would be disturbed during the construction of Keystone XL, but clarified that the number would rise to 15,416 acres when rail sidings were included.

The U.S. Department of Transportation (DOT) has been investigating a series of train derailments involving rail cars containing crude oil from the Bakken Shale, and issued emergency orders on Bakken crude in February and May. Meanwhile, two DOT agencies –FRA and the Pipeline and Hazardous Materials Safety Administration — issued a safety advisory on rail cars in May.

Last July, an unattended freight train transporting Bakken crude rolled downhill, derailed and exploded in Lac-Megantic, Quebec, killing 42 people.

Six months later, a 90-car crude oil train loaded with Bakken crude heading to a refinery in Florida derailed in a rural area near Aliceville, AL. According to DOT, more than 20 cars derailed and at least 11 ignited, causing an explosion and fire. Although no one was injured in the incident, an undetermined amount of crude fouled a wetlands area, causing an estimated $3.9 million in damage.

On Dec. 30, 2013, a BNSF train carrying Bakken crude hit a grain train traveling in the opposite direction that had derailed earlier near Casselton, ND. The crash caused 21 cars carrying crude to derail, 18 of which subsequently ruptured and exploded. There were no injuries, but about 1,400 people were evacuated. Damage was estimated at $8 million.

The 1,700-mile Keystone XL pipeline requires State Department approval because it would cross an international border. TransCanada Corp. submitted a presidential permit application for the $7 billion project — designed to carry heavy crude from the Canadian oilsands from Morgan, MT, to Steele City, NE — in 2012.

Contra Costa County: Supervisors order recirculation of environmental report on Rodeo refinery project

Repost from The Contra Costa Times
[Editor: Note the 8th paragraph (emphasis added).  Back in January of this year, the BAAQMD itself has – according to this article – “weighed in … saying the environmental report should include calculations of toxic air contaminant emissions from the refinery and assess cumulative health risks of other refinery projects in the region“.  Surely then, this is also true for the Valero Benicia EIR.  Can the City’s consultant be charged with calculating cumulative emissions Bay-Area-wide as part of its EIR?  Or should the BAAQMD issue its own inclusive estimates DURING the proposal’s 45-day comment period?   – RS]

Contra Costa County: Supervisors order recirculation of environmental report on Rodeo refinery project

By Tom Lochner Contra Costa TimesPosted:   06/09/2014

MARTINEZ — Health impacts related to a propane and butane recovery project at the Phillips 66 petroleum refinery in Rodeo should be studied before moving ahead with approvals, according to county officials, but the refinery claims that delay could doom the project.

The board voted last week 5-0 to recirculate the project’s environmental impact report and continue the public hearing, which also includes consideration of two appeals of the project’s land use permit, to Sept. 23.

Conservation and Development Director Catherine Kutsuris noted that the EIR does not include a cumulative study of health impacts on the surrounding communities recommended under a 2011 revision of the guidelines of the Bay Area Air Quality Management District. The health study must be completed and submitted for public comment before the EIR can be certified, Kutsuris said.

The Phillips 66 Liquid Petroleum Gas Recovery Project calls for installing new equipment to recover and sell propane and butane instead of burning the fuel at the refinery or flaring off excesses. The refinery says the project will reduce pollution while creating well-paying jobs and generating taxes.

“The economic realities are, if we recirculate and we have another delay, we will be canceling this project,” Sam Parino, operations manager at Phillips 66 Rodeo, told the Contra Costa Board of Supervisors at the June 3 public hearing, although the company later softened its stance.

The project has suffered a string of recent setbacks after breezing through the early stages of the approval process, beginning with the endorsement of the Rodeo Municipal Advisory Council last summer, followed by county Planning Commission approval of a land use permit in November.

A packed January hearing on the EIR and appeals of the Planning Commission land use permit led to passionate testimony from both sides.

The Bay Area Air Quality Management District also weighed in at that time, saying the environmental report should include calculations of toxic air contaminant emissions from the refinery and assess cumulative health risks of other refinery projects in the region. There are pending projects at Chevron in Richmond, Shell in Martinez and Valero in Benicia. Also pending is an oil storage and transfer joint venture in Pittsburg by WesPac Energy and Oiltanking Holding Americas, with rail, marine and pipeline components.

Refinery spokesman Mark Hughes urged the board to order the health study without recirculating the EIR, saying it would be “tragic” if the refinery suffers economic loss and the community misses out on emission reductions and jobs promised as part of this project.

On Monday, Phillips 66 appeared to be backing down from its threat to scuttle the project.

“We will continue to pursue the land use permitting approvals of the LPG Recovery Project to ensure the long-term viability of the Rodeo refinery and the many jobs it provides,” Hughes said in an email. “We are confident that a revised EIR will ultimately help decision-makers and our community to better understand the benefits of the project and approve the application.”

Contact Tom Lochner at 510-262-2760. Follow him at Twitter.com/tomlochner.

Latest derailment: dangling oil tank cars in McKeesport, Pennsylvania (near Pittsburgh)

Repost from The Observer-Reporter
[Editor: When you are done reading about this latest wreck (including light petroleum tank cars), check out this list: 29 derailments in North America Jan 1 – June 8 this year, an average of one every five days.  See also this list of the six notable derailments involving tank car explosions.  – RS]

Derailed train cars dangle over Youghiogheny River

Jun 8, 2014

(Photo Credit: KDKA Photographer Chris Kunicki)

PITTSBURGH (AP) – A couple train cars are hanging partly off a suburban Pittsburgh trestle above the Youghiogheny River after derailing, scaring people below who thought the train was ready to plunge into the river.

CSX said about 12 cars of a train derailed around 11 p.m. Saturday in McKeesport while heading from New Castle to Connellsville.

It said the 88-car train was carrying mixed freight, including carrying scrap metal and “light petroleum.”

CSX spokesman Gary Sease says the petroleum didn’t leak. No injuries were reported.

The McKeesport Marina was evacuated and McKeesport Deputy Fire Chief Don Sabol said there’s a lot of damage to the tracks. CSX said it’s not sure yet what caused the derailment.

– – – – –

MORE:
29 derailments in North America 1 Jan-8 June this year, an average of one every five days.
See also this list of the six notable derailments involving tank car explosions.

For safe and healthy communities…