Tag Archives: West coast refineries

Critics say oil train report underestimates risk

Repost from the Spokane Spokesman-Review
[Editor:  Oh…this sounds SO familiar….  Benicia sends solidarity and support to our friends in Washington state.  – RS]

Critics say oil trains report underestimates risk

By Becky Kramer, December 18, 2015
In this Oct. 1, 2014 file photo, train cars carrying flammable liquids heads west through downtown Spokane, Wash. | Dan Pelle photo

The chance of an oil train derailing and dumping its cargo between Spokane and a new terminal proposed for Vancouver, Washington, is extremely low, according to a risk assessment prepared for state officials.

Such a derailment would probably occur only once every 12 years, and in the most likely scenario, only half a tank car of oil would be spilled, according to the report.

But critics say the risk assessment – which includes work by three Texas consultants who are former BNSF Railway employees and count the railroad as a client – is based on generic accident data, and likely lowballs the risk of a fiery derailment in Spokane and other communities on the trains’ route.

The consultants didn’t use accident data from oil train wrecks when they calculated the low probability of a derailment and spill. The report says that shipping large amounts of oil by rail is such a recent phenomanon that there isn’t enough data to produce a statistically valid risk assessment. Instead, the consultants drew on decades of state and national data about train accidents.

That approach is problematic, said Fred Millar, an expert in hazardous materials shipments.

Probability research is “a shaky science” to begin with, said Millar, who is a consultant for Earthjustice, an environmental law firm opposed to the terminal. “The only way that you can get anything that’s even partly respectable in a quantitative risk assessment is if you have a full set of relevant data.”

To look at accident rates for freight trains, and assume you can draw credible comparisons for oil trains, is “very chancy,” he said. “Unit trains of crude oil are a much different animal…They’re very long and heavy, that makes them hard to handle. They come off the rails.”

And, they’re carrying highly flammable fuel, he said.

Terminal would bring four more oil trains through Spokane daily
The proposed Vancouver Energy terminal would be one of the largest in the nation, accepting about 360,000 barrels of crude oil daily from North Dakota’s Bakken oil fields and Alberta’s tar sands. For Spokane and Sandpoint, the terminal would mean four more 100-car oil trains rumbling through town each day – on top of the two or three per day that currently make the trip.

The proposed $210 million terminal is a joint venture between Tesoro Corp. and Savage Companies. Oil from rail cars would be unloaded at the terminal and barged down the Columbia River en route to West Coast refineries.

A spill risk assessment was part of the project’s draft environmental impact statement, which was released late last month. A public meeting on the draft EIS takes place Jan. 14 in Spokane Valley. State officials are accepting public comments on the document through Jan. 22.

The spill risk work was done by a New York company – Environmental Research Consulting – and MainLine Management of Texas, whose three employees are former BNSF employees, and whose website lists BNSF Railway as a client. The company has also done work for the Port of Vancouver, where the terminal would be located.

The risk analysis assumes the trains would make a 1,000-mile loop through the state. From Spokane, the mile-long oil trains would head south, following the Columbia River to Vancouver. After the trains unloaded the oil, they would head north, crossing the Cascade Range at Stampede Pass before returning through Spokane with empty cars.

Report used data on hazardous materials spills

Oil train derailments have been responsible for a string of fiery explosions across North America in the past three years – including a 2013 accident that killed 47 people in the small town of Lac-Megantic, Quebec. Other oil train derailments have led to evacuations, oil spills into waterways and fires that burned for days.

But since shipping crude oil by train is relatively new, there’s not enough statistical information about oil train accidents to do risk calculations, the consultants said several times in the risk assessment.

Instead, they looked at federal and state data on train derailments and spills of hazardous materials dating back to 1975, determining that the extra oil train traffic between Spokane and Vancouver posed little risk to communities.

Dagmar Schmidt Etkin, president of Environmental Research Consulting, declined to answer questions about the risk assessment. Calls to MainLine Management, which is working under Schmidt Etkin, were not returned.

Stephen Posner, manager for the state’s Energy Facilities Siting Council, which is overseeing the preparation of the environmental impact statement, dismissed questions about potential conflicts of interest.

“There aren’t a lot of people who have the expertise to do this type of analysis,” Posner said.

Schmidt Etkin also worked on a 2014 oil train report to the Washington Legislature, he said. “She’s highly regarded in the field.”

According to her company website, Schmidt Etkin has a doctorate from Harvard in evolutionary biology. The site says she provides spill and risk analysis to government regulators, nonprofits and industry groups. Her client list includes the U.S. Environmental Protection Agency, the Coast Guard and the American Petroleum Institute.

Posner reviewed the scope of work outlined for the spill risk analysis.

