Tag Archives: Valero Benicia Refinery

Closing of California’s 4th largest oil refinery will cost thousands of jobs

Shutdown of Marathon’s Martinez Refinery Prompts Calls for ‘Just Transition’ for Oil Workers

KQED News, by Ted Goldberg, Aug 3, 2020
A view of the Marathon Petroleum Corp. refinery in Martinez. (Tesoro)

Elected officials, union leaders, industry representatives and environmentalists are expressing concern about the hundreds of workers set to lose their jobs at California’s fourth-largest refinery in the coming months.

That’s after Marathon Petroleum announced over the weekend that it plans a permanent halt to processing crude oil at its Martinez plant.

“The decommissioning of the Marathon refinery means the loss of thousands of good paying, California blue collar jobs at a time of great economic uncertainty,” said Robbie Hunter, president of the State Building and Construction Trades Council of California, which represents thousands of people who work at the plant in the course of a year.

Marathon executives told employees at its Contra Costa County and Gallup, New Mexico, refineries on Friday that it plans to cut workers.

“We will indefinitely idle these facilities with no plans to restart normal operations,” the company said on its website.

The company had idled both refineries in April after shelter-at-home orders drastically cut demand for gasoline and jet fuel. That meant processing units at the plants stopped making transportation fuels and other refined products. For months the refineries have been maintained in “standby” mode.

The Friday announcement means “most jobs at these refineries will no longer be necessary, and we expect to begin a phased reduction of staffing levels in October” the company said on its website.

Marathon employs 740 staff workers at its Martinez refinery, which has gone through several owners and name changes. It was formerly known as the Tesoro, Golden Eagle, Tosco Avon and Phillips Avon refinery. Marathon bought the facility in 2018.

In addition to the full-time employees, the refinery relies on between 250 and 2,500 contract workers depending on operational needs, according to Marathon representative Patricia Deutsche.

“There is also the ‘multiplier’ effect. They say for every one refinery job there are eight in the community that support that,” Deutsche said.

“This move is a big loss for our workforce and potentially the economy,” said Rep. Mark DeSaulnier, D-Concord, who represents Martinez and has been a longtime advocate for refinery safety.

DeSaulnier said that before the coronavirus pandemic and the oil industry downturn, he began bringing together labor unions, environmental groups and local governments to prepare for a shift to green energy in Contra Costa County.

“The transition needs to be as successful as possible for everyone and we cannot leave workers behind — they need to be guaranteed meaningful and comparable work,” DeSaulnier said in an emailed statement Sunday.

A spokesman for a leading trade group that represents the oil industry in California said he feels for the local economy that relies on the refinery, which can process about 160,000 barrels of crude per day.

“Obviously, this impacts a lot of people, families and the community and we are concerned for them,” said Kevin Slagle, a representative for the Western States Petroleum Association.

The refinery has seen its share of incidents. The worst in the last decade took place in February 2014, when the facility was run by Tesoro. Two workers were burned and 84,000 pounds of sulfuric acid were released. A month later sulfuric acid sprayed and burned two contract workers, leading to an investigation by the U.S Chemical Safety Board that raised concerns about the refinery’s safety culture.

Like the Bay Area’s other four refineries — Valero in Benicia, Chevron in Richmond, PBF Energy in Martinez and Phillips 66 in Rodeo — the facility has had to send gases to its flares scores of times over the years, many times to deal with malfunctions.

Local environmentalists who’ve been critical of the region’s oil industry say it’s time for the refinery, its dangers and pollution to go away, but the change should include a plan for workers.

“This is what an unplanned transition looks like,” said Greg Karras with Community Energy reSource.

It’s “the tip of the iceberg for why we need a planned, just transition to sustainable energy and a livable climate,” Karras said.

Some environmentalists and union advocates have used the term “just transition” to explain a fair way of getting fossil fuel industry workers and their surrounding communities, businesses and local governments to move into a green energy economy.

Hollin Kretzmann, an Oakland attorney with the Center for Biological Diversity, said the air quality benefits of a refinery shutting down are welcome but expressed concern about workers.

