Tag Archives: Valero Benicia Refinery

Sacramento Bee: Benicia mayor’s public skepticism puts vote on oil trains in jeopardy

Repost from The Sacramento Bee
[Editor: Don’t let the headline put you off – this is the most thorough analysis yet on the controversy in Benicia.  Tony Bizjak does a good job presenting Mayor Patterson’s defense as well as the perspective of those who would silence her.  – RS]

Benicia mayor’s public skepticism puts vote on oil trains in jeopardy

By Tony Bizjak, 11/23/2014
The Valero refinery in Benicia.
The Valero refinery in Benicia. Manny Crisostomo

The hot national debate over crude oil train safety has taken an unusual twist in the Bay Area city of Benicia, where a blunt-talking mayor’s right to free speech is being pitted against an oil company’s right to a fair public hearing.

This summer, amid tense public debate over a Valero Refining Co. proposal to bring crude oil on trains to its Benicia plant, Mayor Elizabeth Patterson revealed that the city attorney had privately advised her that her frequent public comments about oil transport safety could be seen as bias against the Valero project.

The mayor said the city attorney advised her to stop talking about the oil trains and sending out mass emails containing articles and other information, and to recuse herself from voting when it came before the council.

Patterson, a longtime community planner and environmental activist, is refusing to step aside, saying she has a duty to share information with constituents about the city’s pivotal role in the crude oil debate, one of the biggest environmental fights in the state.

The situation in Benicia provides an unfolding civics lesson on the sometimes-surprising legal tightropes cities and public officials must walk when dealing with high-stakes issues. The trains in question would pass twice daily through downtown Sacramento and other Northern California cities en route to the Benicia refinery.

Patterson points out she has never said she would vote against the Valero project and said she hasn’t yet made up her mind. “I am providing information. I am letting people know what is going on,” she said. “We ought to be talking about this.”

But a recent legal analysis, commissioned by Benicia City Attorney Heather McLaughlin and released publicly by the city last week, says Patterson appears to have stepped over a little-known and somewhat fuzzy legal line that could land the city in court.

Valero, the city’s largest employer and owner of a sprawling 45-year-old refinery on a hillside over Suisun Bay, wants to begin receiving two 50-car oil trains a day sometime next year. Valero officials say the shipments will help keep the refinery competitive in a fast-changing oil industry by providing rail access to cheaper oil, instead of marine shipments from Alaska and foreign countries.

The success of the Valero refinery is important to Benicia. The taxes it pays fund nearly a quarter of the city government’s annual operating budget.

But the fast-growing crude-by-rail phenomenon is controversial. Several oil train explosions, including one that killed 47 people in a Canadian town, have prompted federal officials to call for improved safety regulations. The California attorney general and other state safety officials recently challenged Benicia to do a better job of studying the environmental and safety risks of the Valero plan.

Patterson was among the early voices on oil train safety issues, writing an opinion piece in March in a Bay Area newspaper calling on Gov. Jerry Brown to take immediate steps to protect public safety as the trains begin to roll. She also has been sending mass emails to constituents for more than a year with updates on the project, copies of news stories about crude oil issues, and Valero-related matters.

This spring, two council members asked the city attorney to look into whether Patterson was playing too much of an advocacy role. Mark Hughes, a former PG&E executive, and Christina Strawbridge, a business owner, said several constituents had asked them if the mayor’s comments were appropriate. Both told The Sacramento Bee they were not approached by anyone from Valero.

Hughes said the matter is not personal. Speaking at a council meeting last week, he said, “for anyone to think that this was a witch hunt … for bringing it up against the mayor is just wrong. I think the mayor knows that. It clearly was not an attempt to intentionally try to get her to recuse herself; it was an attempt to get some clarification.”

Strawbridge, also speaking at the council meeting, said she put materials together to bring to the city attorney “to find out if the city is in legal harm here because of our mayor and making these kinds of statements … I have had questions about how the mayor could continue to be unbiased in this situation.”

