Category Archives: Crude By Rail

Spokane City Council Nixes Proposed Oil And Coal Train Ballot Measure

Repost from Oregon Public Broadcasting
[Editor: Background: City proposes fining railroad.  Also, BNSF, Union Pacific lawsuit. – RS]

Spokane City Council Nixes Proposed Oil And Coal Train Ballot Measure

By Emily Schwing, Northwest News Network | Aug. 16, 2016 4:45 p.m., updated 6:56 p.m.
 In June, a train carrying crude oil from North Dakota derailed in the Columbia River Gorge near Mosier, Oregon.
In June, a train carrying crude oil from North Dakota derailed in the Columbia River Gorge near Mosier, Oregon. Northwest News Network, Emily Schwing

A measure that was added to the November ballot less than a month ago would have imposed fines on rail cars transporting fossil fuels through the heart of Spokane. On Monday night, the city council opted to withdraw it.

Council President Ben Stuckart said weeks of further review raised questions about whether the measure he co-sponsored could stand, were it to face a legal challenge.

“I don’t think that’s a good use of the citizen’s dollars,” he said.

In the weeks since the measure originally passed, Stuckart said a conversation about how to more safely transport fossil fuels has become a region-wide.

“A couple other cities have contacted us and they’ve suggested that we form a regional group here in Northern Idaho and Eastern Washington to try to work through these issues and see how we can affect state and national policy,” Stuckart said.

The measure itself was prompted by a number of accidents involving oil trains since 2012. In June, a train carrying crude oil from North Dakota derailed in Oregon’s Columbia River Gorge.

On a near-daily basis, oil trains pass through the heart of Spokane past two major hospitals, a handful of schools and across an aquifer that serves nearly half a million people.

MOSIER OR: High levels of benzene in groundwater after oil train crash

Repost from Water Online
[Editor: Significant quote: “The concentration that we found (of benzene) was 1,800 parts per billion, which is approximately ten times higher than a screening level for what would concern us for animals living in a wetland.”  – RS]

Oil Train Crash Left Benzene Contamination In Groundwater

By Sara Jerome, August 15, 2016
train reg new.jpg
Image credit: “union pacific,” matthew fern © 2011, used under an Attribution 2.0 Generic license, creativecommons.org

A town in Oregon is still reeling from a train derailment two months ago, discovering the crash leaked oil into the groundwater supply.

A Union Pacific oil train derailed in Oregon’s Columbia River Gorge in June, raising concerns about nearby water service and knocking the wastewater system completely out of function in the town of Mosier. In the aftermath of the initial crisis, officials are facing down water contamination, seeking treatment remedies for lingering pollution.

They found “elevated concentrations of benzene and other volatile organic compounds in groundwater near the derailment site,” OPB reported.

“The concentration that we found (of benzene) was 1,800 parts per billion, which is approximately ten times higher than a screening level for what would concern us for animals living in a wetland,” Bob Schwarz of the Oregon Department of Environmental Quality told OPB.

State environmental authorities plan “to install a treatment system that injects air into the underground water. They say the oxygen will stimulate the existing microbes that live in the water to break down the oil,” KATU reported.

The Oregon Department of Environmental Quality installed “four monitoring wells to observe ground water quality after the wreck. Schwartz said one of them had significant oil contamination from the train derailment,” the report said.

Schwartz provided an update to KATU News.

“The numbers we’re concerned about are based on the potential of long-term impact … if animals were exposed over many years. In this case, we don’t expect it to be significant because we plan to get out there and remove the contamination within weeks or months,” Schwartz said. “I think this is something we will be able to clean up fairly quickly so I don’t think it will be a significant problem.”

One positive sign amid the wreckage: Drinking water wells for this town remain unaffected, the report said. They were uphill from the crash site.

Mosier lost access to its sewer system and wastewater treatment plant as a result of the incident, which saw 16 of the train’s 96 tank cars go off the rails, according to the Associated Press.

Phillips 66 oil-by-rail project may be in jeopardy – deadline Aug 15

Repost from The Tribune, San Luis Obispo

Phillips 66 oil-by-rail project may be in jeopardy

By David Sneed, July 22, 2016 8:06pm

HIGHLIGHTS
• Oil company faces Aug. 15 deadline to pay $240,000 in fees and supply information or SLO County will withdraw the application
• County also is critical of Phillips 66’s recent decision to begin trucking crude oil to the Nipomo Mesa refinery
• It is unclear whether a Sept. 22 Planning Commission hearing on the rail project will take place

The Phillips 66 refinery on the Nipomo Mesa has been trucking in oil since February as it continues to pursue a plan to accept oil by rail.
The Phillips 66 refinery on the Nipomo Mesa has been trucking in oil since February as it continues to pursue a plan to accept oil by rail. Joe Johnston Tribune

A controversial proposal by the Phillips 66 oil company to bring crude oil by rail to its Nipomo Mesa refinery is at a crossroads.

