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The pros and cons of a controversial California oil-by-rail project

Repost from NewTimes, San Luis Obispo, California

A crude proposal: The pros and cons of a controversial Phillips 66 oil-by-rail project

By Rhys Heyden, December 31, 2014

When viewed from the proper angle, the central conflict here bears a peculiar type of poetic symmetry: A local refinery would like to transport much of its crude oil into San Luis Obispo County via train, while opponents would prefer such plans to be driven out of the county on a rail.

Many stakeholders adamantly support the project, while many locals virulently oppose the proposed rail spur that would allow this transportation method to materialize. There are plenty of lawyers involved and lots of money tied up in each side of the issue, and the project itself reaches far beyond the borders of SLO County.

Originally proposed in mid-2013, the Phillips 66 rail spur extension project has remained largely unchanged: Succinctly put, the company wants to begin construction of a rail spur at its Santa Maria Refinery in Nipomo, thereby giving the facility the newfound ability to receive oil via rail.

It’s a project that appears simple on the surface, but gains layers of complexity the closer one looks. It also touches on several national issues: railroad safety, energy independence, and regulation vs. free enterprise, to name a few.

Ultimately, SLO County officials will likely be making vital yea or nay decisions about the Phillips 66 rail spur extension project in the next few months.

New Times spoke with many stakeholders and experts; examined documents, reports, and public comments; and traveled to Nipomo, all in the interest of answering the basics: What is this project, and why should SLO County residents support or oppose it?

The project

The primary thrust of the rail spur project is fairly simple: construction of a rail spur facility that would allow the refinery in Nipomo to receive crude oil via rail. Currently, the facility receives oil only by pipeline.


NIPOMO JUNCTION
The rousing debate over a proposal to bring crude oil by rail to the Phillips 66 Santa Maria Refinery in Nipomo (pictured) looms large on the national and local political stages.
PHOTO BY KAORI FUNAHASHI

According to the most recent environmental impact report (EIR) for the project, the trains arriving at the refinery would be capped at five per week, or 250 per year. Each train would consist of three locomotives, two buffer cars, and 80 tank cars, and total oil capacity per train would be between 49,670 and 53,532 barrels.

Averaged out over seven-day weeks, the daily oil delivery by rail would be between 35,478 and 38,237 barrels. To contextualize, each barrel of oil is equivalent to 42 gallons.

Precisely how this oil would arrive to SLO County is anyone’s guess. The EIR posits that the oil trains could enter California at any one of five different locations, and could arrive at the refinery from the north or the south on Union Pacific’s Coast Line (which runs from the Bay Area to Los Angeles).

“With this Phillips 66 project, we would deliver crude oil because—as a common carrier—if a customer wants us to move that kind of product, we are federally required to do so,” said Aaron Hunt, a UP spokesman based in Omaha. “It’s a ‘wait and see’ about how we move the oil, though. Nothing is stationary.”

Currently, there’s only one crude oil train that moves through (but doesn’t stop in) SLO County, running from San Ardo to Los Angeles two to three times per week.

“Rail traffic on the UPRR Coast Line through San Luis Obispo County is relatively light,” the project EIR notes. “The average number of freight trains running the length of the Coastal Route is about two per day.”

Another significant component of the project is the physical spur itself. Proposed in the project is the construction of five parallel tracks and an unloading rack extending eastward from the facility, but staying entirely within the boundaries of the refinery property.

The project EIR estimates that the process of arriving, unloading, and departing from the refinery would take between 10 and 12 hours per train, contingent upon Union Pacific scheduling.

Although a great deal of oil would arrive at the refinery via rail were this project approved, the refined product would continue to leave the facility as it currently does—by pipeline to Phillips 66’s linked Rodeo facility in the Bay Area.

In addition, the total amount of material processed at the refinery would remain the same, as that level is capped by county authorities.

“Phillips 66 is working to ensure the long-term viability of the Santa Maria Refinery and the many jobs it provides,” said Houston-based company spokesman Dennis Nuss. “Our plans for this project reflect our company’s commitment to operational excellence and safety while enhancing the competitiveness of the facility.”

The review process

Despite an initial push for a speedy turnaround by Phillips 66, the rail spur project has encountered several significant obstacles and delays as it’s rolled through SLO County’s review process.

The project’s initial draft EIR (DEIR) was released on Nov. 27, 2013, to relatively little fanfare, but word spread quickly in environmental activist circles, as well as among Nipomo residents. Soon enough, hundreds of public comments critiquing the project from near and far flooded the SLO County Planning and Building Department.

Murry Wilson—an environmental resource specialist and the planning department’s point man on the project—told New Times in March 2014 that his department was overwhelmed by the roughly 800 public comments that had come in regarding the project’s DEIR.

“Many of the comments were really substantive, and the nature of the project has changed enough as a result of those comments that the DEIR could no longer provide an appropriate review for the project,” Wilson said at the time. “Making sure the public has access and a chance to respond to new information is the key thing here.”

