Category Archives: Crude By Rail

Crude By Rail, Federal Regulation (U.S.), Reid vapor pressure levels, Volatility

Rep. Garamendi and area leaders call for safer crude-by-rail transport

Repost from The Benicia Herald
[Editor:  Significant quote: “Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.”  – RS]

Rep. Garamendi to call for safer crude-by-rail transport

By Donna Beth Weilenman, April 7, 2015

U.S. Rep. John Garamendi, D-Fairfield, will join industry leaders in Davis on Wednesday in calling for the U.S. Department of Transportation to make rail delivery of crude oil safer.

“Crude oil is or has until very recently been transported by rail through several cities in Congressman Garamendi’s 3rd Congressional District, including Davis, Dixon, Fairfield, Suisun City and Marysville,” said his media specialists, Donald Lathbury and Matthew Kravitz, in a joint statement on the news conference.

“These routes are very close to residential communities, schools, parks, and businesses.”

Among those joining Garamendi will be Sarah Feinberg, acting administrator for the Federal Railroad Administration, and Paul W. King, deputy director of the Office of Rail Safety at the Safety and Enforcement Division of the California Public Utilities Commission.

Municipal and other leaders also are expected to attend, including Davis Mayor Dan Wolk, Marysville Mayor Ricky Samayoa, Yolo County Supervisor Don Saylor and Solano County Supervisor Skip Thomson.

Also expected to attend are Terry Bassett, Yolo County Transportation District executive director; Dana Carey, Yolo County office of Emergency Services manager; and Terry Schmidtbauer, assistant director of Resource Management in the Solano County Office of Emergency Services.

Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.

He said this is the maximum volatility permitted by the New York Mercantile Exchange (NYMEX) for crude oil futures contracts.

By comparison, he said, a recent literature review by Sandia Labs indicates that the North Dakota Petroleum Council’s study of 152 Bakken crude samples found an average RVP of 11.7 psi and a max of 14.4 psi. A rule going into effect in North Dakota this month sets the limit at 13.7 psi.

Garamendi and Congresswoman Doris Matsui, D-Sacramento, sent a letter March 3 to the Department of Transportation in which they suggested strengthening safety improvements and asked DOT to drop any plans for weakening regulations.

Instead, they called for stronger safety standards for crude-by-rail transportation.

“Families living near oil-by-rail shipping lines are rightfully concerned about the safety of the trains that pass through their communities,” Garamendi said. “For that reason, I have repeatedly called on the Department of Transportation to use all the tools at their disposal to ensure that these shipments are as safe and secure as possible.

“Every day that strong and effective rules are delayed is another day that millions of Americans, including many in my district, are put at greater risk.”

Garamendi’s announcement will be made at 11:30 a.m. Wednesday next to the Davis Train Depot, near the corner of Second and H streets, Davis.

Bakken Crude, Crude By Rail, Environmental review, Marine transport, Oil Industry, Oil storage, Pipeline transport, Pittsburg WesPac, WesPac Midstream LLC

Pittsburg CA: Critics blast proposed oil terminal, even without Bakken crude trains

Repost from The Contra Costa Times
[Editor:  Significant quote: “WesPac officials said they dropped inbound crude oil shipments by rail from their plans for several reasons, including public sentiment against it, an unstable regulatory environment surrounding those shipments, and drops in crude oil prices that have made such shipments less economically viable.”  – RS]

Pittsburg: Critics blast proposed oil terminal, even without Bakken crude trains

By Sam Richards, 04/07/2015 12:31:04 PM PDT

PITTSBURG — Train loads of Bakken crude oil are no longer in the plans for a proposed oil storage terminal near the waterfront, but that does not mean the project is being welcomed to town with open arms.

The City Council voted 5-0 Monday night to approve amending the environmental report for WesPac Midstream LLC’s proposed Pittsburg Terminal Project, which would renovate and modernize a long-dormant PG&E tank farm between West 10th Street and the Sacramento River waterfront.

The key change is that the five previously planned 104-car trains of domestic oil, mostly the volatile Bakken crude, are no longer part of the project. The new EIR will reflect that.

Councilman Sal Evola stressed that the vote reflected the council’s desire for “the process” to play out and fully vet the proposal.

“Every project at least deserves its fair process,” Evola said. “I’m all for preserving our industrial base, but we have to do it safely, and fair process is needed.”

Others were less interested in process, saying the WesPac proposal to bring an average of 242,000 barrels of crude or partially refined crude oil to be unloaded daily from ships and from pipelines, and stored in 16 tanks on 125 acres, is a problem for various reasons.

Speakers told the council that vapors from the storage tanks, the possibility of spills into the Sacramento Delta and the danger of the tanks exploding — all near hundreds of downtown homes — are potential issues, and that the project should simply be rejected.

