Category Archives: Bakken Crude

‘Bomb trains’: A crude awakening for Richmond, Calif.

Repost from Aljazeera America

‘Bomb trains’: A crude awakening for Richmond, Calif.

Local activists try to halt the shipment of explosive Bakken crude oil through their neighborhoods

 

RICHMOND, Calif. — The streets are quiet in Lipo Chanthanasak’s neighborhood on the outer edge of this city’s downtown core. Each of the small houses is painted a variation of beige and separated from the road by a neatly kept lawn, as if to highlight the scene’s utter normalcy. But half a mile west are the BNSF Railway tracks and the Kinder Morgan rail facility, which quietly began receiving trains of Bakken crude last year.

Chanthanasak, who moved to Richmond from Laos 24 years ago, lives within the potential blast zone should an oil train derail, according to an online map created by the environmental-advocacy group ForestEthics. The 70-year-old retiree says he only learned that crude was being transported through his community because of his involvement with the nonprofit Asian Pacific Environmental Network, or APEN. Many of his neighbors, he says, are unaware.

Since July 2013, when a train carrying Bakken crude from North Dakota derailed and exploded in Lac-Mégantic, Quebec, killing at least 42 people and flattening the town, major crude-by-rail accidents have occurred in Alabama, North Dakota, Minnesota, Pennsylvania, Virginia and Colorado. ForestEthics says that 25 million Americans live within an oil-train-evacuation zone. An elementary school, a public-housing project and an affluent, elderly community fall within Richmond’s zone, according to the advocacy group.

train bombs Richmond California
Bakken crude has been arriving since last year at the Richmond, California, train depot, pictured here. Google

The transport of crude by rail is not a new phenomenon, but it has increased significantly over the past few years. In the first half of this year, 229,798 carloads of crude were transported by rail, up from 9,500 carloads in all of 2008. The increase is largely connected to the development of the Bakken shale, oil-rich rock formation that lies beneath parts of the northern United States and Canada.

Compared with traditional forms of crude oil, Bakken crude has been shown to be much more volatile and more likely to explode in the event of derailment. Hence the rail cars’ nickname among activists: “bomb trains.” But apart from a code on the side of the cars, nothing about their appearance indicates their origins. Smooth and cylindrical, the black cars would be adorable, if only their contents weren’t so dangerous. Richmond’s Kinder Morgan facility, a rail yard containing very little except several tracks, is just as unassuming. The trains (100 to 120 cars hitched together, all carrying the same product) arrive here, where they are lined up in several rows, each waiting for their content to be pumped into tanker trucks (three tankers are required to hold the contents of a single railcar). The tankers are then thought to travel another 25 miles northeast to a Tesoro Corporation refinery in Martinez.

Previously, the Kinder Morgan facility receiving ethanol by rail. But in September 2013, after securing the necessary air-quality permit granted by the Bay Area Air Quality Management District (without the knowledge of its board), the facility quietly switched over to handling crude. By the time the community found out, in March 2014, through an investigative story by the local CBS station, KPIX, it was already too late. The lawsuit that the nonprofit group Earthjustice filed (on behalf of APEN and others) to halt operations at the terminal was dismissed by the Superior Court of San Francisco in September, because it had been filed after the 180-day deadline.

“It’s a catch-22,” says Andres Soto, an organizer for Communities for a Better Environment, one of the co-plaintiffs in the suit. “How can you even comment unless you knew that something had been done? We would’ve had to be going through public records on a regular basis to discover when they’re making these kinds of decisions.”

Richmond’s case is not unique: In June, a NuStar terminal in Vancouver, Washington, also received an air-quality permit to begin storing crude without public notification. Community resistance has, however, encouraged the Vancouver City Council to adopt an emergency six-month moratorium on new or expanded crude-by-rail facilities.

“It’s very rarely been the case that local representatives or city councils have questioned these things without being encouraged to by local citizens or by being forced to by local action groups,” said Lorne Stockman, research director at Oil Change International and author of two recent reports on the rise of crude-by-rail in North America. “The only way [the projects] have been challenged are because vigilant citizens have questioned them.”

The secrecy that has characterized the projects has been aided by the fact that, in many cases, their introduction requires very little new construction — none at all in the case of Kinder Morgan. That makes the projects virtually invisible. This is also why crude by rail has been economically viable, despite being slightly more costly than transport via pipelines. In addition, pipeline projects normally require 20- to 30-year contracts to recoup their capital investments. Therefore, because the Bakken oil boom is not expected to last, constructing new pipelines to service it often doesn’t make economic sense. Meanwhile, the Bakken region is already connected to the West Coast by existing rail infrastructure. With crude prices higher in the West Coast than elsewhere in the country, and a growing Asian market for North American crude, the transportation of crude by rail to the West Coast is likely to increase unless community resistance proves successful.

Facing lawsuit, California oil train terminal to shut down

Repost from The News & Observer, Raleigh, North Carolina
[Editor: See also a similar report on AllGOV.com.  – RS]

Facing lawsuit, California oil train terminal to shut down

By Curtis Tate and Tony Bizjak, McClatchy Washington BureauOctober 23, 2014
US NEWS RAILSAFETY-CA 2 SA
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. RANDALL BENTON — MCT

— A legal victory in California this week over crude oil operations could have a spillover effect, emboldening critics of crude-by-rail shipments to press their concerns in other jurisdictions.

