Tag Archives: Crude by Rail

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Repost from E&E Publishing

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Daniel Cusick, EnergyWire, April 10, 2015

MINNEAPOLIS — A Canadian company proposes a multibillion-dollar oil pipeline through some of the Midwest’s prized lakes and wetlands, igniting a firestorm among environmentalists, tribes and anti-fossil fuel activists who say the proposal is built on hollow promises of economic development and dubious claims of environmental protection.

Sound familiar? It should. But the pipeline isn’t Keystone XL, and its developer is not TransCanada Corp., purveyor of the most polarizing energy project since the Yucca Mountain Nuclear Waste Repository.

It is called Sandpiper, and its developer is Enbridge Corp., another Calgary, Alberta-based conglomerate whose extensive oil and gas pipeline network plunges deep into the U.S. interior.

The $2.6 billion Sandpiper project, which would move 225,000 barrels of crude per day roughly 610 miles from the Bakken oil fields of North Dakota to an Enbridge hub in Superior, Wis., has been approved by North Dakota regulators. But it remains under administrative review in Minnesota, where developers are seeking a certificate of need to ship the oil and a route permit to build the pipeline across 300 miles of the state’s Lakes Belt.

An administrative law judge in St. Paul next week is expected to issue an advisory opinion that the Minnesota Public Utilities Commission will use to resolve some thorny questions around Sandpiper, including whether the line is necessary and what route it should follow to move Bakken crude across Minnesota to Wisconsin, where it would flow to other Enbridge lines serving refineries in Michigan, Illinois and Ohio.

Marathon’s president and CEO, Gary Heminger, has said the Sandpiper investment will give Marathon a 27 percent stake in Enbridge’s North Dakota pipeline system once the line is completed and provide “additional access to growing crude oil production from the Bakken Shale play and Canada, and direct participation in the transportation of these crudes into our markets.”

The opening of a new corridor through Minnesota will also help Enbridge manage aging infrastructure along its existing pipeline route through the Upper Great Lakes, known as the Lakehead System. Currently, six existing pipelines, some built as early as the 1950s, follow the Lakehead System route from a key Enbridge oil terminal in Clearbrook, in northwest Minnesota, to the cities of Bemidji and Grand Rapids before dipping south to Duluth and Superior.

Clearbrook is also the primary U.S. hub on Enbridge’s system for delivering Canadian tar sands oil from Alberta into the United States, and Enbridge has invested heavily in recent years to upgrade those lines, including adding new pump stations in Minnesota that will push up to 800,000 barrels per day of heavy Canadian crude to U.S. refineries.

Moreover, if Sandpiper is approved, Enbridge has said it will pursue another set of state permits to relocate one of its key Lakehead pipelines, known as Line 3, that was built in 1968 and is in need of retirement. Rather than rebuild Line 3 in its existing corridor, Enbridge has said it would prefer to relocate the line along the Sandpiper route at a cost of roughly $2.3 billion.

But environmental opposition, combined with lengthy regulatory proceedings, sagging oil prices and a troubling history of spills, including an 840,000-gallon contamination of Michigan’s Kalamazoo River in 2010, have created considerable hurdles for Enbridge as it tries to push through one of its most ambitious U.S. pipeline expansions in recent memory.

The stakes — for Enbridge, for its U.S. customers, and for residents and tribes in North Dakota and Minnesota — are high. If the Sandpiper line is built, the company says, millions of barrels of Bakken crude will be moved more safely and cheaply across northern Minnesota, while at the same time alleviating rail corridor congestion and reducing the risk of rail accidents like the Dec. 30, 2013, fiery collision between a derailed grain train and 108-car oil train near Casselton, N.D., resulting in 400,000 gallons of spilled crude and the evacuation of 1,400 residents.

Dealing with the ‘Keystone effect’

Currently, more than two-thirds of the North Dakota’s oil exports are shipped by rail using tanker cars, according to federal estimates, many of which lack the kind of safety features that have been proposed by the U.S. Department of Transportation and could become law later this year. More recent rail accidents, including oil train derailments in West Virginia and Illinois, have further pressured the oil and gas industry, railroads and government officials to find alternatives to shipping oil across long distances by rail and truck.

But if shipping crude by rail has come under tough scrutiny from the public and regulators, pipelines have fared little better, as evidenced by the industry’s track record of spills — estimated at 1,400 “significant incidents” since 1986 — and the deep political fissure over Keystone XL, which after years of languishing under a State Department review succumbed to a presidential veto in February after Republicans in Congress sought to approve the line legislatively.

