Tag Archives: EarthJustice

Crude By Rail, Oil spill, Pipeline transport

Santa Barbara Pipeline spill could further hamper California crude-by-rail projects

Repost from Reuters

Pipeline spill could further hamper big California oil projects

By Kristen Hays, May 22, 2015 9:53pm EDT

HOUSTON  –  Hundreds of barrels of oil that gushed from a ruptured coastal pipeline in scenic California this week could stiffen opposition to large oil projects that companies want to build in the state, notably those to deliver cheap U.S. crude on trains.

Several proposed oil-by-rail offloading terminals in California were already being contested in light of several fiery crude train derailments since 2013 that have stoked safety concerns about spills and explosions.

Now, the sight of oil washing up on the shores of Santa Barbara could further galvanize rail opponents after up to 2,500 barrels of crude leaked on Tuesday from a pipeline owned by Plains All American Pipeline LP (PAA.N).

“The more oil we’re moving through the state, the greater the risk of these sorts of accidents,” said Paul Cort, an attorney with EarthJustice, which has sued to stop crude deliveries at Plains’ 70,000 barrels per day (bpd) oil-by-rail terminal in Bakersfield.

Past spills have prompted policy changes. A leak of 100,000 barrels of crude off Santa Barbara in 1969 led to bans on new leases for offshore drilling in California.

The latest spill could complicate regulatory approvals.

“It’s certainly not good news for anyone trying to permit any kind of oil-related facilities in California,” said John Auers, a consultant at Turner, Mason & Co in Dallas.

Refiners Valero Energy Corp (VLO.N) and Phillips 66 (PSX.N) want to use railways to transport cheap crude from onshore fields in North America to northern California refineries to displace more pricey foreign imports.

But the projects, which could help mitigate upward pressure on gasoline prices that are among the highest in the United States, have been repeatedly delayed to allow for lengthy environmental reviews.

Some companies have given up.

Nearly two months ago, WesPac Energy-Pittsburg LLC withdrew the 51,000 bpd oil-by-rail component in a broader proposal that has been awaiting permits from the city for more than two years. WesPac now proposes that crude would move into the terminal only via pipeline or vessel if approved. Valero last year scrapped crude-by-rail plans at its Los Angeles-area refinery.

And even some companies with permits face more hurdles.

EarthJustice is suing local permitting agencies over both the Plains’ Bakersfield operation, which the company aims to expand to 140,000 bpd, and a new Alon USA Energy (ALJ.N) rail project nearby slated for next year.

“People trying to build projects that bring North American crude oil to displace imports at California refineries now have another thing they have to deal with,” said David Hackett, a consultant with Stillwater Associates in Irvine, California.

(Additional reporting by Rory Carroll in San Francisco; Editing by Terry Wade and Grant McCool)
CPC-1232, Crude By Rail, DOT-111, Federal Regulation (U.S.), Hazmat notification, High Hazard Flammable Trains (HHFTs), Tank car retirement, Tank car retrofit, Train length, Train speed

Groups Sue Obama Administration Over Weak Tank Car Standards

Press Release from ForestEthics

Groups Sue Obama Administration Over Weak Tank Car Standards

The new safety standards issued by the Department of Transportation take too long to get dangerous tank cars off the tracks and contain loopholes that leave too many vulnerable
May 14, 2015, Eddie Scher, ForestEthics, (415) 815-7027, eddie@forestethics.org

San Francisco – In the wake of a spate of fiery derailments and toxic spills involving trains hauling volatile crude oil, a coalition of conservation organizations and citizen groups are challenging the U.S. Department of Transportation’s (DOT) weak safety standards for oil trains. Less than a week after the DOT released its final tank car safety rule on May 1, a train carrying crude oil exploded outside of Heimdal, North Dakota. Under the current standards, the tank cars involved in the accident would not be retired from crude oil shipping or retrofitted for another 5 to 8 years.

Earthjustice has filed suit in the 9th Circuit challenging the rule on behalf of ForestEthics, Sierra Club, Waterkeeper Alliance, Washington Environmental Council, Friends of the Columbia Gorge, Spokane Riverkeeper, and the Center for Biological Diversity.

“The Department of Transportation’s weak oil train standard just blew up in its face on the plains of North Dakota last week,” said Patti Goldman, Earthjustice attorney. “Pleas from the public, reinforced by the National Transportation Safety Board, to stop hauling explosive crude in these tank cars have fallen on deaf ears, leaving people across the country vulnerable to catastrophic accidents.”

