Category Archives: Crude By Rail

Air Quality, Bakken Crude, Bridge safety, Cap-and-trade, Crude By Rail, Earthquake, Massive increase in crude-by-rail, Rail accidents, Risk Assessment, Tar sands crude

Green coalition sues Kern County over DEIR failures

Repost from Courthouse News
[Editor: Significant quote: “They claim that the EIR’s analysis of greenhouse gas emissions is ‘riddled with flaws’ because instead of discussing mitigation measures to curb emissions, it assumed that the refinery’s emissions will be ‘reduced to zero’ by participating in the state’s cap-and-trade program, and thus concluded that ‘these emissions are not significant.'”    – RS]

Greens Fight SoCal Tar Sands Oil Project

By Rebekah Kearn, October 13, 2014

BAKERSFIELD, Calif. (CN) – Kern County illegally approved expansion of a local refinery that will let it transport and process 70,000 barrels of crude oil a day, environmentalists claim in court.

The Association of Irritated Residents, the Center for Biological Diversity and the Sierra Club sued the Kern County Board of Supervisors and the Kern County Planning and Community Development Department, on Oct. 9 in Superior Court.

Alon U.S.A. Energy, of Texas, and its subsidiary Paramount Petroleum Corp. are named as real parties in interest.

“The lawsuit challenges Kern County’s unlawful approval of a massive oil refinery and rail project that will further harm air quality in the San Joaquin Valley and subject residents in several states to the catastrophic risks of a derailment involving scores of tanker cars filled with explosive Bakken crude oil,” plaintiffs’ attorney Elizabeth Forsyth, with Earthjustice, told Courthouse News.

Bakken crude is from northern Montana and North Dakota, Manitoba and Saskatchewan. Much of it is extracted by fracking, or hydraulic fracturing.

“The San Joaquin Valley is already overburdened by industrial pollution,” Forsyth said. “Kern County officials should put the health of their residents over the profits of oil companies.”

The groups claim the county’s approval of the Alon Bakersfield Refinery Crude Oil Flexibility Project and its allegedly inadequate environmental impact report violated the California Environmental Quality Act.

The project quintuples the Alon Bakersfield Refinery’s capacity to import crude oil, “from 40 tank cars per day to 200 tank cars per day, or up to 63.1 million barrels of crude per year,” the 27-page complaint states.

“This influx of cheap, mid-continent crudes, including Canadian tar sands crude and Bakken crude from North Dakota, would allow the shuttered refinery to reopen and run at full capacity, processing 70,000 barrels of crude oil per day,” according to the complaint.

“The project’s massive ramp-up in oil transport and processing poses alarming health and safety threats to the residents of Bakersfield and to those who live along the crude-by-rail route. Restarting the refinery will significantly increase harmful air pollution that will only exacerbate the poor air quality and respiratory illnesses that plague San Joaquin Valley communities already unfairly burdened with industrial pollution.”

Bakken crude oil is “highly volatile,” and shipping it across several states “over treacherous and poorly maintained mountain passages” without adequate safety regulations will expose everyone who lives along the shipping route to the risks of derailment, the environmentalists say.

Trains carrying Bakken crude have derailed and exploded, including the July 2013 disaster in Lac-Mégantic, Canada, which killed 47 people and leveled half of downtown Lec-Mégantic, according to the complaint.

Bakersfield, pop. 464,000, between Los Angeles and Fresno, is the ninth-largest city in California. Kern County produces more oil than any other county in the state, and boasts the fourth largest agricultural output in the country.

Its air quality is abysmal. “Bakersfield has the country’s third most polluted air, according to the American Lung Association, and one in six children in the Valley will be diagnosed with asthma before age 18,” Forsyth told Courthouse News.

Kern County’s notoriously poor air quality causes approximately 1,500 premature deaths each year, and exposure to toxic air pollution racks up “$3 billion to $6 billion in health costs and lost productivity annually,” according to the complaint.

Several schools, residential neighborhoods and a hospital are only a few miles away from the Alon Bakersfield refinery. It is 1,000 feet from the Kern River Parkway, where people hike, walk, and ride bikes along trails and through parks, according to the complaint.

