Category Archives: Crude By Rail

Air Quality, Blast zone, Bomb Trains, Bridge safety, Crude By Rail, Derailment, Explosion, Mosier OR, Phillips 66 Nipomo Mesa refinery, San Luis Obispo County, Santa Maria Refinery, Sensitive wildlife habitats, Track maintenance, Union Pacific Railroad, Valero Crude By Rail

LA TIMES: Will San Luis Obispo County follow the lead of Benicia and ban oil trains, or capitulate to Phillips 66?

Repost from the Los Angeles Times
[Editor: This is an incredibly entertaining as well as informative article. Recommended reading!  – RS]

Will San Luis Obispo County follow the lead of Benicia and ban oil trains, or capitulate to Phillips 66?

By Robin Abcarian, September 24, 2016 2:25PM

latimes_abcarianThere were a couple of light moments Thursday at the San Luis Obispo County Planning Commission’s interminable, inconclusive public hearing about whether it should allow the fossil fuel giant Phillips 66 to send crude-oil trains across California to its Santa Maria Refinery.

A local named Gary, one of only four citizens to express support for the project, took the microphone and announced, “Anybody opposed to something because it’s dangerous is my definition of a coward.” As he walked away, the audience, packed with oil train opponents, howled.

“My name is Sherry Lewis,” said the next speaker, “and I come from Cowards Anonymous.”

After several hearings, reams of public comment and a few concessions by Phillips 66, commissioners were finally supposed to put the matter to a vote this week.

Would they approve the construction of a new rail spur and oil transfer operation that would give Phillips the ability to send three new crude-oil trains through California each week, or would they defy their staff, who recommended denial because the project would have significant negative effects, particularly to air quality and sensitive habitats?

Would they disregard their pleading constituents, and the letters that have poured in from cities, teachers and boards of supervisors from San Francisco to Los Angeles asking commissioners to deny the project because those mile-long oil trains bring increased risk to every California community along Union Pacific tracks?

(Not to belabor the point, but if you live, work or study within half a mile of those tracks, you’re in what is known, for emergency planning purposes, as the “blast zone.” Even the mayor of nearby Paso Robles, who has offered lukewarm support for the project, once referred to them as “bomb trains.”)

Last spring, three of five commissioners indicated they were leaning toward approval. But one of them, a local realtor named Jim Irving, now appears to be on the fence.

The regulatory issues around oil trains are complex and somewhat maddening. Local and state governments, for example, have no say over what is carried on railroad tracks, because the federal government regulates interstate commerce. Think of the chaos if individual cities tried to impose rules on railroads.

Even though cities and counties have no control over railroads, they still want assurances that tracks and bridges are safe for the heavy, mile-long trains that carry highly flammable crude oil. We all do, don’t we?

Thursday, Irving asked about the Stenner Creek Trestle, a picturesque, 85-foot-high steel railroad bridge just north of the Cal Poly San Luis Obispo campus that was built in 1894.

Could Union Pacific reassure the county that the bridge is sound enough to carry those heavy tanker cars? As recently as June, a slow-moving Union Pacific oil train derailed near an elementary school and a water treatment plant on the Columbia River Gorge in Mosier, Ore. That derailment has weighed heavily on people’s minds around here.

“We tried to request documentation from Union Pacific related to the stability of bridges,” county planner Ryan Hostetter told Irving, “and all we got was a form with a checked box that they had inspected.”

“That’s kind of appalling,” said Irving.

::

These are not idle questions, and they are being faced by communities all over the country.

As my colleague Ralph Vartabedian has reported, some of the nation’s top safety experts believe “the government has misjudged the risk posed by the growing number of crude-oil trains.”

The Mosier train derailment was caused by failing bolts that allowed the tracks to separate. This was particularly worrisome because the tracks had been inspected the previous week.

“For me, that was a game changer,” said Benicia City Councilwoman Christina Strawbridge. “I just don’t think the rail industry has caught up with safety standards.”

On Tuesday, Strawbridge and her colleagues on the Benicia City Council voted 5-0 to deny a project very much like the one under consideration in San Luis Obispo County. This one was proposed by energy behemoth Valero, which owns a refinery in Benicia.

