Tag Archives: Andres Soto

‘Bomb trains’: A crude awakening for Richmond, Calif.

Repost from Aljazeera America

‘Bomb trains’: A crude awakening for Richmond, Calif.

Local activists try to halt the shipment of explosive Bakken crude oil through their neighborhoods

 

RICHMOND, Calif. — The streets are quiet in Lipo Chanthanasak’s neighborhood on the outer edge of this city’s downtown core. Each of the small houses is painted a variation of beige and separated from the road by a neatly kept lawn, as if to highlight the scene’s utter normalcy. But half a mile west are the BNSF Railway tracks and the Kinder Morgan rail facility, which quietly began receiving trains of Bakken crude last year.

Chanthanasak, who moved to Richmond from Laos 24 years ago, lives within the potential blast zone should an oil train derail, according to an online map created by the environmental-advocacy group ForestEthics. The 70-year-old retiree says he only learned that crude was being transported through his community because of his involvement with the nonprofit Asian Pacific Environmental Network, or APEN. Many of his neighbors, he says, are unaware.

Since July 2013, when a train carrying Bakken crude from North Dakota derailed and exploded in Lac-Mégantic, Quebec, killing at least 42 people and flattening the town, major crude-by-rail accidents have occurred in Alabama, North Dakota, Minnesota, Pennsylvania, Virginia and Colorado. ForestEthics says that 25 million Americans live within an oil-train-evacuation zone. An elementary school, a public-housing project and an affluent, elderly community fall within Richmond’s zone, according to the advocacy group.

train bombs Richmond California
Bakken crude has been arriving since last year at the Richmond, California, train depot, pictured here. Google

The transport of crude by rail is not a new phenomenon, but it has increased significantly over the past few years. In the first half of this year, 229,798 carloads of crude were transported by rail, up from 9,500 carloads in all of 2008. The increase is largely connected to the development of the Bakken shale, oil-rich rock formation that lies beneath parts of the northern United States and Canada.

Compared with traditional forms of crude oil, Bakken crude has been shown to be much more volatile and more likely to explode in the event of derailment. Hence the rail cars’ nickname among activists: “bomb trains.” But apart from a code on the side of the cars, nothing about their appearance indicates their origins. Smooth and cylindrical, the black cars would be adorable, if only their contents weren’t so dangerous. Richmond’s Kinder Morgan facility, a rail yard containing very little except several tracks, is just as unassuming. The trains (100 to 120 cars hitched together, all carrying the same product) arrive here, where they are lined up in several rows, each waiting for their content to be pumped into tanker trucks (three tankers are required to hold the contents of a single railcar). The tankers are then thought to travel another 25 miles northeast to a Tesoro Corporation refinery in Martinez.

Previously, the Kinder Morgan facility receiving ethanol by rail. But in September 2013, after securing the necessary air-quality permit granted by the Bay Area Air Quality Management District (without the knowledge of its board), the facility quietly switched over to handling crude. By the time the community found out, in March 2014, through an investigative story by the local CBS station, KPIX, it was already too late. The lawsuit that the nonprofit group Earthjustice filed (on behalf of APEN and others) to halt operations at the terminal was dismissed by the Superior Court of San Francisco in September, because it had been filed after the 180-day deadline.

“It’s a catch-22,” says Andres Soto, an organizer for Communities for a Better Environment, one of the co-plaintiffs in the suit. “How can you even comment unless you knew that something had been done? We would’ve had to be going through public records on a regular basis to discover when they’re making these kinds of decisions.”

Richmond’s case is not unique: In June, a NuStar terminal in Vancouver, Washington, also received an air-quality permit to begin storing crude without public notification. Community resistance has, however, encouraged the Vancouver City Council to adopt an emergency six-month moratorium on new or expanded crude-by-rail facilities.

“It’s very rarely been the case that local representatives or city councils have questioned these things without being encouraged to by local citizens or by being forced to by local action groups,” said Lorne Stockman, research director at Oil Change International and author of two recent reports on the rise of crude-by-rail in North America. “The only way [the projects] have been challenged are because vigilant citizens have questioned them.”

