Tag Archives: Crude by Rail

New York Times: Where Oil and Politics Mix (Part 2)

Repost from The New York Times
[Editor:  Part 2 in a series (See Part 1).  This is an INCREDIBLE expose of political corruption and a masterful portrayal of the transformation taking place in North Dakota, where residents and business people are losing confidence in the oil boom promises they once embraced.  Due to it’s GORGEOUS and informative interactive imagery, the Benicia Independent can only repost the beginning of this lengthy and immersive article.  Get started here, then click on MORE.  – RS]

Where Oil and Politics Mix

After an unusual land deal, a giant spill and a tanker-train explosion, anxiety began to ripple across the North Dakota prairie.
By DEBORAH SONTAG, NOV. 23, 2014

NYT_Where-oil-and-politics-mix(675)TIOGA, N.D. — In late June, as black and gold balloons bobbed above black and gold tables with oil-rig centerpieces, the theme song from “Dallas” warmed up the crowd for the “One Million Barrels, One Million Thanks” celebration.

The mood was giddy. Halliburton served barbecued crawfish from Louisiana. A commemorative firearms dealer hawked a “one-million barrel” shotgun emblazoned with the slogan “Oil Can!” Mrs. North Dakota, in banner and crown, posed for pictures. The Texas Flying Legends performed an airshow backlit by a leaping flare of burning gas. And Gov. Jack Dalrymple was the featured guest.

Traveling through the “economically struggling” nation, Mr. Dalrymple told the crowd, he encountered many people who asked, “Jack, what the heck are you doing out there in North Dakota?” to create the fastest-growing economy, lowest unemployment rate and (according to one survey) happiest population.

Gov. Jack Dalrymple with Janelle Steinberg, Mrs. North Dakota, at a celebration in Tioga in June for reaching a milestone: one million daily barrels of oil. | Paul Flessland
 

“And I enjoy explaining to them, ‘Yes, the oil boom is a big, big help,’ ” he said.

Outsiders, he explained, simply need to be educated out of their fear of fracking: “There is a way to explain it that really relaxes people, that makes them understand this is not a dangerous thing that we’re doing out here, that it’s really very well managed and very safe and really the key to the future of not only North Dakota but really our entire nation.”

Tioga, population 3,000, welcomed North Dakota’s first well in 1951, more than a half-century before hydraulic fracturing liberated the “tight oil” trapped in the Bakken shale formation. So it was fitting that Tioga ring in the daily production milestone that had ushered the Bakken into the rarefied company of historic oil fields worldwide.

But Tioga also claims another record: what is considered the largest on-land oil spill in recent American history. And only Brenda Jorgenson, 61, who attended “to hear what does not get said,” mentioned that one, sotto voce.

The million-barrel bash was devoid of protesters save for Ms. Jorgenson, a tall, slender grandmother who has two wells at her driveway’s end and three jars in her refrigerator containing blackened water that she said came from her faucet during the fracking process. She did not, however, utter a contrary word.

“I’m not that brave (or stupid) to protest among that,” she said in an email afterward. “I’ve said it before: we’re outgunned, outnumbered and out-suited.”

North Dakotans do not like to make a fuss. Until recently, those few who dared to challenge the brisk pace of oil development, the perceived laxity of government oversight or the despoliation of farmland were treated as killjoys. They were ignored, ridiculed, threatened, and paid settlements in exchange for silence.

But over the past year and some, the dynamic seemed to be shifting.

Satellite photos of western North Dakota at night, aglitter like a metropolis with lighted rigs and burning flares, crystallized its rapid transformation from tight-knit agricultural society to semi-industrialized oil powerhouse. Proposals to drill near historic places generated heated opposition. The giant oil spill in Tioga in September 2013 frightened people, as did the explosion months later of a derailed oil train, which sent black smoke mushrooming over a snowy plain.