Under Wilson’s advisement, the county pushed for recirculating the DEIR to adequately respond to those “substantive” comments, and Phillips 66 (which is funding the review process) agreed to the additional expense and subsequent elongation of the review process on March 24.

At 708 dense pages, that initial 2013 DEIR was no lightweight, but the re-circulated DEIR—which debuted on Oct. 10—weighed in at an even heftier 889 pages.

The public comment period for that second report closed on Nov. 24, and the county and the DEIR consultants have since been sifting through, organizing, and bracketing the nearly 11,000 comments they received on their second go-round.


THE PROPOSAL
This is an aerial map of the rail spur extension project and environs. Outlined in yellow is the boundary of Phillips 66’s property, in black is the Union Pacific mainline railroad, in blue is the outline of the proposed rail spur, and in red is where a pipeline would run from the spur to the refinery.
PHOTO COURTESY OF SLO COUNTY PLANNING DEPARTMENT

Though the vast majority of the comments came in as individually signed form letters from about five different environmental activist groups, several hundred unique comments from individuals, governmental agencies, organizations, schools, and even Phillips 66 poured in.

The majority of the comments are critical of the project, but there are also many letters that are either neutral or in support of the proposal.

The review process, as Wilson explained to New Times, is in its final stages. Essentially, the project consultants need to adequately respond to all public comments and draft a final EIR including those responses. Wilson had set a mid-January goal for completion of that process, and he said everyone involved is still striving to hit that target.

The first public hearing for the rail spur project—at the SLO County Planning Commission, where public officials will finally get the chance to vote yes or no on Phillips 66’s project—had been slated for Feb. 5, but Wilson said that hearing will likely be bumped.

“The sheer volume of comments we received is probably going to delay the hearing date,” he explained. “Feb. 19 would be the next possible Planning Commission date, and that’s possible; it just all depends on the depth in which our consultants may need to do their responses and/or additional analysis.”

Asked about the potential for yet another DEIR recirculation, Wilson said he’s “pretty confident we’re not going down that path,” adding that he wants to set this project for a hearing and wrap up the review process ASAP.

Pros

So, now that you have a pretty good idea about the nature of this project and what’s happened up until now, you’re probably still wondering why you should—or shouldn’t—support it.

Seeking to understand why many people support the project, New Times reached out to Phillips 66 to get their point of view.

Though New Times requested a tour of the refinery and access to speak with a variety of Phillips 66 employees, the company—working with SLO-based PR firm Barnett Cox & Associates—declined to provide either, instead offering a presentation and interview with two company spokespeople.

In a roughly 90-minute conversation between two reporters, refinery Maintenance Superintendant Jim Anderson, a Barnett Cox rep, and company spokesman Nuss via telephone, Phillips 66 laid out its case for project approval.

Essentially, Nuss and Anderson argued that oil production in Santa Barbara County (the refinery’s predominant current source of oil at about 65 to 80 percent of total sourcing) is in decline. Anticipating further falloff, the company wants to diversify how it receives oil and where it receives it from.

This rail spur project and receiving oil by rail, they posit, will allow the Santa Maria Refinery (and the 135 or so local jobs it provides) to stay viable for decades to come.

When asked if Phillips 66 has ever considered shutting down the refinery or if the company would abandon the refinery if the rail spur wasn’t approved, Nuss said such discussions hadn’t occurred, adding that the company “will not speculate about the project.”

Anderson added that “our options would start to become really limited” if the rail spur project doesn’t move forward.

Oil by rail, Nuss and Anderson argued, is already a reality across the nation and even in SLO County (with the established San Ardo to L.A. train), and they pointed out that Union Pacific is doing quite a bit to make sure its tracks are safe for crude oil trains.

Lastly, Nuss and Anderson added that residents have raised legitimate concerns about environmental impacts (noise, lights, emissions, and the potential for spills), but they opined that such impacts will be adequately mitigated wherever they can be.

“The refinery is good for us. It provides high-paying jobs, is a great neighbor, and is a longtime business that needs to keep operating,” Anderson wrote in a letter supporting the project. “The draft EIR spells out the way issues like noise, lights, and particulate emissions can be managed, and with these points taken care of, there is no reason to deny the application.”

“Protecting our people, our environment, and our communities guides everything we do, and those values will be applied to this project as well,” Nuss wrote in a follow-up email to New Times.

It’s worth noting that Phillips 66 employees are not the only ones supporting the company’s endeavor.

“The Phillips 66 Santa Maria Refinery has been quietly doing its job for 60 years, and what I have observed is a business that operates safely and with respect for our community,” Cuesta College President Gil Stork wrote in a Nov. 19 letter supporting the project. “We all have to adapt to changing market conditions to survive, not every one’s changes are subject to the scrutiny the refinery is managing. The draft EIR is long and thorough and addresses every detail of the project.”