Rather than immediately banning the most dangerous tank cars — DOT-111s and CPC-1232s — that are now used every day to transport volatile Bakken and tar sands crude oil, the new standards call for a 10-year phase out. Even then the standard will allow smaller trains — up to 35 loaded tank cars in a train — to continue to use the unsafe tank cars.

The new rule fails to protect people and communities in several major ways:

• The rule leaves hazardous cars carrying volatile crude oil on the tracks for up to 10 years.

• The rule has gutted public notification requirements, leaving communities and emergency responders in the dark about the oil trains and explosive crude oil rumbling through their towns and cities.

• New cars will require thicker shells to reduce punctures and leaks, but retrofit cars are subject to a less protective standard.

• The standard doesn’t impose adequate speed limits to ensure that oil trains run at safe speeds. Speed limits have been set for “high threat urban areas,” but very few cities have received that designation.

Click here for a close analysis of the hidden dangers buried in the federal tank car rule

“Explosive oil trains present real and imminent danger, and protecting the public and waterways requires an aggressive regulatory response,” said Marc Yaggi, Executive Director of Waterkeeper Alliance. “Instead, the Department of Transportation has finalized an inadequate rule that clearly was influenced by industry and will not prevent more explosions and fires in our communities. We hope our challenge will result in a rule that puts the safety of people and their waterways first.”

“We’re suing the administration because these rules won’t protect the 25 million Americans living in the oil train blast zone,” says Todd Paglia, ForestEthics Executive Director. “Let’s start with common sense – speed limits that are good for some cities are good for all communities, 10 years is too long to wait for improved tank cars, and emergency responders need to know where and when these dangerous trains are running by our homes and schools.”

LEGAL DOCUMENT: http://earthjustice.org/documents/legal-document/petition-for-review-groups-sue-obama-administration-over-weak-tank-car-standards 

BACKGROUND:

The National Transportation Safety Board has repeatedly found that the DOT-111 tank cars are prone to puncture on impact, spilling oil and often triggering destructive fires and explosions. The Safety Board has made official recommendations to stop shipping crude oil in these hazardous tank cars, but the federal regulators have not heeded these pleas. Recent derailments and explosions have made clear that newer tank cars, known as CPC-1232s, are not significantly safer, and the Safety Board has called for a ban on shipping hazardous fuels in these cars as well.

The recent surge in U.S. and Canadian oil production, much of it from Bakken shale and Alberta tar sands, led to a more than 4,000 percent increase in crude oil shipped by rail from 2008 to 2013, primarily in trains with 100 to 120 oil cars that can be over 1.5 miles long. The result has been oil spills, destructive fires, and explosions when oil trains have derailed. More oil spilled in train accidents in 2013 than in the 38 years from 1975 to 2012 combined.

ForestEthics calculates that 25 million Americans live in the dangerous blast zone along the nation’s rail lines.

REPORTER RESOURCES:

Q&A: The Challenge To The Federal Tank Car Standards

Map: Crude By Rail Across the United States

Quote Sheet By Officials On The Dangers of Shipping Bakken Crude in Hazardous Tank Cars

ForestEthics Map: Oil Train Blast Zone

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Fracking, Injection wells, Wastewater, Water contamination

Groups sue to keep oil waste out of state’s aquifers

Repost from SFGate

Groups sue to keep oil waste out of state’s aquifers

By David R. Baker, Thursday, May 7, 2015 5:03 pm
Roger Christy a Petroleum Engineer walks a small portion of the eighteen square mile Kern River Oil Field in Bakersfield. 9,000 Oil wells at the Kern River Oil Field in Bakersfield owned by Chevron Oil along with two other fields in California produce on average 221,000 thousand barrels of oil per day. An additional 9,000 wells are scheduled to be drilled between the three fields this year, as Chevron goes after 3.8 Billion barrels that remain deep, using the steam method to extract the heavy crude that remains in beaded in the dense shell and layers of sand. Friday April 4, 2008 Photo By Lance / San Francisco Chronicle Photo: Lance Iversen / The Chronicle / SFC
Roger Christy a Petroleum Engineer walks a small portion of the eighteen square mile Kern River Oil Field in Bakersfield. 9,000 Oil wells at the Kern River Oil Field in Bakersfield owned by Chevron Oil along with two other fields in California produce on average 221,000 thousand barrels of oil per day. An additional 9,000 wells are scheduled to be drilled between the three fields this year, as Chevron goes after 3.8 Billion barrels that remain deep, using the steam method to extract the heavy crude that remains in beaded in the dense shell and layers of sand. Friday April 4, 2008 Photo By Lance / San Francisco Chronicle Photo: Lance Iversen / The Chronicle / SFC

Two environmental groups sued California regulators Thursday to stop oil companies from injecting wastewater into potentially usable aquifers beneath the state’s drought-ravaged Central Valley.