The engine of an oil train that derailed and exploded in a collision near the governor’s hometown, Casselton, in December 2013. | Jim Wilson/The New York Times

Then, this year, North Dakotans learned of discovery after discovery of illegally dumped oil filter socks, the “used condoms” of the oil industry, which contain radiation dislodged from deep underground.

Suddenly a percolating anxiety came uncorked. “The worm is turning,” Timothy Q. Purdon, the United States attorney, said in April.

It was against this backdrop that on a brisk spring day David Schwalbe, a retired rancher, and his wife, Ellen Chaffee, a former university president, walked headlong into the wind on their way to an F.B.I. office in Fargo….  [Editor:  MORE – click here to continue – GREAT INTERACTIVE GRAPHICS, DON’T MISS THIS – RS]

Washington Governor Inslee says state will act on oil trains

Repost from The Olympian, Olympia Washington

Inslee says state will act on oil trains

By Andy Hobbs, November 21, 2014
Representatives from Washington and Oregon gather at Olympia City Hall for the Safe Energy Leadership Alliance summit on Friday, Nov. 21, 2014. TONY OVERMAN

The number of oil trains running across Washington is unacceptable, and the Legislature will consider bills in the upcoming session that mandate advance notification of oil shipments by rail as well as more funding for railroad crossings and emergency response training, Gov. Jay Inslee said Friday.

King County Executive Dow Constantine added that oil companies are raking in profits while “the rest of us are picking up the costs.”

“Those who are profiting should shoulder the financial burden,” Constantine said.

They were speaking to the Safe Energy Leadership Alliance that met Friday at Olympia City Hall to address the surge of oil and coal trains passing through Washington.

The alliance is a coalition of local, state and tribal leaders from the Northwest who say the trains threaten the environment, economy and public safety.

As shipments of oil increase in the Puget Sound region, so does the likelihood for spills and accidents. The Department of Ecology reports that 19 fully loaded oil trains crisscross the state every week, with the number expected to reach 59 oil trains if current refinery proposals are approved. Each train hauls about 3 million gallons of crude oil in 100 tanker cars. Between 11 and 16 trains pass through rural and suburban areas of Thurston and Pierce counties every week, according to reports from BNSF Railway.

Participants in Friday’s meeting included elected officials from across the state along with Oregon and Canada.

“It is clear that we have to take significant action including being better prepared to handle an oil train explosion or large scale spill,” Inslee said.

Although the federal government is the main regulator of the railroads, Inslee said there are some actions the state can take now, such as lowering speed limits of the trains.

“We don’t want vehicles speeding through school zones, and we shouldn’t let oil trains speed through Washington cities,” said Inslee, noting that changes in state permits are at least a year away.

Friday’s meeting included a detailed report on the coal industry by Tom Sanzillo, finance director of the Institute for Energy Economic and Financial Analysis. Sanzillo encouraged states and cities to keep putting pressure on the coal industry, which has seen demand and prices decline worldwide in the past few years.

“The U.S. coal industry is shrinking,” said Sanzillo, adding that the industry needs “robust growth” to meet its potential and compete in the global market despite record demand for coal by nations like China. “Hooking your wagon to the coal industry is not a particularly promising outlook right now.”

At the local level, Olympia Mayor Stephen Buxbaum said the City Council will seek a resolution next week to add Olympia to the list of cities that oppose the increase in crude oil transport.

“We are at a crossroads,” Buxbaum said Friday. “We could see up to 60 trains a day and 4,000 supertankers in our waters.”

As for the coal issue, Buxbaum recently co-authored a guest column titled “You might be surprised by Puget Sound Energy’s coal power supply” that ran Nov. 19 in The Seattle Times. Also signing the article were Bainbridge Island Mayor Anne Blair and Mercer Island Mayor Bruce Bassett, and all three mayors’ respective city councils endorsed it.