This is the crux of the pro-rail spur argument: shouldering a few additional (mitigated) environmental impacts for the sake of keeping well-paying refinery jobs in SLO County and respecting a longstanding community-member.

Cons

If Phillips 66’s measured, cautious, and calculated approach to supporting its own project is at one end of the proverbial spectrum, then the aggressive, kinetic, and fiery opposition to the project is its natural polar opposite.

Project adversaries include prominent environmental groups (the Sierra Club, ForestEthics, and Communities for a Better Environment among them) and city councils as far-spread as Berkeley, Richmond, and Moorpark. But perhaps the most representative group of all is a small, local assembly of project opponents: the Mesa Refinery Watch Group (MRWG).

During a December trip to Nipomo, MRWG steering committee members Martin Akel, Gary McKible, and Laurance Shinderman (as well as MRWG member Paul Stolpman) met with New Times to demonstrate and explain exactly why they’re opposed to the project.

“I think of it in terms of the baseball field in Iowa: If you build it, they will come,” Stolpman said. “In this case, if you don’t build it, they can’t come.


INFORMED DISSENT
Gary McKible (left) and Laurance Shinderman (right) are steering committee members of the Mesa Refinery Watch Group (MRWG), an assembly of local residents opposed to the rail spur extension project.
PHOTO BY KAORI FUNAHASHI

“If you don’t give them a place to park the trains at the end of the line, they won’t be coming down the line at all,” he added.

In conversations and emails with New Times, MRWG members expounded on the multifarious reasons they think the rail spur is ill-advised. Rationales ranged from visual blight to noise pollution to air pollution to the risk of a catastrophic derailment and/or oil spill at any point on the tracks.

Unsurprisingly, MRWG members also disagreed with what they see as “specious” arguments from Phillips 66. They feel that the company has not been a good neighbor and is pursuing the crude-by-rail strategy primarily to enhance profits, not because any refinery jobs or the local oil supply are truly at risk. In fact, they view those rationales as red herrings.

“Phillips wants to make the Central Coast a hub for crude by rail, and I feel like that’s pretty obvious,” Akel said. “That said, our worst enemy isn’t Phillips, it’s an uninformed public. People need to know.”

One larger group working toward that same end is the Sierra Club. Andrew Christie, director of the local Santa Lucia Chapter, told New Times that his organization emphatically objects to the rail spur project.

“There are just no grounds on which to support this project,” he told New Times. “The impacts are understated, the EIR has been deficient from the start, and there are still 11 ‘significant and unavoidable’ impacts in a defective EIR.”

The 11 “significant and unavoidable” project impacts Christie refers to are a touchstone for the MRWG as well—five in the “air quality and greenhouse gases” category and one each in “biological resources,” “cultural resources,” “hazards and hazardous materials,” “public services and utilities,” and “water resources” categories.

All of these impacts are essentially due to the potential for high levels of toxic emissions from the oil trains or the mushrooming consequences of a possible crude oil spill and/or derailment.

Driving a New Times photographer and reporter around Nipomo, McKible and Shinderman—when not kibitzing back and forth—were adept at pointing out which neighborhoods and homes would potentially bear the brunt of noise, light, and pollutant impacts from the spur.

Eventually, they pulled over to the side of Highway 1 near the Mesa Fire Station, where the metallic frame of the refinery can be seen looming over the dunes.

“There is no benefit with this project—we are all subject to collateral damage with what they’ll be doing up and down the rail line,” McKible said, shaking his head. “We derive no benefit, and we take on all the risk.”

The battle for support

As the rail spur project review process wraps up and actual yea or nay votes are looming, indications are everywhere that the war for public opinion (and the favor of elected officials) has kicked into high gear on both sides—but especially on Phillips 66’s behalf.

On Oct. 24, Union Pacific scheduled two “invitation-only” sessions to see a “state-of-the-art interactive training car that will travel the U.S. teaching safety and emergency preparedness.”

In an email sent to many SLO County officials advertising the event, organizers noted that “Phillips 66 Santa Maria Refinery is delighted to invite you to tour the training car, and see a crude oil railcar that we are bringing to San Luis Obispo to help educate community leaders about our proposed rail project.”

On a separate note, in a Dec. 15 letter in the Tribune, SLO resident Amber Johnson took aim at the multitude of form letters from environmental groups responding to the DEIR, castigating them as “out-of-town special interest groups who clearly have their own agenda.

“The only special interest I pay attention to is that of the health and prosperity of San Luis Obispo County by supporting responsible businesses such as Phillips who wish to continue to contribute to our local economy,” Johnson concluded. “This decision needs to be based on what is best for our county, not what outsiders think is best.”

Johnson is herself a political strategist who was a regional field director for the oil company-sponsored “No on P” campaign in Santa Barbara County, a former campaign manager for newly-elected SLO County District 4 Supervisor Lynn Compton, and a former executive director of the Republican Party of SLO County.