The suit, filed by the Sierra Club and the Center for Biological Diversity, claims the California agency that oversees oil fields is breaking the law by letting companies pump wastewater from their drilling operations into aquifers that the regulators were supposed to protect. The injections were the subject of a Chronicle investigation in February.

The state’s Division of Oil, Gas and Geothermal Resources (DOGGR) has moved to end the practice but has given oil companies until 2017 to shut down many of the injection wells. Environmentalists want all the wells closed immediately. The groups sued Thursday to overturn newly adopted regulations from the division that allow the continued injections.

“California has a drought, and we need to protect all the potential sources of drinking water we have, and DOGGR is allowing the continued pollution of aquifers,” said Will Rostov, a staff attorney for Earthjustice, which filed the suit on behalf of the environmental groups. “We want them to comply with the law, and the law is pretty clear — no more injections.”

The division declined to comment on the lawsuit.

The suit follows revelations that the division for years allowed oil companies to inject billions of barrels of water left over from oil pumping operations into aquifers that could have been used for drinking or irrigation. So far, no drinking-water wells have been found to be contaminated by the injections.

California’s oil reservoirs contain large amounts of salty water that must be separated from the petroleum and disposed of, usually by pumping it back underground. In 176 cases, the division let companies inject this “produced water” into high-quality aquifers — potentially clean enough to drink — that were supposed to be protected under federal law. Another 356 injection wells went into aquifers whose water could have been used with more extensive treatment.

In addition, the division improperly issued permits for about 2,000 wells that are pumping water or steam into aquifers that also contain oil, as a way of squeezing more petroleum out of the ground.

The injections angered federal and state officials, and the division’s newly installed director, Steven Bohlen, promised to end them. Twenty-three injection wells believed to pose the greatest risk to drinking water supplies have already been shut.

For the rest, however, the division set up a two-year closure schedule, with some allowed to operate until Feb. 15, 2017.

That lead time will give oil companies a chance to convince both the division and the U.S. Environmental Protection Agency that some of the aquifers — particularly those that also contain oil — should be considered suitable places either to dump produced water or inject steam to extract the petroleum. The EPA has the authority to declare an aquifer exempt from the federal Safe Drinking Water Act, making it eligible for wastewater injections.

“If they haven’t (already) been exempted from the Safe Drinking Water Act, the presence of economically recoverable oil makes them strong candidates for exemption,” Bohlen told California legislators at a hearing in March. “Water that comes mixed with oil is not something we want people drinking.”

Some aquifers, however, aren’t likely to receive an EPA exemption. In those cases, the 2017 deadline will give oil companies time to find other ways to get rid of their produced water, either by injecting it into one of the aquifers that the EPA has already declared exempt or by treating it on the surface.

Oil companies consider the two-year timetable short, but workable. Catherine Reheis-Boyd, president of the Western States Petroleum Association trade group, said the division’s plan should be given a chance to work, noting that it had received the EPA’s approval.

“The experts at those agencies, with the cooperation of oil producers, have made a careful evaluation of the situation and developed the action plan to address it,” she said Thursday. “This lawsuit is an attempt to thwart that regulatory process.”

The environmental groups want the injection wells shut now, while the oil companies apply to make some of the aquifers exempt.

“The division is doing it backwards, and that’s the point of this complaint,” Rostov said.

David R. Baker is a San Francisco Chronicle staff writer.
Air Quality, Clean Air Act, Crude By Rail, Derailment, Environmental review, Explosion, Public Health, Public permitting, Volatility

EPA Cites Bakersfield Oil Train Terminal for Clean Air Act Violations; Permit Invalid

News Release from Earthjustice

EPA Cites Bakersfield Oil Train Terminal for Clean Air Act Violations

Federal agency says California oil train terminal is major air pollution source, permit is invalid without significant environmental review
Contact: Maggie Caldwell, Earthjustice, 415-217-2084, mcaldwell@earthjustice.org, Monday, May 4, 2015
The newly opened Bakersfield Crude Terminal in Taft which the EPA has found in violation of the Clean Air Act.
The newly opened Bakersfield Crude Terminal in Taft which the EPA has found in violation of the Clean Air Act. | Elizabeth Forsyth / Earthjustice

Taft, CA —The U.S. Environmental Protection Agency has cited the Bakersfield Crude Terminal for 10 violations of the Clean Air Act, declaring the California crude-by-rail facility a major air pollution source that should have been subjected to rigorous environmental review during the permitting process. The federal agency found that the terminal’s permit is invalid and that the facility lacks required pollution controls and emissions offsets, and that it is in violation of the Clean Air Act’s public notice and environmental review requirements.

