Bakken Crude, Crude By Rail, Earthjustice, Local Regulation, McClellan Business Park, Sacramento Metropolitan Air Quality Management District, Tank car design, Truck transport

Sacramento Bee: Sacramento crude oil transfers halted; air quality official says permit was granted in error

Repost from The Sacramento Bee

Sacramento crude oil transfers halted; air quality official says permit was granted in error

By Tony Bizjak and Curtis Tate, 10/22/2014
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March.
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March. Randall Benton

A Sacramento fuel distributor has agreed to stop unloading train shipments of crude oil at McClellan Business Park after the county’s top air quality official said his agency mistakenly skirted the state’s environmental rules by issuing a permit for the operation.

InterState Oil Co. said in a letter Wednesday to the Sacramento Metropolitan Air Quality District that as of Nov. 7 it will no longer use McClellan as a transfer station for crude oil shipments to the Bay Area.

The move settles a lawsuit filed in September by EarthJustice, a San Francisco-based environmental group, that contended the Sacramento air quality district should not have granted InterState Oil a permit to transfer crude oil from trains to tanker trucks bound for Bay Area oil refineries without a full environmental impact review.

Air district head Larry Greene now says a full review was, in fact, required by the California Environmental Quality Act.

“We made an error when the permit was developed, and it should have gone to full CEQA review,” Greene said Wednesday. “We have notified (InterState) and the environmental group to that effect. InterState is voluntarily giving that permit back.”

Greene said InterState will continue other transfer operations at its McClellan site, including transfers of ethanol.

It is unclear whether the company will apply for a new permit to load crude oil. Its representatives did not respond to a request for comment.

A lawyer for EarthJustice called this a major victory in the group’s fight against potentially unsafe oil shipments.

“It signals that industry and government may not benefit from a lack of transparency and play dice with lives of people who live along the paths of these dangerous oil trains,” attorney Suma Peesapati said. “This is the first crude transfer project that has been stopped dead in its tracks in California.”

The reversal by the Sacramento air quality district could bolster efforts by environmental groups to slow or stop crude oil projects on rail lines elsewhere, particularly in Washington state. A proposed terminal in Vancouver, Wash., would transfer oil from trains to tanker ships that could supply California refineries.

Patti Goldman, a managing attorney in the Seattle office of EarthJustice, said the decision sounded “a wake-up call” for permitting authorities to consider community input.

“We have been seeing local authorities blindly approve crude-by-rail projects without being open with the public and without considering the full effects,” she said.

The McClellan operation is relatively small compared with the kind of crude oil train terminals now proposed elsewhere in California. One, in southwestern Kern County in the southern Central Valley, will be able to receive one 100-car train full of of crude oil each day; the McClellan facility was permitted to unload a similar amount once every two weeks.

The Kern facility, which could begin operating this month, was already zoned for transfer operations, and required no new environmental reviews or public comments.

In September, the Kern County Board of Supervisors approved a separate facility at a Bakersfield refinery that could receive two trains a day. EarthJustice sued the board earlier this month, contending that Kern’s environmental review was inadequate.

Environmental groups lost a legal fight in the Bay Area city of Richmond, where a terminal operated by pipeline company Kinder Morgan unloads crude oil from trains to trucks that take it to local refineries. A judge rejected the lawsuit in September, ruling that the six-month statute of limitations had expired. That project involves 100-car oil trains that come through midtown Sacramento.

Another proposed oil-train terminal at the Phillips 66 refinery in Santa Maria could mean even more of the cargo passing through Sacramento.

A Sacramento Bee story in March revealed the existence of the McClellan operation to a number of surprised local officials, including the head of the county Office of Emergency Management and the chiefs of the Sacramento city and Metropolitan fire departments. It noted that InterState began handling crude oil last year without obtaining a permit.

Some of the crude unloaded at McClellan may have originated in North Dakota’s Bakken region. That type of oil, extracted through hydraulic fracturing, has been under increased scrutiny since a July 2013 derailment killed 47 people in Lac-Megantic, Quebec.