Lastly, on Dec. 19, Phillips 66 made a splash with a $30,000 donation to the fledgling San Luis Obispo Railroad Museum.

The Paso Robles Daily News quotes Bill Schroll, manager of the Santa Maria Refinery, as saying that, “All of us involved in the oil industry are aware of the role the local railroad played—and continues to play—in keeping our product moving.

“We are delighted to help educate residents and areas visitors about the rich history of the railroads and their role on the Central Coast, including the dynamic partnership that continues between our industries,” he concluded.

Unsurprisingly for a project of this magnitude, many politicos polled by New Times said they saw the rail spur project likely being appealed by one side or the other—from the Planning Commission, to the Board of Supervisors, to the California Coastal Commission (the refinery is in the coastal zone)—and then likely being settled in court in a years-long struggle.

What remains to be seen, however, is precisely which arguments will emerge, and which side of the issue will be fighting an uphill battle.

“Ultimately, it comes down to this: Is what they’re proposing appropriate for the community, or are the impacts just too great?,” said District 3 Supervisor Adam Hill. “It will be interesting to see how that question is answered.”

Faces of Fracking – Ed Ruszel of Benicia, California

Repost from Faces of Fracking
[Editor – This is much more than a story about our friend Ed Ruszel.  Author Tara Lohan packs background and detail into this piece like a great storyteller.  Another MUST READ, including almost everything you need to know about crude by rail in Benicia….  (This story also appears on Grist and DeSmogBlog.)  – RS]

Faces of Fracking

Stories from the front lines of fracking in California

Ed Ruszel
Ed Ruszel’s family business is in an industrial park in Benicia, CA, where Valero Energy is hoping to build a new rail terminal at its refinery to accept 70,000 barrels of crude oil a day. (Sarah Craig)

“Business by the Rails” by Faces of Fracking, CC BY-NC-ND 4.0

Ed Ruszel

Story by Tara Lohan | Photography by Sarah Craig

Ed Ruszel’s workday is a soundtrack of whirling, banging, screeching — the percussion of wood being cut, sanded, and finished. He’s the facility manager for the family business, Ruszel Woodworks. But one sound each day roars above the cacophony of the woodshop: the blast of the train horn as cars cough down the Union Pacific rail line that runs just a few feet from the front of his shop in an industrial park in Benicia, California.

Most days the train cargo is beer, cars, steel, propane, or petroleum coke. But soon two trains of 50 cars each may pass by every day carrying crude oil to a refinery owned by neighboring Valero Energy. Valero is hoping to build a new rail terminal at the refinery that would bring 70,000 barrels a day by train — or nearly 3 million gallons.

And it’s a sign of the times.

Crude by rail has increased 4,000 percent across the country since 2008 and California is feeling the effects. By 2016 the amount of crude by rail entering the state is expected to increase by a factor of 25. That’s assuming industry gets its way in creating more crude by rail stations at refineries and oil terminals. And that’s no longer looking like a sure thing.

Valero’s proposed project in Benicia is just one of many in the area underway or under consideration. All the projects are now facing public pushback — and not just from individuals in communities, but from a united front spanning hundreds of miles. Benicia sits on the Carquinez Strait, a ribbon of water connecting the San Pablo and Suisun Bays in the northeastern reaches of the San Francisco Bay Area. Here, about 20 miles south of Napa’s wine country and 40 miles north of San Francisco, the oil industry may have found a considerable foe.

The Geography of Oil

The heart of California’s oil industry is the Central Valley — 22,500 square miles that also doubles as the state’s most productive farmland. Oil that’s produced here is delivered to California refineries via pipeline. For decades California and Alaska crude were the main suppliers for the state’s refineries. Crude came by pipeline or by boat. Over the last 20 years imports from places like Saudi Arabia, Ecuador, and Iraq have outpaced domestic production. But a recent boom in “unconventional fuels” has triggered an increase in North American sources in the last few years. This has meant more fracked crude from North Dakota’s Bakken shale and diluted bitumen from Alberta’s tar sands.

A Union Pacific train engine is parked in front of the Valero refinery in Benicia, CA. Union Pacific has the final say over the logistics of trains arriving to the refinery. (Sarah Craig)

            “Union Pacific Train” by Faces of Fracking, CC BY-NC-ND 4.0

Unit trains are becoming a favored way to help move this cargo. These are trains in which the entire cargo — every single car — is one product. And in this case that product happens to be highly flammable.

This is one of the things that has Ed Ruszel concerned. He doesn’t think the tank cars are safe enough to transport crude oil (or ethanol, which is also passing through his neighborhood) in the advent of a serious derailment.

But he’s also concerned not just with the kind of cargo, but the sheer volume of it. If a derailment occurs on a train and every single car (up to 100 cars long) is carrying volatile crude, the dangers increase exponentially. The more trains on the tracks, the more likely something could go wrong. In 2013, more crude was spilled in train derailments than in the prior three decades combined, and there were four fiery explosions in North America in a year’s span.

