Category Archives: Environmental Impacts

SF Chron article about Benicia / Crude by Rail

Repost from SFGate.com

[Editor’s note]  This SF Chronicle report includes a short video interview with Benicia Mayor Elizabeth Patterson.  Unfortunately, the interview is preceded by advertising, and can’t be set to manual play – so I will not embed it here.  After reading the text here, click on the link above to see the video on SFGate.  The text here very nicely places Valero’s proposal in a wider Bay Area and California context, and then lays out some startling numbers.  Worth the read!

Is California prepared for a domestic oil boom?

Published Wednesday, February 26, 2014

The North Dakota oil boom has resulted in more trains going boom. At least 10 trains hauling crude oil from the Bakken Shale across North America have derailed and spilled, often setting off explosions. The deadliest killed 47 people in Lac-Mégantic, Quebec, on July 6, 2013. As California refineries seek to adapt their operations to bring in Bakken crude by rail, Bay Area residents in refinery towns want to know: Will they be safe?

In Solano County, Benicia residents packed a Planning Commission meeting when Valero Refining Co. unveiled a plan to adapt its Benicia refinery to receive crude by rail rather than by ship. In Contra Costa County, Pittsburg residents (as well as state Attorney General Kamala Harris) are concerned about a proposal by West Pac Energy to convert a closed tank farm to an oil storage and transfer facility. Similar worries are voiced in Crockett and Rodeo about a proposed propane and butane project at the Phillips 66 refinery.

Air pollution is the top-line concern for these communities, followed by fear of spills and explosions. Some protests are tied to the larger political debate over importing tar sands oil from Canada.

The refinery operators maintain they are merely trading ship transport for rail transport or upgrading aging facilities.

We do know this: The tangle of laws and agencies that oversee rail transport make it easy to assign blame to someone else and tough to hold any one agency or business accountable. Rail oversight is primarily the federal government’s job, which makes sense for an industry with track in every state. While the state handles pollution, some safety inspections and emergency response, it is unclear how much legal authority it or any other state government has. The Obama administration announced some voluntary safety measures Friday that would slow trains in cities, increase track inspections and beef up emergency response. There’s still work to do be done sorting out who would enforce such rules.

A state Senate committee will meet Monday to begin investigating whether California is prepared to receive hundreds of railcars a day of highly flammable Bakken crude. The legislators are asking: Should we have confidence that the agencies with oversight, the Department of Fish and Wildlife, the California Public Utilities Commission and Caltrans, are up to the job?

We need to know how theses railroads will run safely before more Bakken crude comes in by rail.

More crude riding the rails

85-fold – the increase in the amount of crude oil transported on U.S. railroads since 2006, from 4,700 carloads to 400,000 carloads in 2013, according to a rail industry regulatory filing.

135 times – the increase in the amount of crude transported by rail in California since 2009, from 45,491 barrels in 2009 to 6,169,264 barrels in 2013, according to the California Energy Commission.

1 percent – the portion of crude oil transported into California by rail (most comes by ship). This is projected to increase as more refineries adapt to bring in Bakken crude by rail.

73 degrees Fahrenheit – the flash point of Bakken crude, a lighter oil that contains more volatile organic compounds than other crude oils, as compared with 95 degrees Fahrenheit. “Crude oil being transported from the Bakken region may be more flammable than traditional heavy crude oil,” reported the U.S. Department of Transportation.

Urgent concerns of our “uprail” friends & neighbors in Davis, CA

Repost from The Peoples’ Vanguard, of Davis, CA

Transport of Crude-by-Rail Puts Davis at Risk

February 3, 2014

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By Lynne Nittler, Milton Kalish, and Matt Biers-Ariel

Background:  North Dakota Bakken crude oil production is booming, and oil companies are looking for a fast, convenient way to transport their sweet light crude oil to refineries across the U.S., including to the five refineries in the Bay Area.

A vast network of railroads crisscross the nation, making “unit trains” of 100 oil tank cars or more, an efficient and flexible method of transportation.  In the last few years, crude-by-rail shipments have increased tenfold.  According to a New York Times article, about two-thirds of the production in North Dakota’s Bakken shale oil field rides on rails, as there is no pipeline infrastructure.  As of 2013, more than 10 percent of the nation’s total oil production is shipped by rail.  (from Accidents surge as oil industry takes the train, by Clifford Krauss and Jad Mouawadjan,  Jan 26, 2014).

The number of oil trains nationwide is expected to increase significantly more in 2014 and beyond.

