Bakken Crude, Crude By Rail, Derailment, Federal Regulation (U.S.), Property values, Valero Benicia Refinery, Valero Crude By Rail

Benicia City Council member speaks out on Valero Crude by Rail

Repost from The Pioneer, Cal State East Bay

Benicia Council member Tom Campbell interviewed by Cal State University newspaper: “Transportation plan in ‘uncharted territory’”

By Kali Persall, Managing Editor, July 13, 2016
Photo by Kali Persall/The Pioneer

Benicia residents will have to wait a few more months for a final decision on the Valero refinery’s controversial proposal to transport more than two million gallons of crude oil by train into the city, daily.

The three-year-long Crude by Rail initiative is currently awaiting review by the Surface Transportation Board, an offshoot of the U.S. Department of Transportation that regulates railroad activity across the country.

The Benicia City Council, which voted 3-2 in March to allow the project to progress to the STB for a second opinion, will reconvene on September 20 to review the case again, according to Benicia City Council member Tom Campbell.

According to the proposal, which was created in 2013, approximately 70,000 barrels of Canadian tar sand and bakken crude oil from North Dakota would be brought into Benicia by 100 railroad cars on the Union Pacific Railroad every day. The U.S. Energy Information Administration reports that one barrel of crude oil contains 42 gallons, which can be converted to 12 gallons of diesel and 19 gallons of gasoline.

The project also includes the construction of a service road and an offloading facility, the implementation of 4,000 feet of underground pipeline and the replacement of underground infrastructure at the refinery.

Cities, counties and states are currently preempted from controlling what is transported by railroad, meaning the city of Benicia cannot look into any of the potential dangers that could occur during transportation of the crude oil. Until the oil reaches the city limits, the city has no say in that aspect of the project, explained Campbell.

According to Campbell, Valero is trying to extend the railroad’s preemption to itself by arguing that a rejection of the project — and thus the rejection of the offloading facility that would need to be built — would impede indirectly on the railroad’s economic success by directly affecting Valero’s.

This preemption clause contributed largely to the Benicia Planning Commission’s rejection of the project in February.

Dozens of community members have spoken out against the project and the potential safety hazards that a derailment or malfunction could cause. Residents are also concerned about the possibility of their property values decreasing, which happened in Richmond when a fire erupted in the Chevron Refinery in 2012.

Conversely, the project has the potential to create an estimated 120 temporary and 20 permanent jobs, according to a final Environmental Impact Report for the project. Campbell estimates that property taxes could also increase to between $150,000 and $200,000 annually.

The STB will issue a declarative statement about what is considered off-limits for the city, either in favor of Valero’s petition or against, according to Campbell.

If the board votes “yes,” to the refinery qualifying for preemption, it would take away all of the rights of the city to have any say in the project. The city would be preempted from looking at whether the plan follows zoning or building codes, explained Campbell. In theory, the railroad could build the offloading facility wherever it wanted, even in a residential neighborhood.

According to Campbell, the issue is unprecedented, far-reaching and transcends anything the city council has handled in the past.

A declaration in favor of Valero’s petition would be “pushing the envelope further than it has ever gone before” and venturing into “uncharted territory,” stated Campbell. If this happened, the case would be escalated to the federal court system.

“I don’t think the STB is going to go anywhere near that, but there’s no telling,” said Campbell. “If they were to go down that route and decide something that extreme, which would have an effect on every city, county and state that has a railroad going through it.”

If the board issues a “no” declaration, Campbell said the city council’s vote depends solely on the aspects of the project that directly concern the city, such as the construction of the offloading dock.

Campbell believes the board will not reach a decision before September.

Valero Public Affairs Manager Sue Fisher Jones was unable to provide any additional details on the refinery’s next plan of action at the time of publication.

Bernie Sanders, Clean energy, Climate Change, Climate change denial, Fossil fuels, Hillary Clinton

VIDEO: Bernie Sanders / Hillary Clinton on climate change and fossil fuels

By Roger Straw, July 15, 2016, with clips of the July 12 YouTube video by Bloomberg Politics

Bernie endorses Hillary, highlights climate change and need to move away from fossil fuels

This short 1½ min. segment from Bernie Sanders’ endorsement speech shows Sanders’ comments on climate change and fossil fuels, while Clinton nods and applauds in affirmation.  Sanders finishes by slamming Donald Trump’s claim that climate change is a hoax.

Hillary responds on climate change and a clean energy economy

This short 45 sec. segment shows Clinton following Bernie with her own comments on climate change and a clean energy economy while Bernie nods and applauds in affirmation.

The entire exchange…

Here is the 59-minute video of the Sanders and Clinton speeches, covering a broad range of important issues.