This risk Marilaine Savard knows well. I met her in February of 2014 when she visited the Bay Area to tell residents about what happened in her town of Lac Megantic, Quebec. The closest word to describe the experience was “apocalypse,” she said, through tears.

Most people by now know of the train derailment that killed 47 people and incinerated half of Lac Megantic’s downtown in the wee hours of the morning on July 7, 2013. The fire was so hot the city burned for 36 hours. Even the lake burned.

We now have term for this: bomb train.

Traffic Jam

Just two days before the disaster in Lac Megantic, Ed joined a community meeting in Benicia about the Valero project. For many residents, it was the first they were learning of it, but Ed had known months before.

In January 2013 a train carrying petroleum coke leaving Valero’s refinery derailed. It was minor — no cargo spilled — but it did rip up a piece of track, and the stalled train blocked the driveway to Ruszel Woodworks for hours. It was one of three minor derailments in the industrial park in the span of 10 months.

Ed came outside to see what the problem was. “The Valero people told me ‘get used to it, because we’re really going to be bringing in a lot of cars soon,’” Ed says. “At that point I really started paying attention and I got really scared.” Ed soon learned about plans for Valero’s new terminal, the 100 train cars that would pass by his business each day, and that it appeared the city was ready to rubber stamp the project — no Environmental Impact Report required.

The fire was so hot the city burned for 36 hours. Even the lake burned.

To explain one of the reasons for his concern, Ed shows me around his property where the lands comes to a V and two rails lines intersect. The main line of Union Pacific’s track passes along the back of Ed’s property, about 75 feet from his building. Here trains can get off the main line and switch to the local line that runs inside the industrial park. The local track passes by the front of Ed’s property, about 20 feet from the building.

The tracks into the industrial park were not designed for a crude by rail facility, Ed says. There are no loops. For Valero to get crude tanks into the refinery, the train must pass by the back of Ed’s property on the main line, pull all the way forward (usually about a mile), and then back up onto the local line, past the front of Ed’s property and into the refinery. The process is reversed when the train leaves. The 100 train cars a day that Valero hopes to bring in will come by his business up to four times per day.

That’s a concern not just because of potential dangers from derailments and diesel fumes from idling trains, but also because the industrial park has a rail traffic problem.

“My big concern here is specifically with the rails — I realize there are other huge environmental issues and global issues with the kinds of fossil fuel production we’re dealing with now and where it’s going,” Ed says.

Already trains servicing the Valero refinery and other industry neighbors can cause traffic nightmares. The trains block driveways to businesses and sometimes major roadways.  An off ramp from Interstate 680 empties into the industrial park. Ed has photos of cars trying to exit the highway but are backed up on the interstate because of train traffic.

The reason has to do with the area’s history.

The tracks that come through the industrial park were not built for industry, but for the U.S. Army.

From 1851 to 1964, part of the land now claimed as an industrial park was home to the Benicia Arsenal. Bunker doors in the hillsides and buildings from the 1800s are part of the area’s colorful history. The rail lines moved around troops and armaments from the Civil War through the Korean War, Ed says, but it’s ill-suited to servicing a busy commercial rail terminal.

The Public Comments

Ed’s family moved their woodworking business to the industrial park in 1980. His brother Jack and their father started the company when Jack was still in high school, and it’s grown to over 20 employees. They’ve always played nice with the other businesses, including the refinery, which was built in 1968 and bought by Valero in 2000.

Ed Ruszel drives by the Valero Refinery, which is about a mile from his family’s woodworking business in Benicia, CA. (Sarah Craig)
  “Valero’s Refinery” by Faces of Fracking, CC BY-NC-ND 4.0  

But the Ruszels felt the crude by rail issue demanded they take a stand. While not aligned with any local activist groups, Ed and other members of his family have spoken publicly about their concerns.

“In some ways, getting outspoken we feel like we’re sticking our neck out,” Ed says. “There are four generations of my family here in Benicia — I’ve got my 80 year-old mother, tiny little grandnieces and nephews, and they all have to live with it. But it is important enough.”

Their voices are part of a growing chorus in the area.

On May 31, 2013 the City of Benicia issued a Mitigated Negative Declaration, which means an initial study by the city concluded there were no significant environmental problems with the project that couldn’t be mitigated.

But many residents felt differently and commented on the initial study or voiced concerns at a July 9 city planning department meeting, which occurred just two days after the disaster in Lac Megantic drove home the reality of a catastrophic accident.

By August the city sided with concerned residents and decided that a draft Environmental Impact Report (DEIR) needed to be prepared to further review the project. An outside consultant was hired for the job but paid for by Valero. After much delay, the DEIR was released in June 2014 and promptly slammed by everyone from the state’s Attorney General Kamala Harris to the local group Benicians for a Safe and Healthy Community because it left out crucial information and failed to address the full scope of the project.

