Tag Archives: Valero Crude by Rail

Sacramento leaders question Benicia’s crude oil rail project

Repost from The Sacramento Bee
[Editor: The SACOG letter can be viewed here.  (Note that this download is in draft form, but the letter was approved as is.)  Of interest also is this 10-page Union Pacific letter addressed TO the SACOG Board, encouraging no action.  A recording of the Board meeting  is available here.  – RS]

Sacramento leaders question Benicia’s crude oil rail project

By Tony Bizjak, Aug. 28, 2014
Tracks lead to Benicia’s Valero refinery. Sacramento area leaders have drafted a letter saying a Benicia report doesn’t take major oil train risks into account. | Manny Crisostomo

Sacramento leaders will send a letter to Benicia today formally challenging the Bay Area city to do a better job of studying train derailment risks before it approves an oil company’s plans to ship crude oil on daily trains through Sacramento-area downtowns to a Benicia refinery.

Acting collectively through the Sacramento Area Council of Governments, which represents 22 cities and six counties, Sacramento representatives say they are protecting the region’s interests in the face of a proposal by Valero Refining Co. to transport an estimated 2.7 million gallons of crude oil daily on trains through Roseville, Sacramento, West Sacramento and Davis. Valero officials say the oil will be refined into gas for cars in California, as well as diesel fuel and jet fuel.

“We are not taking a position on whether the project should proceed,” said Don Saylor, a Yolo County supervisor and SACOG member. “We are pointing out, as we have the responsibility to do, the public safety issues in our region. There are ways those issues can be identified and mitigated.”

Benicia officials have been collecting public comments and questions about their environmental review of the Valero project plans, and said they will respond to all comments after the comment period closes Sept. 15.

The SACOG group also is drafting a letter to federal regulators, encouraging them to make hazardous materials transport on rail safer, particularly shipments of volatile crude oil produced in North Dakota’s Bakken region. Crude oil train shipments have increased dramatically in recent years, leading to several derailments and explosions, including one that killed 47 in a Canadian town last year.

Railroad officials nationally say derailments are very infrequent. A study commissioned by Benicia determined that a derailment and spill would be a rare occurrence on the line between Roseville and Benicia. But Sacramento leaders contend Benicia has underplayed derailment possibilities, and has not adequately studied the consequences of a spill and fire.

“We think there are serious safety concerns that should be addressed by Benicia, not downplayed,” said Sacramento Councilman Steve Cohn, chairman of the SACOG board.

The Benicia trains would travel on tracks just north of downtown, through the downtown Sacramento railyard, and over the I Street Bridge.

Elk Grove Mayor Gary Davis was one of two SACOG members who voted to oppose sending the letter. “I thought it is a little outside our scope. It’s a slippery slope,” he said.

SACOG’s main role is to serve as the region’s transportation planning agency and to administer a portion of the region’s federal transportation funding allotment.

Sutter County Supervisor James Gallagher also voted against sending the letter, saying many safety issues are in the federal government’s purview, not Benicia’s. He said he doesn’t want to discourage production of domestic oil that creates jobs and reduces reliance on foreign oil.

Sac Bee: More Information

List of refineries that have been shut down, saved or sold in past 5 years

Repost from The Financial Post, Toronto
[NOTE: THIS POSTING OUT OF DATE, BUT THE ISSUES REMAIN SIGNIFICANT FOR US ALL!  …FROM JUNE, 2013]
[Editor’s note: Here in Benicia, Valero is repeatedly using a scare tactic as one of its primary talking points.  When Valero says that their Crude By Rail project will “ensure the refinery remains a strong and healthy member of the community” (quoting from Valero’s mailer), it plainly IMPLIES that without this project, Valero may NOT remain strong and healthy, nor a member of the community.  Valero has in this way frightened their own employees about their job security, and they hope to scare the rest of Benicia about the possibility of a sell-off or closure, harming the local tax base and economy.
20x1_spacerA few fearful and disorderly refinery employees and/or supporters have made verbal threats and ruined SafeBenicia signs, but opponents of the project don’t scare that easily.  A transition away from fossil fuels will be fought with money, fear and every form of propaganda.  Don’t listen.  Solidarity with the workers is fine, but don’t buy into the threats that feed their fear and fury.
T20x1_spacerhe following article on “Atlantic Basin” refineries details 15 closures, 1 sale and 5 “saved” refineries over the last 5 years.  Four of the closures were U.S. refineries, one in Canada.  These closures and retrofits will be a growing phenomenon as we transition out of fossil fuels as a primary energy source.  It will be tough on us all, but good for life on Earth.  – RS]

