SF CHRONICLE: Pits of drilling waste threaten water, air safety, report charges

Repost from the San Francisco Chronicle
[Editor: Significant quote: “The report says there are 790 active pits in California and that 60 percent of them have out-of-date permits or no permit at all. Monitoring of the pits, which allow toxic substances in the water to percolate into the ground, is inadequate, and regulations are ineffective, according to the report.”  – RS]

Pits of drilling waste threaten water, air safety, report charges

Dumped oil, gas byproduct hazardous, watchdog says
By Peter Fimrite, March 7, 2016
Traffic moves along the road as pumpjacks operate at the Kern River Oil Field in Bakersfield in this January 2015 file photo. Photo: Jae C. Hong, AP / AP
Traffic moves along the road as pumpjacks operate at the Kern River Oil Field in Bakersfield in this January 2015 file photo. Photo: Jae C. Hong, AP / AP

Hundreds of open pits containing toxic waste produced by oil and gas drilling are threatening groundwater in California, and regulators have failed to protect drinking and irrigation water supplies from the danger, an environmental watchdog group concludes in a report set to be released Monday.

Oil industry leaders deny that the pits, which are primarily in the Central Valley, have contaminated any groundwater. But the report by Clean Water Action argues that oversight of the waste is so flimsy that the state should immediately prohibit disposal of wastewater in the evaporation pits.

“The oil and gas industry continues to dump toxic wastewater into open waste pits, and that’s threatening, and potentially polluting, groundwater,” said the report’s author, Andrew Grinberg, the special projects coordinator for Clean Water Action, an Oakland nonprofit.

‘Highest standards’

“It’s appalling that the wealthiest industry in the history of civilization can’t deal with its wastewater in a more responsible way,” he said. “State regulators should prohibit this disposal method.”

The report says there are 790 active pits in California and that 60 percent of them have out-of-date permits or no permit at all. Monitoring of the pits, which allow toxic substances in the water to percolate into the ground, is inadequate, and regulations are ineffective, according to the report.

Catherine Reheis-Boyd, president of the Western States Petroleum Association, said the report’s findings were “simply false.”

She said water disposal practices are monitored and tested by multiple state and local agencies, including the State Department of Conservation, the State Water Resources Control Board and local water quality boards.

“California’s energy producers operate under the nation’s most rigorous laws and regulations, which ensure transparency, accountability and the highest standards,” Reheis-Boyd said. “We outright reject these allegations and rely upon scientific data and our safety record to demonstrate the safe manner in which we operate every day.”

Disposal of oil and gas drilling wastewater is a big issue in the Sacramento and San Joaquin valleys, where most of California’s petroleum production takes place. Kern County is the top oil-producing area in the state, but disposal of waste is also a concern in parts of Los Angeles and Santa Barbara counties, which have been major oil producers since the early 1900s, when the demand for gasoline began growing.

Oil drillers suck up 15 barrels of water for every barrel of oil they reap. If the water is clean enough, it can be treated and used for irrigation, but most of it contains salt, boron, petroleum and other toxic substances that can poison groundwater and kill birds.

The recommended way to get rid of it is to inject it into the ground, preferably into the oil-bearing formation or deep enough so that it won’t seep into an aquifer. For many years, though, standard practice was to dump the water into a pit so that it would evaporate or percolate into the ground. Grinberg said many permits were issued for the pits in the 1950s and 1960s.

No toxic substances found

The report highlighted contamination near disposal facilities known as Racetrack Hills and Fee 34 east of Bakersfield, with a plume of wastewater spreading into an aquifer that supplies irrigation wells and flows into a tributary of the Kern River, a source of drinking water. However, toxic substances have not been detected in drinking water or in wells.

Air monitoring around a western Kern County pond known as the McKittrick Pit detected elevated levels of methane and the compounds benzene and hexanone, according to the report.