Unlike Phillips’ Santa Maria Refinery, which employs only 120 people full time, Valero is Benicia’s largest employer. The refinery provides nearly 25% of the city’s annual $31 million budget. It has been a good neighbor, said Strawbridge, and charitable.

But she and her colleagues could not put their town at risk. After four years of debate, and a last-minute declaration by the federal Surface Transportation Board that oil companies cannot claim they are exempt from local regulations just because they use the railroads, the council said no to oil trains.

“I’ve gotten a lot of hugs on the street,” Strawbridge told me Friday.

They are well deserved.

::

Next month, the San Luis Obispo Planning Commission is scheduled, finally, to vote on this thing. After that, the San Luis Obispo Board of Supervisors will weigh in.

The wild card seems to be the board’s one open seat, in District 1, which comprises towns in the more conservative north side of the county. That supervisor has often functioned as a swing vote on the board. Two conservatives are vying for the seat, the aforementioned mayor of Paso Robles, Steve Martin, and John Peschong, a well-known Republican operative whose firm, Meridian Pacific Inc., received $262,000 from Phillips 66 in 2015, according to the oil company’s website.

Maybe the leaders of San Luis Obispo County will look north to the tiny city of Benicia for inspiration. That town, after all, had far more at stake.

They have a chance to do the right thing, not just for their county, but for all of California.

Benicia City Council, Benicia Mayor Elizabeth Patterson, Crude By Rail, Economic diversification, Federal pre-emption, Local land use authority, Surface Transportation Board, Valero Benicia Refinery, Valero Crude By Rail, Water contamination

COURTHOUSE NEWS SERVICE: Refinery Town decision may have huge ramifications for nation’s energy infrastructure

Repost from Courthouse News Service

Refinery Town Says No to Valero’s Oil-by-Rail Plan

By Matthew Renda, Friday, September 23, 2016 5:14 PM PT
Courthouse News Service
Courthouse News Service

BENICIA, Calif. (CN) — The City Council of a small city of 27,000 in California’s San Francisco Bay Area made a decision this week that may have huge ramifications for the nation’s energy infrastructure.

The five-person Benicia City Council voted unanimously to reject the Valero Crude Oil by Rail Project — a substantial setback for an oil and gas industry that operates several refineries nearby and setting an interesting precedent for local government’s assertion of jurisdiction over oil and gas routes.

The Valero Crude Oil by Rail Project would have allowed the oil company, which operates a large refinery in Benicia, to bring in crude oil by rail rather than exclusively by ship as the current arrangement dictates.

However, Benicia City Council ended a divisive community fight over the issue by finding the project is too dangerous for the community. The potential for contamination of the Sulphur Springs Creek and other watersheds in the event of a derailment proved too much for the council members to brook.

“I have seen stories piled on top of the other about what wasn’t working and what is particularly troubling is the lack of financial resources provided in the case of a catastrophic event,” Mayor Elizabeth Patterson said during deliberation on Wednesday night. “The money comes in too late, people have to go out of business and people have to move away.”

Leading up to the decision, several questions about whether the City Council even had jurisdiction hovered over the matter, with project proponents asserting that the federal government regulates rail and any decision made by the city government is preempted.

However, the Surface Transportation Board wrote the city on Wednesday before the meeting saying while the federal government does regulate interstate commerce and the railroad, the proposed $70 million rail depot was within the regulatory purview of the city.

While many local residents applauded the decision, environmental groups talked about its reverberations.

“This is a victory for the right of communities to say no to refineries’ dangerous oil train projects,” Ethan Buckner with the group Stand — formerly ForestEthics — said. “The federal government has said once and for all that there is nothing in federal law that prevents cities from denying these oil companies’ dangerous rail projects.”

In the series of meetings leading up to the decision, Valero touted its safety record and said the train project carried minimal risk and would bring jobs and economic activity to the region.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the City Council members have chosen to reject the crude by rail project,” Valero said in a statement. “At this time we are considering our options moving forward.”

Valero is the largest employer in the city, according to a recent comprehensive financial report compiled by the city’s finance team.

