Category Archives: Federal Regulation (U.S.)

Berkeley City Council – No Crude By Rail – Sierra Club support

Repost from KPIX5 CBS San Francisco

Berkeley City Council Votes To Oppose Crude By Rail Plan

March 26, 2014 8:19 AM
A KPIX 5 crew captured this video of Bakken crude oil getting unloaded from a train at a rail yard in Richmond. (CBS)

A KPIX 5 crew captured this video of Bakken crude oil getting unloaded from a train at a rail yard in Richmond. (CBS)

BERKELEY (CBS SF) — The Berkeley City Council voted unanimously Tuesday night to approve a resolution that opposes plans by Phillips 66 to transport crude oil through Berkeley and other East Bay cities to a new refinery rail spur in San Luis Obispo County.

City Councilwoman Linda Maio, who wrote the resolution along with City Councilman Darryl Moore, admitted in a letter to the community that railroads are exempt from local and state laws because they are interstate operators.

But Maio said, “That must not stop us from fiercely opposing their plans and demanding intervention.”

She said that among the actions that Berkeley can take are filing briefs in environmental impact lawsuits opposing Phillips’ plans, coordinating with other cities located along the planned transportation route, working with state legislators and lobbying California’s congresspersons and senators.

In a letter to other councilmembers, Maio and Moore said California refineries are in the process of securing permits to build rail terminals to import Canadian tar sands and Bakken crude oils from North and South Dakota.

Maio and Moore said under current plans, crude oil trains would enter Northern California via the Donner Pass and eventually travel along the San Francisco Bay through Martinez, Richmond, Berkeley, Emeryville and Oakland using Union Pacific tracks.

From Oakland, the trains would use the Coast Line via Hayward, Santa Clara, San Jose and Salinas and continue along the Pacific Coast to the Santa Maria facility in San Luis Obispo County, they said.

Maio and Moore said the Phillips 66 project would transport 2 million gallons per day of crude oil through the Bay Area and that “Roughly 80 tanker cars per day of crude oil assembled in a single train would pass through our cities.”

“A crude oil accident could occur anywhere along the transportation corridor including the densely-populated Bay Area,” they said.

The two councilmembers said transporting crude oil can be dangerous, citing an incident last July in the small Canadian town of Lac-Megantic, where 72 tanker cars loaded with 2 million gallons of crude oil derailed, dumping 1.5 million of crude oil.

The resulting fire and explosions burned down dozens of building, killed 47 people and caused more than $1 billion in damage, they said.

The Sierra Club’s San Francisco Bay chapter said in a statement today that it “strongly supports” the resolution by Maio and Moore.

Sierra Club staff attorney Devorah Ancel said, “The tar sands and Bakken crude are more carbon-intensive, more toxic, and more dangerous to transport than conventional crude oil.”

“Transport of tar sands and Bakken crude is growing at a ferocious pace – in 2013 alone more oil spilled from crude oil trains than has spilled from trains in the past four decades,” Ancel said.

She said, “These trains are not safe, they are not adequately regulated and they have no business traveling through Berkeley, the East Bay, or near any community or waterway that would be threatened by a catastrophic spill or explosion.”

Phillips 66 said in a statement that it “is committed to the safety of everyone who works in our facilities, lives in the communities where we operate or uses our products.”

“Preventing incidents and ensuring the safe and reliable transport of petroleum is our top priority while participating in the North American energy renaissance,” the statement read.

The company said it has “one of the most modern crude rail fleets in the industry, consisting of railcars that exceed current regulatory safety requirements and it began modernizing its crude fleet in 2012 “as a proactive precautionary measure to safely capture the opportunities of the rapidly changing energy landscape.”

Phillips said, “Our rail cars are inspected to ensure safe, compliant shipments, and we collect data to ensure compliance with the periodic maintenance plan for our rail car fleet” and its rail car program includes federally-mandated inspection, testing and repair of hazmat tank cars.”

The company said its Santa Maria facility is set up to process the heavier California-produced crude oil and the routes that train cars travel to reach the facility are selected by rail carriers.

Reuters report on West Coast energy projects mentions Valero, Benicia

Repost from Reuters

New U.S. West Coast energy projects face tough opposition

By Edward McAllister

NEW YORK (Reuters) – The West Coast of the United States, long a battle ground for industrial and environmental interests, is set for another round of disputes as the region attracts key energy projects.

