Tag Archives: Tar sands crude

Pacific Northwest ports wary of crude by rail – Association to issue position paper

Repost from The Columbian, Vancouver, WA
[Editor: Detailed background and history on successful opposition to crude by rail in Oregon and Washington state.  – RS}

Portland port passes on oil-by-rail terminal

While Vancouver pursues project, other Northwest ports aren’t so sure

By Aaron Corvin, January 18, 2015

At one point, the Port of Portland considered a vacant swath of land (pictured above between the rail tracks and water) near its Terminal 6 as a potential site for an oil-by-rail terminal. Instead, the undeveloped tract is now under consideration for a propane export terminal. (Bruce Forester/Port of Portland)

photoThe nation’s public ports, focused on attracting industry and jobs, are largely known as agnostics when it comes to pursuing the commodities they handle.

It doesn’t matter if the shipments are toxic or nontoxic. Ports move cargoes, the story goes. They don’t pronounce moral judgments about them.

However, at least one line of business is no longer necessarily a lock, at least in the Northwest: the transportation of crude oil by rail.

Public concerns about everything from explosive oil-train derailments and crude spills to greenhouse gas emissions and the future of life on the planet are part of the reason why.

In at least two cases in Oregon and Washington, ports decided safety and environmental concerns loomed large enough for them to step back from oil transport. The Port of Portland, for example, eyed as much as $6 million in new annual revenue when it mulled siting an oil-train export terminal, documents obtained by The Columbian show. Ultimately, Oregon’s largest port scrapped the idea because of rail safety and other worries. At one point, it also reckoned that “the public does not readily differentiate between our direct contribution to climate change and actions we enable.”

In Washington, the Port of Olympia adopted a resolution raising multiple safety, environmental and economic concerns. It noted the July 6, 2013, fiery oil-train accident in Lac Megantic, Quebec, which killed 47 people. And the resolution called on the Port of Grays Harbor to rethink opening its doors to three proposed oil-by-rail transfer terminals.

To be sure, there doesn’t appear to be a groundswell of Northwest ports swearing off oil or other energy projects. Yet public concerns aren’t lost on the port industry. Eric Johnson, executive director of the Washington Public Ports Association, said he worries that putting certain commodities such as coal under “cradle-to-grave” environmental analyses sets a bad precedent that could gum up the quest for other port cargoes.

Nevertheless, he said, “we’re concerned about oil-by-rail transportation.” So much so, the association, which represents some 64 ports in Washington, will soon issue a position paper, Johnson said. It will include calls on the federal government to boost the safety of tank cars, and to upgrade oil-spill prevention and response measures. Last week, the National Transportation Safety Board said that assuring the safety of oil shipments by rail would be one of its top priorities for the year.

In Vancouver, meanwhile, critics pressure port commissioners to cancel a lease to build what would be the nation’s largest oil-by-rail transfer operation. Under the contract, Tesoro Corp., a petroleum refiner, and Savage Companies, a transportation company, want to build a terminal capable of receiving an average of 360,000 barrels of crude per day.

In addition to the political pressure, legal challenges dog the project, too. One lawsuit goes to the heart of how ports relate to their constituencies: It accuses Vancouver port commissioners of using multiple closed-door meetings to illegally exclude people from their discussions of the lease proposal.

The port denies the allegations. It has repeatedly said public safety remains its top concern. And it has said the oil terminal won’t get built unless the companies’ proposal wins state-level safety and environmental approvals.

Yet opponents see increased public attention to the safety and environmental impacts of proposed oil and coal terminals as reason to believe ports can no longer easily don the robes of an agnostic. “People are paying attention,” said Brett VandenHeuvel, executive director of Columbia Riverkeeper, one of three environmental groups pressing legal complaints against the Port of Vancouver. “It’s no longer simply the bottom line and the most revenue.”

In the Northwest, the Port of Portland’s decision to temporarily back off oil transport sharply contrasts with the Port of Vancouver’s choice to pursue it. Oil terminal critics use Portland’s decision to hammer the Port of Vancouver.

“I don’t see how an oil terminal is unsafe on the Oregon side of the Columbia (River) and safe on the Washington side,” VandenHeuvel said. “The striking thing is how close in proximity the ports of Portland and Vancouver are and the different approach they’ve taken on oil.”