Crude By Rail, Derailment, Ethanol, Explosion, Federal Regulation (U.S.), National Transportation Safety Board, Tank car design, Tank car maintenance, Tank car retirement, Tank car retrofit, U.S. Department of Transportation

NY TIMES / AP: Slow Progress Seen on Faulty Rail Cars

Repost from the New York Times (AP)

Upgrades to Unsafe Tank Cars Could Take 15 Years, Board Says

By Matthew Brown, Associated Press, July 13, 2016, 2:30 A.M. E.D.T.
Oil Train Accidents
FILE–In this June 3, 2016, file frame from video provided by KGW-TV, smoke billows from a Union Pacific train that derailed near Mosier, Ore., in the scenic Columbia River Gorge. U.S. safety officials say they’ve seen slow progress in efforts to upgrade or replace tens of thousands of rupture-prone rail cars used to transport oil and ethanol, despite a string of fiery derailments. (KGW-TV via AP, file)

BILLINGS, Mont. — Accident-prone tank cars used to haul crude oil and ethanol by rail could remain in service for another 15 years under federal rules that allow companies to phase in upgrades to the aging fleet, according to the U.S. National Transportation Safety Board.

Transportation officials and railroad representatives have touted the rules as a key piece of their efforts to stave off future disasters, following a string of fiery derailments and major spills that raised concerns about the crude-by-rail industry.

Yet without mandatory, periodic benchmarks for meeting the requirements, the decision to upgrade to safer tank car designs “is left entirely to tank car fleet owners, and may be driven by market factor influences, not safety improvements,” NTSB Chairman Christopher Hart said in a letter Tuesday to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration.

Tom Simpson with the Railway Supply Institute, which represents tank car manufacturers and owners, said the industry is committed to putting stronger cars in place. Members of the group will meet deadlines for replacing or upgrading the cars, he said, noting that demand for rail cars has eased after crude-by-rail shipments decreased over the past two years in response to lower oil prices.

“The need to modify or install new cars isn’t as urgent as when the rule was issued,” Simpson said.

In recent years, accidents involving the older cars have occurred in Oregon, Montana, North Dakota, Illinois, West Virginia and Canada.

The most notable was in Lac-Megantic, Quebec, where 47 people were killed when a runaway oil train derailed in 2013. During the most recent accident last month in Oregon, 42,000 gallons of crude oil spilled, sparking a massive fire that burned for 14 hours near the small town of Mosier in the Columbia River Gorge.

Cars built before the rule was enacted do not have to be fully replaced until 2029, although most would have to come off the tracks sooner.

Just over 10,300 stronger tank cars mandated by the new rules are available for service, according to figures obtained by The Associated Press from the Association of American Railroads.

That’s equivalent to roughly 20 percent of the 51,500 tank cars used to haul crude and ethanol during the first quarter of 2016.

Transportation Department Press Secretary Clark Pettig said in response to the NTSB’s criticism that the schedule to retrofit older cars was locked in by Congress in a transportation bill approved last year. The Congressional deadline represents “the absolute last moment” to meet the new standards, Pettig said.

“We agree with NTSB that industry should work to beat those deadlines,” he said.

A Wednesday meeting was planned in Washington, D.C., where government and industry officials were set to update the safety board on progress addressing the issue.

Safety board member Robert Sumwalt told the Associated Press that federal regulators need to set milestones to hold the industry accountable.

“There’s been 28 accidents over the past 10 years. That’s almost three accidents a year,” Sumwalt said. “Unfortunately, history shows we probably will have more accidents involving flammable liquids.”

A bill from U.S. Sen. Ron Wyden of Oregon and other Democratic lawmakers would offer tax credits for companies that upgrade their cars during the next several years.

“Communities near train tracks, like Mosier, Oregon, must be confident that companies are using the safest tank cars possible,” Wyden said.

The railroad association said only 700 of the least resilient model of the older-style tank cars remain in service. Most of the cars in current use have at least some improvements, such as shields at either end of the car to help prevent punctures during derailments.

Transportation officials cautioned, however, that thousands of idled “legacy cars” could quickly come back online if oil prices rise and shipment volumes rebound.

Most tank cars are owned or leased by companies that ship fuel by rail, not the railroads themselves.

“Every tank car carrying crude or ethanol needs to be upgraded or replaced,” said railroad association spokesman Ed Greenberg.

Crude Oil, Emergency Readiness & Response, Evacuation, Explosion, Fire, Fracking

Massive Fracking Explosion in New Mexico, 36 Oil Tanks Catch Fire

Repost from EcoWatch
[Editor: More coverage: KRQE 13 News Albuquerque, and KOAT 7 News Albuquerque.  – RS]

Massive Fracking Explosion in New Mexico, 36 Oil Tanks Catch Fire

By Lorraine Chow, Jul 13, 2016

This week—as thousands of Americans urge awareness to the destruction caused by oil bomb trains—an oil field in San Juan County, New Mexico erupted in flames Monday night, highlighting the continued and increasing dangers of the fossil fuel industry.