However, Patterson said the city’s general plan calls for a more diversified economy that relies heavily on small businesses, many of which would be hampered by the crude oil by rail project, particularly if something went wrong.

“We have to be less dependent on the refinery as we pivot into an era of attracting different kinds of businesses,” she said.

In 2014, trains transporting crude oil spilled about 57,000 gallons of the environmentally hazardous substance, more than any other year since the Pipeline and Hazardous Materials Safety Administration began keeping track in 1975.

The Columbia River, one of America’s most scenic rivers as it carves out the border between Oregon and Washington state, was spoiled by 42,000 gallons of oil when a train derailed due to a defective bolt on the track.

While many celebrated the possibly precedent-setting decision undertaken by the small city body, Councilman Mark Hughes resigned himself to certain litigation and its associated expense.

“Regardless of the decision tonight, I believe a lawsuit will be filed,” Hughes said.

So whether Benicia’s decision will be the first in an onslaught of local entities attempting to regulate elements of the oil and gas industry out of their communities or whether that will be left to federal and state authorities may be a matter for the courts to decide.

There are five major refineries in the Bay Area including the Valero refinery in Benicia: Chevron in Richmond, Tesoro outside of Concord, Phillips 66 in Rodeo and Shell in Martinez also operate and contribute significantly to both the local economy and air pollution.

The five refineries process about 800,000 barrels of crude oil per day and along with other oil and gas companies generate about $4.3 billion in local tax revenue, according to a 2014 study performed by Los Angeles County Economic Development Corporation and commissioned by the Western States Petroleum Association.

But Ralph Borrmann, public information officer for the Bay Area Air Quality Management District, told Courthouse News recently that the refineries are responsible for anywhere from 4 to 41 percent of the pollutants in the area, depending on which pollutant is identified.

Climate footprint, Crude By Rail, Environmental review, Noise pollution, State regulation, Toxic pollutants

Joining Trend, NY Suspends Review of Oil Train Terminal Permit

Repost from Inside Climate News

Joining Trend, NY Suspends Review of Oil Train Terminal Permit

Another fight over energy infrastructure ramps up, as state regulators require company to address environmental justice, safety and climate change concerns.
By Zahra Hirji, September 23, 2016
New York regulators have suspended the application of a major oil-by-rail terminal project pending review of potential environmental, health and climate change impacts. Credit: STEEVE DUGUAY/AFP/Getty Images

New York environmental regulators have suspended their review of two proposals to renew and expand operations at a Port of Albany oil terminal until Global Partners LP addresses a laundry list of concerns over environmental, public health, safety and climate change.

Officials at the state Department of Environmental Conservation (DEC) told the company in a letter on Sept. 16 it has three months to provide plans for the following:

  • limiting the oil terminal’s odors and emissions from toxic pollutants, such as benzene
  • addressing high noise levels and safety risks associated with oil trains coming to the facility
  • reducing the terminal’s climate footprint, among other issues.

DEC also informed Global Partners that it is combining the company’s renewal and expansion proposals and treating it like an application for a new project. This dramatic step means even after the company provides the extra information requested by the state, the application will undergo a public comment period and be considered for a comprehensive environmental and climate impact review.

The full review process could take years.

Environmentalists, Albany residents and county officials celebrated the decision, having spent more than two years raising concerns about the oil terminal’s current and proposed operations and fighting it in court.

This case joins a national trend of green and grassroots activism helping to delay and cancel dozens of proposals for new and expanding fossil fuel infrastructure, from oil sands and natural gas pipelines to oil terminals and coal mines. Earlier this month, construction of part of the Dakota Access oil pipeline was halted by the Obama administration in North Dakota, following months of protests led by the Standing Rock Sioux tribe objecting to the project’s potential threat to its drinking water and sacred sites.

“What is so gratifying about the DEC letter is that it requires Global to address every single issue we have raised since 2014,” said Chris Amato, an Earthjustice lawyer who represents the tenants association for Ezra Prentice Homes, a low-income housing development located next to the rail yard associated with the oil terminal. According to Amato, the community “is really, really happy that at long last Global is going to have to…examine the impacts.”

