Tag Archives: Valero Crude by Rail

Santa Barbara Pipeline spill could further hamper California crude-by-rail projects

Repost from Reuters

Pipeline spill could further hamper big California oil projects

By Kristen Hays, May 22, 2015 9:53pm EDT

HOUSTON  –  Hundreds of barrels of oil that gushed from a ruptured coastal pipeline in scenic California this week could stiffen opposition to large oil projects that companies want to build in the state, notably those to deliver cheap U.S. crude on trains.

Several proposed oil-by-rail offloading terminals in California were already being contested in light of several fiery crude train derailments since 2013 that have stoked safety concerns about spills and explosions.

Now, the sight of oil washing up on the shores of Santa Barbara could further galvanize rail opponents after up to 2,500 barrels of crude leaked on Tuesday from a pipeline owned by Plains All American Pipeline LP (PAA.N).

“The more oil we’re moving through the state, the greater the risk of these sorts of accidents,” said Paul Cort, an attorney with EarthJustice, which has sued to stop crude deliveries at Plains’ 70,000 barrels per day (bpd) oil-by-rail terminal in Bakersfield.

Past spills have prompted policy changes. A leak of 100,000 barrels of crude off Santa Barbara in 1969 led to bans on new leases for offshore drilling in California.

The latest spill could complicate regulatory approvals.

“It’s certainly not good news for anyone trying to permit any kind of oil-related facilities in California,” said John Auers, a consultant at Turner, Mason & Co in Dallas.

Refiners Valero Energy Corp (VLO.N) and Phillips 66 (PSX.N) want to use railways to transport cheap crude from onshore fields in North America to northern California refineries to displace more pricey foreign imports.

But the projects, which could help mitigate upward pressure on gasoline prices that are among the highest in the United States, have been repeatedly delayed to allow for lengthy environmental reviews.

Some companies have given up.

Nearly two months ago, WesPac Energy-Pittsburg LLC withdrew the 51,000 bpd oil-by-rail component in a broader proposal that has been awaiting permits from the city for more than two years. WesPac now proposes that crude would move into the terminal only via pipeline or vessel if approved. Valero last year scrapped crude-by-rail plans at its Los Angeles-area refinery.

And even some companies with permits face more hurdles.

EarthJustice is suing local permitting agencies over both the Plains’ Bakersfield operation, which the company aims to expand to 140,000 bpd, and a new Alon USA Energy (ALJ.N) rail project nearby slated for next year.

“People trying to build projects that bring North American crude oil to displace imports at California refineries now have another thing they have to deal with,” said David Hackett, a consultant with Stillwater Associates in Irvine, California.

(Additional reporting by Rory Carroll in San Francisco; Editing by Terry Wade and Grant McCool)

Valero Benicia environmental report delayed again – not likely to withstand further scrutiny

By Roger Straw, Editor, The Benicia Independent

Valero Benicia Crude By Rail environmental report delayed for review of new federal regulations

Valero_Crude_by_Rail-Project_Description_March_2013_(cover_page)The City of Benicia issued an announcement on May 21, 2015 delaying its release of a revised draft environmental impact report on Valero Benicia Refinery’s proposal to construct an offloading facility for delivery of crude by rail.

With this delay, The City will now have spent more than two and a half years processing Valero’s proposal and responding to the objections of concerned residents, experts and nearby officials.

Valero’s application for a use permit came to City staff in December, 2012.  In May of 2013, Benicia’s Community Development Director issued a Notice of Intent and a Mitigated Negative Declaration, concluding that the proposal with mitigations was so benign as to not even need environmental review.

Following outcries and organized opposition, the City commenced a full environmental review in August, 2013.  The Draft EIR was released after several delays in June, 2014.   That review received an avalanche of critiques, including expert local analyses, professional review and letters from residents and area governing bodies and a highly critical letter from the California Attorney General.

After yet another lengthy delay, the City announced in February 2015 that, in response to the magnitude of public criticisms, project consultants would revise the DEIR and release it by June 30, 2015 for recirculation and another 45-day public comment period.