The secrecy that has characterized the projects has been aided by the fact that, in many cases, their introduction requires very little new construction — none at all in the case of Kinder Morgan. That makes the projects virtually invisible. This is also why crude by rail has been economically viable, despite being slightly more costly than transport via pipelines. In addition, pipeline projects normally require 20- to 30-year contracts to recoup their capital investments. Therefore, because the Bakken oil boom is not expected to last, constructing new pipelines to service it often doesn’t make economic sense. Meanwhile, the Bakken region is already connected to the West Coast by existing rail infrastructure. With crude prices higher in the West Coast than elsewhere in the country, and a growing Asian market for North American crude, the transportation of crude by rail to the West Coast is likely to increase unless community resistance proves successful.

Wall Street Journal analyzes California fracking and crude-by-rail, discusses Valero Benicia plan, others

Repost from The Wall Street Journal
[Editor:  Following the money…  WSJ’s important analysis of refinery trends in California includes a brief discussion of current and proposed projects, including Valero Benicia, with quotes by Valero spokesperson Bill Day and Andrés Soto on behalf of Benicians For a Safe and Healthy Community.  Significant quote: “Opposition over safety has drawn out the permitting process in some cases, making some companies rethink their strategies. Valero Energy Corp. in March canceled plans to build an oil-train terminal near its Los Angeles refinery. But Valero still hopes to add a terminal to the company’s Benicia, Calif., plant, 35 miles northeast of San Francisco.   ¶“Every day that goes by that we’re not able to bring in lower cost North American oil, is another day that the Benicia refinery suffers competitively,” says spokesman Bill Day. The state last month asked Benicia for another safety review to better forecast the potential for derailments and other accidents.” – RS]

California Finally to Reap Fracking’s Riches

Crude-by-Rail From Bakken Shale Is Poised to Reverse State Refiners’ Rising Imports
By Alison Sider and Cassandra Sweet, Oct. 7, 2014
Tanker cars line up in Bakersfield, Calif., where Alon USA Energy recently received permission to build the state’s biggest oil-train terminal. The Bakersfield Californian/Associated Press

For the past decade, the U.S. shale boom has mostly passed by California, forcing oil refiners in the state to import expensive crude.

Now that’s changing as energy companies overcome opposition to forge ahead with rail depots that will get oil from North Dakota’s Bakken Shale.

Thanks in large measure to hydraulic fracturing, the U.S. has reduced oil imports from countries such as Iraq and Russia by 30% over the last decade. Yet in California, imports have shot up by a third to account for more than half the state’s oil supply.

“California refineries arguably have the most expensive crude slate in North America,” says David Hackett, president of energy consulting firm Stillwater Associates.

Part of the problem is that no major oil pipelines run across the Rocky Mountains connecting the state to fracking wells in the rest of the country. And building pipelines is a lengthy, expensive process.

Railroads are transporting a rising tide of low-price shale oil from North Dakota and elsewhere to the East and Gulf coasts, helping to keep a lid on prices for gasoline and other refined products.

Yet while California has enough track to carry in crude, the state doesn’t have enough terminals to unload the oil from tanker cars and transfer it to refineries on site or by pipeline or truck.

Just 500,000 barrels of oil a month, or 1% of California’s supply, moves by rail to the state today. New oil-train terminals by 2016 could draw that much in a day, if company proposals are successful.

Bakken oil since April has been about $15 a barrel cheaper than crude from Alaska and abroad, according to commodities-pricing service Platts. That would cover the $12 a barrel that it costs to ship North Dakota crude to California by rail, according to research firm Argus.

The state’s lengthy permitting process has contributed to the shortage of oil-train terminals. Some California lawmakers also want to impose fees on oil trains to pay for firefighting equipment and training to deal with derailments and explosions. And community and environmental activists have been waging war on oil trains. The dangers of carrying hazardous materials by rail were underscored Tuesday when a train carrying petroleum derailed in Canada.

But energy companies recently won two hard-fought victories that will pave the way for California to get more crude by rail.

Kern County officials last month gave Alon USA Energy Inc. permission to build the state’s biggest oil-train terminal. That project, which the company hopes to finish next year, is designed to receive 150,000 barrels of oil a day in Bakersfield, Calif., 110 miles north of Los Angeles.

The site was home to an asphalt refinery until 2012 when Alon shut it down because it struggled to turn a profit. Alon plans to reconfigure and restart the plant, but much of the oil transported there by train will move by pipeline to other companies’ refineries in California.

Plains All American Pipeline LP says it plans to open a 70,000-barrel-a-day oil-train terminal in Bakersfield this month.

