Tag Archives: Volatile gases

Diane Bailey: Valero’s Promise to Benicia: We’ll only have an environmental disaster once every 111 years

Repost rom NRDC Switchboard, Diane Bailey’s Blog

September 17, 2014

Valero’s Promise to Benicia: We’ll only have an environmental disaster once every 111 years.

Diane Bailey

Actually, that’s kind of worrisome, especially considering that if you don’t experience that disaster yourself, your kids probably will.  This is one of the many absurd elements showing Valero’s cavalier attitude toward public safety in the draft Environmental Impact Report (EIR) for its proposed crude by rail project, for which public comments were due this week.  The hazard analysis in this report is also a serious underestimate, according to the State among many others: The California Public Utilities Commission notes the serious failure of Valero to address the “potential for tragic consequences of crude oil tank car ruptures” from its proposed Crude by Rail Project.

casselton ND 12 30 13.jpg
Valero’s Promise to Benicia: We’ll only have an environmental disaster once every 111 years

This dangerous crude project is so riddled with problems that many communities up-rail are now voicing serious concern.  The City of Sacramento highlights the high concentration of people around the rail freight lines (“more than 147,000 City residents live within ½ mile”) serving the “Valero Benicia refinery [which] is one of two California refineries that are in the process of securing permits to build rail terminals to import Canadian tar sands and Bakken crude oils.” (emphasis added)  And the City of Davis suggests that the “highest levels of protection [be implemented] before disasters such as hazardous material releases and explosions occur [so that] we can avoid having such disasters in the first place.”

Benicians for a Safe and Healthy Community explain why the project is fatally flawed with 132 pages of concerns.  Valero’s crude by rail proposal is like so many other projects popping up all over the nation in a mad rush to access cheaper, extreme and dangerous crude oils, with little regard for public health or safety.  This project is a total disaster (based on NRDC, CBE and other comments) because it brings:

  • More Refinery Pollution: Bringing in extreme crudes like tar sands and fracked Bakken crude will only increase refinery pollution.  Valero’s Benicia refinery already releases 70 percent more toxic chemicals than the average for California.
  • Toxic Plumes Along Rail Lines: This thing called “crude shrinkage” happens during transport, where entrained gases escape, leading to a 0.5 to 3 percent loss of crude oil.  It’s a big problem for volatile crude oils like Bakken, and coupled with the high benzene levels found in some North American crudes (up to 7%), it creates a serious toxic plume around rail lines.  For instance, we estimate over 100 pounds per day of excess benzene emissions from the Valero proposal in the Bay Area (or 1800 times more than the draft EIR reports).
  • Extreme Crudes are Dangerous: Valero and other oil companies pretend that they can mix extreme crudes like tar sands and fracked Bakken into the ideal “Alaskan North Slope look-alike” crude, which sounds great, except that it doesn’t work that way in reality.  Both Bakken and tar sands carry their dangerous properties into any crude oil blend making it more volatile, toxic, and corrosive.
  • CBR Terminals at Refineries Amplify the Hazard: Valero proposes to site its crude by rail unloading facility within 150 feet of a number of very large refinery tanks that store highly flammable and potentially explosive material.  If a derailment occurred at the terminal, it could set off a chain reaction of fire and explosions at the refinery.  And there have been three derailments in Benicia outside the Valero refinery in the past year; luckily those trains were carrying petroleum coke, not crude oil.
  • Risk of Catastrophic Accidents All Along the Rail Route:  Valero’s “Barkan report” that estimates a release only every 111 years from the proposed 100 daily tank cars carrying crude is absurd for many reasons.  Most egregious is that it fails to consider recent data, like the six major crude oil train accidents over the past year that have resulted in massive fireballs and destruction, including 47 casualties in Lac Mégantic. The safety risks to tens of thousands of people living around these freight rail lines remains grave.