In an email to The Columbian, Abbi Russell, a spokeswoman for the Port of Vancouver, said the port moves “forward on projects we think have merit and will bring benefit to the port and our community.” She also said the port understands that “every port needs to make decisions that make sense for them.”

‘Protests may occur’

Initially, an oil-train operation made sense to the Port of Portland, too.

It considered three sites: Terminals 4, 5 and 6. It analyzed the production of crude from the Bakken shale formation in the Midwest and from oil sands in Canada. It assessed business risks, including Kinder Morgan’s plan to repurpose an existing natural gas pipeline to connect West Texas crude to Southern California. And it contemplated the “primary specific concern among governments and community groups” over the potential for “oil spills, whether from unit trains, pipelines from the unit trains to the storage tanks to the dock, and barges.”

In May 2013 — about a month after Tesoro and Savage announced their oil terminal proposal in Vancouver — the Port of Portland signed a nondisclosure agreement with an unspecified company (the port redacted its identity in documents) to explore locating an oil export facility near Terminal 6.

Just shy of a year later, however, the port backed away.

In March 2014, it publicly announced that while it was “interested in being part of an American energy renaissance brought on by this remarkable domestic oil transformation” it did not “believe that we have sufficient answers to the important questions regarding environmental and physical safety to proceed with any type of development at this time.”

In an email to The Columbian, Kama Simonds, a spokeswoman for the Port of Portland, said “rail car safety was the primary issue” that led the port to temporarily halt its pursuit of an oil-train terminal.

But the port also worried about damaging “our hard-won positive environmental reputation,” documents show, and noted “other relationships will be affected,” including “other governments, neighborhood associations and civic groups …”

“National environmental groups will be involved — Sierra Club, Bill McKibben’s 350.org, Greenpeace,” it also noted. “Protests may occur.”

And the Port of Portland was aware of the controversy that engulfed its neighbor, remarking that “as seen with the Tesoro project at the Port of Vancouver and other energy-related projects at several other ports on the river system and along the coastline, these kinds of announcements can quickly create opposition, controversy and protests.”

Unlike the Port of Vancouver, whose three commissioners are elected by Clark County voters, the Port of Portland’s nine commissioners are appointed by Oregon’s governor and ratified by the state Senate.

The Port of Portland’s Simonds said Gov. John Kitzhaber wasn’t kept informed of the port’s initial pursuit of an oil-by-rail facility and that “we are not aware of any formal statement issued to the port from the governor’s office.”

Nowadays, she said, the port pursues “other energy-related projects” and focuses on Canadian company Pembina Pipeline’s plan to build a propane export facility near Terminal 6. Propane would be brought to the facility by train and eventually shipped overseas. The propane terminal would use the same property that the Port of Portland had considered for an oil-by-rail transfer operation. That project is also expected to face opposition from environmental groups.

Josh Thomas, a spokesman for the Port of Portland, said the port is “extremely discerning” when thinking about energy-sector opportunities. After rejecting coal and temporarily halting oil, he said, the port is now working with Pembina. “Propane has an excellent track record as a clean and safe alternative fuel,” Thomas said, “with a good climate story, displacing many dirtier traditional fuels.”

‘We are not alone’

If the Port of Portland only temporarily dropped the idea of an oil-train venture, the Port of Olympia in Washington went further.

In August 2014, the Olympia port commission voted 2-1 to approve a resolution expressing “deep concern” about the threat to “life, safety, the environment and economic development” of hauling Bakken crude by train “through our county.”

The resolution urged the Port of Grays Harbor — some 50 miles west of the Port of Olympia — to reconsider allowing three proposed oil-transfer terminals. It also called on the city of Hoquiam to reject construction permits for the projects.

The Olympia port’s resolution didn’t sit well with the executive committee of the Washington Public Ports Association. The committee shot a letter — signed by five port commissioners, including Port of Vancouver Commissioner Jerry Oliver — to Port of Olympia Commissioner George Barner. The letter chastised the resolution as meddling in another port’s lawful business. “We can only presume that if another port were to do this to the Port of Olympia that you would be rightly, and deeply, offended,” according to the letter, signed by Oliver, Port of Seattle Commissioner Tom Albro, Port of Benton Commissioner Roy Keck, Port of Everett Commissioner Troy McClelland and Port of Chelan County Commissioner JC Baldwin.