Even the Sacramento Area Council of Governments, which represents 22 cities in six counties that are “uprail” from the project, weighed in. It noted the draft EIR doesn’t offer any recommendations for safety measures because it concludes there is no “significant hazard.”

“We believe that conclusion is fundamentally flawed, disregards the recent events demonstrating the very serious risk to life and property that these shipments pose, and contradicts the conclusions of the federal government, which is mobilizing to respond to these risks,” the comment states. It even quotes a U.S. Department of Transportation report from May 2014 that says that Bakken crude by rail shipments pose an “imminent hazard.”

One of the biggest omissions in Valero’s DEIR was Union Pacific not being named as an official partner in the project. With the trains arriving via its rail lines, all logistics will come down to the railroad. Not only that, but the federal power granted to railroad companies preempts local and regional authority.

This preemption is one of the biggest hurdles for communities that don’t want to see crude by rail come through their neighborhoods or want better safeguards. An October 2014 editorial in the San Francisco Chronicle lamented, “What’s really crazy is the federal law that allows preemption of municipal and state law when it comes to critical decisions on rail safety. Affected communities deserve a say over what rolls through their towns.” With preemption, that may be impossible.

The DEIR also doesn’t identify exactly what kind of North American crudes would be arriving and from where, deeming it “confidential business information.” Attorney General Kamala Harris called that omission an “overly broad determination of trade secrets.”

Different kinds of crude have different health and safety risks. A pipeline rupture carrying Canadian diluted bitumen in a tributary of the Kalamazoo River in Michigan in 2010 showed that the thick, corrosive crude is much harder (perhaps impossible) to clean up adequately and is different than conventional crude, which sheens on the surface of water. And Bakken crude has proved more explosive than other crudes because of its chemical composition. It’s likely that some of the crude coming to Valero’s refinery would be from either or both sources.

Consider the numbers: In 2013 the total crude by rail brought into California was nearly 6.3 million barrels, and in the first nine months of 2014, the numbers were 4.3 million barrels. The top two sources have been North Dakota and Canada.

Further, the DEIR only examines the risks of a minor derailment along a 69-miles stretch of track between Benicia and Roseville. It doesn’t address the hazards (which could be catastrophic) of the three potential routes that the Union Pacific trains may take entering California, which involve passing over mountains, through tinderbox-dry forests, and along critical water sources.

Just a week ago a train derailed along one such route in the Feather River Canyon. Eleven cars plunged off the track and down the canyon. Had the cargo been crude instead of corn, its contamination could have made its way down the Feather River to Lake Oroville, a reservoir for millions of Californians.

Public comments on the DEIR closed on September 15, and now it’s a waiting game to see what happens next in Benicia. The planning commission will vote on whether to accept or deny the permit for the project. If the commission denies the permit, Valero can appeal to the city council. Either way, it’s likely to end up in court.

Cumulative Impacts

Ed spends his weekdays on land in Benicia and his weekends on the water, sailing out of nearby Richmond. He has shaggy brown hair, a neatly trimmed salt and pepper goatee, and looks every bit the weathered sailor that he is.

Having worked professionally as a boat captain and even as a solo sailor to Hawaii, Ed is a bit overqualified for the nearly windless fall Sunday we set sail with local activist Marilyn Bardet, a member of Benicians for a Safe and Healthy Community.

Ed Ruszel and Marilyn Bardet, an activist with Benicians for a Safe and Healthy Community, sail outside of the Richmond Harbor to investigate the presence of the oil industry along the Bay Area’s shoreline. (Sarah Craig)
  “Richmond Sailing” by Faces of Fracking, CC BY-NC-ND 4.0 

Marilyn has been a refinery watchdog in Benicia for years and worries about more than just the transportation of fossil fuels. “For me it’s not only about whether they were going to bring it by rail, but whether they were going to bring it at all,” she says.

Sailing from Richmond, we get a good perspective of how pervasive the oil industry is in this area. We pass a couple of blue and white docked ships with their decals reading “Marine Spill Response.” Ever since the Exxon Valdez spill in Alaska, Ed explains, the industry pays into a fund that keeps ships at the ready in case of an accident.

No such thing exists for the crude by rail industry. In fact, the National Transportation Safety Board reported in January 2014, “Current regulations do not require railroads transporting crude oil in multiple tank cars to develop comprehensive spill response plans and have resources on standby for response to worst-case discharges.”

Ed points the bow of the boat toward the Long Wharf in Point Richmond where hulking oil tankers sidle up to be unburdened of their cargo.

We also have a clear view of the large terra cotta-colored storage tanks nesting above neighborhoods in the hillsides of Richmond. These are part of the sprawling refinery operations run by Chevron, but first begun by Standard Oil in 1901.

And it’s not the only refinery around here. In the North Bay, there are five along a 20-mile crescent, with Richmond and Benicia being the bookends. In between, Phillips 66 operates a refinery in Rodeo, and two other refineries (Shell and Tesoro) straddle Martinez.