The oil industry has been promoting “look-alike” crudes that attempt to mimic conventional crude by blending extreme bottom of the barrel crudes.  The mile-long trains laden with these extreme crudes are a Trojan horse that puts millions of Californians at risk and threatens to undo several decades of environmental progress.  We need a moratorium on all new crude by rail projects, including Valero-Benicia, until the state can assess the cumulative impacts of these projects, make sure environmental impacts are fully mitigated and assure communities that they will be safe.

Big debate in North Dakota: stabilize the oil before shipping?

Repost from Prairie Business

 Does ND crude need to be stabilized?

By April Baumgarten, Forum News Service, August 25, 2014 
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A train carrying crude oil tankers travels on the railroad bridge over the Missouri River on Aug. 16 in Bismarck. Dustin Monke/Forum News Service

DICKINSON, N.D. – What can be done to keep trains from becoming “Bakken bombs?”

It’s a question on the minds of many North Dakota residents and leaders, so much that some are calling on the state Industrial Commission to require oil companies to use technology to reduce the crude’s volatility. The words are less than kind.

“Every public official in America who doesn’t want their citizens incinerated will be invited to Bismarck to chew on the commissioners of the NDIC for failing to regulate the industry they regulate,” Ron Schalow of Fargo wrote in a Facebook message.

A train carrying Bakken crude derailed and exploded July 6, 2013, in Lac-Megantic, Quebec, killing 47 people. Another oil train crashed into a derailed soybean train on Dec. 30 near Casselton, N.D. No one was killed.

Schalow has started a campaign to require oil companies that drill in North Dakota to use stabilizers, a technology used in Texas to take natural gas liquids off crude to make it safer to ship. His online petition demands the Industrial Commission to force oil companies to remove all explosive natural gas liquids from crude before shipping it by rail. More than 340 people have signed the petition as of Saturday.

Schalow declined an interview, referring instead to his petition and Facebook page titled “The Bomb Train Buck Stops With North Dakota.”

Throughout North Dakota, residents have called on the state’s government to prevent future disasters like these, but some leaders say implementing stabilizers could cause more problems.

“Now you have to pipe from every one of these wells or you have to find a way to get it to this centralized location to be refined,” state Agricultural Commissioner Doug Goehring said. “That creates huge problems in itself.”

There is a difference between conditioning and stabilization, said Lynn Helms, the state’s Department of Mineral Resources director.

Oil conditioning is typically done at well sites in North Dakota, he said. The gases are first removed from crude. Then the water and hydrocarbons are removed with a heater treater. The crude oil is then put into a storage tank below atmospheric pressure, which reduces the volatility. Those gases can then be flared or transported to a gas processing plant.

“If crude oil is properly conditioned at the wellsite, it is stable and safe for transportation,” Helms said.

Oil that hasn’t been properly conditioned at the wellsite can be stabilized, Helms said, but that would include an industrial system of pipelines and processing plants.

Valerus, a company based in Houston, manufactures stabilizers for oil companies across the country, including in Texas, West Virginia and Canada. It’s a technology Texas has used at the wellhead for drilling the Eagle Ford shale since the early 2000s, said Bill Bowers, vice president of production equipment at Valerus. Recently, a centralized system with pipelines has been developed to transport the natural gas liquid safely.

“Most of that stabilization takes place at a centralized facility now,” he said. “There could be 100 wells flowing into one facility.”

The Railroad Commission of Texas has one rule that Helms has found regarding stabilization, he said. Rule 3.36 of the Texas Oil and Gas Division states operators shall provide safeguards to protect the general public from the harmful effects of hydrogen sulfide. This can include stabilizing liquid hydrocarbons

.Helms added he could not find any other rule requiring companies to use stabilizers, but the rule had an impact indirectly, Bowers said.

“I think what was happening is these trucking companies, either for regulation or just safety purposes, would not transport the crude if it was not stabilized,” Bowers said.

The process is relatively simple, he added.

“All we are really talking about is heating the crude, getting some of the more volatile compounds to evaporate and leaving the crude less volatile,” Bowers said.

The Industrial Commission has asked for public input on 10 items that could be used to condition oil. Though stabilization is not directly listed, it could be discussed under “other field operation methods to effectively reduce the light hydrocarbons in crude.”