“We put together the best analysis we could with limited sources of information,” he said. “This is a draft document. We’re looking for input from the public on how we can make it better.”

Spokane ‘a more perilous situation’

The “worst case” scenario developed for the risk assessment has also drawn criticism. The consultants based it on an oil train losing 20,000 barrels of oil during a derailment. The risk assessment indicates that would be an improbable event, occurring only once every 12,000 to 22,000 years.

In fact, twice as much crude oil was released during the 2013 Lac-Megantic accident in Quebec, said Matt Krogh, who works for Forest Ethics in Bellingham, Washington, which also opposes construction of the Vancouver Energy Terminal.

“If I was looking at this as a state regulator, and I saw this was wrong – quite wrong – I would have them go back to the drawing board for all of it,” Krogh said.

Krogh said he’s disappointed that former BNSF employees didn’t use their expertise to provide a more meaningful risk analysis. Instead of looking at national data, they could have addressed specific risks in the Northwest, he said.

Oil trains roll through downtown Spokane on elevated bridges, in close proximity to schools, hospitals, apartments and work places. In recent years, the bridges have seen an increase in both coal and oil train traffic, Krogh said.

“The No. 1 cause of derailments is broken tracks, and the No. 1 cause of broken tracks is axle weight,” he said. “We can talk about national figures, but when you talk about Spokane as a rail funnel for the Northwest, you have a more perilous situation based on the large number of heavy trains.”

Elevated rail bridges pose an added risk for communities, said Millar, the Earthjustice consultant. The Lac-Megantic accident was so deadly because the unmanned train sped downhill and tank cars crashed into each other, he said. Not all of the cars were punctured in the crash, but once the oil started burning, the fire spread, he said.

“If you have elevated tracks and the cars start falling off the tracks, they’re piling on top of each other,” Millar said. “That’s what Spokane has to worry about – the cars setting each other off.”

Governor has the final say

Railroad industry officials say that 99.9 percent of trains carrying hazardous materials reach their destination without releases. According to the risk assessment, BNSF had only three reported train derailments per year in 2011, 2012 and 2013. The railroad has spent millions of dollars upgrading tracks in Washington in recent years, and the tracks get inspected regularly, according to company officials.

Whether the Vancouver Energy Terminal is built is ultimately Gov. Jay Inslee’s decision. After the final environment impact statement is released, the 10-member Energy and Facilities Siting Council will make a recommendation to the governor, who has the final say.

Environmental impact statements lay out the risks of projects, allowing regulators to seek mitigation. So, it’s important that the EIS is accurate, said Krogh, of Forest Ethics.

In Kern County, California, Earthjustice is suing over the environmental impact statement prepared for an oil refinery expansion. According to the lawsuit, the EIS failed to adequately address the risk to communities from increased oil train traffic.

“If you have a risk that’s grossly underestimated, you’ll be making public policy decisions based on flawed data,” Krogh said.

Final decision on Tesoro’s Washington railport pushed to 2016

Repost from Reuters  

Final decision on Tesoro’s Washington railport pushed to 2016

By Kristen Hays, June 26, 2015

HOUSTON – The latest delay in a detailed government review of Tesoro Corp’s proposed $210 million railport project in Washington state means a final decision will not happen until 2016, according to a state council’s published schedule.

The 360,000 barrels-per-day project would be the biggest in the United States, moving domestic and Canadian crude via rail to Washington’s Port of Vancouver, where it would be loaded onto vessels to supply West Coast refineries – mainly in California.

The company had hoped to start it up by late 2014, and then pushed it to this year as the project undergoes a lengthy state review.

Several other oil-by-rail projects, largely in California, are stalled amid opposition after multiple crude train crashes and derailments since mid-2013.

Tesoro said the company was disappointed in “yet another delay” and remains committed to the project.

Chief Executive Greg Goff told analysts last month that the delay to 2016 was likely as the project undergoes what he called a “painfully slow” review process.

The projected cost also has more than doubled to $210 million from its original $100 million as Tesoro upgraded the design, including seismic dock improvements.

Washington’s Energy Facility Site Evaluation Council (EFSEC)’s schedule, made public this week, says a draft environmental impact statement will be published in late November. The council had previously expected to release the draft report in late July.

State law then requires a month-long public comment period which can be lengthened.

EFSEC then will submit the final report to Gov. Jay Inslee, who has final say on whether it will be built. The new schedule, and the public comment session, pushes that submission to early 2016. Inslee will have up to two months to decide once he receives the report.

Most Washington refineries, including Tesoro’s 120,000 bpd plant in Anacortes, receive oil by rail. No major pipelines move oil west across the Rocky Mountains or the Cascades, so West Coast refineries turn to rail to tap North American crudes that cost less than imports.