Residents of these towns have joined in the crude-by-rail fights as well — lending their comments to Environmental Impact Reports, attending community meetings, and joining together for “healing walks” between communities.

Oil storage tanks used by the Chevron refinery in Richmond, CA are seen from the water’s edge. A fire at the refinery in 2012 caused thousands of nearby residents to seek medical treatment. (Sarah Craig)
   “Chevron Refinery By the Bay” by Faces of Fracking, CC BY-NC-ND 4.0 

The network of support has even extended hundreds of miles south. The Phillips 66 refinery has two parts — one in Rodeo and the other 200 miles away, just outside the town of Nipomo in San Luis Obispo County. A pipeline joins the operations. The refinery has expansion plans that are currently being reviewed. One part of those plans involves building a new rail unloading facility in Nipomo that would bring in five unit trains of crude a week, with 50,000 barrels per train.

But the crude-by-rail projects in the area don’t end there. In nearby Pittsburgh, 20 miles east of Benicia, residents pushed back against plans from WestPac Energy. The company had planned to lease land from BNSF Railway and build a new terminal to bring in a 100-car unit train each day of crude. But WestPac’s plan has stalled after Attorney General Kamala Harris commented on a recirculated Draft Environmental Impact Report and said the project had “significant legal problems” and “fails to disclose the sources and analyze the environmental impacts of the new crude.”

Further south in Kern County in the heart of oil country, Plains All American just opened a crude-by-rail terminal that is permitted for a 100-car unit train each day. Another nearby project, Alon USA, received permission from the county for twice as much but is being challenged by lawsuits from environmental groups.

Closer to home, though, unit trains are already arriving. In March, an investigation by local TV station KPIX revealed that Kinder Morgan, a “midstream” company which is in the business of transporting crude (usually by pipeline or rail), received a change of use permit for a rail terminal in Richmond. Kinder Morgan had been transporting ethanol, but the Bay Area Air Quality Management District OK’d Kinder Morgan to offload unit trains of Bakken crude into tanker trucks. KPIX journalists followed the trucks to the Tesoro refinery in Martinez, just across the Carquinez Strait from Benicia.

Aimee Durfee is part of the Martinez Environmental Group. Not only is Martinez flanked by two refineries, but it’s also bisected by Union Pacific rail lines. Now, the residents also know that crude is arriving by truck. “We came to understand that we are collateral damage,” she said. “We get it coming and going.”

Aimee says her group’s biggest fear is the threat of derailment and explosion. The same is true for many Richmond residents near Kinder Morgan’s rail terminal.

“The permit was given illegally by the air district, without concern for the health and safety of the community,” says Andres Soto, an organizer with Communities for a Better Environment. “Should there be a catastrophic explosion — there are residences and two elementary schools across the street from the railyard.” He also says that the blast zone in Richmond contains a total of 27 schools. The blast zone is defined as a half mile away for evacuations if there is a derailment and one mile away if there is an explosion and fire.

Train cars are parked at the Kinder Morgan rail facility in Richmond, CA. The facility is currently permitted to offload Bakken crude from unit trains. (Sarah Craig)
  “Rail Terminal” by Faces of Fracking, CC BY-NC-ND 4.0 

Earthjustice, a nonprofit that litigates on behalf of environmental causes, has led legal efforts trying to block the permit for Kinder Morgan, but in September, Judge James Bush threw out the suit because it was not filed within 180 days of the permit issuance. (The catch-22 of course being that it hadn’t been filed in the proper window of time because no one knew it had even happened, since public notice was not given.)

Earthjustice has appealed Judge Bush’s decision, but residents are continuing to fight the permit in other ways. On October 28, the Richmond City Council unanimously passed a resolution calling on the Bay Area Air Quality Management District to review and “if feasible, revoke the permit and subject the project to a complete CEQA process,” which would be a full environmental review.

The Big Picture

With all this crude by rail activity, some big picture thinking would be helpful. As Attorney General Kamala Harris wrote about the Benicia project, “There’s no consideration of cumulative impacts that could affect public safety and the environment by the proliferation of crude-by-rail projects proposed in California.”

Ed has come to a similar understanding. He is focused on the trains passing by his shop, but the process has opened his eyes to a lot more. He’d heard about the impacts of tar sands and Bakken crude but didn’t have a personal connection to it until unit trains began arriving in California.

“Just focusing on what’s happening in my little neck of the woods has led me to spend more time really looking at the big picture,” he said. “The climate is rapidly changing for one reason or another and probably a good portion of it is what we’re doing with the burning of fossil fuels and so forth, especially this rapid extraction.

“I can’t go to New York and demonstrate or deal with the Keystone XL pipeline, but we can look around here, keep our eyes open, and try to articulate what we’re seeing locally,” says Ed.