“The only way you can mitigate this project is not do it,” said Willie Mims, representing the NAACP and the Black Political Association.

And though some at the meeting Monday night are grateful that WesPac that no longer plans to bring crude oil to the terminal by rail, others told the council that leaving out rail shipments doesn’t come close to salvaging the project. Some 30 people holding up “No WesPac” signs or wearing similar T-shirts crowded the council meeting.

Without the trains, the Pittsburg Terminal Project would now take oil from ships and a pipeline from the Central Valley and store it for later processing by refineries in Martinez, Benicia, Rodeo and Richmond.

Pamela Aranz of Antioch, representing the group Global Community Monitor, was one of several speakers who criticized the WesPac proposal as a dinosaur — old-fashioned, with increasingly outmoded technology. Others said the oil terminal would be at cross purposes with a nicely developing downtown area. Developing wind and/or solar power on that land, Aranz and others said, would make better sense.

Plans for the Pittsburg Terminal Project, first proposed in 2011, had been dormant for the past year, after local groups like Pittsburg Defense Council had protested the prospect of trains carrying volatile Bakken crude oil rolling in to the city. Communities across the United States — including Pittsburg, Richmond and Berkeley — have come out in opposed to crude by rail shipments through their cities after several high-profile derailments, including one in Lac Mégantic, Quebec, in 2013 killed 47 people and destroyed part of that city.

The new environmental report, to be paid for by WesPac, will replace an earlier one that was criticized in 2014 by the state Attorney General’s office because it did not suitably analyze air pollution impacts, address the risks of accidents involving storing and moving oil, consider the project’s climate change impacts, and consider a “reasonable range of alternatives” that could reduce impacts. WesPac officials said they dropped inbound crude oil shipments by rail from their plans for several reasons, including public sentiment against it, an unstable regulatory environment surrounding those shipments, and drops in crude oil prices that have made such shipments less economically viable.

If the needed approvals come at a typical pace, renovation work at the old PG&E tanks could begin in early 2016, and likely would take between 18 and 24 months.

Representatives from several area labor union locals supported moving ahead with the environmental study. Some said Monday night they wanted the jobs, both to rebuild the terminal and to operate it. Others said they favored the environmental process determining whether the terminal would be a safe place for union workers to be.

That, Evola said, is one benefit of continuing the process. “We want to be overly transparent,” he said.

That is fine with Lisa Graham and other members of Pittsburg Defense Council.

“We’ll be shining a bright spotlight on the project in the coming months,” she said.

Crude By Rail, DOT-111, Ethanol, Federal Regulation (U.S.), National Transportation Safety Board, Oil Industry, Tank car retirement, Tank car retrofit

NTSB: Equip oil trains with fire protection within 5 years

Repost from McClatchyDC
[Editor:   Bloomberg adds coverage of NTSB comments on the inadequacies of the CPC-1232 tank cars.  – RS]

NTSB: Equip oil trains with fire protection within 5 years

By Curtis Tate, McClatchy Washington Bureau, April 6, 2015
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/Sacramento Bee/MCT)

The National Transportation Safety Board on Monday called for the nation’s fleet of railroad tank cars hauling crude oil and ethanol to be equipped with fire protection within five years in an effort to eliminate the large explosions associated with recent accidents.

The NTSB cited the performance of tank cars in four recent oil train derailments, two in the U.S. and two in Canada, where fire exposure weakened the bare steel tanks and increased the pressure inside the cars beyond what they were designed to sustain.

The agency called on the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration to require tank cars carrying oil and ethanol to be equipped with a ceramic blanket and high-capacity pressure-relief devices.

The NTSB also for the first time endorsed a five-year timeline for retrofitting or replacing the tank cars, including the goal that 20 percent of the fleet be made compliant per year. Industry groups representing oil producers and refiners have pushed for a 10-year timeline.

“We can’t wait a decade for safer rail cars,” NTSB Chairman Christopher Hart said in a statement. “The industry needs to make this issue a priority and expedite the safety enhancements, otherwise, we continue to put our communities at risk.”

In January, the NTSB added tank cars to its “ Most Wanted” list of safety improvements. But at the time, Hart wouldn’t say what the NTSB considered an appropriate timeline for making the fixes.

The independent board, which has only advisory power, has been recommending upgrades to the nation’s workhorse tank car, called the DOT-111, for more than 20 years.

The car’s design became an issue after railroads across North America began hauling exponentially larger volumes of crude oil and ethanol. An oil train derailment that killed 47 people in Quebec in July 2013 galvanized a new effort on both sides of the border to improve the cars.