And in northern California, a judge last month dismissed a lawsuit brought by environmental groups that challenged Kinder Morgan Inc.’s rail permits. The company is now receiving oil trains at a Richmond, Calif., terminal near San Francisco that was built to handle ethanol.

Opposition over safety has drawn out the permitting process in some cases, making some companies rethink their strategies. Valero Energy Corp. in March canceled plans to build an oil-train terminal near its Los Angeles refinery. But Valero still hopes to add a terminal to the company’s Benicia, Calif., plant, 35 miles northeast of San Francisco.

“Every day that goes by that we’re not able to bring in lower cost North American oil, is another day that the Benicia refinery suffers competitively,” says spokesman Bill Day. The state last month asked Benicia for another safety review to better forecast the potential for derailments and other accidents.

Several oil-train explosions in the last 15 months—including last year’s blast in Lac-Mégantic, Quebec, that killed 47 people—have struck fear in many residents along rail corridors.

“These railcars are not safe at any speed,” says Andrés Soto, a musician from Benicia who has helped organize campaigns against several oil-train projects. “We don’t see that there’s any way that they can actually make these projects fail-safe.”

Environmental-impact challenges have been one means that groups have used to delay oil trains.

Pittsburg, Calif., officials say WesPac Midstream LLC’s proposed oil-train terminal is on hold after the state attorney general asked for an expanded environmental review. The company is gathering answers for regulators and hopes to gain approval and start accepting oil trains at the site by late 2016, 40 miles east of San Francisco, a WesPac spokesman says.

Even if oil trains are kept off California tracks, more fracked crude still could flow to California. A 360,000-barrel-a-day oil-train terminal in Vancouver, Wash., aims to transfer North Dakota crude from tanker cars to barges that will sail the Columbia River about 100 miles northwest to the Pacific Ocean. From there, it is a quick trip down the coast to California ports.

That project also has faced stiff headwinds. Refiner Tesoro Corp. and transportation provider Savage Cos. were forced to postpone the start for the Vancouver terminal because of approval delays. While the governor hasn’t approved the project, the companies say they expect to be up and running next year.

KGO 810 Radio: Benicia Community Groups Oppose Oil-by-Rail Plan on Safety Grounds

Repost from KGO 810 Radio, The Bay Area’s News & Information Station
[Editor: the online text below has some misquotes.  The video is MUCH better.  Good interview comments by Andrés Soto of Benicians For a Safe and Healthy Community.  – RS

Benicia Community Groups Oppose Oil-by-Rail Plan on Safety Grounds

Railroad tracks (morguefile)

BENICIA (KGO) – The issue of rail safety is front-and-center in Solano County as officials consider a plan to allow oil-carrying trains to pass through the region.

The controversy surrounds a proposal by the Valero’s Benicia refinery. Refinery officials want to begin transporting crude oil to the city via railroad tanker car. The refinery currently receives crude by ship.

“We believe that it presents a clear and present danger to both the physical and economic futures[s] of the city,” says Andre Soto, a member of Benicians for a Safe and Healthy Community, one of several groups opposing the endeavor.

“Crude by rail, as delivered by the railroad companies right now, has a terrible record of catastrophic explosions, mostly due to derailment,” says Soto.

Solano County Supervisor Linda Seifert is hosting community meetings to discuss preparedness and response.

“The chances are [oil] is going to come through in greater quantities than [it] has in the past. Regulatory and schemes and ensuring that the public is safe is absolutely essential,” she says.

STOP Crude by Rail signs being stolen and vandalized in Benicia

Repost from Stop Crude By Rail on Facebook

Stop Crude By Rail yardsignStop Crude by Rail yard signs and posters are being stolen off of personal property and vandalized at a pretty high rate in Benicia. Pretty bad behavior. Police reports have been made and we will replace any signs that have been taken. We have also reported this to the Benicia City Council – here is the video of that report.

If you would like a replacement of your sign or a new yard sign, please email Benicians for a Safe and Healthy Community at info@SafeBenicia.org.

Andres Soto speaking at Benicia City Council, 2014-08-26
Click on photo to hear Mr. Soto addressing the City Council on vandalized signs at the August 26 Benicia City Council meeting.
Vandalized large wooden sign, West Military and Southampton, Benicia CA
Vandalized large wooden sign, West Military and Southampton, Benicia CA