Shut down, saved or sold: The Atlantic Basin refineries

Selam Gebrekidan, Reuters | June 21, 2013
Imperial Oil Dartmouth Refinery, Dartmouth, Nova Scotia.
Imperial Oil Dartmouth Refinery, Dartmouth, Nova Scotia. | Imperial Oil Limited

Imperial Oil Ltd said earlier this week it was unable to find a buyer for its refinery in Dartmouth, Nova Scotia, and will instead convert the facility into a terminal operation.

The refinery, which employs some 400 staff and contractors, is Imperial’s least-profitable operation, as it uses high-priced imported crude oil. The company’s other three refineries process cheaper Canadian crude.

Imperial, controlled by Exxon Mobil Corp, put the refinery up for sale more than a year ago and has had interested parties but was not able to make a deal.

The refinery, the only one in Nova Scotia, is among several on both sides of the Atlantic that operators have put up for sale, shut down, or threatened to close due to poor economics.

Below is a list of these refineries.

SHUT REFINERIES:

DARTMOUTH, NOVA SCOTIA, CANADA
Owner: Imperial Oil Ltd
Capacity: 88,000 BPD
Imperial said in June 2013 it was unable to find a buyer for its Dartmouth, Nova Scotia, refinery after putting it up on sale more than a year ago, and will instead convert the facility into a terminal operation. The refinery is Imperial’s least-profitable operation as it uses high-priced imported crude oil. Imperial is controlled by Exxon Mobil Corp.

PORT READING, NEW JERSEY, USA
Owner: Hess Corp
Capacity: 70,000 BPD
Hess shut down its Port Reading refinery at the end of February, 2013, the second such facility the company was forced to shutter over the last year, marking the company’s exit from the refining and terminal business.

ARUBA REFINERY, ARUBA
Owner: Valero Energy Corp
Capacity: 235,000 BPD
Valero decided to convert the refinery into a crude oil and refined products terminal in September 2012 after failing to find a buyer for the plant.

The refinery had been idled since March 2012 due to weak profit margins since it processes heavy sour crudes it bought at a higher cost. Chinese oil giant PetroChina was said to be among strong bidders for the refinery.

ST. CROIX, U.S. VIRGIN ISLANDS
Owner: Hovensa LLC, a joint-venture between Hess Corp and state oil company Petroleos de Venezuela
Capacity: 350,000 BPD
Hovensa first reduced rates from 500,000 bpd and then shut the refinery in February 2012. The government of the U.S. Virgin Island objected to the shutdown and in April 2013 said it had agreed to a 14-month sales process with Hovensa LLC, during which time the company could use the plant as a terminal.

The refinery had been powered by fuel oil rather than cheap natural gas because its isolation in the Caribbean mean gas imports are not available. That fact contributed to Hovensa making a loss of $1.3 billion in the last three years of its operation and any future owner will have the same problem to contend with.

MARCUS HOOK, PENNSYLVANIA, USA
Owner: Sunoco Inc, part of Energy Transfer Partners LP, Sunoco Logistics Partners LP, which is part owned by Energy Transfer Partners.
Capacity: 178,000 BPD
Sunoco shut the refinery in Marcus Hook, Pennsylvania, in December 2011, due to excess capacity and poor margins. Sunoco Logistics then bought the refinery in April 2013 for $60 million and plans to turn it into a natural gas liquids hubs to take advantage of the nearby Marcellus and Utica shale plays.

The company received no offers for the plant as a refinery. Sunoco is processing natural gas at the plant.

YORKTOWN, VIRGINIA, USA
Owner: Western Refining
Capacity: 66,300 BPD
Western Refining shut the refinery in September 2010 because of poor refining margins. The site was subsequently sold to Plains All American in December 2011 and is currently in use as a terminal.

EAGLE POINT, NEW JERSEY
Owner: Sunoco Inc, part of Energy Transfer Partners LP.
Capacity:145,000 BPD
Sunoco shut the Eagle Point refinery in November 2009, the first of the casualties of weak demand and slim profit margins among Atlantic Basin refineries. The site, which is connected under the Delaware River to Sunoco’s other sites, Philadelphia and Marcus Hook (see above), is a terminal with capacity to receive barges of Bakken crude from Albany.