Crude-by-rail is skyrocketing in California.  According to the California Energy Commission, in 2013 railroads hauled more than over 6 million barrels of crude oil in California.  In 2014 that number may jump to 50 million barrels or more, and by 2016 rail transport is expected to reach nearly a quarter of California’s total oil consumption, or approximately140,000 barrels per day.

transport-crude

Benicia Valero Proposal:   Valero petitioned Benicia to allow the oil refinery to enlarge its train terminal in order to increase its production by 70,000 barrels of crude every day. That’s enough to fill 100 sixty-foot-long tank cars with highly flammable crude oil.  The Benicia Planning Commission has the power to approve the new rail terminal….or turn it down. Responding to pressure from citizens and a study prepared by the National Resources Defense Council, Benicia is currently preparing a draft Environmental Impact Review (EIR) for the project that will be available for written public comment sometime after the end of January.

The Danger:  There are major problems posed to the communities and the sensitive areas the trains pass through.  The unsafe tank cars with their volatile cargo pose an immediate and serious safety risk.

Accidents as warnings:  A rash of recent fiery accidents prove the point.  In the last year there have been 10 major rail accidents involving oil trains in the U.S. and Canada.  Last July, 47 people perished in a massive fireball when a train containing Bakken crude derailed and exploded in the Canadian town of Lac-Megantic, Quebec. Four more oil trains have derailed in Canada since then.

Figure 1 The number of crude-by-rail incidents increased even more in 2013.

Figure 1 The number of crude-by-rail incidents increased even more in 2013.

In November, a train carrying the same Bakken crude derailed in Alabama, possibly caused by trestle tracks that collapsed under the weight of the heavy tank cars. Twelve of the cars exploded, fortunately not in a populated area. In the last week of December, another 18 tank cars carrying Bakken crude derailed and exploded just outside of Casselton, North Dakota, forcing the town to evacuate to avoid the plumes of toxic smoke from the ensuing fires that burned for more than a day.  Another oil train derailed and exploded in New Brunswick days later.  There is no attempt to put out these massive fires; first responders simply keep people back and watch until the fires die down.

The main problems: If the Benicia Valero Project is approved, trains carrying highly flammable Bakken crude oil in the outdated DOT-111A tank cars (intended for non-flammable liquids such as fertilizer) will pass through the center of Davis after crossing the Yolo Bypass on trestle tracks. The propensity for these tanker cars to rupture and explode on impact and to corrode inside is now well-documented.

Furthermore, it’s becoming clear that the chemical composition of Bakken Shale oil itself is highly explosive and corrosive.  In addition, there are new challenges for rail inspections and the enforcement of existing safety codes with the sudden increase in long, heavy oil tank trains.  The safety of our families, our community and our environment will be increasingly at risk.

Figure 2  An additional 400,000 million gallons was spilled in the Casselton accident on Dec. 30, 2013.

Figure 2 An additional 400,000 million gallons was spilled in the Casselton accident on Dec. 30, 2013.

The route: How the trains will negotiate the Sierra Nevada mountains and the Feather River Canyon without a spill that contaminates our drinking water is terrifying to imagine.  Closer to home, on the way to the five Bay Area refineries the tank cars pass through Roseville, Sacramento, West Sacramento,  Davis, Dixon, and Suisun,  They cross sensitive natural areas including the American and Sacramento Rivers, the Yolo Bypass, and then cut through the protected Suisun Marshes to travel alongside Interstate 680 to Benicia.

We don’t know just how many oil trains came through Davis in 2013, but if the Benicia Valero train terminal is approved, 100 rail cars of Bakken crude oil (probably in two trains of 50 cars each) will soon be coming through Davis every day.

What can Davis residents do? Though the city of Davis cannot regulate trains that pass through it, concerned citizens and civic leaders can take advantage of the 45-day written comment period on the draft EIR report to submit comments with supporting evidence addressing at least the following concerns:

  • The 92,000 old DOT-111 tank cars presently in use need to be upgraded or replaced by safer tank cars with thicker shells and puncture/rupture-resistant shields, stronger valve fittings to prevent spills and fires if the cars should derail, and tanks that can withstand corrosive sulfur.  The recent oil company order for 60,000 new DOT-111 tank cars should be cancelled unless they are upgraded models.
  • The Bakken crude has proven to be more corrosive, sulfurous, or loaded with explosive gas than previously thought, and large amounts of vapor pressure can build up to dangerous levels.  Recently the Pipeline and Hazardous Materials Safety Administration (PHMSA) required that cars must be properly labeled and the general public, first responders, shippers and carriers of the hazardous loads musts be properly notified.  More oversight is needed.
  • Safety regulations for rail transport including regular inspections must be thoroughly reviewed and then strictly enforced by the federal government.  For examples, at least one derailment accident may have been due to structural weakness in a rail trestle crossing, such as our causeway trestles.
  • Problems caused by under-crewed trains, track failures including weather damage, speeding downhill, obstacles on the tracks and other problems, speed issues (generally 35 mph in towns)  – all causes of recent derailments  – need to be specifically addressed by the federal government.
  • The current exemption for rail shipments of hazardous materials from the Emergency Planning and Right-to-Know law must be removed, so communities at risk can be informed of risks they are subject to if they are living or working near rail lines.  This includes the nature, volume and frequency of hazmat shipments and what to do to be prepared in case of an accident.  Emergency responders need to be aware of any hazards posed by the materials being transported through their communities, and plans for a coordinated response need to be developed.
  • The health, safety and environmental concerns of all up-rail communities need to be taken into consideration and fully mitigated before more crude-by-rail transport is approved.

Invite neighboring up-rail communities:  It is critical that Davis and all up-rail cities get involved at this point.  It would be wise for the up-rail communities to make comments to the DEIR in concert to amplify their effectiveness.  Davis has an opportunity to reach out to its neighbors in Roseville, Sacramento, West Sacramento, Woodland, Dixon, Vacaville, Fairfield and Suisun who will share the same risks to their safety and well-being as crude-by-rail transportation increases.  The Board of Supervisors for Yolo County should also be invited to join in a united response to the DEIR.

Building a strong coalition now will help as Tesoro Martinez and Wes-Pac Pittsburg Energy have proposals for more crude-by-rail that also may affect Davis.  Ultimately, a strong voice will give additional leverage to demanding intervention at the federal level as well.

The following Recommendations were adopted by the Davis Natural Resources Commission on January 27th, 2014 for the Davis City Council.  The issue has already been placed on one of the two February agendas for discussion.

1.  that the City of Davis submit formal comments signed by members of the City Council to the Draft Environment Impact Report (DEIR) for the Benicia Valero Project when it is released for public comment sometime after the end of January.  Consider at least the points mentioned above.

2. that the City of Davis reach out to civic leaders in neighboring up-rail communities and the Yolo, Solano and Sacramento County Board of Supervisors to invite them to sign the comments document (See item #1).

3.  that the City Council write a letter taking a position on the Benicia Valero rail terminal Project.  Such a letter from an up-rail ally could strengthen the Benicia city council resolve to protect their city should the decision be appealed to them, which is likely no matter how their Planning Commission votes.

5.  that the City Council ask the police chief to report on the Davis emergency plans for an event such as a train derailment or explosion.

6.  that the City Council ask staff  to write the CPUC regarding improved frequency of inspections, speed limits, human factor, and increase directives to the railroads to fix defects discovered.  This greater care on the prevention side will help prevent accidents.

7.  The city may also choose to write letters to appropriate state and federal agencies who have oversight or regulatory responsibilities, including the PUC.

More information:  Visit www.yolanoclimateaction.org for an annotated list of articles, the January 12th op-ed cross posted from the Davis Enterprise, the Natural Resources Defense Council Safety document, Attorney General Kamala Harris’ comments on the WesPac DEIR, a photo gallery and new posts including the link to our NPR Marketplace interview to air sometime in February.

Information on the Valero Project can be found at the city of Benicia.  A full history plus many articles and comments are posted at www.benindy.wpengine.com

Interview & photos: Marilaine Savard, from Lac-Mégantic, Quebec

17 minute interview of Marilaine Savard by Andrés Soto of KPFA Radio.  Dramatic photos.  Ms. Savard is the spokesperson for a citizens’ group in the region of Lac-Mégantic, Québec.  Last year, a string of exploding petroleum rail cars destroyed the center of the town and claimed 47 lives….

Ms. Savard’s visit with us here in the Bay Area was sponsored by:
SunflowerAlliance_logo

In partnership with: Sierra Club, 350 Bay Area, Communities for a Better Environment, Richmond Progressive Alliance, ForestEthics, Pittsburg Defense Council, Pittsburg Ethics Council, Benicians for a Safe and Healthy Community, and the Crockett-Rodeo-Hercules Working Group.