The refinery shut its doors in 2008 when its owner filed for bankruptcy. After sitting inactive for two years, it was bought by Alon in 2010 and “refashioned to convert intermediate vacuum gas oil into finished products,” but stopped all refining operations in December 2012 when the price of local feedstock rose, the complaint states.

In August 2012, Paramount submitted proposed modifications to the county that would let the refinery use the Burlington Northern Santa Fe rail line to bring in 5.5 million gallons of oil per day.

“The five-fold expansion of the terminal’s unloading capacity, from 40 tank cars per day to over 200 tank cars per day, is the largest crude-by-rail project in California, twice the size of the next largest project,” the complaint states.

The Kern County Board of Supervisors approved the environmental impact report on Sept. 9 this year.

But the plaintiffs claim the environmental study “obfuscates and underestimates” the significant impacts posed by the project and ignores the effects that rail transport of Bakken crude will have on air pollution.

“The EIR severely underestimates the safety risks of this project through sloppy math and an incomplete analysis,” the complaint states. “Based on simple mathematical error, the EIR calculates the risk of a train accident involving an oil spill is unlikely to occur within the project’s 30-year lifetime. Correcting this error, however, results in a risk of accident involving an oil spill once every 30 years.”

California has a high risk for catastrophic accidents because many of its 5,000 to 7,000 railroad bridges are over 100 years old and are not routinely inspected by any state or federal agency, and the rail lines run through “hazard areas” such as earthquake faults and densely populated cities, the complaint states.

Kern County is especially vulnerable because “the freight rail track runs through the Tehachapi Mountain, an area identified by the California Interagency Rail Safety Working Group as a ‘high hazard area.’ The rail track includes steep grades, extreme track curvature, and a single track through the majority of the corridor. The elevation loss of this corridor is approximately 3,600 feet from Tehachapi to Bakersfield, and the grade is so steep that it includes the famous ‘Tehachapi loop’ where the railroad line must loop back under itself to make the grade,” the complaint adds.

The plaintiffs say the project also threatens to further pollute the air quality of a region “already plagued by the worst air quality in the nation.”

“Refining Bakken crude emits high levels of volatile organic compound emissions that lead to ozone pollution, which in turn causes respiratory illnesses such as asthma,” Forsyth told Courthouse News.

“The refining of tar sands crude, which is far dirtier than local crudes, will result in higher emissions of greenhouse gases, nitrogen, sulfur and toxic metals,” she added.

Moreover, restarting the refinery and processing 60 million barrels of fossil fuels a year will elevate greenhouse gas emissions in the region and interfere with California’s goal of reducing such emissions, the groups say.

They claim the EIR’s analysis of greenhouse gas emissions is “riddled with flaws” because instead of discussing mitigation measures to curb emissions, it assumed that the refinery’s emissions will be “reduced to zero” by participating in the state’s cap-and-trade program, and thus concluded that “these emissions are not significant.”

“The EIR also unlawfully underestimates greenhouse gas emissions, ignoring emissions from the combustion of end products produced from the imported crude,” the complaint states.

After Kern County released an initial study of the project in September 2013, the Air District commented that using 2007 as the baseline to analyze impacts to air quality was improper because the refinery had not refined crude since 2008, according to the complaint.

The groups say the draft environmental report released for public comment on May 22 this year did not correct this error.

“The draft EIR also omitted fundamental information necessary to evaluate the EIR’s conclusions, including underlying assumptions and calculations for the EIR’s emissions analysis, data concerning the properties of Bakken crude, and an objective description of the project’s crude slate,” the complaint states.

On June 13, the groups’ attorneys asked for the information not included in the draft report and an extension to the 45-day comment period, but the county denied both requests.

When the county issued its final EIR in August, the groups say, they objected to “new disclosures that the public had not had a chance to review,” including its flawed analysis of the probability of a train accident, and demanded that it be revised.

Several prominent environmental scientists submitted comments criticizing the report’s treatment of toxic air emissions and its failure to include “emergency flaring events” in emissions calculations, but the county ignored their input and approved the report 13 days after it was released, the complaint states.

Kern County Counsel Theresa Goldner defended the project.