The commission will hear testimony on Tuesday, Sept. 23, at the Department of Mineral Resources’ office in Bismarck. Written comment may be submitted before 5 p.m. Monday, Sept. 22.

New rules in North Dakota would regulate conditioning at well sites.

The hearing was brought on by a study from the North Dakota Petroleum Council and discussions held with U.S. Secretary of Transportation Anthony Foxx and Secretary of Energy Ernest Moniz regarding transportation issues.

Installing equipment at the wellhead for conditioning oil takes several weeks, Helms said. Stabilization, on the other hand, could take more than a year to install equipment – if not longer.

Helms said he couldn’t comment on the economic process.

“I do know that a large-scale industrial process would have a big imprint,” Helms said. “It would really exasperate our transportation problems because tens of thousands of barrels of oil would have to be trucked or piped to (a processing plant) and from it.”

Since there is a centralized system in Texas, companies can make a profit off the natural gas liquids. In North Dakota, companies would have to stabilize at the wellhead before pipelines are put in place.

“Given their preference, they won’t buy this equipment,” Bowers said. “They really don’t want to do it.”

There is no pipeline infrastructure to transport natural gas liquids from wellsites, meaning it would have to be trucked or shipped by rail. That could be more dangerous than shipping oil without stabilizing it, Goehring and Helms said.

“By themselves, they are more volatile and more dangerous than the crude oil with them in it,” Helms said. “The logical thing to do is to properly condition them at the wellsite.”

The crude could also shrink in volume, along with profits, Bowers said.

“It seems to me that in the Bakken people are quite happy with the arrangement,” he added. “They don’t believe necessarily that stabilization will change the safety picture.”

Schalow has criticized the Industrial Commission for not acting sooner, stating officials have had 10 years to address the issue.

Goehring said he was made aware of the process recently.

“I don’t believe anybody is withholding information or is aware of anything, nothing diabolical,” Goehring said.

Officials agreed that the process needs to be dealt with on multiple levels, including oversight on railroad safety. Public Service Commissioner Julie Fedorchak outlined a proposal on Thursday for a state-run rail safety program. If approved, the Public Service Commission would hire three staff members for the program.

The commission has been working on the proposal since before the Casselton derailment.

“I share (Schalow’s) concern about having a safe method of transportation, and I think everyone does,” Fedorchak said. “How we get there is the challenge and I think there is a number of different steps. I don’t think there is one solution.”

Many trains carrying Bakken crude travel through Fargo, where Schalow and Democratic Sen. Tim Mathern live.

Mathern follows Schalow’s Facebook page and said he did so out of his concern for transporting oil safely.

“My perspective is that we must preserve and protect our quality of life today and in the future,” Mathern said. “We must be careful that we don’t do kind of a wholesale of colonization of our resources in sending them out. … It’s almost like how do we make sure that we don’t have an industrial waste site as a state?

“In many of our larger cities, we have a section of town that is kind of an industrial waste site. Eventually, someone has to clean that up. Eventually, that is a cost to society, and I am concerned that we don’t let that happen to North Dakota.”

Mathern said safely transporting oil is no longer a western North Dakota or even a state issue; it’s a national issue that must be taken seriously because the oil is being transported throughout the country.

“There is enough responsibility to go around for everybody, including policy makers,” he said. “It’s not just one industry; it’s many industries. It includes the public sector. It includes governors and legislators, and people that are supposed to be attentive to citizens, and to be attentive to the future. We all have responsibility in this.

“This has worldwide consequences. This is an oil find that even affects the balance of power, even politically.”

Mathern said he doesn’t know what Schalow’s motivation is, but it isn’t just Schalow raising the questions.

“I don’t think this is a matter of blaming oil.” Mathern said. “This is a matter of being respectful for our citizens and being a good steward of this resource and a good steward of our future.”

Public comment

Residents unable to attend the North Dakota Industrial Commission on oil conditioning practices set for 9 a.m. on Tuesday, Sept. 23, in Bismarck may submit written comments to brkadrmas@nd.gov. Comments must be submitted by 5 p.m. CDT on Monday, Sept. 22.