BERRE, FRANCE
Owner: LyondellBasell
Capacity: 105,000 BPD
In January 2012, LyondellBasell mothballed the refinery in southeastern France having been unable to find a buyer for the plant since it began a sales process in May 2011.

Anne-Christine Poujoulat/AFP/Getty Images

Anne-Christine Poujoulat/AFP/Getty ImagesAn employee of US chemical group LyondellBasell waves a French flag as the employees gather during a new general meeting to protest against the closing of their plant in Berre l’Etang, southern France, on September 29, 2011.

 

CORYTON, ESSEX, UNITED KINGDOM
Owner: Petroplus
Capacity: 175,000 bpd
A joint-venture of UK Ltd, Vopak and Greenergy bought the refinery from Petroplus and converted it into a terminal in June, 2012. The refinery had stopped processing crude in May last year after its estimated $1 billion price tag failed to attract buyers.

Matthew Lloyd/Bloomberg

Matthew Lloyd/BloombergThe Petroplus refinery in Coryton, Essex.

 

TEESSIDE, UNITED KINGDOM
Owner: Petroplus
Capacity: 117,000 bpd
Petroplus idled the plant in April 2009.

PETIT-COURONNE REFINERY, NORMANDY, FRANCE
Owner: PetroPlus
Capacity: 161,000 bpd
Petroplus announced in April 2013 that it will shut the refinery after bids to buy it were rejected as unfeasible by the plant’s administrator.

REICHSTETT, FRANCE
Owner: Petroplus
Capacity: 85,000 bpd
Petroplus closed the refinery in eastern France in the second quarter of 2011. The least profitable of the plants in the PetroPlus refinery stable, the refinery was converted to become a terminal.

DUNKIRK, FRANCE
Owner: Total SA
Capacity: 150,000 BPD
A French court authorized oil major Total to permanently close the refinery in late October 2010 and proceed with plans to develop non-refining activities on the site.

WILHELMSHAVEN, GERMANY
Owner: ConocoPhillips
Capacity: 260,000 bpd
ConocoPhillips put the simple, hydroskimming refinery up for sale in July 2010. It was bought a year later by private Dutch company Hestya. It is currently being used as a terminal.

CREMONA, ITALY
Owner: Tamoil
Capacity:  90,000 bpd
Libya’s Tamoil shut the Italian refinery at the end of March 2011 and said it would pursue plans to convert the plant to a storage site.

 

REFINERIES FOR SALE:

MILFORD HAVEN, UNITED KINGDOM
Owner: Murphy Oil
Capacity: 130,000 BPD
U.S. oil firm Murphy Oil Corp said it would sell the plant to focus on oil and gas exploration and its U.S. retail business. In its first quarter earnings, announced in May 2013, the company said it continues to look for a buyer.

REFINERIES SAVED:

PHILADELPHIA, PENNSYLVANIA, USA
Capacity: 330,000 BPD
Current Owner: Philadelphia Energy Solutions
Former Owner: Sunoco Inc. Philadelphia Energy Solutions is the largest refinery on the U.S. East Coast and is a joint venture of Carlyle Group LP and Energy Transfer Partners, which bought its former owner, Sunoco.

Sunoco and Carlyle reached a deal in the summer of 2012 to keep the plant running with Carlyle overseeing daily operations while Sunoco retained a minority stake in return for its refinery assets. JPMorgan Chase & Co’s commodities division would supply the refinery with crude and non-crude feedstocks and purchase fuel produced by the plant for offtake.

Regional legislators, refinery unions and industry operators lobbied against the plant’s shutdown arguing that fuel shortages in the East Coast after the plant’s potential shutdown could create fuel shortages and hurt U.S. national security.

Mike Mergen/Bloomberg News

Mike Mergen/Bloomberg NewsSunoco Inc.’s Philadelphia Refinery stands on the banks of the Schuykill River in Philadelphia, Pennsylvania.

 

TRAINER REFINERY, PENNSYLVANIA, USA
Capacity: 185,000 BPD
Current Owner: Monroe Energy LLC, a subsidiary of Delta Air Lines
Former Owner: ConocoPhillips, which later spun off its refining and downstream arm Phillips 66 Delta bought the refinery from Conoco Phillips in spring of 2012 in order to control its jet fuel costs, which had reached $12 billion in 2011. The refinery has not yet become profitable But Delta said it expects the plant to turn a profit of $75 million to $100 million in the second quarter. It expects to use 50,000 bpd of cheap shale oil from the Bakken formation in North Dakota by the end of 2013.