The article urges Puget Sound Energy to take immediate action and plan for a “post-coal future.” About one-third of PSE’s power supply comes from coal that’s shipped from out of state, according to the article. The mayors also cite Gov. Inslee’s recent executive order to reduce pollution and transition away from coal power.

“The bottom line is that we don’t need coal,” the article states. “The potential is there for Washington to meet its energy needs with efficiency programs, wind, solar and other technologies. We just need to rise to the occasion.”

 

Weekly News Roundup – October 21, 2014

benindylogo08a(150px)[Editor:  Crude-by-rail news was a tiny dot on the national media map when I started covering it last January.  The dot has ballooned, and I can no longer keep up.  This Weekly News Roundup will allow me to post a larger number of links (see below) without taking time to upload full postings and commentary.  A smaller number of individual stories will still warrant their own posting, so check out the Recent Posts column at left.  This is an experiment – I’ll hope to do this every week for awhile.  Let me know if you like this – or don’t.  – Roger Straw, rogrmail at gmail dot com]

Valero: The Refiner To Weather The Oil Price Storm
Seeking Alpha, Nov. 20, 2014
Investors are looking for good stocks to weather the oil price storm and Valero is a good pick for this purpose….When compared to its competitors, Valero competes well with comparable fundamental metrics and is significantly undervalued when compared to its peers. …

Lawyer: Benicia mayor rail views may conflict
Argus Media, 20 Nov 2014
Statements and communications by Benicia’s mayor could lead a court to invalidate the California city’s deliberations on a proposed railed crude offloading project, an attorney for the city has warned.
(See additional articles on this subject, and download the attorney opinions here on The Benicia Independent.)

Davis voices concerns over new oil-by-rail proposal
The Davis Enterprise, November 21, 2014
Uprail residents have until Monday at 4:30 p.m. to send comments on the Phillips 66 Rail Spur Extension Project at the Santa Maria refinery in San Luis Obispo County. Letters may be sent to Murry Wilson at P66-railspur-comments@co.slo.ca.us.

Guest column: Addressing the unacceptable risks from Bakken crude-oil trains
The Seattle Times, November 19, 2014
The risk of oil spills is too great to proceed so quickly with plans for expanded crude oil rail transportation throughout Puget Sound and Washington state, writes guest columnists Peter Goldmark and 10 tribal leaders.

What Happened When a Hazardous Substance Train Derailed on a Puget Sound Beach
Sightline.org, November 21, 2014
True story from 2011 raises questions about railroad’s ability to manage oil trains….

First responders learn how to handle railroad tank car accidents
NJ.com, November 19, 2014
Crude oil from North Dakota shipped by train wasn’t a major safety issue until the catastrophic derailment and explosion of a train of 80 tanker cars in …

MMA Railway bankruptcy trustee casts wide net for corporations to pay Lac-Megantic victims
Bangor Daily News,  Nov. 21, 2014
First responders fight burning train cars after a train derailment and explosion in … The unmanned train with 72 tank cars full of crude oil roared into …

Edelman’s TransCanada Astroturf Documents Expose Oil Industry’s Broad Attack on Public Interest
DeSmogBlog, November 17, 2014
Documents obtained by Greenpeace detail a desperate astroturf PR strategy designed by Edelman for TransCanada to win public support for its Energy East tar sands export pipeline. TransCanada has failed for years to win approval of the controversial border-crossing Keystone XL pipeline, so apparently the company has decided to “win ugly or lose pretty” with an aggressive public relations attack on its opponents….

What the Frack (video trailer)
Vice News, November 19, 2014
The UK government is going ahead with its plans to commence fracking across more than half of the country, hoping that it will boost the economy and provide an abundant supply of natural gas.  Critics of the process argue ….