The fire broke out around 10:15 p.m. Monday at a fracking site owned and operated by WPX Energy, setting off several explosions and temporarily closing the nearby Highway 550. Fifty-five local residents were forced out of their homes.

A photo of the fire before emergency response arrived on site.Kendra Pinto

The site—located in the Mancos shale deposit area and known as the 550 Corridor and a part of Greater Chaco Canyon—contains six new oil wells and 30 temporary oil storage tanks holding either oil or produced water. All 36 storage tanks caught fire and burned, the Tulsa, Oklahoma-based energy company said.

The site was still smoldering last night and, now, “only 7 of 36 tanks at production site on fire this morning,” the company tweeted.

“The fire is being allowed to burn itself out due to the intensity of the heat, the number of oil tanks involved and to contain petroleum fluids on WPX’s five-acre site, predominantly in the storage tankage,” WPX said.

According to Albuquerque news station KOAT, WPX stopped drilling for natural gas and oil in the area last May. The company had been producing for about a week before the fire broke out.

The cause of the fire is currently unclear. “We think that in the next couple of weeks to months, we will have that information and will be able to share that with the public,” WPX San Juan Asset Team manager, Heather Riley, told the news station.

There were no reported injuries or damage to nearby property. Most of the evacuees have returned home but 10 families are still lodged in a hotel, The Farmington Daily Times reported.

Environmental advocates are speaking out about the explosion.

“The site that exploded is a brand new facility that consists of six wells drilled to shale formations that have never been adequately analyzed for impacts and safety concerns.” Mike Eisenfeld, the Energy and Climate Program manager at the San Juan Citizens Alliance, told EcoWatch in an email.

WPX was given approval to develop the site from the New Mexico Oil Conservation Division in September. The U.S. Bureau of Land Management (BLM) Farmington Field Office gave final approval to drill the land in December.

“In a leap before looking scenario, the federal Bureau of Land Management in Farmington, New Mexico has allowed WPX to proceed with these shale facilities discounting the inherent danger that has now become clear with the explosion,” Eisenfeld said.

“This highlights the failure to have adequate safeguards in place to protect local communities and also raises serious questions about chemicals and toxicity associated with the explosion. Emergency response for this explosion was hours away. A thorough investigation is necessary. There should be a moratorium on these new wells until BLM completes a legally proficient Resource Management Plan Amendment/Environmental Impact Statement for the Mancos Shale/Gallup formations.”

The New Mexico environmental non-profit WildEarth Guardians noted in a statement to EcoWatch that the BLM Farmington Field Office has leased more than 90 percent of the lands it oversees to oil and gas companies and plans to auction off additional acres for fracking during the January 2017 lease sale. The office manages a total of 1.8 million acres of public land.

“Enough is enough,” Kendra Pinto, counselor chapter outreach intern, said. “It seems like every month we see more wells here, and things are going to get worse if the drilling doesn’t stop. At this rate, what will be left here for our children? The land has changed.”

WPX Energy has invested millions to drill into the tight shale formations in the San Juan Basin. The company has put in at least $160 million in developing oil plays in 2014 on its 60,000 leased acres, the Santa Fe New Mexican reported.

The rise of hydraulic fracturing has aided a U.S. energy boom but the environmental impact of the technology is under intense dispute, from polluting drinking water to earthquakes. Last year, WPX Energy itself came under scrutiny for failing to disclose how it is managing its impacts on communities and the local environment with its fracking operations.

“WPX Energy scored near the bottom of the industry in a recent scorecard report published by investors benchmarking 35 companies on their disclosed efforts to mitigate key impacts, and has faced controversy in the past over allegations that it irreparably contaminated local drinking water in Pennsylvania,” the advisory firm Green Century Funds wrote.

WPX Energy has defended its operations and even helped produce a glossy 26-minute documentary, Down Deep, as a way of “spreading the message that fracking is safe and necessary for the U.S. energy future,” Tulsa World wrote of the film.

Still, as WildEarth Guardians pointed out, the recent oil field explosion in San Juan serves as a sobering reminder of the urgent need to build safe, clean renewable energy in place of fossil fuels.

“I know people want jobs,” Samuel Sage, Wildlife Guardians counselor chapter community services coordinator, said. “But why must they come at the expense of our air, water, and climate? Many other places are building clean energy generation and creating well-paying jobs in the process. That is our future, not this dirty industry.”

“Unfortunately, this may be the tip of the iceberg,” Rebecca Sobel, senior climate and energy campaigner at WildEarth Guardians, said. “The Obama Administration has already leased more than 10 million acres of public land to oil and gas drilling, and BLM continues to lease more land in New Mexico to fracking interests without studying these impacts. How many more explosions and evacuations will it take before we seriously consider the cost of these dirty fossil fuel industries and simply end this leasing program?”