“Communities near this dangerous refinery can breathe a little easier now that operations have halted, but the state desperately needs a just transition plan that protects workers when oil companies toss their employees to the curb with little warning,” Kretzmann said.

Marathon says its Martinez refinery will be converted to an oil storage facility. The company says it’s considering turning the facility into a renewable diesel facility.

“The Marathon refinery’s (potential) conversion into a renewable diesel facility is a forecast of the future as the demand for fossil fuels declines over time, resulting in healthier air and reduced greenhouse gas emissions,” said Contra Costa County Supervisor John Gioia.

“We will see more future refinery closures as a result of continued decreasing consumption of fossil fuels under California’s policies transitioning our transportation system to zero emission,” said Gioia, who sits on the the Bay Area Air Quality Management District board and the California Air Resources Board.

“We need to immediately start addressing a just transition for these workers as more fossil fuel facilities close,” he said.

Marathon’s decision to end oil processing at its Martinez plant is the latest piece of evidence showing California’s oil industry suffering under a pandemic that’s led to severe drops in fuel demand.

San Ramon-based Chevron, one of the world’s largest oil companies, announced its worst quarter in decades on Friday. The company said it lost more than $8 billion during the three months ending June 30.

“All the oil majors have been clobbered by COVID,” said David Hackett, president of Stillwater Associates, a firm that specializes in analyzing the transportation fuels market.

Earlier this month, the California Resources Corporation, one of the state’s largest oil producers, filed for bankruptcy.

In May, the Newsom administration granted a request by another oil trade group, the California Independent Petroleum Association, to drop a proposal to add dozens of staff members to the agency that oversees oil and gas drilling that would have cost the industry $24 million. State regulators also agreed to postpone a deadline for oil and gas producers to pay fees and submit plans to manage thousands of idle oil wells.

In April, PBF Energy, the New Jersey-based company that bought Shell’s refinery in Martinez, sold two hydrogen plants at the facility for hundreds of millions of dollars — a move aimed at cutting costs and raising revenue to deal with fuel demand drops.

That same month, more than 1,000 contract electricians, pipefitters and other skilled workers were cut from Bay Area refineries.

Solano County property tax assessments – keep an eye on this

[BenIndy editor: I’ve been around long enough to know that Valero Benicia Refinery routinely appeals its tax assessment, and that Solano County has been known to roll over and “give away the farm.”  Who in Benicia will monitor this and advocate for the City and County?  Check out the Solano County Assessment Appeals Board.  – R.S.]

Solano County assessment roll increases for eighth year in a row

Vallejo Times-Herald, July 6, 2020

Solano County Assessor-Recorder Marc Tonnesen announced Monday morning that the local assessment roll for properties throughout the county for fiscal year 2020, 2021 increased by $2.9 billion — or approximately 4.94 percent — in assessed value over last year.

“This is the eighth year in a row that the total assessed roll value increased countywide,” said Marc Tonnesen, Solano County Assessor-Recorder in a press release. “The real estate market showed steady growth over the past year, while new construction continues to add value to the property tax roll.”

At the close of the roll, the value of all assessable property in Solano County was nearly $60.9 billion ($60,888,053,079). This “net roll” is used by local agencies as a starting point to calculate the distribution of property taxes for the benefit of the cities, schools, special districts and local programs.

“Closing the roll this year involved some unique challenges brought on by the COVID-19 pandemic, but I am proud to announce the timely completion of this roll,” Tonnesen said in the press release. “As far as values are concerned, since the values in this roll are derived based on the January 1, 2020 assessment date, the overall impact COVID-19 has had on local property values will not be reflected until we begin work on the fiscal year 2021/22 assessment roll.”

As real estate market values continue to rise, the number of properties on Proposition 8 status – which is a temporary reduction in a property value below the established Proposition 13 base year value – has decreased. There are currently 8,507 parcels on Proposition 8 status, a decrease of 367 from the previous fiscal year. The total number of parcels on Proposition 8 status peaked 2012 at 78,000 parcels. There are 149,588 parcels county-wide, spread between the seven cities and unincorporated county.