Barner and his colleague, Port of Olympia Commissioner Sue Gunn, who cast the other “yes” vote for the resolution, returned fire with a letter of their own. “As public officials, we have a responsibility to protect our citizenry and our natural resources,” they wrote in their letter addressed to Albro. “We are not alone in our concern over the passage of crude oil by rail through our community, as no less than sixteen other jurisdictions have passed similar resolutions, including the cities of Anacortes, Aberdeen, Auburn, Bellingham, Chehalis, Edmonds, Hoquiam, Kent, Mukilteo, Seattle, Spokane, Vancouver, and Westport; King and Whatcom Counties, and the Columbia River Gorge Commission.”

The jousting letters illustrate that not all ports think alike when it comes to how they do business.

Although the Port of Portland didn’t join the Port of Vancouver in seeking a share of the vast quantity of crude coming onto the nation’s rails, there appears to be no acrimony between them.

Shortly before the Port of Portland said last March that it wasn’t going after an oil-by-rail project, it gave the Port of Vancouver a heads-up about it.

“We wanted to make sure you had visibility to it prior to its release as the port is effectively making and taking a public position on crude-by-rail,” Sam Ruda, chief commercial officer for the Port of Portland, wrote in an email to Port of Vancouver CEO Todd Coleman and Chief Marketing/Sales Officer Alastair Smith.

Ruda offered to discuss the matter with them.

“I am doing this on behalf of Bill Wyatt (the Port of Portland’s executive director) who is traveling in Vietnam,” Ruda wrote in his Feb. 28, 2014 email. “At the same time, I have been very involved in this matter and am prepared to offer you perspectives and context as to why we are doing this at this time.”

Russell, the spokeswoman for the Port of Vancouver, said Coleman and Smith thanked Ruda for the heads-up when they later spoke with him. “These types of courtesy communications are common,” she said. “There was no additional discussion related to the statement.”

KFBK News Radio: How safe is Sacramento?

Repost from KFBK News Radio, Sacramento CA
[Editor: Two part series, both shown below.  Of particular interest: a link to 2014 California Crude Imports by Rail.  Also, at the end of the article an amazing Globe and Mail video animation detailing the moments leading up to the devastating explosion in Lac-Megantic Quebec.  – RS]

Part 1: How Safe is Sacramento When it Comes to Crude-by-Rail?

By Kaitlin Lewis, January 16, 2015


Two different railroad companies transport volatile crude oil to or through Sacramento a few times a month. The trains pass through Truckee, Colfax, Roseville, Sacramento and Davis before reaching a stop in Benicia. Last week, a train carrying the chemical Toluene derailed in Antelope.

KFBK’s Tim Lantz reported that three cars overturned in the derailment. There was initially some concern about a possible Hazmat leak.

Union Pacific Railroad insists over 99 percent of hazardous rail shipments are handled safely.

Most of the oil shipped in California is extremely toxic and heavy Canadian tar sands oil, but an increasing portion of shipments are Bakken crude, which has been responsible for major explosions and fires in derailments.

Firefighters around the region are being trained on how to respond to crude oil spills.

However, Kelly Huston with the California Office of Emergency Services says 40 percent of the state’s firefighters are volunteers.

“They’re challenged right from the get-go of being able to respond to a catastrophic event like a derailment, explosion or spill of a highly volatile compound like crude oil,” Huston said.

Since 2008, crude by rail has increased by 4000 percent across the country.

By 2016, crude-by-rail shipments in California are supposed to rise by a factor of 25.

Union Pacific Railroad hosted a training session in November 2014.

Six out of the eight state fire departments listed as having completed the course confirm they were there.

“We were trained in November,” Jerry Apodaca, Captain of Sac City Fire, said.

When asked when he received the first notification of crude oil coming through, he said he didn’t have an exact date, but that it was probably a month or two prior to the training — in September or October.

Apodaca says the U.S. Department of Transportation requires railroads to notify state officials about Bakken oil shipments.