At issue, experts say, are the different legal roles council members play and how they are permitted to act when playing those roles. In California, elected officials can express opinions and advocate for outcomes when they are writing new policies or laws, or deciding how to spend the city budget, municipal law experts say.

But courts have ruled that local elected officials cannot speak out too forcefully prior to holding a hearing and vote on “administrative” or “quasi-judicial” issues, such as voting on a homeowner’s request for a variance or a company’s request for a permit to expand its business.

In those cases, legal experts say, the applicant’s right to have its request heard by an impartial, unbiased board trumps a board member’s right to express their opinion before the formal public hearing.

JoAnne Speers is a former general counsel to the League of California Cities who now teaches leadership ethics at the School of Management at the University of San Francisco. She said case law on the matter can trip up cities and elected officials.

“I feel for the mayor and elected officials generally,” she said. “It seems paradoxical with issues of great importance to their community, if they want to participate in the decision, they are subject to certain constraints.”

The question now in Benicia is whether the mayor’s writings and emails have crossed the legal line.

The attorney hired by Benicia to review Patterson’s public comments, Michael Jenkins of Manhattan Beach, also serves as legal counsel for several California cities. He concluded that a court likely would consider Patterson to have stepped over the line. He noted in his analysis, though, that there are not many court cases to use for guidance, and acknowledged he is offering the city of Benicia conservative advice.

“This is a close case,” Jenkins wrote in his report. “In our opinion, a court likely would find that Mayor Patterson’s oft-expressed skepticism about transportation of crude oil by rail evidences an unacceptable probability of actual bias. The evidence is sufficient to warrant her preclusion from participation in the decision.”

His conclusion was based on 17 of Patterson’s emails and on Patterson’s opinion piece in the San Francisco Chronicle, headlined “Governor must ensure rail tanker safety.” In that piece, she wrote that “crude-by-rail shipments in unsafe tank cars pose imminent danger” to rural communities, and asked, “How would the Suisun Marsh survive a potential spill, explosion and fire?” She did not mention Valero by name, nor did she expressly say she opposes crude-by-rail shipments.

Patterson said she has been sending such e-blasts to constituents for years on city topics. She estimates she has about 500 subscribers. Most of the blasts involve Patterson disseminating published articles, press releases and other people’s comments. One included a story from The Sacramento Bee in which Sacramento leaders accused Benicia of failing to fully acknowledge the risk of spills and fires from the Valero project.

Another email passed along an article about speakers at a meeting organized by project opponents, Jenkins said. Patterson followed that with an email containing a Southern California newspaper editorial disagreeing with Patterson’s Chronicle opinion piece, and accusing her of rushing to judgment on the crude-by-rail issue. Another Patterson email contains a report lauding Valero for its plant safety measures.

In determining that Patterson should not vote on the Valero project, Jenkins cited a 2004 Los Angeles appellate court case as most comparable to the Benicia situation. There, he said, a city planning commissioner wrote an article for his homeowners association expressing concerns that a project would have negative environmental impacts. The commissioner then voted to deny the project. The court ruled that his comments “gave rise to an unacceptable probability of actual bias.”

Patterson’s attorney, Diane Fishburn of Olson Hagel & Fishburn in Sacramento, countered that a 1975 California Supreme Court ruling suggests Patterson is within her rights in speaking her opinion. In that case, involving the city of Fairfield, a developer tried to have the mayor and a councilman barred from voting on his shopping center proposal because the mayor told the developer he was opposed to the project, and the councilman spoke against the project at public meetings.

The court stated that the shopping center project had major ramifications for the city, and that a “councilman has not only a right but an obligation to … state his views on matters of public importance.”

The Fairfield case “is right on point with Elizabeth’s situation,” Fishburn said.

Jenkins cited that Fairfield case, as well, in his report for Benicia, acknowledging it provides support for Patterson’s position. But he pointed out that the court noted that most of the Fairfield council members’ comments came during a political campaign, where, Jenkins said, “candidates should have the freedom to express their views.”

Valero officials did not respond to a request for comment.

Under city rules, the Valero permit request will be voted on by the city Planning Commission, and would only come before the City Council on appeal. If it does, legal experts and city officials say it is up to Patterson to decide whether she should recuse herself.

