Tag Archives: Illinois

Bakken Crude, Crude By Rail, Phillips 66, San Luis Obispo County, Santa Maria Refinery, Tar sands crude

San Luis Obispo Refinery Wants Oil by Train

Repost from The Santa Barbara Independent

SLO Refinery Wants Oil by Train

Phillips 66 Runs into Public Resistance over Proposal to Lay New Tracks and Unload More Canadian Crude

By Natalie Cherot, January 23, 2015

Courtesy PhotoA slow-moving pipeline moves a haul of crude oil to a refinery just north of the Santa Barbara County border. Stand on the nearby coast’s 18,000-year-old sand dunes and look away from the sea, and a perfect view emerges of the expansive Phillips 66 Santa Maria Refinery. The name is a misnomer. The San Luis Obispo facility on the Nipomo Mesa is 17 miles northwest from the City of Santa Maria. Directly south is the Santa Maria River.

Golden Sierra Madre mountains shimmer in the distance, and hearty sage scrub surrounds its perimeter alongside grazing cattle. The night sky around the facility is never dark; its aquarium lights border on festive. The illumination is necessary because the refinery is open 24 hours a day, 365 days a year. It begins the process of turning crude into a finished product like gasoline, diesel, or jet fuel, and pumps the semi-refined batches 200 miles north to the San Francisco Bay Area plants for finishing.

With oil prices dropping and California supplies both dwindling and facing harsh competition from North Dakota, much speculation swirls on the question of what kind of oil will arrive to the refinery on the dunes in the coming years. Right now it is “mostly used for California-produced oil,” said Phillips 66 spokesperson Rich Johnson.

But as of 2013, Phillips 66’s newest product is Canadian tar sands, a thick, gooey combination of clay, sand, water, and viscous bitumen. It’s hard to control and expensive to process. The Kearl Lake tar sands field cuts through Alberta’s boreal forest and wetlands, and has been turned into a mined landscape. An estimated 170 billion more barrels are still available for the taking.

In the summer of 2013, Phillips 66 submitted permit applications to San Luis Obispo County’s Planning Commission to add 1.3 miles of train track to its Santa Maria Refinery’s existing rail spur so crude can be delivered by train rather than by pipe. The proposed upgrades, which include five parallel tracks, an unloading facility, and new on-site pipelines, wouldn’t increase the amount of crude processed at the facility — volume is capped by the county’s Air Pollution Control District — but they reflect an increasing amount of oil train traffic across the country. BusinessWeek.com reported that it’s tripled in the last four years.

According to the project’s draft Environmental Impact Report (EIR), the facility would be able to handle five train unloads a week for a maximum of 250 a year. Each train with about 80 tanks on board would carry between 1.8 million and 2.1 million gallons of crude.

A first draft of the EIR — which indicated that both Canadian tar sands and North Dakota Bakken formation crude would be carried on the trains — was published that fall and received 800 public comments. The massive amount of feedback, much of it negative, prompted the Planning Commission to delay a final decision on the project. The commission issued a second 889-page draft EIR in October 2014, and a few weeks from now, a public comment period will take place. The date has not been finalized.

The biggest contention in the first draft was about Bakken crude. “The bottom line is Bakken Crude likes to burn and it will not take much to get it going,” wrote Paul Lee, battalion chief for the California Department of Forestry and Fire Protection in a letter to the San Luis Obispo Planning and Building Department. For preparation of the second draft EIR, Phillips 66 requested the county “delete statements suggesting that the Bakken oilfield as the most likely source of crude oil.” The new draft EIR states no Bakken will arrive by rail. Phillips’s spokesperson Rich Johnson said the refinery can’t handle the sweeter, lighter Bakken crude, as it specializes in the ultra-heavy tar sands.

Four accidents involving Bakken crude are mentioned in the latest report. A 30,000-barrel spill occurred in April 2014 in Lynchburg, Virginia, when a transport train derailed and erupted into flames. In November 2013, a train jumped the tracks in Aliceville, Alabama. Twelve tanker cars of Bakken spilled and caught fire. The next month, another oil train crashed in Casselton, North Dakota, where 20 cars of Bakken exploded and burned for 24 hours. Forty-seven people died when a train carrying the crude derailed and exploded in Quebec on July 2013.