“Basically it just says in this month’s time, there should be 100,000 gallons going through your community. So it didn’t really specify when, or where, or how many cars or what it looks like,” Apodaca said.

And Paul King, rail safety chief of the California Public Utilities Commission, says it’s not easier to distinguish which lines transport Bakken oil through an online map.

“It was hard to interpret and it was too gross. Basically, the whole state of California on an 8 1/2 by 11 piece of paper with what appears to be a highlighter pen just running through the counties,” King said.

See a map of North American crude by rail.
California rail risk and response.
2014 Crude Imports by Rail

PART 2: How Sacramento’s First Responders Will Deal with Oil Spill


KFBK told you Sacramento’s firefighters were being trained on how to respond to a crude-by-rail derailment after shipments had already been going through the region in Part 1.

In Part 2, KFBK’s Kaitlin Lewis will tell you how Sacramento’s first responders will handle a possible oil spill, and what caused that train derailment along the Feather River Canyon.

It’s called a bomb train.

On July 6, 2013, 47 people were killed in Canada when a 73-car train carrying crude oil derailed.

About 30 buildings in the  Lac-Mégantic downtown district were destroyed. The fire burned for 36 hours.

“If we have a derailment and fire of crude oil, fire departments are going to throw large quantities of water and foam to cool the tanks and to put a blanket on the liquid that’s on the ground to help smother that fire,” Mike Richwine, assistant state fire marshal for Cal Fire, said.

Richwine says that’s the only operation for a spill/fire.

In December, 11 cars carrying corn derailed along the Feather River Canyon.

Paul King, rail safety chief of the California Public Utilities Commission reveals the cause was a rail line break.

“That was probably the most concerning accident because that just as well could have been one of the Bakken oil trains, the corn, you know, ran down the bank. It was heavy, and it consequently does put more force on the rail, but it’s about the same weight as an oil train,” King said.

Aaron Hunt, a spokesman for Union Pacific says California has more than 40 track inspectors and 470 track maintenance employees.

“In addition to that, cutting edge technology that we put in to use for track inspection. One of those technologies is our geometry car. It measures using lasers and ultrasonic waves, the space between the two rails — makes sure that space is accurate,” Hunt said.

But Kelly Huston, deputy director of California’s Office of Emergency Services says the real challenge is preparedness in remote areas like the Feather River Canyon, which is designated as a High Hazard Area due to historic derailments.

“In some more metropolitan areas, your response may be quicker and they’ll have that gear and the training and knowledge of, like, how do we fight this kind of fire? And in some areas, like in the more remote areas like we talked about in the Feather River Canyon there’s going to be perhaps maybe volunteer firefighters that have the basic equipment,” Huston said.

The Feather River feeds the California Water Project, which provides drinking water for millions of Californians. The nearest first responder is Butte County Fire Department, which is approximately 31 miles away.

Contra Costa Times Guest commentary: Say no to toxic oil trains for the future of our children

Repost from The Contra Costa Times

Guest commentary: Say no to toxic oil trains for the future of our children

By Carolyn Norr, 01/12/2015

I haven’t met Greg Garland, CEO of Phillips 66. I don’t know if he has kids, and if he does, I don’t know what he tells them about the world. But I know he has a plan, one I’m not sure how to explain to my own children, to ship tar sands crude oil by rail through my town.

As a mom, this is in no way OK with me. These oil trains spill poisons, leak toxins into the air, and contribute to the climate chaos my kids will be dealing with their entire lives.

In June, the Oakland City Council took an admirable stand against oil trains coming through our city. But now Phillips 66 proposes an expansion of its facility 250 miles south of here, that would bring a mile-long toxic train every day past our homes and schools.

It’s up to the San Luis Obispo Board of Supervisors to decide whether to allow that. Supervisors will be voting in early 2015. So now, I’m inviting any concerned parent, along with the City Council, to speak and urge them to protect our families by rejecting Garland’s plan.

Phillips’s latest environmental review admits that the proposed facility would create “significant and unavoidable” levels of air pollution, with increased health risks — particularly for children — of cancer, heart disease, asthma and more. Oakland already has one of the highest rates of childhood asthma in the country.