The oil company has been given an Aug. 15 deadline to give the San Luis Obispo County department of planning and building additional information about the project — the company wants to install a rail spur connecting the refinery with the main line — and to pay more than $240,000 in fees or the project application will be withdrawn.

In a July 8 letter to the company, county supervising planner Ryan Hostetter wrote, “This letter serves to inform Phillips 66 that without the necessary information and funding, the county cannot complete processing the application as directed by the Planning Commission.”

As of July 22, the county had received only part of the information it has requested and none of the money, Hostetter said.

Phillips 66’s proposal to build the spur so it can bring in three trains per week, each carrying 2.2 million gallons of crude oil, has faced a storm of opposition. Communities on the rail line across California have weighed in, many saying they feared a disastrous derailment.

Phillips 66 did not respond directly to questions by The Tribune on Friday as to whether the company plans to meet the county’s Aug. 15 deadline to pay the fees and provide the missing information. Instead, it sent this statement:

“Phillips 66 presented a strong proposal, and we remain confident about the project,” the statement said. “We understand and respect the review and approval process with the county, and look forward to the next step in the EIR process.”

The county has also informed Phillips 66 that its recent decision to truck oil directly into the refinery is likely a violation of the county’s permit and will require a new permit as well as a trucking plan detailing the new oil-by-truck method. The refinery has been receiving crude oil by pipeline. The county found out about the trucking during an April 15 Planning Commission hearing on the rail spur project.

“Bringing in crude by truck is a modification of the refinery and, additionally, may have the potential to cause significant impacts,” Hostetter said in a June 30 letter to Phillips 66.

The refinery’s maintenance supervisor, James Anderson, responded to the county in a letter dated July 14 in which he denied the assertions that the trucking of oil is a modification of the refinery and disputes the notion that a trucking plan is required. The letter refers to the refinery’s official name, the Santa Maria Refinery.

“Phillips 66 does not need any new permits or modifications to its existing permits to deliver feedstocks by truck to SMR (Santa Maria Refinery) in the manner in which it is currently performed,” Anderson’s letter stated. “Such activity has been a long-standing practice, albeit intermittent, and is not part of the rail extension project.”

Hostetter said the July 14 letter answered some but not all of the county’s questions. No deadline was given for providing the information.

“They are not sitting on it, but we need more information to make a formal call on whether trucking is an allowed use or if they need a new permit,” Hostetter said.

Anderson’s letter went on to give some details about the refinery’s recent oil-by-truck activities:

▪ It began in February.
▪ The number of truck trips per day has ranged from 1 to 25.
▪ Trucks generally hold up to 150 barrels of oil. A barrel contains 42 gallons.
▪ The oil is delivered into an existing pipeline via a flexible hose.
▪ The oil generally originates within California.

Phillips 66 has proposed installing a 1.3-mile rail spur connecting to the main line as a way to expand its sources of crude oil and continue to support the 200 employees who work at the Nipomo refinery. The proposal calls for deliveries from three trains per week; each train would have three locomotives and 80 rail cars to haul 2.2 million gallons of crude oil.

Earlier this year, the county Planning Commission held five full days of hearings that drew thousands of people from around California. The commission has scheduled a hearing for Sept. 22, at which a final decision could be made.

At its most recent hearing, the commission asked for a variety of additional information from Phillips 66, such as how many trains per year would arrive at the refinery under the three-trains-per-week scenario, how many trains could arrive in one day and what impact that would have on air quality around the refinery.

Few of those questions have been answered. Whether the commission even has a Sept. 22 hearing and whether it will be able to make a final decision if a hearing is held, depends on how much additional funding and information Phillips 66 provides, Hostetter said. For example, the company has proposed only funding the project through the Planning Commission phase but not through the likely appeal to the Board of Supervisors.

County policy requires that development applicants pay all the county’s costs in processing their permit, including the cost to hire consultants and write an environmental impact report. The county has estimated the cost of processing the application through the Board of Supervisors appeal hearing to be $240,697.73.

If the county withdraws the application, Phillips 66 could reapply at a later date.

Oil industry desperate: claims oil spills are good for wildlife and the economy

Repost from Hazmat Magazine

Testimony Implies Oil Spills Are Good For Wildlife and the Economy

By J Nicholson, August 11, 2016

As reported in thinkprogress.org, the Washington State Energy Facility Site Evaluation Council (EFSEC) has been holding hearings on the matter of a proposed oil-by-rail terminal that could be built in Vancouver, Washington.  If approved, it would be the largest oil-by-rail facility in the country, handling some 360,000 barrels of crude oil, shipped by train, every single day.  It would also greatly increase the number of oil trains that pass through Washington, adding a total of 155 trains, per week, to the state’s railroads.

Environmentalist activists worry that an increase in oil trains could lead to an rise in oil train derailments, like the kind seen in early June when a Union Pacific train carrying Bakken crude derailed outside the Oregon town of Mosier, spilling 42,000 gallons of oil near the Columbia River.

But according to witnesses that testified before the EFSEC on behalf of Vancouver Energy – the joint venture between Tesoro Corp. and Savage Cos. and the entity behind the Tesoro-Savage terminal proposal – oil spills might not actually be that bad for the environment.