Huge new oil and gas fields have changed the way energy is transported across the United States, opening up the prospect of gas exports to Asia and increasing shipments of oil by rail. As this happens, the West Coast, from California to Washington, has become a major focus for energy developers.

Veresen Inc’s Jordan Cove liquefied natural gas (LNG) project in Coos Bay, Oregon, received approval from the Department of Energy on Monday to export gas to needy importers in Asia. Another project further north, known as Oregon LNG, is expected to receive similar approval within two months.

The two developments, both of which still need construction permits, would be the first of their kind on the West Coast outside of Alaska and represent a potentially new era for the United States, where a drilling boom has pushed output to record highs. The outcome of these projects could also set the standard for other energy developments in the region.

But opposition remains.

“Jordan Cove still needs a slew of federal and state permits to begin construction,” said Zack Malitz of San Francisco-based environmental group Credo, which is opposed to exports because it could lead to more drilling. “We still have time to sound the alarm.”

OIL, COAL

Energy projects have long met opposition in West Coast states where a stronger environmental lobby has made development approvals tougher to obtain than in other more oil industry-friendly states like Texas or Louisiana.

The strength of that opposition is being tested again as coal and oil producers look to the West Coast to broaden their business.

In recent years, mining and shipping industries have tried, and sometimes failed, to gain permission to move coal through ports in the Pacific Northwest to reach Asian markets. The Port of Coos Bay dropped its plans for a coal export terminal last spring after environmental challenges.

Now, three more export terminals remain on the drawing board. Backers of the Morrow Pacific project in Oregon expect to clear regulatory hurdles in the coming months.

Meanwhile, oil producers looking to tap west coast markets have proposed a number of terminals to receive and refine crude oil delivered on trains. Crude by rail has become a major industry in recent years, as new output overwhelms the existing pipeline network. But a number of explosive derailments have given pause to states considering more train traffic, especially loads carrying grades of crude oil from North Dakota considered more volatile than others.

In Washington State, which has the potential to become a major oil port if all pending projects are approved, opposition to moving more crude by rail is growing.

Public meetings held in October regarding a crude by rail terminal in the Port of Vancouver proposed by Tesoro Corp and Savage Services garnered tens of thousands of comments, many of which centered on concerns about crude train crashes and spills.

The project is in the permitting phase, and the final decision lies with Governor Jay Inslee.

Valero Energy Corp’s plan to build an offloading facility at its San Francisco-area refinery was pushed to the first quarter of 2015 from late 2013 to allow time for an environmental review after opponents voiced concerns to local officials.

The surge in the transport of crude oil by rail into California has caught the attention of lawmakers in Sacramento, who last week held a hearing to examine whether more resources should be dedicated to preventing and responding to accidents.

Currently, less than 1 percent of the state’s crude oil is delivered by rail. But with at least six new crude-by-rail facilities planned or under construction in California, that figure is expected to reach 25 percent by 2016.

“Regardless of whether it takes two years or four years, this is a significant change that represents an emerging threat to California’s natural resources,” Tom Cullen, administrator of the Department of Fish and Wildlife’s Office of Spill Prevention and Response, said at the hearing last week.

(Reporting By Edward McAllister in New York, Rory Carroll in San Francisco, Patrick Rucker in Washington D.C. and Kristen Hays in Houston; Editing by Joseph Radford)

DOT-111 tank cars inadequate, but rolling through our cities today

Repost from PublicSource
[Editor: two significant excerpts: “While federal officials work on new safety requirements for DOT-111 tank cars, these cars are out there carrying crude oil, rolling through Pennsylvania daily…” AND “The Pennsylvania Emergency Management Agency recently struck an agreement with CSX railroad to get real-time information on the tracking of hazardous material shipments, including crude oil, in the state.” – RS]

Rail cars moving crude oil need makeover

By Natasha Khan | PublicSource | March 25, 2014

Train Derailment 2006: Flames continue to burn a day after a Norfolk Southern train derailed on Oct. 21, 2006, in New Brighton. Flames continue to burn a day after a Norfolk Southern train derailed on Oct. 21, 2006, in New Brighton, Pa. (Photo by Lucy Schaly / Beaver County Times)

Walking with his daughter from a Friday night football game in New Brighton, Pa., Fire Chief Jeffrey Bolland heard what sounded like a jet overhead and saw an orange glow in the distance.