Patterson said she does not plan to step aside and that she will be able to cast an unbiased vote. “I am going to (continue to) do what I have been doing,” she said. “The challenge here is I have to be scrupulous in weighing the facts before me.”

KPIX: State Senator Says Bay Area Not Prepared For Crude Oil Trains

Repost from 5KPIX TV CBS SF Bay Area
[Editor: apologies for the video’s commercial ad.  You can pass on choosing an ad – the video will begin if you just wait.  – RS]

State Senator Says Bay Area Not Prepared For Crude Oil Trains

Phil Matier talks with state senator Jerry Hill who believes that Bay Area emergency crews are not properly prepared to handle the hundreds of tanker trains bringing shale crude oil from the Dakotas to local refineries. (11/23/14)

Weekly News Roundup – October 21, 2014

benindylogo08a(150px)[Editor:  Crude-by-rail news was a tiny dot on the national media map when I started covering it last January.  The dot has ballooned, and I can no longer keep up.  This Weekly News Roundup will allow me to post a larger number of links (see below) without taking time to upload full postings and commentary.  A smaller number of individual stories will still warrant their own posting, so check out the Recent Posts column at left.  This is an experiment – I’ll hope to do this every week for awhile.  Let me know if you like this – or don’t.  – Roger Straw, rogrmail at gmail dot com]

Valero: The Refiner To Weather The Oil Price Storm
Seeking Alpha, Nov. 20, 2014
Investors are looking for good stocks to weather the oil price storm and Valero is a good pick for this purpose….When compared to its competitors, Valero competes well with comparable fundamental metrics and is significantly undervalued when compared to its peers. …

Lawyer: Benicia mayor rail views may conflict
Argus Media, 20 Nov 2014
Statements and communications by Benicia’s mayor could lead a court to invalidate the California city’s deliberations on a proposed railed crude offloading project, an attorney for the city has warned.
(See additional articles on this subject, and download the attorney opinions here on The Benicia Independent.)

Davis voices concerns over new oil-by-rail proposal
The Davis Enterprise, November 21, 2014
Uprail residents have until Monday at 4:30 p.m. to send comments on the Phillips 66 Rail Spur Extension Project at the Santa Maria refinery in San Luis Obispo County. Letters may be sent to Murry Wilson at P66-railspur-comments@co.slo.ca.us.

Guest column: Addressing the unacceptable risks from Bakken crude-oil trains
The Seattle Times, November 19, 2014
The risk of oil spills is too great to proceed so quickly with plans for expanded crude oil rail transportation throughout Puget Sound and Washington state, writes guest columnists Peter Goldmark and 10 tribal leaders.

What Happened When a Hazardous Substance Train Derailed on a Puget Sound Beach
Sightline.org, November 21, 2014
True story from 2011 raises questions about railroad’s ability to manage oil trains….

First responders learn how to handle railroad tank car accidents
NJ.com, November 19, 2014
Crude oil from North Dakota shipped by train wasn’t a major safety issue until the catastrophic derailment and explosion of a train of 80 tanker cars in …

MMA Railway bankruptcy trustee casts wide net for corporations to pay Lac-Megantic victims
Bangor Daily News,  Nov. 21, 2014
First responders fight burning train cars after a train derailment and explosion in … The unmanned train with 72 tank cars full of crude oil roared into …

Edelman’s TransCanada Astroturf Documents Expose Oil Industry’s Broad Attack on Public Interest
DeSmogBlog, November 17, 2014
Documents obtained by Greenpeace detail a desperate astroturf PR strategy designed by Edelman for TransCanada to win public support for its Energy East tar sands export pipeline. TransCanada has failed for years to win approval of the controversial border-crossing Keystone XL pipeline, so apparently the company has decided to “win ugly or lose pretty” with an aggressive public relations attack on its opponents….

What the Frack (video trailer)
Vice News, November 19, 2014
The UK government is going ahead with its plans to commence fracking across more than half of the country, hoping that it will boost the economy and provide an abundant supply of natural gas.  Critics of the process argue ….