“Every year since 1990 it was monitored and inspectors saw it was in violation, but there was no enforcement action,” Grinberg said of McKittrick, adding that the California Air Resources Board is developing plans to monitor air emissions around open pits.

Clay Rodgers, assistant executive officer of the Central Valley Regional Water Quality Control Board in Fresno, said operators of both the Racetrack and McKittrick pits have been ordered to expand their monitoring.

“We’re looking at it closely to evaluate whether that series of pits is appropriate,” Rodgers said, explaining that evaporation ponds have gone out of favor in the past two decades. “A lot of these pits have closed down, and now most of the water is disposed of through underground injection.”

In a 2014 report, Clean Water Action presented evidence that the pit technique threatened groundwater and air quality. The state and regional water quality control boards have since stepped up research and enforcement, which the new report noted.

California lawmakers have passed legislation in recent years compelling operators to monitor their wastewater pits and report their findings to the state. Open-pit disposal was also prohibited in hydraulic fracturing operations, known as fracking.

Inaction charged

Grinberg said that while progress has been made, the regional water quality boards are still allowing discharges that threaten groundwater. The Central Valley board has failed to close facilities with open pits or punish companies with no permits, he said.

The report being released Monday also says no studies have been done on 2,074 inactive pits dating back to 1990 that the state has in its inventory, and that the records on these pits are incomplete. Over the past year, Grinberg said, 50 previously undocumented pits have been identified.

“The more they look, the more they are finding,” he said. “This is one negative aspect of oil production. Putting groundwater at additional risk is potentially catastrophic. These polluting activities we don’t believe are worth it, especially during a drought.”

Sacramento: Oil firms challenge state over clean fuel

Repost from SFGate

Clean fuels shaping up as fight of the year in Sacramento

New battle lines drawn in fight over low-carbon policy
By Laurel Rosenhall, CALmatters, Mar 5, 2016 Updated: 3/6/16 3:33pm
A pending fight over low-carbon fuel standards could hinge on how they affect the state’s cap-and-trade system for carbon emissions. Photo: Ted S. Warren, AP
A pending fight over low-carbon fuel standards could hinge on how they affect the state’s cap-and-trade system for carbon emissions. Photo: Ted S. Warren, AP

A Harvard economist known globally for his work on climate change policy sat in the Sacramento office of the oil industry’s lobbying firm recently, making the case that California is fighting global warming the wrong way.

The state has a good cap and trade system, Robert Stavins said, but some of its other environmental policies are weakening it. He pointed to a rule known as the low carbon fuel standard, which is supposed to increase production of clean fuels.

Environmental advocates consider it a complement to the cap and trade program that makes industry pay for emitting carbon; Stavins had other words.

“It’s contradictory. It’s counter-productive. It’s perverse,” he said. “I would recommend eliminating it.”

California’s low carbon fuel policy is shaping up as a major fight this year for the state’s oil industry, an influential behemoth that spent more than $10.9 million lobbying Sacramento last year, more than any other interest group.

“There’s a storm coming,” biofuels lobbyist Chris Hessler told a roomful of clean energy advocates at a recent conference on low carbon fuels. “If we don’t meet this attack vigorously, we’re all going to be in a lot of trouble.”

NEW BATTLE LINES

The oil industry was front and center in the biggest fight to hit the state Capitol last year: a proposal to cut California’s petroleum consumption in half over the next 15 years to slow the pace of climate change. The industry won its battle when lawmakers stripped the oil provision from Senate Bill 350.

But California’s larger oil war is far from over, and the newest battle lines are beginning to emerge.

Gov. Jerry Brown is plowing ahead with plans to cut vehicle oil use in half through executive orders and regulations like the low carbon fuel standard. The standard requires producers to cut the carbon intensity of their fuels 10 percent by 2020. To reach the standard, refineries will have to make a blend that uses more alternative fuels — like ethanol — and less oil.

The program was adopted in 2009 but was locked in a court battle for years. California regulators prevailed, and took action last year to resume the program. Now producers must start changing the way they formulate their fuel or buy credits if their product is over the limit.