The Pipeline and Hazardous Materials Safety Administration has issued a warning to move transportation of Bakken oil away from highly populated areas because of explosion risks. “Most think that Crude will not get going unless it gets warmed up first and in some cases that is correct, [but] Bakken Crude does not need to be aggravated to burn or even explode,” wrote Lee. “The NTSB (National Transportation Safety Board) is concerned about its ability to explode so much in fact that there is a recommendation to have rail avoid populated areas.”

Phillips 66’s rail expansion plan is part of larger national strategy to better accommodate tar sands coming out of the ground quicker than the current system of pipelines can handle. “Our real challenge that we have, or opportunity that we have, is to get advantaged crudes to the East Coast and West Coast,” said Greg Garland, chairman and CEO of Phillips 66, at the Barclays CEO Energy-Power Conference last year. “So we’re working that in terms of moving Canadian crudes down into California or building rail facilities.”

Two thousands miles north in Alberta, Canada, the contentious Keystone XL pipeline would transport tar sands through Montana, Nebraska, Illinois, Oklahoma, and Houston. The pipeline’s foes claim the fuel is too emission-intensive and corrosive to pipelines. Supporters say if the Keystone XL is blocked, tar sands will come by the more dangerous transportation methods of boat or rail. Recent Philips 66 literature states: “Until new pipeline projects come online, rail is in many cases the easiest and most cost efficient way to get advantaged crude to some of our refineries.”

Trains coming and going from Santa Maria Refinery would travel the path of the Union Pacific Rail, on tracks shared by Amtrak. They would make the journey north through the Nipomo Mesa, up the precarious Cuesta Grade through Paso Robles, Salinas, and San Jose. Then they head through Richmond, then Berkeley. Richmond and Berkeley city councils recently passed resolutions calling for stricter regulations on crude oil trains.

The paths of the trains coming from the south — and carrying crude from any number of sources — are unclear and not ironed out in the draft EIR, but they would likely go through Ventura and Santa Barbara counties. A potential path indicated in the report heads through downtown Moorpark at the eastern edge of Ventura County after it passes through Simi Valley, but that potential route may have hit a glitch.

On December 17, the Moorpark City Council voted to send a letter to the San Luis Obispo Planning Commission opposing Phillip 66’s proposal because of its potentially hazardous risks. “I feel strongly that we need to show a little bit of leadership here as a city to formally object to this,” said one councilmember. “Hopefully other cities along this track will as well.” According to the report, once the trains leave Moorpark they could head through Camarillo to Ventura and along the coast to Carpinteria, Santa Barbara, and Goleta.

Johnson does not see much long-term job growth — or even stability — at the refinery given its current pipeline setup and a recent dip in statewide supplies. To stay competitive, company officials have argued, the refinery needs to revamp its intake methods so it can accept crude from other sources. “We are trying to keep the jobs we have,” Johnson said of the 200 people working at the plant. “Oil production in California is on the decline.” Rumors of a too-twisted and warped Monterey Shale formation from years of tectonic activity became a public reality in May when the government agency, Energy Information Administration, downgraded a predicted 13.7 billion barrels of recoverable oil to 600 million.

Crude By Rail, Derailment, DOT-111, Emergency Readiness & Response, Evacuation, Federal Regulation (U.S.), Fire, Marine transport, Oil stabilization, State regulation, Tank car retirement, Tank car retrofit, Volatile gases

Albany NY Area officials say crude-oil transport is getting safer

Repost from The Press Republican, Plattsburgh, NY
[Editor: the safety improvements showcased here are far from adequate, nevertheless, it’s a good update on conditions in New York.  Sen. Schumer is absolutely right – the DOT-111 tank cars should be taken out of service immediately… and not just in New York.  And Bakken crude should be stabilized before it is transported (not just conditioned) … just as it is in Texas.  – RS]

Area officials say crude-oil transport is getting safer

Lohr McKinstry, December 6, 2014
A DOT-111 oil tank car sits on a siding in the Midwest. New York state is adopting tougher rules on use of the tank cars, which pass through Essex and Clinton counties enroute to Albany,

LEWIS — New state regulations on crude-oil trains should help make them safer, Emergency Services officials from Essex and Clinton counties said recently.