That accident and a series of fiery derailments since then have prompted the rail industry and its federal regulators to take steps to improve track conditions and operating practices. A stronger construction standard for tank cars used to ship flammable liquids is being finalized by the U.S. Department of Transportation.

The California Energy Commission projects that the state could receive more than 20percent of its petroleum supply by rail in the next two years. State emergency officials and fire departments have said they don’t feel they are prepared to handle a major explosion from a derailment.

Earlier this month, BNSF Railway and Union Pacific sued California over a state law that requires railroads to develop oil spill prevention and response plans. The railroads argue that only the federal government has the power to regulate them.

California Attorney General Kamala Harris, California Environmental Quality Act (CEQA), Disclosure of tank car contents, Draft EIR, Federal Regulation (U.S.), Hazardous cargo transparency, Hazmat notification, State regulation, Valero Crude By Rail, Valero Energy Corporation

Bloomberg: California AG Rejects Trade-Secret Claims for Crude-by-Rail

Repost from Bloomberg News

California AG Rejects Trade-Secret Claims for Crude-by-Rail

By Victoria Slind-Flor, Oct 22, 2014

California Attorney General Kamala Harris expressed reservations about the trade-secret provisions in a proposal for a crude-by-rail project in Benicia, California.

In a letter to the city’s Community Development Department, she said the draft environmental impact report for San Antonio-based Valero Energy Corp. (VLO)’s project “frustrates” the California Environmental Quality Act by not disclosing information about which particular crude oil feedstocks would be delivered in as many as 100 tank cars a day.

She said the missing information includes the weight, sulfur content, vapor pressure and acidity of the crude oil feedstocks, information she said is “critical for an adequate analysis” of the effects of the project on public safety and air quality.

Harris said the California governor’s Office of Emergency Services and the state Transportation Department determined that information about the specific characteristics of the crude moved by rail “are not protected trade secrets and should be publicly released.”

The attorney general said these issues “must be addressed and corrected” before the City Council of Benicia takes action on the draft environmental impact report.

Benicia, a city of about 27,000, is on the edge of the Carquinez Strait emptying into San Francisco Bay.

Bay Area Refineries, BNSF Railway, Bridge safety, Derailment, Federal Regulation (U.S.), Rail inspection, Tank car design, Union Pacific Railroad

KQED: As More Crude Oil Rolls In, a Push for Better Track Inspection

Repost from KQED Science
[Editor: Excellent Mina Kim audio interview with Tony Bizjak below.  New information on Union Pacific derailment frequency, bridge inspection and other issues.  – RS]

As More Crude Oil Rolls In, a Push for Better Track Inspection

By Mina Kim and Molly Samuel | KQED Science | October 22, 2014 
Union Pacific owns the tracks that would deliver crude oil to the Valero refinery in Benicia. (Deborah Svoboda/KQED)
Union Pacific owns the tracks that would deliver crude oil to the Valero refinery in Benicia. (Deborah Svoboda/KQED)

Shipments of crude oil by rail are expected to increase in the Bay Area and the rest of the state in the near future. BNSF Railways is already transporting crude oil into Richmond, including the kind of oil that exploded from a derailment and killed 47 people in a Quebec town last year.

In response to concerns about the risks of crude by rail, the state’s other large rail company, Union Pacific, began to boost its rail inspection program by dispatching vehicles with lasers that can find tiny track imperfections, as the Sacramento Bee reports:

The new cars will patrol the main mountain routes into the state, Union Pacific officials said. Northern California sites will include Donner Pass, the Feather River Canyon and grades outside Dunsmuir. The state has designated all those areas high hazards for derailments.

The Bee’s Tony Bizjack spoke with Mina Kim about the program, which began last month. Bizjack explained that Union Pacific is particularly worried about California’s mountain passes because they’re considered more high-hazard areas, “often because they’re curving, they’re on slopes, and they have to deal with more extreme weather,” he said.

Bizjak rode on one of the track inspection vehicles. He said they’re equipped with ultrasound to look into the rails to find weaknesses and lasers to measure variations in rail height and alignment.