Garland must not be one of the growing number of people who watch our kids deal with this, or he might reconsider.

Meanwhile, across the U.S. and Canada, oil train derailments, spills and fires are increasing as Garland and his colleagues in big oil move more oil by rail. The tar sands crude Phillips would be moving through our city is particularly toxic: the same carcinogenic, impossible-to-clean-up stuff of the infamous Keystone XL pipeline.

In Oakland, the potential spill zone includes much of downtown and the flatlands, where kids are already dealing with more than their fair share of dangers.

Besides, tar sands oil creates particularly huge amounts of the global warming gasses that are driving the climate into chaos.

What we burn now, our kids will be dealing with their entire lives. Scientists agree that a global temperature rise of 3.6 degrees may well be inevitable, and with it a level of droughts, super storms, forest fires and famines beyond anything we’ve seen.

Now we are fighting against the real possibility the temperature could increase twice that, making my kids’ very survival uncertain. As a mom, it’s crazy for me to know that. And when I hear about plans to deny or ignore those facts, I have to say no.

I don’t know Greg Garland personally. I don’t know if every night he tucks in his kids and tell them they are safe. But that is what I do, and I don’t mean my reassuring words to be hollow.

I invite the San Luis Obispo Board of Supervisors, my City Council, and everyone who cares about the safety and future of families in California, to join me in doing everything in our power to stop this plan. No to the expansion of Phillips 66, no to oil trains in our communities.

Carolyn Norr is a resident of Oakland. To get more involved, email momsagainstfossilfuels@gmail.com or contact Forest Ethics.

Bakken & tar-sands oil still a problem if Keystone XL is built

Repost from The Minneapolis Star Tribune
[Editor: Significant quote: “[Senator Al] Franken said that ‘the biggest rail safety issues in Minnesota have to do with transportation of highly volatile Bakken oil, which would only be marginally affected by the construction of this pipeline. So regardless of whether or not the pipeline is built, rail safety will continue to be a major problem in Minnesota unless we upgrade rail cars and improve track inspections and infrastructure to prevent derailments.'”  – RS]

Keystone XL pipeline poses a political dilemma

By Jim Spencer, January 10, 2015
Environmentalists dislike Keystone XL, but without it more oil trains could roll through Minnesota.
If the Keystone XL pipeline is not built, Minnesota will likely see more oil trains on the state’s tracks. Photo: Tom Wallace, Star Tribune file

WASHINGTON – The Keystone XL pipeline does not run through Minnesota. The major rail routes that might deliver much more Canadian crude oil to the U.S. if it is not built do.

As the controversial pipeline passed the U.S. House on Friday and nears approval in the Republican-controlled Senate, Democratic members of the state’s congressional delegation face a complicated balancing act.

Their supporters who are advocates of renewable energy expect them to vote against the pipeline. President Obama has threatened to veto the current pipeline bill because it short-circuits his administration’s review process.

But Minnesota politicians who oppose the pipeline flirt with a possible long-term increase in oil train traffic on tracks that many constituents say are already overloaded with railcars carrying flammable fuel.

“It is a precarious position to be against oil train transport and to be against the Keystone pipeline,” First District Democratic Rep. Tim Walz acknowledged.

Environmentalists who voted for Walz have voiced their disappointment that he voted for Keystone XL in 2014. Walz voted for it again Friday.

“I have people who support me who are frustrated with my vote on this,” Walz said.

He thinks Keystone has now become an oversimplified political “litmus test” that won’t produce the benefits its supporters claim or the damage its opponents assert.

Still, for Minnesota’s Democrats, the situation remains politically tricky. Democratic Reps. Collin Peterson and Rick Nolan joined Walz in voting for Keystone XL on Friday. They were among only 28 House Democrats to do so.

Sens. Amy Klobuchar and Al Franken voted against a Keystone XL bill last year when their party controlled the Senate, saying it did not allow the administrative review process to properly play out. The pipeline approval bill lost. But it is expected to come to a vote next week with Republicans in command.

Neither Klobuchar nor Franken was available for interviews on Keystone XL last week. Both issued statements to the Star Tribune and through communications directors said they will continue to vote against any Keystone XL bill that they believe circumvents the regular review process. Neither specifically addressed potential increases in Canadian tar sands crude oil shipments through Minnesota.