In January, Earthjustice and Communities for a Better Environment sued the San Joaquin Valley Air Pollution Control District, which issued the invalid permit, over the permitting process for the facility’s expansion— a process that was conducted without public review. Earthjustice is representing the Association of Irritated Residents (AIR), ForestEthics, Sierra Club and the Center for Biological Diversity.

A public records request revealed communications between San Joaquin Valley Air District officials and the project manager for the terminal that included advice from the officials about how the project could avoid public noticing and pollution controls. The Air District approved the massive expansion in a piece-meal permitting process that allowed one of the largest crude oil operations in California to expand largely out of public scrutiny.

“The EPA’s announcement declares the Air District’s permit a sham and that the Bakersfield terminal is operating illegally,” said Elizabeth Forsyth, Earthjustice attorney. “Air District officials went out of their way to exclude the public from the process and speed the approval through, ignoring the environmental review required by state and federal law. We applaud EPA for stepping in and enforcing the Clean Air Act.”

EPA’s action could subject the terminal to serious Clean Air Act fines, and should force the Bakersfield Crude Terminal to undergo the major source permitting required by the Clean Air Act.

“The EPA stepped in to protect California from this crude-by-rail facility’s dangerous air pollution,” said Vera Pardee, an attorney with the Center for Biological Diversity. “Federal intervention is urgently needed because the air district and Kern County officials have utterly failed to safeguard public health and the environment. They’re turning a blind eye to air pollution and environmental risks such as catastrophic explosions linked to these massive trains full of volatile crude.”

“EPA’s notice of violation should serve as a wake up call to local authorities around the country who help polluters when they should be protecting public health,” said Matt Krogh, ForestEthics Extreme Oil Campaign Director.  “Oil trains threaten 25 million Americans who live in the blast zone, plus millions more who live downwind of a refinery, downstream of where an oil train crosses a river, or in the Bakken and tar sands producing regions of North Dakota and Alberta, Canada.”

“In Kern County, with the worst air in the nation, the air district has harmed the health of the public by intentionally allowing this facility to violate the Clean Air Act,” said Tom Frantz, with Association of Irritated Residents.

“Given the increased pollution and hazards from refining and transporting a lower quality crude, there is immediate need for a moratorium that halts new permits and construction of extreme oil infrastructure, not the opposite fast track permitting process that Air District officials put this massive crude by rail terminal on – and in secret,” said Roger Lin, attorney with Communities for a Better Environment.

“The US Environmental Protection Agency’s announcement today is a significant step forward for Bakersfield and Kern County residents who bear all the burdens of volatile, accident-prone crude by rail transport and none of the benefits,” said Gordon Nipp Bakersfield resident and Sierra Club Kern-Kaweah Chapter Vice Chairman. “This terminal wreaks havoc on our region’s already compromised air quality and our communities now fear the risk of exploding trains.”

The agency also weighed in on the issue of vapor pressure of Bakken crude, declaring it unreasonable to underestimate the vapor pressure when permitting a crude-by-rail site and requiring vigorous monitoring and reporting of what crude oil is actually shipped. One way many of these facilities get around major source permitting is by cherry-picking the volatility of the crude oil being shipped, estimating the vapor pressure on the low end of the spectrum, which would keep emissions of volatile organic compounds under the threshold for triggering Clean Air Act review.

In addition to emitting volatile organic compounds from the off-loading of crude oil, the facility endangers Bakersfield and other communities in California by increasing the amount of explosive crude oil transported by rail through the state. There have been multiple incidents of train derailments and explosions across the nation and in Canada. An oil train that derailed in Lac Megantic, Quebec, destroyed most of the town center, burning more than 30 buildings to the ground and killing 47 people. Just this year, there have been four derailments and explosions in West Virginia, Illinois and Ontario involving oil trains.

Read EPA’s Notice of Violation.