Letter from Andrés Soto: Chagrined at Valero’s alcohol diversion

By Andrés Soto, April 27, 2020
Andrés Soto, Benicia CA

As we wound down the first shelter in place Earth Day/Week, I was prodded into chuckling at the Herald’s front page story of Valero diverting some of its ethanol production to the making of hand sanitizing liquids! This is like applying antibiotic ointment to a bleeding gun shot wound. Thanks Valero.

Valero and the other fossil fuel companies have been knowingly contributing to the destruction of our atmosphere and trying to exacerbate the problem by moving into refining extreme crudes such a tar sands and fracked crude. Thanks Valero.

It is now understood that those who have been suffering the greatest health burdens over time from the fossil fuel economy are – surprise, surprise – also the most vulnerable to infection from COVID 19! Benicia and other refinery towns are on the front line with children and seniors suffering disproportionately from asthma and other auto-immune diseases. Thanks Valero.

Of course, to protect their position to profit from poison they need political support. The 2018 Benicia election saw Valero and its deep pocket “boots on the ground” building trades union allies spend an obscene amount of money to personally destroy the reputation of Planning Commissioner Kari Birdseye and and pump up the pro-polluter candidates Lionel Largaespada and Christina Strawbridge to victory. Thanks Valero.

If Valero and its fellow oil cartel members really wanted to help Benicia and Earth it would join community members, workers and city representatives in the planning of a managed decommissioning of the refinery and reduce risks to COVID 19, massive wildfires and toxic pollution. Thanks Valero.

Andres Soto
Benicia CA

Protesters shut down rail lines in Canada – why that’s important here in Benicia

By Roger Straw, February 18, 2020

My U.S. readers might wonder why I cover oil train news from Canada.  Answer: Our Canada neighbors are important – we are of course, a global people.  AND… what happens in production and transport of Canadian tar-sands oil is newsworthy “uprail” news for our west coast states.  Canadian and US ports are lined up for export, and our refineries would love to receive the icky substance by rail.

Vintage yard sign – successful 2016 defeat of Valero’s oil train proposal

My Benicia readers might wonder why I continue to cover oil train news at all – didn’t we successfully defeat Valero’s dirty and dangerous proposal in 2016? Answer: well, Valero is poised to buy our 2020 mayor and council elections.  Who’s to say they won’t try for crude by rail again?  Back in 2014-2016, Valero expected to win approval, and invested heavily in the necessary infrastructure for offloading oil trains.  Last I knew, they stored the heavy equipment offsite here in Benicia’s Industrial Park.  Has it been sold or moved?

IMPORTANT IN TODAY’S INTERNATIONAL NEWS…


Rail Lines Shut Down, Royal Canadian Mounted Police (RCMP) Still on Gidimt’en Land as Miller Meets Tyendinaga Blockaders

The Energy Mix, February 18, 2020, Primary Author Mitchell Beer
Tyendinaga blockade
Tyendinaga blockade | Source: Twitter

Rail lines across most of Canada remained shut down this week, RCMP were still a threatening presence on Gidimt’en land in British Columbia, Indigenous Services Minister Marc Miller met with Tyendinaga Mohawk protesters, and a flurry of news coverage traced the widening impacts of a blockade triggered by a pipeline company pushing an unwanted natural gas pipeline through unceded Indigenous territory.

Over the weekend, the Tyendinaga blockade of the CN Rail track near Belleville, Ontario continued after the community concluded a day-long meeting with Miller. Blockades or demonstrations were under way near Rivière-du-Loup, Quebec, at the Rainbow Bridge in Niagara Falls, and on the Prince Edward Island side of the Confederation Bridge, and shut down the Thousand Islands Bridge between Ontario and New York State for 2½ hours. Days earlier, a court injunction barred Wet’suwet’en supporters from continuing their blockade of the B.C. legislature in Victoria.

And in Toronto, a massive march snaked through downtown to the provincial legislature Monday, with Toronto police tweeting that drivers should consider alternate routes after protesters stopped for a time at the busy corner of Bay and College. “When justice fails, block the rails,” demonstrators chanted. “How do you spell racist? R-C-M-P,” they added.