The “Keystone effect,” as some have called it, goes beyond concerns about pipeline safety and routing to incorporate a broad suite of environmental issues, among them fossil fuel dependency and oil consumption’s contribution to greenhouse gases that drive climate change.

Al Monaco, Enbridge’s president and CEO, addressed some of those challenges in a speech to business executives in Minneapolis late last month.

“Solving infrastructure problems at its base is not rocket science,” he told the Minnesota-Canada Business Council, stressing the advanced technologies and materials deployed by industry to site new oil pipelines, inspect existing lines, and detect problems early and respond quickly.

The bigger challenge, Monaco said, stems from organized opposition to traditional energy resources and even some renewable resources such as wind turbines, and “the elevation of regional energy projects to a national policy debate.”

“This isn’t just short-term noise,” Monaco said. “Today, our regulators, our political leaders, our employees and the public, they expect more of energy companies. They want to know what we’re doing to continually improve, to get better.”

Working around the ‘Lakes Belt’

For critics like Kathryn Hoffman, an attorney with the Minnesota Center for Environmental Advocacy, “getting better” means several things, including acknowledging mistakes and correcting operational problems that cast doubt on Enbridge’s safety track record, including the record 2010 spill in Michigan, where cleanup remains a work in progress after $1 billion spent.

Hoffman and her client, the nonprofit group Friends of the Headwaters, also want Enbridge to explore alternatives to its preferred Sandpiper route, which crosses northern Minnesota’s “Lakes Belt,” a region dense in lakes, streams, wetlands and forest. To date, the company has refused to look at alternatives, saying its chosen Sandpiper route offers the best conditions, both environmentally and economically, for the line to make its way from an existing oil terminal in Clearbrook to its terminus at Duluth-Superior.

Hoffman, who has petitioned the Minnesota Court of Appeals to force a more detailed environmental review of Sandpiper than what is required by the PUC, said her client is not seeking to simply block the Sandpiper line from being constructed. Rather, she wants Enbridge to more fully examine the preferred route’s impacts to natural areas and weigh those findings against alternative routes that run along more developed corridors.

“Our position is that the proposed route is probably one of the worst locations in the state of Minnesota to run a pipeline,” she said.

Similar concerns were raised by Minnesota’s two environmental agencies — the Department of Natural Resources and the Minnesota Pollution Control Agency — prompting the PUC last September to take an unprecedented step of asking for more information on alternative routes.

The Minnesota Department of Commerce provided a detailed report on six alternatives last December, but Enbridge maintains that none is viable because all are longer, are more expensive to build and do not pass through its terminal at Clearbrook, a critical element of the project.

“The fundamentals behind the project call for leveraging the existing infrastructure that’s already in place,” Paul Eberth, Enbridge’s Wisconsin-based Sandpiper project manager, said in a telephone interview. “By going to Clearbrook and then to Superior, we can make connections to customers without having to build a new line all the way down to the southern part of the state,” as most of the alternatives propose.

‘Oil companies are asking too much of our state’

But opponents of Sandpiper in its current configuration say southern Minnesota, where farming and urbanization have already altered much of the natural landscape, is exactly where new oil pipelines belong.

Among those pushing for a re-route are members of the state’s 40,000-person Ojibwe tribe, also known as the Chippewa or Anishinaabe, whose leaders maintain that the Sandpiper project threatens to foul northern Minnesota’s pristine waters with oil and disrupt traditional activities such as wild rice harvesting that are central to Native American life in the Great Lakes region.

Frank Bibeau, an attorney and member of the White Earth Nation of Ojibwe, whose reservation extends across three northern Minnesota counties, said in an interview that Enbridge has failed to examine such impacts in its Sandpiper routing decision. Moreover, the company continues to maintain that the pipeline does not physically cross tribal lands and therefore does not violate the tribe’s rights.

“We beg to differ with them on that point, and strongly,” said Bibeau, who maintains that the tribe’s treaty rights extend beyond reservation boundaries when dealing with traditional activities like wild rice harvesting.

Honor the Earth, a national activist group led by White Earth member Winona LaDuke, the former Green Party vice presidential candidate, has also pressed state officials, including Gov. Mark Dayton (D), to force a reconsideration of Sandpiper’s current route and issue a moratorium on any new pipeline development in the state’s lakes region.

“Oil companies are asking too much of our state,” LaDuke wrote in a letter to the governor. “While we remain a fossil fuel economy at present, sending one new pipeline … across the beautiful North Country is wrong and is not a good move for Minnesota.”

The group has taken its message public, too, with colorful roadside billboards and horseback rallies in hamlets like Backus, Minn., where the pipeline is proposed to cross an arterial highway just south of the Corner Store Restaurant & Gun Shop, a local gathering spot.