(Reporting by Kristen Hays; Editing by Christian Plumb)

New rules for crude-by-rail transport fall short

Repost from SFGate (San Francisco Chronicle)

New rules for crude-by-rail transport fall short

By Lois Kazakoff on May 1, 2015 5:50 PM
Oil imports by rail account for just about 1 percent of total shipments to California refineries, but they are rising rapidly. Above, trains at a Union Pacific yard in Bloomington, Calif.
California moves to prevent spills of oil shipped by trains – Oil imports by rail account for just about 1 percent of total shipments to California refineries, but they are rising rapidly. Above, trains at a Union Pacific yard in Bloomington, Calif. Photo By Irfan Khan/Los Angeles Times/MCT

The U.S. Department of Transportation unveiled new rules on transporting crude oil by rail Friday that set a timeline to get old-technology, easily punctured tank cars off U.S. and Canadian rail lines but fail to address the explosive nature of the Bakken crude that sparked the public’s concerns to begin with.

While the new rules are a step toward safer rail transport, it is a disappointing decision for the dozens of communities the oil trains roll through on the way to West Coast refineries. The new rules get the old DOT-111 cars off the rails over the next three years, and beef up the steel gauge required to construct the new CPC-1232 cars. But the Department of Transportation itself noted nearly a decade ago that the old cars punctured in minor, low-speed collisions. The new rules should have immediately banned them rather than phasing them out.

Most distressing is that the new rules do not set a standard for the volatility of what goes in the tank cars. Lower volatility would reduce the risk of explosions. Crude extracted from the Bakken Oil Shale is significantly more volatile than other types of petroleum — a fact the Department of Transportation has acknowledged and the public became aware of in July 2013 when a train carrying Bakken crude exploded in Lac Megantic, Ontario.

The new rules will do little to allay the worries of residents in Davis, Martinez and Pinole, where railroad tracks crisscross streets, or in Benicia, where Valero has applied for permission to retrofit its refinery to receive crude by rail in addition to crude by tanker ship. Valero has proposed moving the oil in the CPC-1232 cars, limiting oil trains to 50 cars rather than the more standard unit of 100 cars, and reducing train speeds in town. The City of Benicia is expected to release the draft environmental impact report on the project June 30.

Bills introduced in the House and the Senate this month would address these concerns, and more, notably requirements to notify first responders in real time when the trains are coming through. The new department rules require a railroads to provide a telephone number for first responders to call but do not require notification.

“These rules do not go far enough in addressing the safety concerns posed by trains transporting highly volatile crude oil through the heart of our communities,” said Rep. Mike Thompson, D-St. Helena. “We need to put robust, comprehensive safety measures in place that will help make sure communities are safe, rail cars meet the strongest possible standards, and first responders are prepared in the event of an emergency. DOT’s rules do not sufficiently address these issues and so Congress should act to put safety measures in place.”

Action in Congress this month presaged the announcement of the new less-than-adequate Department of Transportation regulations.

Thompson’s bill, introduced April 15 and co-authored with Reps. Jim McDermott, D-Wash., Doris Matsui, D-Sacramento, and Ron Kind, D-Wis., would require volatility standards and weekly communications between first responders and railroad officials about crude oil trains.

In the Senate, Sens. Dianne Feinstein, D-San Francisco, Ron Wyden, D-Ore., and Jeff Merkley, D-Ore., introduced legislation April 30 to protect communities from oil train accidents, focusing on communication with first responders.

Last year saw a record 144 rail accidents in the U.S., up from just one in 2009. The volume of oil cars, however, has increased by 4000 percent since 2008.

Rep. Thompson has it right: Congress needs to step in and demand better protections for communities on the rail lines.

Terminal settles with Oregon over excess oil shipments (6x more than allowed)

Repost from The Herald and News, Klamath Falls OR

Terminal settles with Oregon over excess oil shipments

AP, March 19, 2015 updated 1:00 pm

CLATSKANIE, Ore. (AP) — The owner of an oil train terminal in northwest Oregon has agreed to pay a reduced fine for moving six times more crude oil in 2013 than was allowed.

The Oregonian reports (http://is.gd/0Uivsj) the fine was cut by $15,000, to $102,292.

The state Department of Environmental Quality said the premise of fine originally was that the company acted intentionally in shipping nearly 300 million gallons through the terminal near Clatskanie.

But the agency now says it can prove only that the company acted negligently.

Massachusetts-based Global Partners admitted no wrongdoing. Its lawyer said the company disagreed with the penalty but was happy the issue is resolved.

Trains carrying North Dakota crude oil began moving through Oregon in 2012. At the Clatskanie terminal, it’s put on barges for West Coast refineries.