“I have consistently supported allowing the State Department permitting process to move forward so that all issues can be aired,” Klobuchar said. “But this decision can’t be delayed indefinitely, and I believe the administration needs to make a decision. … We have rail service and rail safety issues that need to be addressed now, even before the pipeline issues are resolved.”

Franken said that “the biggest rail safety issues in Minnesota have to do with transportation of highly volatile Bakken oil, which would only be marginally affected by the construction of this pipeline. So regardless of whether or not the pipeline is built, rail safety will continue to be a major problem in Minnesota unless we upgrade rail cars and improve track inspections and infrastructure to prevent derailments.”

Roughly 50 oil trains, some of them a mile long, already carry Bakken crude oil from North Dakota across Minnesota each week.

But Alan Stankevitz, a spokesman for Citizens Acting for Rail Safety, said “there is a concern that [Canadian crude] would be coming through. Any derailment along the Mississippi River would be a disaster.”

Stankevitz said that is because tar sands crude is so heavy that it will sink to the bottom of the river and be difficult and expensive to extract.

How much more oil would pass through Minnesota without the Keystone XL remains a matter of debate.

The U.S. State Department estimated that Canadian tar sands crude oil could be shipped on 12 to 14 oil trains per week. The biggest market is the United States, but some oil trains could go to ports on the West Coast of Canada for export on oceangoing tankers.

Last week, researchers paid by the American Petroleum Institute, which has spent millions of dollars lobbying for Keystone XL, estimated that by 2019 railcars would need to haul 700,000 more barrels of Canadian tar sands crude per day if the pipeline is not built.

Paul Blackburn, a Minneapolis lawyer who has represented various pipeline foes since 2009, called such assertions “completely ridiculous.” Blackburn says oil train traffic in Minnesota will not increase without Keystone XL because enough unused capacity in other pipelines already exists to move any newly produced tar sands crude to the U.S. Gulf Coast.

Blackburn pointed to pipelines running from Hardisty, Alberta, to Flanagan, Ill., which opened in 2009 and 2010, and a third pipeline from Flanagan to Cushing, Okla., which opened in 2014, as a viable alternative to Keystone XL.

He called the State Department analysis “old and duplicitous.”

Spokesmen for Canada Pacific Railway and Canadian National Railway, which haul Canadian crude through Minnesota, both declined to comment on how much oil train traffic in Minnesota would increase without Keystone XL.

Still, the consensus is that more Canadian crude is headed across the border, despite the hope of some environmentalists that the costs of tar sands oil extraction will be unprofitable without Keystone XL.

“This business of stopping tar sands oil is just not true,” said Nolan, who voted for the pipeline last year and again Friday, despite “serious pushback from environmentalists.”

“All you have to do is go to Ranier, where most of the oil comes into Minnesota,” Nolan said. “The oil trains are lined up for miles. There’s already an abundance.”

The pipeline would be “nice to have,” said Sandy Fielden of RBN Energy in Houston. But Fielden, one of the country’s leading analysts on Canadian oil, said Keystone XL is not something producers “need to have.”

Rail-loading capacity for oil is expanding in Edmonton and Hardisty, two of western Canada’s big depots, Fielden said. The recent crash in oil prices could curb extraction of tar sands crude if it persists for an abnormally long time, Fielden added, but for now, there is still a profit to be made from tar sands crude with or without a new pipeline.

That was one of the main reasons Peterson, who like Walz and Nolan, represents a rural area where Canadian crude could pass, supported Keystone on Friday. Without the pipeline Peterson believes there will be more Minnesota oil train traffic.

“We need to get oil in pipelines and out of trains,” Peterson said. “We need trains for grain. We need trains for coal.”

On the other side, Democratic Reps. Betty McCollum of St. Paul and Keith Ellison of Minneapolis maintained opposition to Keystone XL.

“The regulatory process … exists to ensure the safety of our environment and our citizens,” McCollum said in a statement to the Star Tribune. “Those protections should not be bypassed in the case of the Keystone XL project and federal authorities must continue to be vigilant about rail safety in Minnesota.”