“The Draft Environmental Impact Statement identifies many economic impacts arising from an accident associated with Project operations, but fails to recognize economic activity that would be generated by spill response,” Todd Schatzki, vice president of Analysis Group — a consulting group that released an economic report on the terminal commissioned by Tesoro Savage — wrote in pre-filed testimony.  “When a spill occurs, new economic activity occurs to clean-up contaminated areas, remediate affected properties, and supply equipment for cleanup activities. Anecdotal evidence from recent spills suggests that such activity can be potentially large.”

Schatzki’s pre-filed testimony also includes references to both the Santa Barbara and BP oil spills’ role as job creating events.  He notes that the Santa Barbara oil spill created some 700 temporary jobs to help with cleanup, while the BP spill created short term jobs for 25,000 workers.  Schatzki does not mention that BP has paid individuals and businesses more than $10 billion to make up for economic losses caused by the spill.  Nor does he mention that California’s Economic Forecast Director predicted that the 2015 Santa Barbara oil spill would cost the county 155 jobs and $74 million in economic activity.

For the Columbia River region, the impacts of an oil spill could be equally economically devastating — a report from the Washington Attorney General’s office found that an oil spill could cost more than $170 million in environmental damages.

Keystone Pipeline (Credit: cfact.org)

Schatzki also argued that an oil spill would not necessarily have a large impact on commercial and recreational fisheries.  The Columbia River, which cuts between Oregon and Washington and borders much of the oil-train route, is one of the most important fisheries for both states.  In 2015, the total economic value of Columbia River salmon was $15.5 million, according to the Oregon Department of Fish and Wildlife.

Those fisheries, however, would not necessarily be impacted by an oil spill, Schatzki argued, because fishermen would simply avoid the areas where the spill had taken place, moving their operations elsewhere.  During cross examination, however, Schatizki said that he did not look at other fishermen’s responses to oil spills when crafting this analysis, nor did he specifically look at the length of fishing seasons or the geographic extent of various fisheries within the Columbia River.

In testimony given on July 7th, another Tesoro-Savage-associated witness, Gregory Challenger, argued that oil spills could actually have benefits for fish and wildlife.  Challenger, who worked with Vancouver Energy to analyze potential impacts and responses in the event of a worst-case discharge at the facility and along the rail line, told the committee that when oil spills cause the closure of certain fisheries or hunting seasons, it’s the animals that benefit.

“An oil spill is not a good thing.  A fishery closure is a good thing.  If you don’t kill half a million fish and they all swim upstream and spawn, that’s more fish than were estimated affected as adults,” Challenger said during his testimony.  “The responsible party is not going to get credit for that, by the way.”

 To prove his point, Challenger cited National Marine Fisheries Service data that showed that 2011, the year after the BP oil spill, had been a record year for seafood catch in the Gulf of Mexico.  And while that’s true, Shiva Polefka, policy analyst for the Center for American Progress’s Ocean Policy program, cautioned against trying to make sweeping statements for how all ecosystems would respond to an oil spill.  Following the Exxon Valdez spill in 1989, researchers discovered that crude oil had soaked into the rocky beaches near the spill site, emitting toxic compounds for years that had long-term adverse impacts on salmon and herring populations.

“Does cutting fishing effort benefit fish?  Absolutely,” Polefka said.  “Enough to mitigate the horrible effects of large oil spills in every case?  Absolutely not.”

During his testimony, Challenger also brought up the Athos 1 oil spill, which sent 264,000 gallons of crude oil into the Delaware River in 2004.  The spill, Challenger said, took place during duck hunting season, and forced an early closure for recreational hunting in the area.

“There were an estimate of 3,000 birds affected by the oil, and 13,000 birds not shot by hunters not shot by hunters, because of the closed season,” he said.  “We don’t get any credit for that, but it’s hard to deny that it’s good for birds to not be shot.”

According to U.S. National Oceanic Atmospheric Administration (NOAA), seabirds are especially vulnerable to oil spills, because of the way that oil affects their usually-waterproof feathers — when those feathers become matted with oil, a seabird loses its ability to regulate its temperature.  Often, it will try to preen itself to remove the oil, which only forces the oil into its internal organs, causing problems like diarrhea, kidney and liver damage, and anemia.  Oil can also enter into a seabird’s lungs, leading to respiratory problems.

Opponents of the terminal were quick to dismiss Schatzki and Challenger’s testimony as “hollow,” especially in the face of the recent derailment and oil spill in Mosier.

oil spill07“We see Tesoro moving towards these more desperate arguments to try to downplay the risk of the project,” Dan Serres, conservation director with Columbia Riverkeeper, told ThinkProgress. “It’s hard to imagine that EFSEC will buy the argument that oil spills pose anything other than a grave risk to the Columbia River estuary.”

Following the EFSEC hearings, the committee will submit a recommendation to Washington Governor Jay Inslee to approve, conditionally approve, or deny the project.