“The Kern County Board of Supervisors carefully and thoughtfully considered the EIR and all public comments and approved the report after a full and complete public process,” Goldner told Courthouse News.

“We will vigorously oppose this action.”

Paramount did not immediately return requests for comment.

The environmentalists seek declaratory judgment that Kern County violated CEQA by authorizing the refinery expansion project without performing adequate environmental analysis.

They ask that the project approvals and the environmental impact report be vacated until the defendants prepare a new environmental study that complies with CEQA.

They also want an injunction preventing the defendants from carrying out any part of the project until they fulfill all of the CEQA requirements.

They are represented by Earthjustice attorneys Elizabeth Forsyth and co-counsel Wendy Park of San Francisco.

BP Cherry Point, CPC-1232, Crude By Rail, DOT-111, Tank car design

ForestEthics: switch to newer rail cars for crude still not safe

Repost from ABC News
[Editor: Significant quote: “Matt Krogh, of the group ForestEthics, which has sued the U.S. Department of Transportation over the shipment of volatile crude oil in older railroad tank cars, told The Associated Press on Saturday that there’s little evidence the newer tank cars will truly prevent explosive spills. He argued that the newer cars are tested at slower speeds than the speed at which most derailments occur, and he noted that it was one of the CPC-1232s that exploded in a fireball during a derailment in Lynchburg, Virginia, in April Krogh called switching to the newer cars ‘a red herring.’   ¶  ‘It’s a marginal improvement, but it’s nowhere near safe,’ he said. ‘They’re essentially grasping at straws to convince people that they can do it safely. I don’t think you can safely and profitably run trains of crude.'”  – RS]

Refinery Switching to Newer Rail Cars for Crude

BELLINGHAM, Wash. — Oct 11, 2014

A refinery in northwest Washington state says it will no longer accept any volatile North Dakota crude oil unless it arrives on newer-model tank cars.

By the first week of October, the BP Cherry Point facility had stopped using pre-2011 standard tank cars, known as DOT-111 cars, for the shipments, The Bellingham Herald reported ( http://is.gd/XmHxHN ).

The change comes amid public concern about the safety of shipping crude by train. Since 2008, derailments of oil trains in the U.S. and Canada have seen the older 70,000-gallon tank cars break open and ignite on multiple occasions, resulting in huge fireballs. A train carrying Bakken-formation crude from North Dakota in the older tanks crashed in a Quebec town last year, killing 47 people.

The National Transportation Safety Board, which recommended upgraded regulations for crude oil and ethanol cars in 2011, is working on updating rail safety standards and could require companies to phase out the DOT-111 cars for shipping crude oil during the next couple of years

Cherry Point was already using newer, safer tank cars to receive about 60 percent of its crude oil, but expedited the switch to the newer cars in response to community concerns, BP spokesman Bill Kidd said. The refinery now uses a fleet of about 700 newer cars, called CPC-1232s.

The newer cars have thicker shells, head shields on both ends and improved valve protection.

But Matt Krogh, of the group ForestEthics, which has sued the U.S. Department of Transportation over the shipment of volatile crude oil in older railroad tank cars, told The Associated Press on Saturday that there’s little evidence the newer tank cars will truly prevent explosive spills. He argued that the newer cars are tested at slower speeds than the speed at which most derailments occur, and he noted that it was one of the CPC-1232s that exploded in a fireball during a derailment in Lynchburg, Virginia, in April.

Krogh called switching to the newer cars “a red herring.”

“It’s a marginal improvement, but it’s nowhere near safe,” he said. “They’re essentially grasping at straws to convince people that they can do it safely. I don’t think you can safely and profitably run trains of crude.”

Trains carrying Bakken oil from North Dakota have been supplying Washington refineries at Tacoma, Anacortes and Cherry Point. Oil-train export terminals are proposed at Vancouver and Grays Harbor on the Washington coast.

About 70 percent of the crude-oil rail cars that BNSF Railway currently moves through Washington state are already the newer design, railway spokesman Gus Melonas said.

For two decades, the Cherry Point refinery received crude oil only by pipeline, Kidd said. It later added shipments by sea.

But Alaskan crude oil has turned into the last type the refinery is interested in because of the higher price. Crude oil from mid-continent shale formations has become a cheaper option for the refinery, Kidd said.