Twenty-three rail tank cars of ethanol derailed on a bridge above the Beaver River on that night in 2006, setting off an explosion that burned for 48 hours. Some of the black, torpedo-shaped cars tumbled into the river.

No one was injured, but 150 people were evacuated and a nearly multi-million dollar cleanup ensued in the city about 30 miles Northwest of Pittsburgh.

The rail cars in the accident were DOT-111s, designed in the early 1960s and originally used to haul non-hazardous materials such as corn syrup. Now, they are the worker bees for the glut of crude oil and ethanol being transported across Pennsylvania and the country.

“The same old clunkers are still out there,” said Fred Millar, a Washington, D.C., consultant to the rail industry. “They’re Pepsi cans on wheels.”

For more than 20 years, safety officials have warned about these cars as accidents involving them have multiplied. One of the worst was in Lac-Mégantic, Quebec, in July 2013, when 47 people died after a runaway train carrying Bakken crude oil from North Dakota exploded, decimating the town.

Now, state, federal and industry officials are demanding that regulations be put in place to improve the safety of the cars, which are “subject to damage and catastrophic loss of hazardous materials” when trains derail, according to the National Transportation Safety Board (NTSB).

After two recent derailments in Pennsylvania — one in Westmoreland County, one in Philadelphia — involving the cars and crude oil, U.S. Sen. Bob Casey, D-Pa., sent a letter to U.S. Secretary of Transportation Anthony Foxx.

“Steps must be taken to make rail cars safer and to ensure greater transparency in the transportation of hazardous materials,” Casey wrote.

tankers-growth-print600x340.jpg

A sharp increase in North American crude-oil production — mainly because of fracking — has pushed a high percentage of crude oil onto the tracks.

In 2008, there were 9,500 carloads of crude oil on the tracks in the country. In 2013 that number ballooned to 415,000 carloads, according to the Association of American Railroads (AAR).

The amount of crude oil spilled last year was more than the total amount spilled  in the 37 previous years, according to an analysis of federal data by McClatchy Newspapers.

“Most times, people don’t want regulations, [but] in this case, everybody wants them,” said Anthony Hatch, a rail transportation analyst and consultant.

Rolling through PA

Pennsylvanians usually associate fracking with natural gas, but much of the crude oil being fracked in the North Dakota Bakken Shale formation goes to refineries in and around Philadelphia, which include Philadelphia Energy Solutions, the largest refiner of Bakken crude.

Railway officials don’t reveal their routes for hazardous materials for security reasons, and aren’t required to by law. However, a state official said Bakken crude does come through Pittsburgh on the way to Philly.

And the number of trains carrying crude oil through Pennsylvania are set to spike with the opening of a new crude oil terminal in Eddystone in Delaware County at the end of April. Trains carrying more than 80,000 barrels of North Dakota crude oil are expected to arrive daily.

Virtually no one in the rail and oil industries anticipated that railroads would be a primary mode of transporting the massive amounts of newly fracked crude oil in North America, said Hatch, the rail industry analyst.

“Nobody saw it coming,” he said.

Now, federal regulations need to play “catch up” with this reality, said Deborah A.P. Hersman, former chairwoman of the NTSB, in a statement.

“The large-scale shipment of crude oil by rail simply didn’t exist 10 years ago,” she said.

Now the NTSB — which investigates accidents, but doesn’t regulate railroads — and others are insisting that regulations be written covering the DOT-111s and other rail cars.

“Right now, there is so much uncertainty that people aren’t going to make investments in safer cars and they’re going to keep running these crummy cars and killing people,” said Rep. Peter DeFazio, D-Ore., at a U.S. House subcommittee hearing focused on rail safety in February.

The job of writing the regulations falls to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA).

In September, PHMSA put out a notice asking for comments from citizens, environmental and industry groups, and railroad companies on proposed rules to improve the design of the DOT-111 tank car, as well as other safety rules.

PHMSA officials said they’ve been busy since the comment period ended in December analyzing numerous comments on the rules. But changes aren’t pegged to come until early 2015, according to the agency’s timeline.

This month, a Senate panel grilled regulators on taking too long to pass regulations improving the tank cars used to haul crude.

The panel’s chairman, Sen. Richard Blumenthal, D-Conn., said he was “disappointed and disturbed by some of the delays and failures in rulemaking and scrutiny.”