A Highly Flammable Situation: Crude Oil Rolls into the Region
League of Women Voters Bay Area, 31 July 2014
On May 31, 2014, some 60 people gathered at the gates of a rail yard on Richmond’s industrial edge, protesting “bomb trains.” Trains handled there by energy company Kinder Morgan hold crude oil, not TNT, but their contents may still be both physically and politically explosive. Stretching over a mile, a train of 100 tank cars carries 600-700 barrels of crude oil, or up to 3 million gallons. These trains represent a controversial change in both the type of crude oil supplying the region’s refineries, and the way it gets here….

Volatile Express: Is the Chicago area prepared for a crude oil disaster?
ABC7 News, Chicago, November 18, 2014
The ABC7 I-Team investigated hazardous oil trains that speed through Chicago and the suburbs every day. Would firefighters be able to keep you safe if one of them exploded?  …The answer is probably not….

GBW Railcar Services: Well Positioned To Profit From New Safety Standards
Seeking Alpha, Nov. 18, 2014
Greenbrier and Watco LLC’s GBW Railcar Services is strategically positioned to profit greatly from significant new safety regulations for the transport of crude by rail….Independent of significant new regulations, GBW Railcar Services’ expansive network of repair and maintenance shops will provide critical recertification and maintenance services to the significant number of aging DOT-111 cars….

Oil trains in San Jose: Phillips 66 refinery expansion could imperil downtown
Special to the Mercury News, 11/18/2014
For generations of Americans, the rhythmic sound of a distant freight train has inspired dreams of freedom and possibility. But the trains rolling through Northern California communities may soon carry massive charges of highly toxic tar sands crude. Rather than hopeful dreams, these trains could bring nightmarish catastrophes to the heart of San Jose’s downtown neighborhoods.
Oil giant Phillips 66 is agitating to upgrade its Santa Maria refinery near San Luis Obispo to build a rail spur that will enable it to begin receiving oil trains carrying massive loads of noxious tar sands crude. If approved, these oil trains will roll through thousands of California communities, including downtown San Jose, threatening our safety, air, water and climate. Even Phillips 66 admits transporting this oil will result in “significant and unavoidable” levels of toxic air pollution to the towns along the route….

The Role of Reid Vapor Pressure in the Bakken’s Future
Bakken Magazine, November 19, 2014
If the North Dakota Industrial Commission chooses to adopt new Bakken crude conditioning standards and regulatory practices, the term Reid Vapor Pressure will soon be a common and well-known term to any entity focused on the Bakken.

Rail shipments of oil and petroleum products through October up 13% over year-ago period
US Energy Information Admin, Nov. 13, 2014
U.S. rail traffic, including carloadings of all commodity types, has increased 4.5% through October 2014 compared to the same period in 2013. Crude oil and petroleum products had the second-biggest increase in carloadings through the first 10 months of this year, with these shipments occurring in parts of the country where there is also strong demand to move coal and grain by rail. In response to shipper concerns over the slow movement of crude oil, coal, grain, ethanol, and propane, federal regulators are closely tracking service among the major U.S. freight railroad companies….

Business Forum: Oil trains are disasters-in-waiting
Minneapolis Star-Tribune, Fred Millar, November 16, 2014
The knee-jerk reaction in Minnesota and elsewhere to the spate of North American crude oil disasters — beefing up emergency capabilities — is predictable, but dead wrong. The glum, vivid consensus from fire chiefs and emergency managers, at the April 2014 high-level expert National Transportation Safety Forum on Ethanol and Crude Oil Transportation, is that derailments of 100-tanker oil trains are “way beyond our current capabilities.” Following long-standing, prudent U.S. Transportation Department “Orange Book” guidance, fire chiefs testified that “even if we had an infinite amount of foam” they can only do defensive firefighting, pulling back at least one-half mile and letting the explosions and fires happen….

James River Advocacy Group to Host Conversation About Risks to River
Williamsburg Yorktown Daily , November 16, 2014
Six months have passed since a train derailed in Lynchburg and deposited about 20,000 gallons of crude oil in the James River, an event that highlighted one of the numerous threats the river faces, according to the James River Association….