“It’s completely turned the industry on its head,” Kidd said. “Without access to crude by rail, this refinery cannot compete.”

Refinery Manager Bob Allendorfer said the facility is always going to be progressive when it comes to safety. “Safety is always first, and you have to get it right,” Allendorfer said.

BP Cherry Point, CPC-1232, Crude By Rail, DOT-111, Tank car design

Washington refinery switching to newer rail cars for crude

Repost from The Bellingham Herald

BP Cherry Point will allow only newer-model train cars at its crude oil terminal

By Samantha Wohlfeil, The Bellingham Herald, October 11, 2014


BP Cherry Point has announced its rail terminal will no longer accept or unload any Bakken region crude oil from pre-2011 standard tank cars.By the first week in October, the facility had stopped using older DOT-111 cars for crude, BP spokesman Bill Kidd said.

After several high-profile derailments in the last year, groups concerned about the safety of oil trains have rallied around a call to have companies trade in all old DOT-111 rail cars, which are used to carry a variety of hazardous and flammable liquids, for higher standard cars, like the CPC-1232.

For decades the DOT-111 cars have been found more likely to puncture or burst. The National Transportation Safety Board, which recommended upgraded regulations for crude oil and ethanol cars in 2011, is working on updating rail safety standards.

The newer cars have thicker shells, head shields on either end of the car and improved valve protection.

BP Cherry Point, which received its first crude shipment from the Bakken region Dec. 26, 2013, was already using CPC-1232 tank cars to receive about 60 percent of its crude oil from that area and had planned to get about 400 more by the end of 2014, Kidd said.

“But we expedited that in order to respond to community concerns,” Kidd said. “We pulled a lot of leverage to get to this point.”

The refinery now uses a fleet of about 700 CPC-1232s.

The NTSB could require companies to phase out the DOT-111 cars for crude oil shipping over the next couple of years.

About 70 percent of the crude oil rail cars that BNSF Railway currently moves through Washington state are already the newer design, said Gus Melonas, BNSF spokesman for the Pacific Northwest.

Transition to crude by rail

For two decades the refinery received crude oil only by pipeline, later adding waterborne tanker service, Kidd said. But Alaskan crude oil has turned into the last type the refinery is interested in, due to price.

Though many people did not see it coming, mid-continent shale formation crude oil has become a cheaper option and an advantage for the refinery, Kidd said.

“It’s completely turned the industry on its head,” Kidd said. “Without access to crude by rail, this refinery cannot compete. … If there was a pipeline there wouldn’t be the big discount. Right now there is no other way to move it.”

The Cherry Point rail terminal is made up of two complete loops that allow the refinery to hold up to two trains of about 120 cars – one full and one empty.

It takes crews from BP contractor Savage Services about 18 to 20 hours to offload a train loaded with crude oil using gravity to drain one quarter of the train at a time, said BP Operations’ Ryan Kennedy, who oversees the rail terminal work. Once crews unload a train, it sits empty while BNSF sends a crew back to the facility to pick it up.

The loop is about as flat as it gets, both for working purposes and safety, Kennedy said. A 0.25 percent grade keeps couplers between the cars tight when the trains are parked, and there is a slight grade at the entrance to/exit from the loop so in the event a train did get loose for whatever reason, it would not leave the refinery.

A variety of safety precautions, like plastic liners built in under the rail loop and bins placed under each hose when the cars are hooked up for draining, are designed to prevent bad situations, Kennedy said.

“There’s a lot of fat built in naturally, a lot of redundancy,” Kennedy said. “We secure the train above and beyond the minimum requirement. We’ve determined the standard for the longest train we could hold and we put on that many brakes for all trains, regardless of length.”

BP’s terminal is permitted to receive an average of one unit train per day. It currently gets about 25 per month, Kennedy said.

Refinery Manager Bob Allendorfer said the facility is always going to be progressive when it comes to safety.

“Safety is always first, and you have to get it right,” Allendorfer said.

Crude By Rail, Massive increase in crude-by-rail, Rail traffic

California’s central valley: we need to double the tracks for all these trains

Repost from The Turlock Journal

Time to double what’s coming down the tracks

By Dennis Wyatt, October 10, 2014

Get ready for more trains.