State agencies have implemented 66 actions designed to strengthen standards, regulations and procedures to make the transport of crude oil by rail and water in New York safer and to improve spill preparedness and response.

Gov. Andrew Cuomo received a status report outlining the progress made by multiple state agencies after they were directed to evaluate the state’s capacity to prevent and address crude-oil accidents.

Local leaders have been concerned about the 100-car-plus oil trains moving through Clinton and Essex counties as the crude oil extracted in North Dakota arrives via Canadian Pacific Railway trains.

The oil is on its way to the Port of Albany, where it is stored for transport to various refineries.

IMPROVEMENTS

Essex County Emergency Services Director Donald Jaquish said he sees the new procedures as a safety benefit to the North Country.

“It’s a step in the right direction,” he told the Press-Republican. “We’re in a better position than we were a year ago.”

There’s been concern the trains could derail, and the oil burn or explode, as it has in other regions, and Jaquish praised Canadian Pacific for trying to make the tracks and tank cars safer.

“Upgrading the DOT-111 tank cars, rail replacement and maintenance, and specialized training are all beneficial to safety.

“Canadian Pacific has been helping us with training, hands-on-experience, that first responders need for these situations.”

EVACUATION PRACTICE

The tank cars are not owned by Canadian Pacific but by oil companies and vendors, and as a federal common carrier, the railroad is required to transport them.

Both the railroad and federal regulators have pushed for upgrades to the DOT-111 single-shell cars or a switch to the stronger DOT-109 or 112 cars.

“In almost any situation we get, we will be doing evacuations,” Jaquish said. “We’ve been working with Clinton County on planning and implementation.”

Clinton County Emergency Services Director Eric Day said any improvements to the transport of oil cars are welcome.

“At the end of the day, what they’ve done is good, no question,” Day told the Press-Republican. “Any regulatory move to make the DOT-111 cars safer is a plus. It’s a long time coming.”

One problem is that there are thousands of DOT-111 tank cars still in service, he said.

“There are so many of them (DOT-111 cars) out there on the tracks. They’re not going to stop moving the oil before they fix the cars. The oil is not going to stop coming any time soon.”

STATE GUIDANCE

Day said enhanced state regulations on oil shipments will be helpful.

“If there are changes that are pushed upon them (shippers), it can only make it safer. We’ve seen some of the benefits of the state’s work with regard to planning,” he said.

“We have guidance now on firefighting potential on dealing with these things. There are so many variables. Multiple cars of this crude oil on fire are a different animal.”

He said that, thanks to a donation, they now have the foam needed for such fires. The expensive product costs $30,000 for 1,000 gallons of foam but puts out crude-oil-based fires.

VOLATILE GAS

The North Dakota Industrial Commission has proposed draft regulations to remove the volatile gases from the oil before it is shipped, and Day said that provision is a good one.

“One of the things that makes the Bakken crude so volatile are the gases in the oil. The gas works its way out and is stuck in the head space of the car. If they breech, there’s flammable gas; cars that aren’t breeched and heat up, the gas could expand and be a problem.

“Removing that gas is a possibility before they put in the cars and ship it. If they could do that, it’s a big win.”

FEDERAL ROLE

Cuomo called for the federal government to mandate tank-car upgrades or replacement.

“The federal government plays a vital role in regulating this industry, and Washington must step up in order to expedite the implementation of safer policies and rules for crude-oil transport,” he said in the release.

The governor said the oil-production industry has resisted stronger tank-car standards and regulations requiring companies to reduce the volatility of crude before shipment.

A new report from the Brattle Group for the Railroad Supply Institute, a trade group, showed that a proposed federal rule to upgrade rail-tank cars could cost $60 billion.

According to the report, the high price tag is largely due to the costs associated with potential modifications to tank cars, early retirement of existing tank cars, temporarily using trucks instead of rails for transport and lost service time for tank cars under modification or awaiting modification.

‘TIME BOMBS’

U.S. Sen. Charles E. Schumer (D-NY) has also come out against use of DOT-111 cars.