Delta has a contract with BP Plc for crude supplies and former owner Phillips 66 to sell or swap products other than the jet fuel that the airline needs.

Jeff Topping/Getty Images

Jeff Topping/Getty Images

 

CRESSIER REFINERY, SWITZERLAND
Capacity: 68,000 BPD
Current Owner: Varo Energy Holding, a joint venture between Vitol and Marcel Van Poecke, co-founder of PetroPlus, and founder of AtlasInvest.
Former Owner: Petroplus Vitol, the world’s largest oil trader, formed the joint venture to buy the refinery in June 2012, six months after Swiss-based Petroplus filed for insolvency. The refinery was fully operational by July that year.

ANTWERP REFINERY, BELGIUM
Capacity: 107,500 bpd
Current Owner: Gunvor, Swiss-based trading house
Seller: PetroPlus Swiss-based trading firm Gunvor, co-owned by Russian tycoon Gennady Timchenko, bought the refinery in March 2012 from insolvent Petroplus to expand its infrastructure footprint in Europe’s largest oil trading hub. The purchase also provides Gunvor with “bricks and mortar” assets, giving it a reason to hedge exposure to physical markets ahead of stringent regulations on derivatives trading.

Jock Fistick/Bloomberg

Jock Fistick/BloombergStorage tanks are seen at the Antwerp oil refinery.

 

INGOLSTADT REFINERY, GERMANY
Capacity: 100,000 bpd
Current Owner: Gunvor
Former Owner: PetroPlus Gunvor bought the refinery from insolvent Petroplus in May 2012 and began operating the plant that August. The refinery had been in stand-by mode for seven months before the deal.

Benicia Herald: report on the August 14 Planning Commission hearing

Repost from The Benicia Herald
[Editor: Winning the award for most ridiculous comment was Larry Fullington: “For the past 45 years, Fullington said, the refinery has not experienced any overturned oil tanker car.”  His unskilled use of statistics rises almost to the level of expertise of the Illinois consultant, who came up with the once-in-111-years spill estimate, based on PAST experience and neglecting to account for the massive increase in rail traffic if Valero’s proposal goes forward.  – RS]

Rail plan hearing goes long again

■ Capacity crowd offers pro, con views in commission meeting that is continued 2nd time

THE COUNCIL CHAMBER was filled, and others were seated elsewhere throughout City Hall for Thursday’s meeting. Donna Beth Weilenman/Staff

The Planning Commission’s ongoing public hearing on the Valero Crude-By-Rail Project draft environmental impact report resumed Thursday. It lasted until 12:30 a.m. Friday and it still wasn’t long enough.

After hearing hours of comments and testimony from the proposed project’s supporters and detractors, the Planning Commission decided to continue the hearing a second time, to its Sept. 11 meeting, to give more people — including commission members — a chance to weigh in on the environmental document.

As they did when the hearing first was opened July 11, members of the public filled the Council Chamber at City Hall, which has a capacity of 120, including the commission, staff members and those handling the recording and broadcast of the meeting.

Between 20 and 30 were seated in the Commission Room and another dozen or more were in a City Hall conference room, where they could watch the proceedings on a screen. Nearly 20 more sat in the City Hall courtyard, where they could hear an audio broadcast. More than 70 chose to spoke Thursday.

Unlike the practices at past meetings, city staff kept the Council Chamber doors locked until about 6:15 p.m. while additional sound equipment was put in place. Once the room was filled, those attending the hearing were directed to side rooms.

Despite the packed City Hall, several speakers said Thursday that people in Benicia remained unfamiliar with the project, and many didn’t even know it had been proposed.

The project initially was proposed after Valero wrote its land use permit application December 2012. The Benicia Department of Community Development has been taking public comment since May 30, 2013.

Public comment on the draft environmental impact report (DEIR) will be taken until the close of business on Sept. 15.

The project would add 8,880 feet of rail and would modify or expand some of the refinery’s infrastructure. Once completed, it would enable the refinery to accept up to 100 tank cars of crude oil a day in two 50-car trains entering refinery property on an existing rail spur that crosses Park Road.