Kern County has approved the expansion of two of its three existing or proposed oil terminals that would increase the amount of oil moving by train by 620 percent.

This has the potential to be both a good and a bad thing.

First the good. California due to its location and its need for specialized refineries to meet air quality standards is not benefitting from lower gas prices triggered by America’s shale oil boom While the fracking revolution has reduced the nation’s oil imports from Russia, Saudi Arabia, Iraq and other countries by 30 percent since 2004 for the rest of the United States, California imports have jumped 33 percent during the same time frame.

Oil costs $15 more per barrel from overseas and the North Slope in Alaska than it does from domestic sources in the Lower 48 states.

There is no pipeline that crosses the Rockies into the West to carry crude oil. At the same time, just 1 percent of California’s monthly oil needs — 500,000 barrels — is now moved by rail. Eight planned oil terminals throughout the state could push that amount to 15 million gallons a month or a third of California’s oil use.

It costs $12 a barrel to move oil by train from the Bakken oil fields to California.

That translates into $3 less per barrel. By tapping into North Dakota crude, California drivers could benefit at the pump.

Currently Kern County terminals have the capacity to handle 57 tank cars of oil a day. If all of the proposed expansion is completed, the oil terminals could handle 357 tank cars a day. Each tanker holds an average of 700 barrels of crude oil.

The most direct route from the Bakken oil fields to Kern County is via Donner Pass using the Union Pacific. That would bring significantly more oil tanks cars through Lathrop, Manteca, Ripon, Modesto, Ceres, and Turlock.

Santa Fe serves Kern County from the southeast.

Should all plans go forward in Kern County and Union Pacific moves the crude, it creates the potential for three 100-car oil trains a day.

That would be on top of intermodal train traffic where truck trailers are carried on flat cars that is expected to increase as UP expands their Lathrop terminal.

Up until the surge in shale oil production a strong argument could be made that shipping crude and dangerous chemicals by rail is substantially safer than by truck for miles covered.

But recent crude oil train derailments and explosions have upset that premise. Shale oil crude has turned out to be more volatile than regular crude. There has been a push to retrofit existing tank cars or deploy new ones that are less susceptible to exploding in a train derailment.

An oil train derailment in Quebec last year killed 47 people.

That’s why increased oil movement by rail makes many people nervous for obvious reasons.

That said a lot of potential explosive and toxic materials move daily through the Valley by rail.

And 26 years ago Manteca had a train derailment involving several tankers carrying toxic chemicals in the early morning fog that forced the evacuation of over 2,000 people.

Moving goods whether it is oil or a truckload of potato chips is never without risk.

Union Pacific’s has a fairly impressive safety record and routinely monitors and upgrades their main line through the San Joaquin Valley.

Also, surrounding fire agencies do joint drills in case the unthinkable happens.

Even so local elected officials need to start thinking about a couple of things. Increased train traffic — whether it is oil trains, regular freight trains or intermodal trains — means more waiting at crossings. More waiting usually means more impatient motorists — a primary ingredient for train disasters.

At the same time Altamont Corridor Express is pushing to extend passenger train service to Modesto, Turlock and eventually Merced. The original 2018 timetable now looks a tad ambitious. But sometime in the relatively near future it can happen.

And because of that, Manteca’s elected leaders need to lobby hard to make sure ACE goes with a plan to double tracks between Modesto and Lathrop.

It reduces scheduling conflicts for freight, oil and passenger movements. And it also will somewhat reduce waiting times at crossings. Currently, it isn’t uncommon for twice a day for trains to block the Austin Road and Industrial Park Road crossings for 15 to 20 minutes while waiting for a train to pass.

Given the potential for eight passenger trains a day between Modesto and Lathrop once the ACE extension is up and running and even more when it connects with high speed rail at Merced to ferry passengers between there and Sacramento, double tracking becomes essential.

This is not one of those “we can wait to see what happens” things. The coming of more oil trains is a clear signal Manteca needs to start pursuing those in charge of planning the ACE extension to make sure the route through Manteca is double tracked not just for safety’s sake but also to make taking rail a viable commuting alternative.