“These outmoded DOT-111 tank cars … are ticking time bombs that need to be upgraded ASAP,” the senator said in a news release.

“That is why for two years, since the tragedy at Lac-Megantic, I have pushed federal regulators to phase out and retrofit these cars.

“As a result of our efforts, the federal Department of Transportation has put a proposal on the table that could start taking these cars off the tracks within two years, as well as restrict the speeds at which these trains operate.”

On July 6, 2013, a 74-tank-car train carrying Bakken light crude derailed in Lac-Megantic, Quebec, and the tank cars exploded, killing 47 people, destroying 30 buildings and spilling 1.5 million gallons of heavy crude oil.

That disaster was followed by oil-train-explosion derailments in Alabama, North Dakota, Illinois and New Brunswick, Canada.

Bakken Crude, Crude By Rail, Federal Regulation (U.S.), Volatility

Federal Inspector General to audit transport of volatile crude by rail cars

Repost from The Chicago Sun Times
[Editor: See the Inspector General’s audit announcement here and the PDF notice to the Federal Railroad Administrator here.  – RS]

Federal IG to audit transport of volatile crude by rail cars

Rosalind Rossi, October 29, 2014
A CSX train from Chicago carrying crude oil derailed in April in Lynchburg, Va., forcing the evacuation of hundred.
A CSX train from Chicago carrying crude oil derailed in April in Lynchburg, Va., forcing the evacuation of hundreds.

A federal inspector general is launching an audit of whether hazardous materials are being carried safely over the nation’s rails — including highly-volatile Bakken crude that travels through the Chicago area.

“Due to the public safety risk posed by increases in the transportation of hazardous materials by rail, we are initiating an audit assessing the Federal Railroad Administration’s (FRA) enforcement of hazardous materials regulations using inspections and other tools,” a memo on the website of the Office of Inspector General of the U.S. Department of Transportation said Wednesday.

The memo specifically cited a fatal July 2013 Bakken oil train derailment in Lac Megantic, Canada, that “highlighted the importance of oversight of hazardous materials being transported by rail.” The Lac Megantic blast decimated more than 30 downtown buildings in the Canadian town and killed 47 people.

At least eight rail lines carry Bakken crude through Illinois, according to the Illinois Emergency Management Agency. They are BNSF, Norfolk-Southern, Alton & Southern, CN, CSX, Indiana Harbor Belt, Union Pacific and Canadian Pacific. Maps provided by BNSF to the Illinois emergency agency indicated BNSF rails carry Bakken through Cook County.

A candlelight vigil about what protestors called “bomb trains” was held July 10 at the BNSF terminal at 16th Street and Western Ave out of fear that black tank cars observed there with  placards indicating they held flammable petroleum were actually carrying Bakken crude. The protest was among those waged nationally to observe the one-year anniversary of the Lac Megantic disaster.

“We saw 47 people killed in Lac Megantic,’’ Debra Michaud, an organizer of the Pilsen protest, said at the time. “A bomb train explosion in Pilsen or Little Village would be many times that.’’

In April, a CSX train traveling from Chicago and loaded with crude oil derailed and exploded in Lynchburg, Va.. The incident shut down roads and bridges and forced the evacuation of hundreds. No one was injured or killed.

The crash was among series of accidents across North America involving railroads’ crude oil shipments, which have surged dramatically as oil production rises in regions like North Dakota’s Bakken shale and western Canada.

Wednesday’s inspector general memo noted that crude oil shipments have increased from 9,500 carloads in 2008 to 407,761 in 2013 — a more than 4000 percent jump.

Mayors Karen Darch of Barrington and Tom Weisner of Aurora have been particularly vocal about the increasing transport of volatile crude and other dangerous products. They say their residents face frequent traffic jams caused by long trains carrying volatile liquids and worry about the sturdiness of tank cars holding such liquid.

Some volatile fluids are being transported in the equivalent of the “Ford Pinto” of rail cars and such tankers should be upgraded, Darch has contended.

Darch Wednesday welcomed the IG audit as a positive development.

“We are all concerned about public safety risk and hopefully this report will have suggestions for further enhancing public safety,” Darch said.