Wall Street: Bakken Crude Carries Higher Risks

Repost from Wall Street Journal

Bakken Crude Carries Higher Risks

Data Show Oil From North Dakota, Mostly Carried by Rail, Is More Combustible Than Other Types

Crude oil from North Dakota’s Bakken Shale formation contains several times the combustible gases as oil from elsewhere, a Wall Street Journal analysis found, raising new questions about the safety of shipping such crude by rail across the U.S.
Federal investigators are trying to determine whether such vapors are responsible for recent extraordinary explosions of oil-filled railcars, including one that killed several dozen people in Canada last summer.The rapid growth of North Dakota crude-oil production—most of it carried by rail—has been at the heart of the U.S. energy boom. The volatility of the crude, however, raises concerns that more dangerous cargo is moving through the U.S. than previously believed.Neither regulators nor the industry fully has come to terms with what needs to be done to improve safety. But debate still rages over whether railcars need to be strengthened, something the energy industry has resisted.”Given the recent derailments and subsequent reaction of the Bakken crude in those incidents, not enough is known about this crude,” said Sarah Feinberg, chief of staff at the U.S. Transportation Department. “That is why it is imperative that the petroleum industry and other stakeholders work with DOT to share data so we can quickly and accurately assess the risks.”

The Journal analyzed data that had been collected by the Capline Pipeline in Louisiana, which tested crude from 86 locations world-wide for what is known as vapor pressure. Light, sweet oil from the Bakken Shale had a far higher vapor pressure—making it much more likely to throw off combustible gases—than crude from dozens of other locations.

Neither federal law nor industry guidelines require that crude be tested for vapor pressure.  Marathon Petroleum Corp., which operates Capline, declined to elaborate on its operations except to say that crude quality is tested to make sure customers receive what they pay for.

According to the data, oil from North Dakota and the Eagle Ford Shale in Texas had vapor-pressure readings of over 8 pounds per square inch, although Bakken readings reached as high as 9.7 PSI. U.S. refiner Tesoro Corp., a major transporter of Bakken crude to the West Coast, said it regularly has received oil from North Dakota with even more volatile pressure readings—up to 12 PSI.

By comparison, Louisiana Light Sweet from the Gulf of Mexico, had vapor pressure of 3.33 PSI, according to the Capline data.

Federal regulators, who have sought information about vapor pressure and other measures of the flammability and stability of Bakken crude, have said the industry hasn’t provided the data despite pledges to do so.

The industry’s chief lobbying group said it was committed to working with the government but that historically it hadn’t collected the information. The energy industry has resisted the idea that Bakken Shale oil’s high gas level is contributing to oil train explosions, but the American Petroleum Institute is revisiting the question.

David Miller, head of the institute’s standards program, said a panel of experts would develop guidelines for testing crude to ensure it is loaded into railcars with appropriate safety features.

The rapid growth in transporting oil by rail was rocked by several accidents last year. Last summer a train loaded with 72 cars of crude exploded, leveling downtown Lac-Mégantic, Quebec, and killing 47 people. Later in the year, derailed trains exploded in Alabama and North Dakota, sending giant fireballs into the sky.

Most oil moving by rail comes from the Bakken Shale, where crude production has soared to nearly a million barrels daily at the end of last year from about 300,000 barrels a day in 2010.

The rapid growth in Bakken production has far outpaced the installation of pipelines, which traditionally had been relied on to move oil from wells to refineries. Most shale oil from Texas moves through pipelines, but about 70% of Bakken crude travels by train.

Bakken crude actually is a mixture of oil, ethane, propane and other gaseous liquids, which are commingled far more than in conventional crude. Unlike conventional oil, which sometimes looks like black syrup, Bakken crude tends to be very light.

“You can put it in your gas tank and run it,” said Jason Nick, a product manager at testing-instruments company Ametek Inc. “It smells like gasoline.”

Equipment to remove gases from crude before shipping it can be hard to find in the Bakken. Some Bakken wells are flowing so quickly that companies might not be able to separate the gas from the oil, said Lynn Helms, director of North Dakota’s Department of Mineral Resources. “At a really high flow rate, it is just much more difficult to get complete gas separation,” he said.

There also is a financial benefit to leaving gaseous liquids in the oil, because it gives companies more petroleum to sell, according to Harry Giles, the retired head of quality for the U.S. Energy Department’s Strategic Petroleum Reserve.

The federal government doesn’t spell out who should test crude or how often. Federal regulations simply say that oil must be placed in appropriate railcars.

There are three “packaging groups” for oil, based on the temperatures at which it boils and ignites. But these tests don’t look at how many volatile gases are in the oil, and that is the industry’s challenge, according to Don Ross, senior investigator with the Transportation Safety Board of Canada.

Without clear guidance, some oil producers simply test their crude once and generate a “material safety data sheet” that includes some broad parameters and characteristics.

Much of the oil industry remains resistant to upgrading the 50,000 railcars that are used to carry crude oil, saying it would be too time consuming and expensive. The problem, they argue, isn’t the cargo but a lack of railroad safety.

—Laura Stevens and Tom McGinty contributed to this article.