On a recent afternoon, Dave Sheley, the Corner Store’s owner and proprietor for 18 years, said the Sandpiper project has been a regular topic of conversation, both pro and con, among patrons of his cafe.

He described Backus and surrounding Pine County as “a poor community in general with a rich sub-community of cabin owners,” many of whom trek north on weekends from the Twin Cities to fish, swim, boat, bicycle or hunt in the region that otherwise has little happening economically.

While some are encouraged by Enbridge’s promise of 1,500 construction jobs and an estimated $25 million in new annual tax revenue, others say such benefits are countered by the intrusion of a major oil pipeline and the long-term risk of an accident or spill.

Sheley said he has seen a smattering of new business from surveyors and consultants working along the corridor route, which parallels an electricity transmission line. But he also knows that any surge in business during the line’s construction would be temporary, and the greatest economic benefit will go to landowners who have cut deals with Enbridge to route the pipeline across their property.

“I don’t own any land where they want to build, so I don’t have skin in the game,” he said. “For the most part, I’d say those people tend to be the most positive about it. But I can also see why the cabin owners and naturalist groups are concerned. A spill would be a big bummer if it happened.”

 

A month later in Gogama, Ontario: Clean-up continues, concern spill could repel tourists

Repost from CBC News

‘There’s still definitely a lot of concerns long-term from the people of the community’

Apr 10, 2015 7:00 AM ET
An aerial eastward view on March 7 of a CN train derailment site near Gogama.
An aerial eastward view on March 7 of a CN train derailment site near Gogama. (Transportation Safety Board)

It’s been just over a month since a train carrying crude oil derailed near Gogama sparking a massive environmental clean up.

CN Rail said remediation crews have now removed all the ice for an approximately 400 meter stretch up and downstream of the rail bridge where the train carrying crude oil from Alberta left the tracks on March 7, causing the fire and spill.

The company has not said how much oil leaked out of rail cars in the wreck, but Gerry Talbot said it’s a significant amount.

“So far there has been 926,000 litres of oil and water mixture type of thing that has been collected,” said Talbot, the secretary of the local services board in Gogama.

CN said large ice booms have also been installed on the river to prevent the uncontrolled flow of ice through the remediation site during the spring thaw.

Testing so far has not shown any contamination of ground water, the company said, and monitoring continues.

Concerns for tourism

While it’s good news, Talbot said some in the community are still worried about what the oil spill will do to property values, and whether tourists will still flock to local lodges for the summer fishing season.

“People may not be calling the local tourism lodges to book rooms or to book a trailer site. Is it because of the oil? Well, you probably won’t know because they are not calling,” he said.

“There’s still definitely a lot of concerns long-term from the people of the community, and rightly so.”

CN is also asking local fishermen to drop off specimens at the Gogama Community Centre so it can continue to test for the presence of any oil products in the fish.

The company said there is no estimate on how long it will take to complete the environmental remediation of the area.

Federal, state and local officials gather in Davis California to discuss oil train safety legislation

Repost from The Vallejo Times-Herald
[Editor:  Thanks to Rep. Garamendi for his sponsorship of HR1679 to require Bakken oil stabilization before it is loaded onto oil trains.  But you can add Garamendi’s name to the long list of officials who show little interest in stopping bomb trains, who operate under the illusion that “safer” is ok.  Quote: “He added that the push isn’t to stop transportation of oil by rail, but to make it safer….”  – RS]

Crude oil-by-rail safety focus of proposed bill

By Melissa Murphy, 04/08/15, 10:05 PM PDT
U.S. Congressman John Garamendi, D-Solano, pauses as a freight train passes during a press conference at the Davis Amtrak Depot on Wednesday to highlight the need for state and federal action to improve the safety of crude oil-by-rail transports. Joel Rosenbaum — The Reporter
Solano County Supervisor Skip Thomson expresses his concerns about rail safety as he participates in a press conference on the issue Wednesday in Davis. Joel Rosenbaum — The Reporter

Transportation of crude oil by rail was a hot topic Wednesday as federal, state and local government officials gathered at the train depot in the city of Davis.

Congressman John Garamendi, D-Solano, addressed media during a press conference about his legislation, H.R. 1679, which would prohibit the transport of crude-by-rail unless authorities have reduced the volatile gases in the oil prior to transportation.

Specifically, maximum Reid vapor pressure of 9.5 psi, the maximum volatility permitted by the New York Mercantile Exchange for crude oil futures contracts.