The crude would be pumped to existing crude oil storage tanks by a new offloading pipeline that would be connected to existing piping within the property.

Using photographs, maps and some animation, Ed Ruszel, who owns a business near the proposed construction site, showed how railroad tracks in the city’s industrial area have been reduced, changing from loops that circulated trains around the area to cul de sacs.

He said the project would impact trafic more significantly than described in the DEIR, especially along commercial driveways and along Interstate 680 and major Industrial Park roads, such as Bayshore Road.

He criticized the contention that the twice-a-day trains that would arrive and depart the refinery would have little or no impact on traffic, saying Union Pacific Railroad won’t agree to limits on volume of product it ships or frequency, routing or configuration of its shipments.

In general, railroads are governed under federal law, not by state or local agencies or regulations.

Ruszel said the DEIR presumes the railroad and refinery will operate flawlessly as the oil cars are brought in, unloaded and depart. “The notion that longer trains and increased train traffic will reduce auto traffic is absurd and intentionally misleading.”

Marilyn Bardet, speaking briefly for Benicians for a Safe and Healthy Community, one of the organizations that opposes delivery of crude by rail, said some issues were “obscured” in the DEIR, especially those affecting railside cities besides Benicia.

“The local and regional impacts spiral out,” she said.

Bardet was one of several who told the commission that the state had little regulatory authority over locomotives or how many would be used. “Union Pacific is not part of the application,” she said. “Union Pacific logistics and performance is pivotal.”

Because trains and railroads are regulated at the federal level as interstate commerce, she said, Valero would have little control over Union Pacific, the railroad the refinery would hire to deliver the crude.

“This cast doubts on the DEIR,” she said, adding that “the report didn’t discuss the threat of derailment and of flammable liquid in the Industrial Park.”

Bardet called the project a “local, undesirable land use,” or “LULU.”

Roger Straw, publisher of an online website dedicated to opposing the Crude-by-Rail Project and members of Benicians for a Safe and Healthy Community, challenged the DEIR’s statistics about the likelihood of derailments and spills, calling those numbers “an insult.”

Straw also questioned the safety of the reinforced tanker cars the refinery has promised to use instead of those currently in use. He urged putting the process on hold until only new tank cars and stronger federal rail regulations are in place.

Bibbi Rubenstein, also with Benicians for a Safe and Healthy Community, disagreed with project supporters that allowing Valero to bring in crude by train would provide any significant jobs, either during construction or once the operation started.

More supporters of the project spoke than detractors. Among them was attorney John Flynn, who said he has been helping Valero Benicia Refinery during the environmental review process. Flynn reminded the commission that the DEIR applies to elements over which the city has control — not those it doesn’t. “Context is essential to any fair discussion,” he said.

In answer to those who sought to delay the project until new federal guidelines are adopted to improve the safety of rail delivery of crude oil, he said rule changes “can’t be the reason to delay,” because Benicia can’t control the federal government.

“Does that mean … that you don’t have a voice?” he said. “No.” But people need to express those concerns to the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration in Washington, rather than to a city panel.

“The city has drafted a DEIR it can be proud of,” he said.

Don Cuffel, the refinery’s environmental engineer, repeated several residents’ frustration that some of the DEIR’s findings were that some air quality impacts were “significant and unavoidable.”

“It sounds ominous,” he said; however, he explained that phrase is a California Environmental Quality Act term to note that certain thresholds would be exceeded by the project.

And those thresholds differ by county, he said, and numbers that might indicate no impact in Placer County could be considered “significant” in Yolo County.

The air quality differences caused by the project in those areas would be the equivalent of 10 round trips from Benicia to Tahoe in a diesel recreational vehicle, Cuffel said.

“That doesn’t seem quite so fearsome,” he said.

LINED UP in front of Benicia City Hall, spectators wait for the doors to open to the Planning Commission meeting. Donna Beth Weilenman/Staff

Another term that bothered some residents was “unavoidable,” used in the DEIR to describe some of the impacts.

Cuffel said that word meant no mitigation was available to Benicia or Valero because the situation is governed at the federal level, not the state or city level.

“I hope this brings peace of mind,” he said.

The volatility of crude oil brought in from the Bakken fields of North Dakota also worried some who spoke Thursday. But Cuffel said Valero Benicia Refinery has been shipping more volatile chemicals than the light, sweet Bakken crude.