Waste Water from Oil Fracking Injected into Clean Aquifers
NBC Bay Area, Nov 14, 2014
State officials allowed oil and gas companies to pump nearly three billion gallons of waste water into underground aquifers that could have been used for drinking water or irrigation….Those aquifers are supposed to be off-limits to that kind of activity, protected by the EPA….

The Environmental Factor Linked to Huge Rise in ADHD
PSYBLOG, November, 2014
Rising air pollution in urban areas could be linked to the rapid increase in diagnosis in ADHD (Attention Deficit Hyperactivity Disorder), a new study suggests.
The research, published in the journal PLOS ONE, finds that prenatal exposure to polycyclic aromatic hydrocarbons (PAH), a component of air pollution, increases the chances of children developing ADHD by five times (Perera et al., 2014)….

FracMapper
by The FracTracker Alliance on FracTracker.org, Nov. 2014
http://maps.fractracker.org/latest/?appid=103e9e75d36e4bfc95724c33a42b321e

Benicia Mayor Elizabeth Patterson comes under fire, will stand firm

Benicia Mayor Elizabeth Patterson
Benicia Mayor Elizabeth Patterson

Benicia’s Mayor, Elizabeth Patterson, has been accused of a conflict of interest and asked to recuse herself from all comment and action regarding Valero Benicia Refinery’s crude by rail proposal.

Two City Council members, Mark Hughes and Christina Strawbridge, disclosed Tuesday that they initiated the inquiry with Benicia City Attorney Heather McLaughlin, acting on concerns of unnamed constituents that the Mayor is biased.  McLaughlin is said to have advised that California’s Fair Political Practices Commission would not be an appropriate venue to seek advice or action, in that there is clearly no material conflict of interest (financial gain).  McLaughlin then contracted with an outside consulting attorney,  Michael Jenkins, to write an opinion on common law grounds for recusal.

Jenkins’ opinion is inconclusive, but offers case law on bias, and suggests that it would be best for the City if Mayor Patterson would choose to recuse herself and cease all e-alerts and commentary on anything related to the issue.  “…in our opinion, a court likely would find that Mayor Patterson’s oft-expressed skepticism about transportation of crude oil by rail evidences an unacceptable probability of actual bias. The evidence is sufficient to warrant her preclusion from participation in the decision.”

In her defense, Mayor Patterson contracted the services of attorney Diane Fishburn, whose legal opinion, states in summary, “With respect to the application of the common law doctrine of conflict of interest, it is our view…that there is no evidence that you have a personal bias based on either a substantial pecuniary or personal interest in the outcome of the matter. As a public official, you certainly not only have ‘a right but an obligation to discuss issues of vital concern’ to your constituents and to state your ‘views on matters of public importance.'”

Fishburn also wrote a letter to City Attorney Heather McLaughlin, stating even more boldly the Mayor’s freedom of speech in the matter: “We have reviewed the matter with our client, and it is our opinion based on the Supreme Court’s decision in City of Fairfield v. Superior Court of Solano County (1975) 14 Cal.3d 768 that she does not have a common law conflict of interest in this matter, and that she not only has First Amendment rights as a citizen and public official, but she also has the right and duty as an elected official to participate in the public and City discussions regarding this important matter. Equally importantly, she has First amendment rights to communicate freely with her constituents and the public in general on any and all issues of public policy and concern, and any attempt by the City or city officials to curb those rights would be an unlawful restraint of her speech under the U.S. and state Constitutions.”

Mayor Patterson says she will not recuse herself, and will continue to exercise her constitutional freedoms and her responsibilities as Mayor.  In an email, she offered the following comment: “Right.  Seeking rail safety is biased?  Free speech becomes bias even before there is any action before city council?  And having an opinion about public safety, health and welfare is a mind made up?  …The message is that I should not do my job.”

Two local news media have covered this story.  For more see The Benicia Herald and the Vallejo Times-Herald.  For more background see Local Media Coverage.