EarthJustice, a San Francisco-based environmental group, won its battle to halt crude oil train operations in the state as InterState Oil Co., a Sacramento fuel distributor, agreed to stop unloading train shipments of crude oil next month at the former McClellan Air Force Base.

Sacramento County’s top air quality official said his agency mistakenly skirted the state’s environmental rules by issuing a permit for the operation.

EarthJustice contended the Sacramento air quality district should not have granted InterState a permit to transfer crude oil from trains to tanker trucks bound for Bay Area oil refineries without a full environmental impact review.

The court reversal in California could bolster efforts by environmental groups to slow or stop crude-by-rail projects elsewhere, particularly in Washington state. A proposed terminal in Vancouver, Wash., would transfer oil from trains to tanker ships that could supply California refineries.

Patti Goldman, a managing attorney in the Seattle office of EarthJustice, said the decision sounded “a wake-up call” for permitting authorities to consider community input.

“We have been seeing local authorities blindly approve crude-by-rail projects without being open with the public and without considering the full effects,” she said.

The McClellan operation is relatively small compared with crude oil train terminals proposed elsewhere in California. One, in southwestern Kern County in the southern Central Valley, will be able to receive one 100-car train full of of crude oil each day. The McClellan facility was permitted to unload a similar amount once every two weeks.

The Kern facility, which could begin operating this month, was already zoned for transfer operations, and required no new environmental reviews or public comments.

In September, the Kern County Board of Supervisors approved a separate facility at a Bakersfield refinery that could receive two trains a day. EarthJustice sued the board earlier this month, contending that Kern’s environmental review was inadequate.

Environmental groups lost a legal fight in the Bay Area city of Richmond, where a terminal operated by pipeline company Kinder Morgan, the largest midstream – the shipping and storage of oil – energy company, unloads crude oil from trains to trucks that take it to local refineries. A judge rejected the lawsuit in September, ruling that the six-month statute of limitations had expired.

A McClatchy story in March revealed the existence of the McClellan operation to the surprise of local officials. State emergency officials and fire departments have said they don’t feel prepared to handle a major explosion or spill from a derailment.

Some of the crude unloaded at McClellan may have originated in North Dakota’s Bakken region. That type of oil, extracted through hydraulic fracturing, has been under increased scrutiny since a July 2013 derailment killed 47 people in Lac-Megantic, Quebec.

That accident and a series of fiery derailments since then have prompted the rail industry and its federal regulators to take steps to improve track conditions and operating practices. A stronger construction standard for tank cars used to ship flammable liquids is being finalized by the U.S. Department of Transportation.

The California Energy Commission projects that the state could receive as much as a quarter of its petroleum supply by rail in the next two years.

Earlier this month, BNSF Railway and Union Pacific sued California over a state law that requires railroads to develop oil spill prevention and response plans. The railroads argue that only the federal government has the power to regulate them.

Bizjak, of The Sacramento Bee, reported from Sacramento, Calif.

Central Valley Business Times: Oil company abandons plans to handle Bakken crude in Sacramento

Repost from Central Valley Business Times

Oil company abandons plans to handle Bakken crude in Sacramento

SACRAMENTO, October 22, 2014

•  Cites lawsuit filed by environmentalists
•  “This is a victory for the health and safety of the people of Sacramento”

InterState Oil Company says it is surrendering its air pollution permit that lets it transfer highly volatile Bakken crude oil from railcars to trucks at its transloading facility located at 4545 Dudley Boulevard in the McClellan industrial park in Sacramento.

The decision comes a month after Earthjustice filed a lawsuit on behalf of Sierra Club challenging the Sacramento Metropolitan Air Quality Management District for issuing permits allowing the project without public or environmental review.

Now the air agency says the permit was “issued in error because it failed to meet District Best Available Control Technology requirements.”

The agency and the company have agreed that the transfers will stop by Nov. 14.

“This is the first crude transport project that has been stopped dead in its tracks in California,” says Suma Peesapati, Earthjustice attorney. “This is a victory for the health and safety of the people of Sacramento, for communities along the path of the trucks hauling this dangerous product to the Bay Area, and for the refinery communities where the crude is eventually processed.”

Earthjustice filed the lawsuit on behalf of the Sierra Club on Sept. 23, holding the air district and InterState Oil accountable for neglecting to consider the risk to public health and safety of the project. The lawsuit also challenged the air district for deliberately avoiding its obligations for review under the California Environmental Quality Act despite the fact that the project would have significant increases in air pollutants, including toxic air contaminants.

The air district first issued a permit to InterState to trans-load crude from rail to truck on March 27, however according to an investigation by the Sacramento Bee, the company had been trans-loading crude without a permit as early as six months before that date. No notice was given to local fire and emergency responders or other officials about the handling of the highly flammable substance just seven miles north of the California state capital.