PHMSA head Cynthia L. Quarterman told the panel that her agency is working as fast as possible.

A PHMSA spokesman, Joe Delcambre, told PublicSource in an email that “it was crucial to get input from a wide variety of stakeholders, including shippers and carriers, state and local officials and concerned citizens.”

The AAR estimates there are 92,000 DOT-111 tank cars used to transport hazardous chemicals and that more than 75,000 of those would need to be retrofitted or possibly to be phased out. These tank cars are not usually owned by railroads but by chemical or oil producers and leasing agencies.

Inspection blitzes 

While federal officials work on new safety requirements for DOT-111 tank cars, these cars are out there carrying crude oil, rolling through Pennsylvania daily, said Christina Simeone, director of PennFuture’s energy center, an environmental advocacy group in Pennsylvania.

Simeone said that during the year or so it may take for federal rules to pass, state and local officials should do inspection blitzes of tank cars and rail lines carrying hazardous materials.

The Pennsylvania Public Utility Commission, which works with the Federal Railroad Administration (FRA) to inspect rail operations, is now focused on inspecting tracks and rail equipment that carries crude oil shipments, a spokeswoman wrote in an email.

Railroad officials seem to be willing to communicate information about their shipments to state officials.

The Pennsylvania Emergency Management Agency recently struck an agreement with CSX railroad to get real-time information on the tracking of hazardous material shipments, including crude oil, in the state.

“It will better prepare [state emergency workers] to respond to any incidents that may occur,” said Cory Angell, a spokesman with the agency, who added that his agency is also reaching out to the Norfolk Southern line for a similar agreement.

And officials at both major PA railroads have said they’ve helped train local emergency responders across the state.

Reach Natasha Khan at 412-315-0261 or at nkhan@publicsource.org.

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PublicSource is an investigative news group in Western Pennsylvania. Learn more at publicsource.org.

CCTimes editorial: Officials must oversee dangerous crude oil trains

Repost from a  Contra Costa Times Editorial

Despite unknown risks, highly volatile crude shipments suddenly routing through the East Bay

Contra Costa Times editorial © 2014 Bay Area News Group
Posted:   03/21/2014

Crude oil is not normally considered explosive. But lighter crude from the Bakken Shale formation of North Dakota, suddenly being shipped through the East Bay, is entirely different.

It contains several times the combustible gases as oil from elsewhere, according to a recent Wall Street Journal analysis. Randy Sawyer, Contra Costa County’s hazardous materials chief, considers it as explosive as gasoline.

In Quebec last summer, a train carrying Bakken crude derailed, exploded and killed 47 people. Subsequently, derailed trains in Alabama and North Dakota exploded.

“Given the recent derailments and subsequent reaction of the Bakken crude in those incidents, not enough is known about this crude,” Sarah Feinberg, chief of staff at the U.S. Transportation Department, told the Journal.

Yet, long trains carrying the volatile cargo started traveling through the East Bay last year. This calls for aggressive oversight from Martinez to Sacramento to Washington — before we have a disaster on our hands.

According to the governor’s office, rail shipments of oil into the state, including Bakken crude, are expected to increase from 3 million barrels to approximately 150 million barrels per year by 2016.

Kinder Morgan is unloading some of that cargo in Richmond, just blocks from an elementary school and the Point Richmond and Atchison Village neighborhoods, and transferring it to tanker trucks.

At least some of it is going to Tesoro Refinery near Martinez, according to Sawyer and a report by KPIX Channel 5. Tesoro — which recently demonstrated its lack of candor after two acid spills that sent four workers to hospitals — refuses to say whether it’s processing Bakken crude.

The implications are profound. The notion of transporting massive quantities of highly combustible crude through local neighborhoods should alarm the federal Department of Transportation, which regulates rail shipping.

The long trains are going right through the districts of Reps. George Miller, D-Martinez, and Mike Thompson, D-Napa. They must demand answers from the administration about why it allows this to proceed when so little is known.

At the local level, the Contra Costa Board of Supervisors must examine the adequacy of the county’s Industrial Safety Ordinance to make sure it can ensure that Tesoro and any other refinery that uses Bakken crude has taken adequate precautions.

Sawyer, the county’s environmental hazards chief, didn’t even know Bakken fuel was coming into the county until he saw recent press reports. Clearly the system is broken.