A Highly Flammable Situation: Crude Oil Rolls into the Region
League of Women Voters Bay Area, 31 July 2014
On May 31, 2014, some 60 people gathered at the gates of a rail yard on Richmond’s industrial edge, protesting “bomb trains.” Trains handled there by energy company Kinder Morgan hold crude oil, not TNT, but their contents may still be both physically and politically explosive. Stretching over a mile, a train of 100 tank cars carries 600-700 barrels of crude oil, or up to 3 million gallons. These trains represent a controversial change in both the type of crude oil supplying the region’s refineries, and the way it gets here….

Volatile Express: Is the Chicago area prepared for a crude oil disaster?
ABC7 News, Chicago, November 18, 2014
The ABC7 I-Team investigated hazardous oil trains that speed through Chicago and the suburbs every day. Would firefighters be able to keep you safe if one of them exploded?  …The answer is probably not….

GBW Railcar Services: Well Positioned To Profit From New Safety Standards
Seeking Alpha, Nov. 18, 2014
Greenbrier and Watco LLC’s GBW Railcar Services is strategically positioned to profit greatly from significant new safety regulations for the transport of crude by rail….Independent of significant new regulations, GBW Railcar Services’ expansive network of repair and maintenance shops will provide critical recertification and maintenance services to the significant number of aging DOT-111 cars….

Oil trains in San Jose: Phillips 66 refinery expansion could imperil downtown
Special to the Mercury News, 11/18/2014
For generations of Americans, the rhythmic sound of a distant freight train has inspired dreams of freedom and possibility. But the trains rolling through Northern California communities may soon carry massive charges of highly toxic tar sands crude. Rather than hopeful dreams, these trains could bring nightmarish catastrophes to the heart of San Jose’s downtown neighborhoods.
Oil giant Phillips 66 is agitating to upgrade its Santa Maria refinery near San Luis Obispo to build a rail spur that will enable it to begin receiving oil trains carrying massive loads of noxious tar sands crude. If approved, these oil trains will roll through thousands of California communities, including downtown San Jose, threatening our safety, air, water and climate. Even Phillips 66 admits transporting this oil will result in “significant and unavoidable” levels of toxic air pollution to the towns along the route….

The Role of Reid Vapor Pressure in the Bakken’s Future
Bakken Magazine, November 19, 2014
If the North Dakota Industrial Commission chooses to adopt new Bakken crude conditioning standards and regulatory practices, the term Reid Vapor Pressure will soon be a common and well-known term to any entity focused on the Bakken.

Rail shipments of oil and petroleum products through October up 13% over year-ago period
US Energy Information Admin, Nov. 13, 2014
U.S. rail traffic, including carloadings of all commodity types, has increased 4.5% through October 2014 compared to the same period in 2013. Crude oil and petroleum products had the second-biggest increase in carloadings through the first 10 months of this year, with these shipments occurring in parts of the country where there is also strong demand to move coal and grain by rail. In response to shipper concerns over the slow movement of crude oil, coal, grain, ethanol, and propane, federal regulators are closely tracking service among the major U.S. freight railroad companies….

Business Forum: Oil trains are disasters-in-waiting
Minneapolis Star-Tribune, Fred Millar, November 16, 2014
The knee-jerk reaction in Minnesota and elsewhere to the spate of North American crude oil disasters — beefing up emergency capabilities — is predictable, but dead wrong. The glum, vivid consensus from fire chiefs and emergency managers, at the April 2014 high-level expert National Transportation Safety Forum on Ethanol and Crude Oil Transportation, is that derailments of 100-tanker oil trains are “way beyond our current capabilities.” Following long-standing, prudent U.S. Transportation Department “Orange Book” guidance, fire chiefs testified that “even if we had an infinite amount of foam” they can only do defensive firefighting, pulling back at least one-half mile and letting the explosions and fires happen….

James River Advocacy Group to Host Conversation About Risks to River
Williamsburg Yorktown Daily , November 16, 2014
Six months have passed since a train derailed in Lynchburg and deposited about 20,000 gallons of crude oil in the James River, an event that highlighted one of the numerous threats the river faces, according to the James River Association….