Even before Valero bought the original Humble refinery, he said, the plant had been shipping butane and propane, “which are more volatile than any crude.”

Some speakers were not reassured.

Ramón Castellblanch joined others who were skeptical of the information provided by the refinery to ESA, the city’s consultant that composed the DEIR.

While some contended the consultant had started with a desired goal and found statistics to match, or accused the refinery of manipulating numbers, Castellblanch pointed out that Valero Energy, the local refinery’s owner, had paid millions to the Environmental Protection Agency in 2005 for air pollution violations, and that in 2008 and 2009 the Benicia refinery was cited for 23 violations.

Such characterizations were countered by other speakers, such as Larry Fullington, who described the Benicia refinery’s history that dates to 1969, when Humble built the plant.

For the past 45 years, Fullington said, the refinery has not experienced any overturned oil tanker car.

“Valero is one of the safest in the nation,” he said, joining those who pointed out the refinery is the only one of two in California — the other also belongs to Valero — to be certified by the California Occupational and Safety Act as an approved Voluntary Protection Program Star site. Valero Benicia Refinery has been earning that designation since 2006.

“They truly care about safety,” Fullington said.

Union Pacific Railroad, the company that would be transporting crude oil should the project be approved, “is one of the most prestigious firms,” he said.

Fullington noted that some critics had expressed fears that the project could lead to an event similar to the 2013 Lac-Megantic tragedy, in which an unmanned runaway train derailed as it sped along the tracks and killed 47 people in Quebec, Canada.

But circumstances in Benicia “aren’t even close,” he said.

Several speakers had described the July 6, 2013, Lac-Megantic incident in which a crude-carrying, 74-car train had been left unmanned but with one locomotive running to provide power to air brakes.

Emergency responders had responded to reports of smoke and fire. The locomotive was shut off, and the train again was left unattended. Without the air brakes, the train began rolling down the hill and picked up speed as it approached Lac-Megantic.

The train derailed and exploded.

At least five of the 47 who died were thought to be incinerated; 30 buildings were destroyed and water lines were severed and couldn’t be repaired until December of last year.

On Thursday, Giovanna Sensi Isolani called crude-carrying trains “rail bombs” as she spoke against the project, and Alan C. Miller demanded the refinery build a rail bypass that would set rail traffic back from heavily populated areas.

But Fullington explained how Benicia’s circumstances were different.

“Valero is on level land,” he said, and trains going in and out of the refinery would travel at 10 mph or less. At that speed, he said, a car that derailed simply would sit on the road bed.

Nor, he said, would a train be left alone, as it was in Lac-Megantic: At several public meetings, refinery officials have said no train would be left unattended.

Fullington said the refinery also had stated it would use the reinforced tank cars that are sturdier than the current Department of Transportation-111 model. The reinforced types are numbered 1232, and he said the ones Valero would use would be manufactured by reputable companies.

And by bringing North American crude to Benicia, he said, the company would help the nation reduce its dependence on oil from other countries.

James Bolds, a rail car specialist who had traveled from Montgomery, Texas, to speak, said he had been hired by Valero to develop specifications, review drawings and review the cars it would use for its project. He described the 1232 car as being made from high-strength steel, with reclosing valves, head shields and other features that make it stronger than the DOT-111 car.

Others remained unconvinced, saying the DEIR didn’t delve deeply enough into possible seismic disturbances; into who would be responsible for the cleanup and liability of any accident; whether train safety could be assured along the Feather River and other places California has considered high risk for derailment; or why the city was considering the project before new federal regulations for tanker cars, rail inspection and automatic systems were in place.

They weren’t swayed by supporters’ reminders that Valero annually contributes about a quarter of the city’s General Fund revenues, and that it had donated more than $13 million to area charities in 10 years; that the refinery employs 450 people, contracts for another 250 and supports 3,900 others; or that the project would provide temporary jobs to 120 construction workers and create 20 permanent jobs at the refinery.

But to those who spoke out against “big oil,” Art Gray, a shift supervisor at Valero, said, “The refinery is made up of people like me. My front yard is 150 yards from the refinery fence line.”

Explaining that the DEIR “finds this to have a positive effect,” he asked the commission, “Let us compete against other refineries.”

Rather than wrapping up the hearing as it kept going until early Friday, the commission unanimously decided to continue the opportunity to take public comment at its Sept. 11 meeting, at which commissioners also would be given a chance to speak.