Ezra Prentice Homes is among the communities in the south end of Albany at risk from air pollution and potential train fires. “They are literally at the fence line” of the train tracks, Amato said. “Twenty feet separate the closest homes from oil tankers on the track.”

People in Albany’s South End, which is largely African American, had repeatedly complained to state officials about bad odors wafting from the facilities, among other concerns, since 2012.

“This is a victory for the people of the Ezra Prentice Homes and for the people in the county who live in fear of oil trains every day,” Albany County Executive Daniel McCoy said in a statement.

In response to DEC’s recent letter, Global defended its record. “We disagree with the New York DEC’s decision and believe that we have fully complied with the required permit application process,” said Mark Horan of Rasky Baerlein Strategic Communications, which represents the company. “Global has always been particularly vigilant about the safety of our neighbors wherever we operate and we will continue to work with the Albany community on these issues.”

Global Partners filed a permit request to state officials in 2011 seeking to overhaul its operations to handle more oil. The facility went from handling more than 18 million gallons of oil that year to more than 460 million gallons in 2012, according to the DEC. The facility’s oil capacity peaked in 2014 at more than 1.1 billion gallons of oil, but it has since declined as the oil market has slumped.

The source of the oil and how it traveled to the facility also changed during that time. Initially, the oil coming in was refined; it arrived from barges that came up the Hudson River and was then trucked out regionally. The company began handling unrefined, more volatile (and potentially explosive) crude arriving on trains from North Dakota.

Global sought to expand its operations further in 2013, submitting a permit modification request to add seven boilers to the site. Boilers are critical equipment for handling and storing Canadian tar sands; the thick crude is so viscous it must be heated before it can be transferred from a train car to a storage tank.

The company’s initial expansion plan flew under the radar of Albany residents and the environmental community. Global’s 2013 proposals, however, were loudly protested. And regulators responded by installing a permanent air monitor near the Ezra Prentice community in 2015. According to officials, the air showed elevated levels of benzene. Regulators cited these findings in their recent letter.

“The DEC has monitored higher-than-expected benzene levels in the vicinity of the facility that may be attributable, in part, to the storage and processing of petroleum products at the Global facility,” regulators wrote. “Global must address what measures it intends to take to limit, to the maximum extent practicable, any benzene emissions attributable to the facility.”

DEC has identified Albany’s South End, which includes Ezra Prentice Homes,as an “environmental justice” community associated with Global’s operations. In 2013, the DEC updated its environmental justice policy to include more public participation requirements for projects with potential impacts on such communities. In the recent letter, DEC specifically orders Global to take these steps.

Another task for Global, identified by DEC, is to devise a plan to limit any climate impacts associated with the future handling of oil sands, a crude that generates especially high emissions during extraction and processing.

“New York is the most aggressive state in the nation in pursuing action to ensure the public and the environment are protected from risks associated with the federally regulated transport of crude oil,” DEC spokeswoman Erica Ringewald wrote in an email.

State officials are also conducting a more comprehensive review for the permit renewal application of Buckeye Partners, another energy companywith an Albany rail terminal.

Crude By Rail, Local Regulation, Oil stabilization, Valero Benicia Refinery, Valero Crude By Rail, Volatility

U.S. Rep. Garamendi praises Benicia City Council for crude-by-rail vote

Repost from the Fairfield Daily Republic

Garamendi praises Benicia City Council for crude-by-rail vote

By Ryan McCarthy, September 23, 2016

FAIRFIELD — Rep. John Garamendi is praising the Benicia City Council for its unanimous vote rejecting a proposed crude oil by rail facility that Valero corporation would have operated and Garamendi said would have led to dangerous railcars traveling through Fairfield, Suisun City, Dixon and Davis.

“The action by the Benicia City Council is a clear signal that shipping oil by rail presents a serious safety problem that must be addressed before our communities are faced with increased oil shipments,” Garamendi, D-Walnut Grove, said Thursday in a news release. “The council did the right thing by forcing a pause on oil by rail through our communities.”

The congressman, who represents the 3rd District that includes Fairfield and Suisun City, authored the Bakken Crude Stabilization Act to reduce the volatility of oil transported by rail and make it safer to transport, the release said.