Prime Minister Justin Trudeau said the federal government was committed to “resolving the situation  quickly and peacefully,” while maintaining that the rail disruptions must be settled through dialogue, not police intervention.

“We are not the kind of country where politicians get to tell the police what to do in operational matters,” he told media Friday, while attending a global security conference in Munich. “We are a country that recognizes the right to protest, but we are a country of the rule of law. And we will ensure that everything is done to resolve this through dialogue and constructive outcomes.”

Before his meeting at Tyendinaga began Saturday, Miller said he wasn’t sure he could convince anyone to shut down the blockade, but he was there to open a dialogue.

“This is a situation that is very tense, very volatile, there are some people that have been standing out there for days, so today is a chance to talk and have a real discussion,” he said. “All of Canada is hurting, the economy is slowing down,” and “everyone knows the reports about supply shortages, but we can’t move forward without dialogue, and that’s we’re going to do today.”

Afterwards, based on a recording provided by a meeting participant, CBC reported that Miller had asked the community to suspend the blockade. But that request was undercut by a call from Wet’suwet’en hereditary chief Woos (Frank Alec), who told the room the RCMP was still on his community’s territory. “I would suggest to you loud and clear that we want the RCMP out of Gidimt’en territory,” he said.

While the RCMP operation to clear several Indigenous checkpoints was over, the chief said the police were still on the scene and “continued to pose a threat”, CBC said.

“We want them out of there. We don’t want them there. They have a detachment right in the middle of nowhere, in their eyes. But in our eyes, it’s our territory,” he said. “We do our traditions out there. We do our trapping and hunting. They are out there with guns, threatening us.”

“Get the red coats out first, get the blue coats out…then we can maybe have some common discussions,” responded Tyendinaga community member Mario Baptiste.

“Obviously dealing with the context of the issue…it absolutely needs to be widened,” Miller replied.

“Tonight, we made some modest progress by opening up a dialogue with the people standing out there in the cold and doing so for eight or nine days,” Miller told media afterwards. “We talked openly, frankly, painfully at times, and sometimes with humour. There’s a lot more work to be done.”

Miller added that he would share the results of the discussion with Trudeau and the rest of the federal cabinet. “The underlying issues did not arise yesterday,” he said. “They’ve been present in this community for hundreds of years.”

Political scientists Gina Starblanket of the University of Calgary and Joyce Green of the University of Regina underscored that history last Thursday, in a Globe and Mail op ed that declared the death of the reconciliation process between Canada and Indigenous peoples.

“February has seen an explosion of Indigenous and non-Indigenous support for the current political struggle by the Wet’suwet’en hereditary chiefs and their supporters,” they wrote. “Again, we are seeing a ham-handed response of both orders of government, delivered in justificatory talking points to the media and enforced by the RCMP. Once again, we have the police dragging Indigenous peoples off of their lands, in Canada, in the service of the settler state, which is as usual attending to virtually every relevant political interest—except Indigenous ones.”

All of that “despite the rhetoric from federal and some provincial politicians about the need to transform their relationship with Indigenous people—even though that little matter of land theft continues,” they add. “And Canada—in all its structural manifestations—continues its perpetual drive to eliminate Indigenous rights to land and self-determination, treating them as impediments to the national interest.”

News coverage over the last week combined front-line reports on the blockade with stories on the businesses and supply chains disrupted by the national rail shutdown. On Thursday, CBC reported that protests in Belleville and New Hazelton, B.C. had “prompted CN Rail to temporarily shut down parts of its network” as of Tuesday, with the lack of any train movement “crippling the ability to move goods and facilitate trade.” That same day, CN said it was “initiating a progressive and orderly shutdown of its Eastern Canadian network”, a decision that could lead to 6,000 temporary layoffs, according to Teamsters Canada.

“With over 400 trains cancelled during the last week and new protests that emerged at strategic locations on our mainline, we have decided that a progressive shutdown of our Eastern Canadian operations is the responsible approach to take for the safety of our employees and the protesters,” said CN President and CEO J.J. Ruest. “This situation is regrettable…these protests are unrelated to CN’s activities and beyond our control.”