Donna Beth Weilenman/Staff

Benicia Herald Op Ed: My Dream for Benicia, by Sue Kibbe

Repost from The Benicia Herald
[Editor: Sue Kibbe also submitted her “Dream for Benicia” to the Benicia Planning Commission as a comment for the record on Valero Crude By Rail.  – RS]

My dream for Benicia

I HAVE A DREAM THAT ONE DAY BENICIA WILL RISE UP and be known across the nation as the Little City that said “No” to Big Oil, putting human life and environmental stewardship above human greed and the insatiable quest for increased profits. What a proud day it would be if Benicia said the risk to the thousands living up-rail is too high a price to pay.

Because it is too high a price to pay. The effect on the environment from a spill or explosion would be an unmitigated disaster, a fire that cannot be extinguished, a toxic slick destroying every living thing.

Crude-by-rail has been called “a disaster in the making” by more than one expert. A railway safety consultant has warned, “We’ve got all kinds of failings on all sides, inadequacies that are coming to light because trains are blowing up all over the place.” The Federal Railroad Administration is able to inspect only two-tenths of 1 percent of railroad operations each year. With 140,000 rail miles across the nation, regular inspection of the tracks is impossible.

The Department of Transportation has yet to provide regulations for crude-by-rail transport. Expect pushback from the rail industry. Safety measures such as “positive train control” (PTC) were recommended 45 years ago, yet the technology operates on only a tiny slice of America’s rail network. The railroads have preempted local control and can make routing decisions without public disclosure.

Meanwhile, aging rail trestles and lines such as the one through Feather River Canyon — lines that were never constructed for such heavy traffic — continue to be used with greater frequency. The New York Times reported last month that “400,000 carloads of crude oil traveled by rail last year . . . up from 9,500 in 2008. . . . From 1975 to 2012, federal records show, (railroads) spilled 800,000 gallons of crude oil. Last year alone, they spilled more the 1.15 million gallons.”

Scott Smith, a scientist whose work has focused on oil spills, has studied samples of the Bakken crude oil from three accident sites. He may be the only expert outside the oil industry to have analyzed this crude. All the samples he studied share the same high levels of volatile organic compounds (VOC) and alkane gases in exceptional combinations. Smith says 30 percent to 40 percent of Bakken crude is made up of toxic and explosive gases. “Any form of static electricity will ignite this stuff and blow it up,” he said.

The Wall Street Journal, based on its own analysis, reported that Bakken has significantly more combustible gases and a higher vapor pressure than oil from other formations. Basically, its flash point is dangerously low, and a chain reaction from tank car to tank car is inevitable.

Examining the draft environmental impact report (DEIR)

Pay attention to the wording in Valero’s proposal: “The Project would not increase the amount of crude oil that can be processed at the refinery . . .” It never says the amount of crude oil that “is being processed” at the refinery. In the DEIR, page 3-2, it says: “The Refinery’s crude oil processing rate is limited to an annual average of 165,000 barrels per day (daily maximum of 180,000 barrels) by its operating permit.” That is a huge increase from the 70,000 barrels per day that it says are processed now. With the 70,000 by rail per day, add 18 vessels shipping 350,000 barrels per vessel — that equals 6,300,000 barrels, a total of 31,850,000 barrels per year — thus an increase in processing, and hence in emissions.

We have read in a Bay Area newspaper that “Valero was named by the U.S. Environmental Protection Agency this year as one of California’s top distributors of dangerous substances. It was second to the ConocoPhillips refinery in Rodeo as the most profligate disseminator of poisons in the Bay Area, releasing 504,472 pounds of toxic substances into the air, water or ground. It was the 10th biggest source of chemicals and pollutants in the state, according to (a) report released in January.

“Almost half of the violations cited by the (Bay Area Air Quality Management District) between 2011 and 2012 involved excessive short-term emissions and valve leaks on tanks.”

According to the DEIR, Section 4.1-23: An unmitigated, significant and unavoidable air quality violation, with a net increase in Nitrogen oxides and ozone precursor emissions would result from transporting crude by rail through the communities up-rail within the Sacramento Basin: in the Yolo-Solano, Sacramento Metropolitan and Placer County Air Quality Management Districts.