“This is a huge victory for Sacramento residents and communities across California who are put in harms way by trains carrying volatile, hazardous crude that are known to derail and explode,” says Devorah Ancel, Sierra Club staff attorney. “Local, state and federal governments must take further immediate action to notify the public when hazardous crude is railed through their communities and to ban the use of unsafe DOT 111 tank cars.”

As a result of today’s decision, Sacramento Superior Court is expected to dismiss the lawsuit, Earthjustice says.

Bakken crude, a type of shale oil, is more volatile than other kinds of crude oil. It has been blamed for some spectacular — and tragic — accidents, the worst of which was the July 2013 derailment of a train of oil cars carrying Bakken crude in the small Quebec town of Lac-Mégantic. The explosion and fire killed nearly 50 townspeople and leveled more than 30 buildings.

Sacramento Bee: Sacramento crude oil transfers halted; air quality official says permit was granted in error

Repost from The Sacramento Bee

Sacramento crude oil transfers halted; air quality official says permit was granted in error

By Tony Bizjak and Curtis Tate, 10/22/2014
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March.
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March. Randall Benton

A Sacramento fuel distributor has agreed to stop unloading train shipments of crude oil at McClellan Business Park after the county’s top air quality official said his agency mistakenly skirted the state’s environmental rules by issuing a permit for the operation.

InterState Oil Co. said in a letter Wednesday to the Sacramento Metropolitan Air Quality District that as of Nov. 7 it will no longer use McClellan as a transfer station for crude oil shipments to the Bay Area.

The move settles a lawsuit filed in September by EarthJustice, a San Francisco-based environmental group, that contended the Sacramento air quality district should not have granted InterState Oil a permit to transfer crude oil from trains to tanker trucks bound for Bay Area oil refineries without a full environmental impact review.

Air district head Larry Greene now says a full review was, in fact, required by the California Environmental Quality Act.

“We made an error when the permit was developed, and it should have gone to full CEQA review,” Greene said Wednesday. “We have notified (InterState) and the environmental group to that effect. InterState is voluntarily giving that permit back.”

Greene said InterState will continue other transfer operations at its McClellan site, including transfers of ethanol.

It is unclear whether the company will apply for a new permit to load crude oil. Its representatives did not respond to a request for comment.

A lawyer for EarthJustice called this a major victory in the group’s fight against potentially unsafe oil shipments.

“It signals that industry and government may not benefit from a lack of transparency and play dice with lives of people who live along the paths of these dangerous oil trains,” attorney Suma Peesapati said. “This is the first crude transfer project that has been stopped dead in its tracks in California.”

The reversal by the Sacramento air quality district could bolster efforts by environmental groups to slow or stop crude oil projects on rail lines elsewhere, particularly in Washington state. A proposed terminal in Vancouver, Wash., would transfer oil from trains to tanker ships that could supply California refineries.

Patti Goldman, a managing attorney in the Seattle office of EarthJustice, said the decision sounded “a wake-up call” for permitting authorities to consider community input.

“We have been seeing local authorities blindly approve crude-by-rail projects without being open with the public and without considering the full effects,” she said.

The McClellan operation is relatively small compared with the kind of crude oil train terminals now proposed elsewhere in California. One, in southwestern Kern County in the southern Central Valley, will be able to receive one 100-car train full of of crude oil each day; the McClellan facility was permitted to unload a similar amount once every two weeks.

The Kern facility, which could begin operating this month, was already zoned for transfer operations, and required no new environmental reviews or public comments.

In September, the Kern County Board of Supervisors approved a separate facility at a Bakersfield refinery that could receive two trains a day. EarthJustice sued the board earlier this month, contending that Kern’s environmental review was inadequate.

Environmental groups lost a legal fight in the Bay Area city of Richmond, where a terminal operated by pipeline company Kinder Morgan unloads crude oil from trains to trucks that take it to local refineries. A judge rejected the lawsuit in September, ruling that the six-month statute of limitations had expired. That project involves 100-car oil trains that come through midtown Sacramento.

Another proposed oil-train terminal at the Phillips 66 refinery in Santa Maria could mean even more of the cargo passing through Sacramento.

A Sacramento Bee story in March revealed the existence of the McClellan operation to a number of surprised local officials, including the head of the county Office of Emergency Management and the chiefs of the Sacramento city and Metropolitan fire departments. It noted that InterState began handling crude oil last year without obtaining a permit.

Some of the crude unloaded at McClellan may have originated in North Dakota’s Bakken region. That type of oil, extracted through hydraulic fracturing, has been under increased scrutiny since a July 2013 derailment killed 47 people in Lac-Megantic, Quebec.

That accident and a series of fiery derailments since then have prompted the rail industry and its federal regulators to take steps to improve track conditions and operating practices. A stronger construction standard for tank cars used to ship flammable liquids is being finalized by the U.S. Department of Transportation.

The California Energy Commission projects that the state could receive more than 20percent of its petroleum supply by rail in the next two years. State emergency officials and fire departments have said they don’t feel they are prepared to handle a major explosion from a derailment.

Earlier this month, BNSF Railway and Union Pacific sued California over a state law that requires railroads to develop oil spill prevention and response plans. The railroads argue that only the federal government has the power to regulate them.