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.

Lynne Nittler of Davis, CA: Take Action!

Repost from The Davis Enterprise

Exercise the power of public comment

by Lynne Nittler, August 10, 2014
oil train
Oil tanker cars travel by rail through Davis on a recent evening. Valero oil refinery in Benicia wants to expand its oil shipments to 100 tank cars per day. Jean Jackman/Courtesy photo

The story of crude-by-rail in California is not a done deal. As new developments unfold almost daily in this remarkable drama, it is clear that public input can make a significant impact.

For example, last January, fierce community opposition — plus a letter from state Attorney General Kamala Harris urging further scrutiny on air quality and the risk of accidental spills — led city leaders in Pittsburg to reopen the public comment period on its draft environmental documents.

The WesPac Petroleum project had called for an average of 242,000 barrels of crude — the equivalent of 3.5 trains per day — to be unloaded daily and stored in 16 tanks before being piped to the five Bay Area refineries. Now, it appears WesPac may never reapply. An alert public can bring about change.

Valero in Benicia is a long way from giving up on the rail terminal that will allow it to import 100 tank cars of crude by rail daily, most likely from the tar sands of Alberta, Canada, and the Bakken Crude shale of North Dakota. These two extreme forms of crude — Bakken crude is highly volatile and proven explosive and tar sands bitumen is toxic and impossible to clean up in a spill (Kalamazoo spill, July 2010) — are already being processed in some Bay Area refineries.

The California Energy Commission predicts within two years that California will receive 25 percent of its crude by rail, mostly from these two extreme crudes that emergency workers currently are not prepared to deal with in the event of a spill or accident. For the Sacramento region, that will mean five to six trains of 100 cars per day by the end of 2016!

Your input now may make a significant difference. The draft environmental impact report for the Valero proposal is open for public review until Sept. 15. A printed copy is at the Stephens Branch Library, 315 E. 14th St. in Davis, and is available online at www.benindy.wpengine.com. Every letter submitted becomes part of the public record and must be addressed in the final EIR.

Frankly, the draft EIR focuses on impacts to Benicia, and just glances at uprail communities like Davis. But two 50-car trains coming across the Yolo Causeway and the protected Yolo Basin Wildlife Area; passing high-tech businesses along Second Street; rolling into town through residential neighborhoods, where the vibrations will be felt from each heavy car; following the unusual and therefore dangerous 10 mph crossover just before the train station; passing through the train station, putting the entire downtown within the blast zone; and skirting the edge of UC Davis, including the Mondavi Center for the Performing Arts; puts many people at serious risk.

If you have concerns such as whether the tank cars are safe enough, whether the volatility of the Bakken crude should be reduced before it is loaded into tank cars, who is liable in the event of an accident, whether the trains will be equipped with positive train control to improve braking, how Valero plans to mitigate the increased air and noise pollution, how Valero can claim that accidents happen only once in 111 years, etc., then you can help.

While our city of Davis, Yolo County, Sacramento, Roseville, Fairfield, the Sacramento Area Council of Governments and the Sierra Club Yolano Group are writing their own responses to the Valero draft EIR, letters from private citizens are equally powerful.

Public workshops are planned in August and September to help residents craft their letters. They workshops will provide background on the oil train situation, discuss the California Environmental Quality Act and EIR process and offer helpful resource materials. Participants will find topics, gather evidence, write their letters and then share drafts for feedback.

Workshops are planned from 10 a.m. to noon Saturday, Aug. 9; 7 to 9 p.m. Thursday, Aug. 21; and 2 to 4 p.m. Sunday, Sept. 7. All will take place in the Blanchard Room at the Stephens Branch Library, 315 E. 14th St. in Davis. The room is accessible to people with disabilities.

The draft EIR and mailing directions are posted at www.benindy.wpengine.com. For more information, contact me at lnittler@sbcgloball.net or 530-756-8110.

Bring a friend! Every letter adds to the impact!

— Lynne Nittler is a Davis resident.