BNSF train car derails in Richmond, CA

Repost from The Contra Costa Times
[Editor: see also this NBC Bay Area video news report by Cheryl Hurd.  Apologies for the commercial ad.  – RS]

Burlington Northern Santa Fe car carrying pork derails in Richmond, raising concerns about more hazardous materials

By Robert Rogers, December 3, 2014

RICHMOND — The derailment Friday of a single rail car containing refrigerated pork is under investigation by Burlington Northern Santa Fe officials, who say it occurred during a low-speed movement within its rail yard and suggests no added risk for the rail transport of more hazardous materials in Contra Costa County.

“This was a very minor incident with a single car going less than 10 mph,” BNSF spokeswoman Lena Kent said. “There are many precautions we take to ensure that 99.997 percent of all hazardous materials we transport reach their destinations without a release caused by an accident.”

The car was being pulled by a locomotive through the yard just west of Richmond Parkway near Pennsylvania Avenue when it tipped over.

Kent said people cut through a chain-link fence soon after and took boxes of refrigerated pork that spilled from the crumpled hull. Empty cardboard Tyson Foods boxes were seen scattered in the neighborhood nearby.

Kent said the incident is under investigation, and she declined to say what may have caused it or whether the line on which the derailment occurred is ever used to transport hazardous materials.

The incident and its aftermath — the car remains broken beside the tracks and will soon be scrapped — has only heightened concerns in a community already on edge over the recent influx of crude-by-rail shipments, much of it from the Bakken region of North Dakota.

City officials last month sent a letter to the Bay Area Air Quality Management District urging the agency to revoke a permit allowing Kinder Morgan to offload Bakken crude and Canadian tar sands oil at its Richmond rail yard, the major draw for local crude-by-rail traffic.

In September, a lawsuit by environmental groups seeking to revoke that permit — which was issued without public notice — was tossed out by a judge on the grounds that it was filed too late.

Kent said BNSF transports two oil-carrying trains per month in California but declined to say exactly where, citing security concerns.

Industry experts expect crude-by-rail traffic to increase in the coming years, as North American oil extraction grows, and the product must be refined in facilities across the United States, including several in Contra Costa County.

Randy Sawyer, Contra Costa County’s chief environmental health and hazardous materials officer, said trains of up to 100 cars travel into Richmond before being transferred to trucks or pipelines to be refined. He noted that cars carrying hazardous materials are more robust than the one that carried the spilled pork, and they would be unlikely to spill in a low-speed derailment.

Nonetheless, “A crude car could tip over also,” Sawyer said. “It’s a possibility.”

Kent said Friday’s derailment does not indicate a wider problem.

“We operate all of our trains with safety as our first priority,” Kent said. “However, when it comes to hazardous material we do have more restrictive operating procedures.”

County Supervisor John Gioia said BNSF officials have told him they are developing “more resilient” cars for crude oil, a development he took to mean that the company expects the crude-by-rail market to continue to grow, and that federal regulators are likely to impose new standards as communities across the country see increased crude-by-rail traffic in their midst.

“Any train derailment concerns me because there could be anything from injury to a larger public safety issue; it’s all important,” Gioia said. “But this new (incident) hasn’t told me anything new other than what we know already based on derailments in other parts of the country: that trains with hazardous materials pose a risk.”

Train derails in Richmond CA, incident not reported

Repost from The Richmond Standard

Here’s what we know so far about the derailed train off Richmond Parkway

December 3, 2014 by Mike Aldax
Here's what we know about the derailed train off Richmond Parkway
Photo submitted by a Richmond Standard reader

Richmond Standard reader Koa Phan sent us the above photo of a derailed train off Richmond Parkway, an incident that hasn’t been publicly reported.

The reader said the derailment occurred where Pennsylvania Avenue ends near Peres Elementary School.

After calling various agencies, we learned from a BNSF Railway official on Tuesday that the train had derailed on Friday. The official declined to comment further, saying we needed to talk to his general manager who wasn’t immediately available. We’ll try him again.

Richmond police learned about the derailment on Sunday, after BNSF called to report that people had apparently entered the train car without authorization, spokesperson Sgt. Nicole Abetkov said.

RPD did not respond to that call for service, however, as the railway property is not in its jurisdiction, Abetkov said.

“[BNSF] handled it on their own,” she said.

Richmond Fire Chief Michael Banks said his department did not receive any calls about the derailment, adding dispatch was not aware of any calls.

Phan said it was lucky the derailed train wasn’t flammable.

“It could have been a bad situation,” he said.

Richmond residents and city officials have been on heightened awareness about train derailments after a media investigation in February exposed transports of highly flammable Bakken crude oil to the Kinder Morgan facility in Point Richmond. The public at the time was unaware of the shipments.

Such transports have been linked to explosions and derailments, including one in a small town in Quebec that killed 47 people and destroyed the downtown.

Last month, Richmond City Manager Bill Lindsay called on the Bay Area Air Quality Management District (BAAQMD) to revoke permits allowing the transports.

Check back for updates.