That’s led to higher costs for fuel makers, which they are passing on to consumers at a rate of about 4 cents per gallon, according to the California Energy Commission. But the price is likely to keep increasing, the oil industry warns, as it gets tougher to meet the standard that increases over time.

Which is where Stavins’ argument comes in. It goes like this: the cleaner fuels required by the low carbon fuel standard will emit less greenhouse gas. That will reduce the need for fuel producers to buy permits in the cap and trade system (which makes industry pay for emitting climate-warming pollution) and create additional emissions by allowing other manufacturers to buy the pollution permits.

Less demand will also depress prices on the cap and trade market.

Stavins is the director of Harvard’s Environmental Economics Program and part of the Intergovernmental Panel on Climate Change, a prestigious group of experts who review research for the United Nations.

He’s also an advisor to the Western States Petroleum Association, which paid him to make the trip to Sacramento, where he talked with reporters before a day of meetings with lawmakers and business leaders.

Environmental advocates and California clean air regulators reject his view. They say the fuel standard works in harmony with other carbon-reducing programs and it’s an important piece of California’s effort to achieve its climate change goals.

“One of the major goals of the low carbon fuel standard… is to drive innovation of new and alternative low carbon fuels,” said Stanley Young, spokesman for the California Air Resources Board. “The cap and trade program on its own cannot do that.”

Alternative fuel producers gathered in a ballroom near the Capitol days after Stavins’ visit to Sacramento. During a presentation on the rising price of low carbon fuel credits, Hessler, the biofuels lobbyist, warned that the program is coming under “political attack.”

He defended the fuel standard by saying the regulation limits the price of the credits, and the cost to consumers will be kept down as some fuel producers make money by selling credits to others. He urged conference participants to share his information with California policymakers to counter opposition to the low carbon fuel standard.

“We’ve got to be ready for this,” Hessler said.

HOW THINGS COULD GO DOWN

A fight last year over a low carbon fuel standard in the state of Washington may provide some clues about how things could go down here.

There, Democratic Gov. Jay Inslee proposed a low carbon fuel standard but failed to earn enough support for it in the Legislature. The fuel standard became a bargaining chip for Republicans in negotiations about funding for transportation infrastructure.

Here in California, lawmakers and Gov. Brown are also negotiating a plan to pay for a backlog of repairs to state roads and highways. Brown has pitched spending $36 billion over the next decade with a mix of taxes and other revenue sources.

Republican votes are necessary to reach the two-thirds threshold for approving new taxes. So far, Republicans have balked at the plan, with some suggesting that the fuel standard should be included in the negotiations.

“As we’re having the discussions about transportation funding in general in California, and transportation taxes in particular, this ought to be part of the discussion,” said Assemblyman Jay Obernolte, R-Hesperia.

It’s a message echoed by the president of the Western States Petroleum Association, which advocated against the low carbon fuel standard in Washington.

Catherine Reheis-Boyd said she wants California lawmakers to “take a very hard look” at the low carbon fuel standard as they consider the future of climate change policies and the desire to repair the state’s roads.

“All those things interplay,” Reheis-Boyd said. “That’s a big conversation. I think people across the state are willing to have it, and I think we’re at a pivotal point to have it this year.”

CALmatters is a nonprofit journalism venture dedicated to explaining state policies and politics. For more news analysis by Laurel Rosenhall go to https://calmatters.org/newsanalysis/.

Explosion rocks refinery in Texas, injuring one

Repost from ABC13 KTRK-TV, Houston TX

Explosion rocks refinery in Pasadena, injuring one

By Deborah Wrigley, Saturday, March 05, 2016 11:06PM


PASADENA, TX (KTRK) — One person was burned after an explosion at a Pasadena refinery Saturday morning.

Officials at Pasadena Refining Systems, Inc., say the fire began around 10:15am at their refinery off SH 225 and Lawndale Street.