“Further analysis and debate is warranted, and H.R. 1679 is intended to move debate forward and stress the urgency of action before more lives are needlessly lost,” Garamendi said. “It doesn’t have to be explosive.”

He added that the push isn’t to stop transportation of oil by rail, but to make it safer and that the federal government needs to get its “train in gear” to adopt regulations.

Sarah Feinberg, acting administrator of the Federal Railroad Administration, said even though the issue is complicated, they’re working on a comprehensive approach.

She explained that there has been a 4,000 percent increase in the amount of crude by rail. It continues to be transported by rail, pipeline and truck.

While it will take a long time to create and pass new regulations and standards, interim steps have been taken, including additional emergency regulations, speed reductions, increased inspections and more emergency equipment.

“We’ll continue to do more,” she said.

Standing next to photos of two fiery oil car train explosion, one that occurred as recently as February in West Virginia, Davis Mayor Dan Wolk said the trains go through the heart of the city, and there is a high risk if crude-by-rail starts moving through the corridor.

“It could have catastrophic effects in our community,” he said. “Garamendi’s legislation is in perfect alignment with city objectives. Safety is the priority.”

Solano County Supervisor Skip Thomson agreed and added that the legislation needs to be passed as soon as possible.

Other steps have been taken by the California Office of Emergency Services.

Eric Lamoureux, inland regional administrator for OES, said six hazardous materials vehicles stand ready to respond throughout the state and within the next few months local exercises will test the systems and procedures in place.

Lamoureaux also explained that explosions are a concern, but there also is a risk to water supply. He shared that a derailment in November sent eight train cars and loads of corn into Feather River Canyon near Lake Oroville.

He added that it could have been a bigger issue if it was crude oil.

Garamendi also explained that the process of removing volatile gases isn’t new, but a regular standard for refineries in Texas.

Meanwhile, the city of Benicia is considering an application that would allow Valero Refinery to receive and process more crude oil delivered by rail. The proposed crude by rail project would be a third means to deliver crude oil. So far, Valero receives the crude oil by marine deliveries and pipeline.

According to the city of Benicia website, the city has determined that sections of the Draft Environmental Impact Report, when it comes to the Valero project, will need to be updated and recirculated. The anticipated release of the Recirculated Draft EIR for public comment is June 30. The Recirculated Draft EIR will have a 45-day comment period. After the comment period on the Recirculated DEIR closes, the city will complete the Final EIR which will include responses to all comments on the original Draft EIR and the Recirculated Draft EIR.

Benicia city council to send letter supporting safer rail measures

Repost from The Vallejo Times-Herald
[Editor:  See original documents on the City of Benicia’s website:
      – Staff’s Agenda Report
      – Mayor Patterson’s draft letter of support (not approved)
      – League of Cities letter requesting letters of support & sample letter (sample letter approved)
For a local news report that fails to describe the City’s recommendations in the letter, see The Benicia Herald.  (The Herald previously detailed these recommendations.)  – RS]

Benicia council to send letter supporting safer rail measures

By Irma Widjojo, 04/08/15, 8:36 PM PDT

Benicia >> The City Council voted unanimously Tuesday night to send a letter in support of several rail safety recommendations to the Federal Office of Management and Budget.

Mayor Elizabeth Patterson asked the council to consider sending the letter as requested by the League of Cities, of which Benicia is a member.

The league has adopted 10 recommendation as official policy to “increase rail safety in the transport of hazardous materials.”

The recommendations include mandating speed limits and electronically controlled braking systems, increasing the federal funding for training and equipment purchases for first responders, regulating the parking and storage of tank cars and others.

Patterson on Tuesday said sending such a letter usually doesn’t require it to be presented in a city council meeting, however City Councilman Tom Campbell has voiced his concerns due to the pending Valero Crude by Rail project.

“I wanted the city attorney to give an opinion if we are going to run into an issue of possibly prejudicing ourselves,” Campbell said Tuesday.

The city is currently processing the use permit and Environmental Impact Report for the project.

City Attorney Heather McLaughlin said there would not be an issue of bias, since the letter only states that “we just want the oil transported safely.”

Though the council voted unanimously to send the letter, they opted for the version that was provided by the league, instead of the one that was slightly edited by Patterson.

“I would go along with the language of the league as provided for consistency,” Vice Mayor Mark Hughes said.

A Benicia resident and environmental activist spoke during the public comment period stating that the letter will not have any effect on the Valero project.

“The letter is not going to make much impact as much as I appreciate the spirit of it,” Marilyn Bardet said. “The rail will be built before any policy is put in place.”

Patterson has also has been an outspoken advocate of tougher crude-by-rail safety measures.