On Wednesday, VIA Rail said it had cancelled 256 passenger trains along its Montreal-Toronto and Toronto-Ottawa routes, affecting 42,100 passengers. A day later, it shut down most operations. “Via Rail has no other option but to cancel all of its services on the network, with the exception of Sudbury-White River (CP Rail) and Churchill-The Pas (Hudson Bay Railway), until further notice,” the company said in a media statement.

The lack of rail access quickly cascaded across the economy, with business leaders raising alarms about the economic impact.

“Every day that it goes on, the damage compounds,” said Perrin Beatty, CEO of the Canadian Chamber of Commerce. “It is damaging our international reputation as a reliable supplier. It is affecting our supply chains around the world.”

Beatty told CBC the blockades had “severely limited the movement of perishable foods and other consumer items, grain, construction materials, and propane for Quebec and Atlantic Canada,” the national broadcaster said. “The stoppage has also affected the movement of natural resources like timber, aluminum, coal, and oil, while factories and mines may soon face difficult decisions about their ability to continue operations.”

“Every day we hear more and more from companies that either can’t get their parts or ingredients or components to market, or can’t get their products out. It’s beginning to pile up,” added Dennis Darby, president of Canadian Manufacturers and Exporters, whose members typically load about 4,500 rail cars a day. “In today’s modern industrial economy, there aren’t as many big warehouses of stuff as people tend to think. It’s kind of in, out, and sell.”

Derek Nighbor, president and CEO of the Forest Products Association of Canada, said the disruptions had cost his members “millions and millions of dollars” in lost sales, with mills unable to get raw materials or schedule freight cars to ship finished products. Wade Sobkowich, executive director of the Western Grain Elevator Association, traced a similar impact.

“If the blockade were to lift today, it would have cost the grain industry over $10 million just over the last few days,” he said. “We have farmers who are needing to deliver product. They’re needing to sell it into the handling system so that they can get paid, so that they can pay bills and keep cash flow going on their farms.”

Karl Littler, senior vice president, public affairs at the Retail Council of Canada, listed personal hygiene products, infant formula, cleaning and sanitary products, and fresh food as items that will be in short supply if the blockades continue. “There is an inability to move goods cross country through the various choke points,” he told CBC. “It’s of major concern to retail merchants. It both interrupts the flow of retail-ready goods and hampers the manufacturing process for Canadian manufacturing.”

“Obviously, there are some issues if nothing is being transported by rail,” said Nathalie St-Pierre, president and CEO of the Canadian Propane Association. “They are talking about continuing the dialogue. But at the same time, and from probably everyone’s perspective, you have to lift the blockades. You can have the dialogue, but at this time, I think the point was made.”

But for campaigners supporting the Wet’suwet’en, there is historic irony but no coincidence in a nation-wide protest that targets Canada’s railways.

“It’s very historically significant because the project of colonization, as well as the extinction of the buffalo, was facilitated by the laying down of the Trans Canada railway,” said Nikki Sanchez, a member of the Pipil Maya Nation who was involved with a six-day encampment at the B.C. legislature.

Climate Justice Edmonton organizer Emma Jackson tweeted that this might be the only time she celebrates cancelled trains, noting that the railway was first built to “enable settlers to go and build their lives on Indigenous lands”, making it a fair target for pushback against a pipeline being built without the consent of hereditary chiefs.

“It’s also probably the best tool that a lot of folks have at our disposal, in order to really put pressure on the decision-makers,” Jackson told the Toronto Star, adding that it’s “mind-boggling” that politicians are focusing on the inconvenience resulting from the blockades. “If you’re going to talk about inconvenience, it is very inconvenient that you’re going to be removed from your own land, forcefully at the barrel of a gun.”

Sanchez added that Indigenous communities don’t take the blockades lightly, and they wouldn’t be possible without the support of non-Indigenous Canadian allies. “We have no interest in impacting individuals’ livelihoods,” she said. “We want a Canada that is upheld to justice.”

The Star documents the support for the Wet’suwet’en from many of the passengers affected by the rail shutdown in Ontario.