In February, the Transportation Department sent a package of proposed regulations to the White House Office of Management and Budget for review. They include requirements for thermal protection on the tank cars and are similar to a tank car design the Canadian government proposed last month. The final rule is scheduled for publication next month.

In the meantime, four trains carrying different types of crude oil derailed in the span of four weeks. The derailments, two in Ontario, and one each in West Virginia and Illinois, led to spills, fires and evacuations.

Oil industry groups have called for more attention to preventing derailments and less emphasis on the cars and what’s in them. But the tank car improvements have widespread support from lawmakers, regulators, mayors and governors, the rail industry and the NTSB.

In statements Monday, Sen. Ron Wyden and Rep. Peter DeFazio, both Oregon Democrats, praised the NTSB’s recommendations.

“I am very happy to see that they recommended thermal protection for cars carrying hazardous materials, an aggressive retrofit or replacement schedule, and a transparent, publicly available reporting mechanism to report tank car replacement,” DeFazio said.

“It is my hope that the next step from the administration will be a strong DOT rule that will get these cars upgraded quickly, or get them off the tracks completely,” Wyden said.

The railroad industry’s leading advocacy group in Washington echoed those calls.

“The freight rail industry supports an aggressive retrofit or replacement program and believes final regulations on new tank car standards will provide certainty and chart a new course in the safer movement of crude oil by rail,” said Ed Greenberg, a spokesman for the Association of American Railroads, in a statement.

Air Quality, Bakken Crude, Butane, Crude By Rail, Derailment, Earthquake, Explosion, Propane, Public Safety, Tar sands crude

Phillips 66 refinery plan threatens Rodeo California residents’ safety

Repost from The San Francisco Chronicle, Open Forum

Refinery plan threatens Rodeo residents’ safety

By Janet Pygeorge and Laurel Impett, April 6, 2015 4:08pm
Contra Costa County officials approved a controver sial expan sion of the Phillips 66 refinery in Rodeo. Photo: Rich Pedroncelli / AP / FILE
Contra Costa County officials approved a controver sial expan sion of the Phillips 66 refinery in Rodeo. Photo: Rich Pedroncelli / AP / FILE

The fracking boom in North Dakota and increased recovery of tar sands oil in Canada have prompted dramatic growth in transport of crude oil by rail throughout the United States from regions that pipelines don’t serve. Bay Area refineries and oil and gas companies already are planning for increased rail traffic and expanded operations. These plans are understandably alarming residents because of the potential for oil-train explosions. The Contra Costa County Board of Supervisors, however, does not share this alarm.

The supervisors made that clear in February when they rubber-stamped a proposed operational expansion of the Phillips 66 refinery in Rodeo. Analyses done by Communities for a Better Environment, a nonprofit environmental justice organization that has sued to overturn this approval, show that the refinery’s expansion would significantly increase air pollution, greenhouse gas emissions and public safety risks.

The board’s position defies both science and common sense. This refinery is located in the middle of an earthquake liquefaction zone. Phillips 66 plans to dramatically increase the number of railcars that are regularly staged at the plant; it also plans to begin processing propane and expand its processing of butane, both highly explosive.

The proposal includes plans to store 630,000 gallons of liquid propane about half a mile from homes, churches, a school and a park. And yet the environmental analysis approved by the board claimed that there would be no significant risks associated with this operational expansion.

In the case of a large earthquake, Phillips 66’s operational expansion would place huge swaths of Rodeo at significant risk of death and destruction, with damage radiating from the refinery up past San Pablo Avenue to as far away as where I-80 runs through Rodeo. It is simply unacceptable for our county officials to allow this expansion without requiring stringent attention to public health and safety by putting aggressive safeguards in place.

In terms of air quality impacts, this refinery has a dismal track record. It received more than 200 notices of violation from the Bay Area Air Quality Management District between 2003 and 2014. According to the California Environmental Protection Agency, it is the seventh-most-toxic polluter of all California facilities with large chemical releases. Phillips 66’s proposed changes would significantly increase the level of air pollution the facility produces, but the company used accounting tricks to hide the ball in its air-quality analysis. County officials did not question the refinery’s flawed analytical approach.

The Board of Supervisors showed its hand when it approved Phillips 66’s operational expansion without requiring investments to protect the health and safety of residents. Three different lawsuits have been filed against the county for lack of appropriate oversight in this matter. Contra Costa residents must demand better from local elected officials.

Join us in demanding that the county put an end to approving dirty industry at the expense of the public’s health and safety. Enough is enough.

Ultimately, if elected officials won’t stand up for health and safety, the court should intervene and protect the best interests of this community.

Janet Pygeorge is president of Rodeo Citizens Association, one of the groups that has filed suit in this matter. Laurel Impett is a planner with Shute, Mihaly & Weinberger LLP, the law firm that represents the association.