The victim suffered burns to his hands.

Residents in the area told abc13 they felt a powerful blast right before flames began to rise from the plant.

A spokesperson says it all started with an issue involving a compressor. A fire quickly broke out, with burning diesel fuel sending huge plumes of black smoke into the air.

The refinery has their own firefighters, who were able to put out the blaze. Pasadena Police and fire are on standby to assist. The fire was able to be contained and air monitoring indicated no issues.

Drivers and bystanders tell Eyewitness News they could see the smoke miles away from the site of the fire.

The Washburn tunnel was closed by authorities after the explosion.

Viewer photo from the explosion at Pasadena Refining System off SH 225
Viewer photo from the explosion at Pasadena Refining System off SH 225.

According to the Environmental Protection Agency, the plant has a history of ‘significant violations’ of the U.S. Clean Air Act, and was assessed $1,143,000 in fines because of these violations.

A complaint was filed against the company for failure to follow regulations in connection with the storage of a motor vehicle and engine fuels. The company also paid $2,000 in fines for this in August 2014.

The plant is known to store several chemicals, including Ammonia, Benzene, Ethylene, Hydrogen Cyanide, N-Hexane, Propylene, and Sulfuric Acid.

According to the EPA, there are 20,901 households in the area around the plant, and 24,484 children also live in the area.

Berkeley report finds overwhelming opposition to project that would bring crude-by-rail through Bay Area cities

Repost from the Contra Costa Times

Report finds overwhelming opposition to project that would bring crude-by-rail through Bay Area cities

By Tom Lochner, 03/04/2016 04:44:34 AM PST

Berkeley report on SLO hearingsBERKELEY — A crude-by-rail project in Central California that could bring up to five trains a week through Berkeley and other East Bay shoreline cities has garnered overwhelming opposition among local politicians and the public, an observer for the city reports.

Ray Yep, a member of the Public Works Commission working with Councilwoman Linda Maio, represented Berkeley at hearings before the San Luis Obispo County Planning Commission last month on the Phillips 66 Rail Spur Project. The proposal calls for bringing out-of-state crude oil, likely the tar sands variety, to the Phillips 66 Santa Maria refinery via 80-car trains, via a 1.3-mile spur that would connect the refinery with the Union Pacific mainline.

Possible access routes to the refinery from outside the area would be from the south via the Los Angeles Basin, and from the north via the East Bay and South Bay along Amtrak’s Capitol Corridor tracks.

As early as 2014, the Berkeley and Richmond city councils voted to oppose the transport of crude oil through the East Bay.

Hearings were held Feb. 4 and 5, with at least one more hearing before the planning commission votes on the project. The next hearing is 9 a.m. March 11.

At the Feb. 4 hearing, the county staff gave a presentation, ending with a recommendation to deny the project. A county attorney followed with a discussion of federal pre-emption, characterizing it as a “gray area,” according to the Berkeley report.

Phillips 66 has challenged the county’s standing to evaluate Union Pacific mainline issues — including possible effects on the communities it traverses. In an ensuing presentation, the company held that mainline issues fall under federal regulations, the Berkeley report noted.

Phillips 66 said the rail spur project is needed because of declining of oil production in California, and that it would keep the refinery in operation and provide local jobs and taxes, according to the Berkeley report. The company declared willingness to reduce the volume of trains to three per week, which critics have derided as a tactic to facilitate approval without addressing the danger of fire, explosion and pollution.

Without approval of the rail spur project, 100 trucks would transport crude oil daily from Kern County to the Santa Maria refinery, according to the report.

About 300 people submitted speaker cards at the Feb. 4 hearing and 69 spoke that day, from as far away as Crockett, Davis and Sacramento, according to the Berkeley report. Some 430 speaker cards were submitted at the Feb. 5 hearing.

The report noted that 17 elected officials spoke, all but one against the project.

Maio is expected to present the report to the City Council on Tuesday. It is available online at bit.ly/1QsQL6w.