Waste Water from Oil Fracking Injected into Clean Aquifers
NBC Bay Area, Nov 14, 2014
State officials allowed oil and gas companies to pump nearly three billion gallons of waste water into underground aquifers that could have been used for drinking water or irrigation….Those aquifers are supposed to be off-limits to that kind of activity, protected by the EPA….

The Environmental Factor Linked to Huge Rise in ADHD
PSYBLOG, November, 2014
Rising air pollution in urban areas could be linked to the rapid increase in diagnosis in ADHD (Attention Deficit Hyperactivity Disorder), a new study suggests.
The research, published in the journal PLOS ONE, finds that prenatal exposure to polycyclic aromatic hydrocarbons (PAH), a component of air pollution, increases the chances of children developing ADHD by five times (Perera et al., 2014)….

FracMapper
by The FracTracker Alliance on FracTracker.org, Nov. 2014
http://maps.fractracker.org/latest/?appid=103e9e75d36e4bfc95724c33a42b321e

Benicia Mayor Elizabeth Patterson comes under fire, will stand firm

Benicia Mayor Elizabeth Patterson
Benicia Mayor Elizabeth Patterson

Benicia’s Mayor, Elizabeth Patterson, has been accused of a conflict of interest and asked to recuse herself from all comment and action regarding Valero Benicia Refinery’s crude by rail proposal.

Two City Council members, Mark Hughes and Christina Strawbridge, disclosed Tuesday that they initiated the inquiry with Benicia City Attorney Heather McLaughlin, acting on concerns of unnamed constituents that the Mayor is biased.  McLaughlin is said to have advised that California’s Fair Political Practices Commission would not be an appropriate venue to seek advice or action, in that there is clearly no material conflict of interest (financial gain).  McLaughlin then contracted with an outside consulting attorney,  Michael Jenkins, to write an opinion on common law grounds for recusal.

Jenkins’ opinion is inconclusive, but offers case law on bias, and suggests that it would be best for the City if Mayor Patterson would choose to recuse herself and cease all e-alerts and commentary on anything related to the issue.  “…in our opinion, a court likely would find that Mayor Patterson’s oft-expressed skepticism about transportation of crude oil by rail evidences an unacceptable probability of actual bias. The evidence is sufficient to warrant her preclusion from participation in the decision.”

In her defense, Mayor Patterson contracted the services of attorney Diane Fishburn, whose legal opinion, states in summary, “With respect to the application of the common law doctrine of conflict of interest, it is our view…that there is no evidence that you have a personal bias based on either a substantial pecuniary or personal interest in the outcome of the matter. As a public official, you certainly not only have ‘a right but an obligation to discuss issues of vital concern’ to your constituents and to state your ‘views on matters of public importance.'”

Fishburn also wrote a letter to City Attorney Heather McLaughlin, stating even more boldly the Mayor’s freedom of speech in the matter: “We have reviewed the matter with our client, and it is our opinion based on the Supreme Court’s decision in City of Fairfield v. Superior Court of Solano County (1975) 14 Cal.3d 768 that she does not have a common law conflict of interest in this matter, and that she not only has First Amendment rights as a citizen and public official, but she also has the right and duty as an elected official to participate in the public and City discussions regarding this important matter. Equally importantly, she has First amendment rights to communicate freely with her constituents and the public in general on any and all issues of public policy and concern, and any attempt by the City or city officials to curb those rights would be an unlawful restraint of her speech under the U.S. and state Constitutions.”

Mayor Patterson says she will not recuse herself, and will continue to exercise her constitutional freedoms and her responsibilities as Mayor.  In an email, she offered the following comment: “Right.  Seeking rail safety is biased?  Free speech becomes bias even before there is any action before city council?  And having an opinion about public safety, health and welfare is a mind made up?  …The message is that I should not do my job.”

Two local news media have covered this story.  For more see The Benicia Herald and the Vallejo Times-Herald.  For more background see Local Media Coverage.