According to the City of Benicia’s Thursday announcement, the new 2-month delay (until August 31, 2015) will give consultants “time to include additional analysis of the new regulations announced on May 1, 2015 by the Department of Transportation to strengthen safe transportation of flammable liquids by rail.”

The City consultant’s analysis, seemingly favoring Valero’s proposal from the outset, will likely make the case that new federal safety standards strengthen environmental protections for this project and improve Valero’s chances for landing a use permit.  This analysis, of course, will come under heavy fire due to the inadequacy of the new federal rules, and likely will not withstand the scrutiny of Benicia citizens, officials and regional authorities and stakeholders.

All along, leaders of Benicians For a Safe and Healthy Community (BSHC) have stressed that Valero’s proposal is fatally flawed as shown in a list of significant DEIR failures, including the longstanding lack of adequate federal safety regulations governing rail transport of high hazard flammable liquids (see especially Section 2, #3, pp. 13-15).

More recently, BSHC has joined a chorus of national and international environmentalists and elected officials who are dismissive of the new (May 1) rules issued by the Department of Transportation.  (See NYTimes article.)  The new rules fail to adequately govern oil train routing, speed, braking systems and public notification, and leave entirely too many years for retirement and retrofitting of unsafe tank cars and the design and manufacture of tank cars to newer, safer standards.

BSHC and others have called for an immediate moratorium on all shipment of crude oil by rail, and a speedy transition to clean and renewable energy sources that will “leave the oil in the soil.”

The City’s announcement:

“The anticipated release of the Recirculated Draft Environmental Impact Report (RDEIR) on the Valero Crude by Rail project has been postponed to August 31, 2015.  The delay will provide the City with the necessary time to include additional analysis of the new regulations announced on May 1, 2015 by the Department of Transportation to strengthen safe transportation of flammable liquids by rail. The RDEIR will have a 45-day comment period, beginning August 31, 2015, which will include public hearings where the community may comment on the RDEIR. After the comment period closes, the City will complete the Final EIR which will include responses to all comments on the original Draft EIR and the RDEIR. The Final EIR and the project will then be discussed at subsequent public hearings.”

Benicia’s crude-by-rail environmental impact report delayed

Repost from the Vallejo Times-Herald 

Benicia’s crude-by-rail environmental impact report delayed

By Times-Herald staff report, Posted: 05/21/15, 7:21 PM PDT

Benicia >> City officials announced Thursday a delay in the release of the Recirculated Draft Environmental Impact Report on the Valero Benicia Refinery’s proposed crude-by-rail project.

The report, which was anticipated to be released June 30, is now planned to be recirculated Aug. 31. The Department of Transportation instituted new regulations on the transport of flammable liquids by rail on May 1 and city officials are looking to factor in those new rules into the report.

Comments on the updated sections will still take place for 45 days following the report’s release in August, including public hearings. The final report will be completed after all comments are in and subjected to further public hearings once the finalized version is completed.

If the project is approved, Valero Benicia Refinery will be allowed to transport crude oil through Benicia via two 50-tanker car trains, rather than shipping the crude oil by boat.

North Dakota train explosion incites Benicia protest

Repost from the Vallejo Times-Herald
[Editor: Many thanks to the Vallejo Times-Herald for covering the Benicia Rally.  There were actually 21 of us there.  We chanted “Leave the oil … in the soil!”  Passing motorists waved, honked and gave us thumbs-up.  A few pedestrians stopped to talk.   – RS]

North Dakota train explosion incites Benicia protest

Chris Riley — Vallejo Times-Herald

About a dozen members of Benicians for a Safe and Healthy Community, a citizen group against Valero’s crude-by-rail project, stage a protest Thursday morning at Benicia’s City Park in light of Wednesday’s crude-by-rail train derailment and explosion in North Dakota. Benicia is currently processing the use permit and Environmental Impact Report for the project. The recirculated draft EIR is anticipated to be released for public comment June 30. Chris Riley — Vallejo Times-Herald