Bakken Crude, Crude By Rail, DOT-111, Emergency Readiness & Response, Hazmat notification

Merced Sun-Star editorial: Tell us when dangerous oil cars are rolling

Repost from The Merced Sun-Star

Our View: Tell us when dangerous oil cars are rolling

Editorial, August 15, 2014

Railroad tracks run up and down the valley like a spine, carrying everything from cans to cars, telephone poles to toothpicks. Many communities see 30, 40 or even 50 trains a day.  Some of those cars carry dangerous materials. Compressed gas and caustic chemicals move in black, cylindrical tank cars adorned with two markings – the red diamond with a flame and “DOT 111” stenciled on each car.

Not yet, but soon some of those rail cars will be hauling another dangerous material – crude oil extracted from the Bakken shale formation in North Dakota. While it is no more dangerous than many other chemicals, there’s likely to be a lot more of it on the rails that bisect our communities. The railroads and state must make certain that we are aware of these movements and have a plan for dealing with any emergency.

California’s Office of Emergency Services estimates shipments of Bakken crude will increase 25-fold by 2016 as 150 million barrels are sent to refineries in the Bay Area, Southern California and soon to two being readied in Bakersfield. That could mean thousands of tank cars a year moving through Modesto, Livingston, Merced and beyond. Mother Jones magazine calls it a “virtual pipeline.”

The Wall Street Journal reported Bakken crude contains higher amounts of butane, ethane and propane than other crude oils, making it too volatile for actual pipelines.

In July, 2013, a train carrying Bakken crude derailed and exploded in the small town of Lac-Megantic, Quebec, killing 47 people. Less dramatic derailments, some with fires, have occurred in North Dakota, Virginia and Illinois. The U.S. Department of Transportation reports 108 crude spills last year.

“When you look at the lines of travel from Canada and North Dakota, you figure if they’re headed for the Bay Area or to Bakersfield, the odds are that you’re going to see shipments going down the Valley,” said Assemblyman Roger Dickinson, who represents north Sacramento. So, he authored Assembly Bill 380, which would require the railroads to notify area first-responders whenever these trains are passing through.

Others are concerned, too. In July, the DOT issued proposed rules for safe transport, including increased cargo sampling, better route analysis, a 40 mph speed limit on trains labeled “high-hazard flammable,” and switching to newer, safer DOT 111 cars after Oct. 1, 2015. The new cars have double steel walls, better closures and heavier carriages. Currently, they make up about a third of the nation’s tanker fleet. California’s Office of Emergency Services has issued 12 recommendations, ranging from allowing better data collection to phasing out those old tank cars to better training for first-responders.

The railroads are already doing many of these things. Since the mid-1990s, BNSF has offered – at no charge – training for handling spilled hazardous materials and more extreme emergencies. But not enough local agencies have found the time to take the classes. A BNSF spokeswoman said the railroad would even come to town to conduct the training.

In May, the USDOT issued an emergency order in May requiring all carriers to inform first responders about crude oil moving through their towns and for the immediate development of plans to handle spills. Unfortunately, it contains a discomforting criteria: the order applies only to trains carrying 1 million gallons of Bakken crude, or roughly 35 tank cars. And to reach USDOT’s definition of a “high-hazard flammable train,” also requiring a warning, a train must have 20 tank cars.

Some perspective. In Virginia, one one tank car carrying Bakken crude exploded and flew an estimated 5,500 feet; a photograph of another explosion showed a fireball rising 700 feet from a single car. Our first responders ought to know when even one car carrying such material is coming through town. And that information must be shared beyond communities directly on rail lines because even our largest communities count on neighboring agencies to provide assistance during emergencies. When such cargo is moving, every emergency responder in the vicinity should be on alert.

Currently, the railroads share that information only if a local agency asks for it. That’s not good enough. Dickinson’s bill would make notification available on a real-time basis, without asking. But his bill mirrors federal orders on the size of the train; a dangerous loophole.

The incredible expansion of America’s oil resources is creating many positives – from more jobs to less dependence on foreign oil. But it’s happening so fast that we’re making up the safety aspects as we roll along. Federal rules don’t go nearly far enough to protect public safety in this new world.