In the last five years, Union Pacific has had about 180 derailments in California, Bizjack said. “Derailments are surprisingly frequent, but generally very minor,” he said. “Most of those derailments, however, the train cars ended up standing up, not falling over.”

About half of all derailments are caused by track problems, said Bizjack. Others are caused by human and equipments errors. “So tracks are important, that’s sort of the front-line of defense — PUC and FRA think — in reducing the chance these new crude oil shipments can derail, explode.”

Union Pacific is not yet bringing volatile Bakken crude to California. But there are plans in the works for Union Pacific to bring crude oil both to and through the Bay Area, Bizjak explains. A project at the Valero refinery in Benicia would bring two 50-car trains a day through Sacramento and along the I-80 corridor. Another proposal in Santa Maria, by Phillips 66, would bring trains through Sacramento, the East Bay, San Jose and down the coast.

“If you ask anybody in the Office of Emergency Services here in California, or first responders, fire departments, there is a real level of concern about the safety with more crude oil coming in,” Bizjak said.

Bakken Crude, Crude By Rail, Rail inspection, Union Pacific Railroad

Union Pacific boosts rail inspections in high-hazard mountain passes

Repost from The Sacramento Bee
[Editor: See video of reporter Tony Bizjak’s ride on the inspection car here.  – RS]

Union Pacific boosts rail inspections in high-hazard mountain passes

By Tony Bizjak, 10/19/2014
Mike Stoddard oversees the operation of Union Pacific Railroad’s EC-4 as it makes its way out of the Roseville yard on Oct. 6 in Roseville. The EC-4 is a 96-ton, 82-foot-long rolling track inspection car which travels 800-1500 miles a week making sure that heavily used railroad tracks are in good working order.
Mike Stoddard oversees the operation of Union Pacific Railroad’s EC-4 as it makes its way out of the Roseville yard on Oct. 6 in Roseville. The EC-4 is a 96-ton, 82-foot-long rolling track inspection car which travels 800-1500 miles a week making sure that heavily used railroad tracks are in good working order. Randy Pench

Faced with public concern about the risks of crude oil shipments, the Union Pacific railroad last month boosted its rail inspection program on mountain passes in California and the West, dispatching high-tech vehicles with lasers to check tracks for imperfections.

UP officials say they have leased two rail inspection vehicles, called geometry cars, doubling the number of computer-based safety cars in use on the company’s tracks. The move comes amid mounting public concern about hazardous-material shipments, including a growing quantity of highly flammable crude oil from North Dakota being shipped to West Coast refineries.

The inspection cars will supplement similar geometry cars UP owns that it uses to inspect hundreds of miles of tracks daily on the company’s main lines west of the Mississippi River. Running at regular train speeds, the inspection vehicles can detect tiny deviations and wear on rail lines that could cause a derailment if allowed to grow, UP officials said.

The new cars will patrol the main mountain routes into the state, UP officials said. Northern California sites will include Donner Pass, the Feather River Canyon and grades outside Dunsmuir. The state has designated all those areas high hazards for derailments.

In Southern California, the inspection vehicles will patrol UP’s looping line over the Tehachapi Mountains, as well as the line on the Cuesta grade in San Luis Obispo County. The trains also will check mountain rails in Washington, Oregon, Utah and Nevada.

“We’re ensuring we keep crude oil trains on the track,” said David Wickersham, UP’s chief maintenance engineer in the West. “We are going to time it so we are hitting California every three months.”

State rail safety chief Paul King of the California Public Utilities Commission applauded the move. “It’s easy to maintain a straight (flat) railroad, but it’s not as easy to maintain a curved rail like you find in the mountains,” King said.

Grady Cothen, a retired Federal Railroad Administration safety official, said the type of high-tech inspections cars UP is using have become a must for major railroad companies. With more freight moving through limited rail corridors, especially mountains, the financial and political implications of a major derailment that causes damage are huge for railroads.

For safe and healthy communities…