How can we, in good conscience — or even legally — violate the air quality of our neighbors to the north by authorizing these shipments? And not only would we affect their air quality, we also would authorize the transport of a highly toxic, corrosive, flammable material in 36, 500 tank cars, each weighing 143 tons when loaded with crude oil — an annual total of 1,460 locomotives weighing more than 7,150 tons when loaded — through these communities, over rails that were never built for and have never carried such heavy traffic, all for the sole purpose of satisfying human greed?

Valero’s net income rose 28 percent in the first quarter of 2014; net income to shareholders jumped to $828 million, while revenues rose to $33.6 billion. If you are telling me that Valero needs this project to stay competitive, you haven’t looked at the facts.

A closer look at ‘job creation,’ one of the claimed benefits to the community from crude-by-rail

The addition of 20 full-time jobs at the refinery will be the result of switching from crude by vessel to rail delivery. There will be 72 fewer vessel deliveries, in which crude is pumped directly from a ship at the dock into pipes and storage tanks in one operation. Instead, there will be 36,500 tank cars per year to be emptied at the refinery, coupling and uncoupling 100 tank cars per day.

Let’s be clear, these are HAZMAT jobs. Not only would you be unloading one of the most toxic substances on the planet, breathing in toxic “fugitive emissions” from the tank cars, you also would be in direct contact with the toxic emissions from 730 locomotives per year. The only thing appealing about these new jobs will be the “good pay” (they are never described as “good jobs”), because they are hazardous, arduous, truly nasty jobs.

Section 4.6.5 Impacts and Mitigation Measures: Greenhouse Gas Emissions

Another one of the project’s “benefits” much proclaimed by Valero is the reduction of greenhouse gas emissions. Valero states that crude by rail would “improve air quality in the Bay Area.” They are not lying — this is a carefully worded deception. The Bay Area Air Quality Management District is a huge area encompassing every county that touches the Bay, the entirety of every county except for Sonoma and Solano counties. This is the area in which they can legally claim to improve air quality.

The mitigating factor here is the reduced number of oil tankers traversing the Bay. What they calculated were the emissions from 72 ships that will no longer be sailing across 49.5 miles — from the sea buoy outside the Golden Gate to the Valero dock in Benicia and back out again. (That’s 99 miles total for each of the 72 tankers.) They were allowed to subtract those Bay Area emissions from the direct emissions that will be generated right here from construction of the rail terminal, the unloading of crude oil and the 730 locomotive engines moving through the Industrial Park.

This, then, gives Valero a “less than significant” increase in emissions (DEIR Table 4.1-5) — but in reality, while reducing emissions out in the Bay they will be increasing them right here where we live and breathe by 18,433 metric tons per year (DEIR Table 4.6-5). This may be legal in terms of the permitting process, and good news for sailboats on the Bay, but for the people of Benicia and especially for any businesses located in the Industrial Park, it is a terrible deal.

What people need to understand is that this “mitigation” in the “Bay Area” has been used to offset the very real pollution that will happen right here in our city. That pollution is not reduced by one particle, except on paper. To tell us that this is a “benefit” to Benicia is hugely hypocritical and a manipulation of the facts. Do not be deceived. Know that the pollution in this city will increase as a result of crude by rail, and the “mitigation” out in the Bay actually works against us. And if you have a business in the Industrial Park, you will be in the thick of it.

Further emissions and omissions

The DEIR, page 4.1-21, states: “. . . locomotives generate more emissions than marine vessels per mile, per 1,000,000 barrels of crude oil delivered each year, of ROG (reactive organic gas), NOx, (nitrogen oxide), CO (carbon monoxide), PM10 and PM25 (particulate matter of differing micron size).” Estimates are vague regarding all this pollution. We are supposed to take comfort, however, in the decrease in marine emissions from fewer oil tankers traveling from Alaska, South America and the Middle East, which according to this document is supposed to offset all but the lethal NOx from the trains. It’s fancy figuring, subtracting what is happening on the ocean blue from the reality of emissions from 1,460 locomotives, each traveling more than 1,500 miles, that would be added to the terrestrial U.S., directly to hundreds of communities, farms and forests along the railways. The impact would, in fact, be “significant and unavoidable.”

But all this is avoidable — if Benicia declares a moratorium on crude by rail.

I have a dream today . . . that could all too easily become tomorrow’s nightmare.

Sue Kibbe is a longtime resident of Benicia’s Highlands district.