Category Archives: Phillips 66

What does a Central Coast oil refinery have to do with Davis?

Repost from The Davis Enterprise

What does a Central Coast oil refinery have to do with Davis?

By Dave Ryan, November 23, 2014

In communities up and down the West Coast, groups of environmentalists, neighbors and local governments are doing whatever they can to mitigate or outright stop railroad terminals being built at coastal refineries at the end of rail lines that cut through cities and sensitive environmental areas.

Davis residents joined the fight earlier this year against the Valero oil refinery in Benicia, and now are adding their voices to a chorus opposing a Phillips 66 facility in San Luis Obispo County.

A local collection of environmental watchdogs called the Yolano Climate Action Group was one of the first to realize the potential public safety threat of Bakken crude oil trains traveling from out of state, through Roseville, Davis and to Benicia.

The group successfully petitioned the city of Davis Natural Resources Commission in January to oppose the Valero project. The commission then was successful in persuading the City Council a few months later to begin monitoring the project and round up support from government agencies like Yolo County and the Sacramento Area Council of Governments to lobby Benicia for a more complete environmental impact report.

“It was Davis that alerted the entire region,” said Lynne Nittler, a coordinator for the Yolano Climate Action Group.

Meanwhile, Davis’ state and federal representatives have been doing what they can, within the limits of strong federal pre-emption laws for railroads.

Trains carrying the hazardous materials have derailed and exploded in recent years, most notably in Lac-Mégantic, Quebec, where a July 6, 2013, derailment caused a fire and wiped out a portion of the town, killing 47 people and forcing 2,000 others to flee. A subsequent derailment and explosion just outside Casselton, N.D., in January also alarmed the public.

If the Valero refinery railroad terminal is built at Benicia, Davis would see trains estimated to be 100 cars long filled with volatile Bakken shale crude oil traveling straight through downtown along the same route the Amtrak Capital Corridor uses to carry commuters.

Phillips 66 terminal

But Davis faces another possible threat, as well.

Far to the south and west of Davis are the Central California coast communities of San Luis Obispo County, housing the Phillips 66 oil refinery near the Nipomo Mesa and — potentially — another rail terminal.

That terminal would attract more trains filled with Canadian tar sands crude oil, traveling through Roseville, Davis, Oakland, San Jose and Salinas to Phillips 66. While somewhat less volatile than Bakken shale crude, tar sands crude is mixed with chemical thinners that make it potentially explosive.

Laurence Shinderman leads an activist group in Nipomo opposing the Phillips 66 railroad terminal called the Mesa Refinery Watch Group. The group’s ranks swelled from a handful in recent months to 250 residents spearheading a letter-writing campaign targeting the San Luis Obispo County Board of Supervisors.

The county is leading the environmental review process for the railroad terminal. Yolano Climate Action Group, the city of Davis and SACOG have submitted their concerns, as well.

Shinderman said Nittler has been helping from the start, giving advice to the Mesa Refinery Watch Group.

The mission among the Davis group is to get people to go from NIMBY to NOPE, or from saying, “Not In My Back Yard” to “Not On Planet Earth,” Nittler said.

It represents a shift in thinking from opposing a particular project to a wider understanding of what environmentalists consider a dangerous trend of oil by rail along the West Coast.

In San Luis Obispo County, the rail line that would carry the oil runs through the Cal Poly SLO campus and over a bridge adjacent to a county drinking water treatment facility.

“The reality is there is human error, there are guys who are going to fall asleep at the switch,” Shinderman said. “You can’t mitigate for human error. The railroad is hiding behind the skirt of federal pre-emption and saying, “Ah, you can’t do anything.’ ”

Federal protection

Under federal code, any laws governing railroads must be uniform across the country, “to the extent practicable.”

That forbids the vast majority of local tinkering, but a small “savings clause” says a state may regulate some railroad activity provided the situation is geared at a local, but not statewide, safety hazard; is not in conflict with federal law; and does not “unreasonably” restrict railroad commerce.

The party claiming federal pre-emption has the burden of proof in any case.

In the matter of the railroad terminals, local cities and counties are ostensibly in charge of the approval — or disapproval — of the projects.

Even there, federal law may give the oil companies and the railroads a recourse in court if the terminals aren’t built.

According to the Association of  American Railroads, rail safety is a top priority. In accordance with a 2014 emergency order from the federal Department of Transportation, rail companies are required to notify state emergency response agencies about the routes of trains carrying large amounts of Bakken crude.

The association also notes that railroads train thousands of first responders, including using a $5 million specialized crude-by-rail training and a tuition assistance program, which is estimated to serve 1,500 first responders in 2014.

“If an incident occurs, railroads swiftly implement well-practiced emergency response plans and work closely with first responders to help minimize injuries or damage,” reads a position statement on the association’s website.

The association said the industry is also advocating for safer rail cars that are less prone to disaster. The association claims that in 2013, freight railroads “stepped up the call for even more rigorous standards for tank cars carrying flammable liquids” that included asking that existing tank cars be retrofitted to meet higher standards or be “phased out.”

Nittler said that was a smokescreen, and the federal government does not impose rules the industry doesn’t agree to first.

Even according to AAR, the federal Railroad Safety Advisory Committee that develops safety standards for rail transport uses a “consensus process” to impose new safety standards.

Legislative help

Davis’ Democratic congressman, Rep. John Garamendi, is a member of the House Committee on Transportation and Infrastructure. He said the committee is in the process of crafting new rules for railroads.

“I have and will continue to push them to write the strongest possible guidelines,” Garamendi said in an email.

At the state Capitol, state Sen. Lois Wolk, D-Davis, is part of efforts to pass laws that levy taxes on railroads to provide money for first responders.

“The volume of crude oil being imported into California has increased 100-fold in recent years, and Valero has plans to ship 100 train cars of crude oil per day through the heart of my district to its refinery in Benicia,” Wolk wrote in an email.

“… Currently, local governments along these transport corridors don’t have sufficient funding to protect their communities. When the Legislature reconvenes in January, I will push for funding for developing and maintaining adequate state and local emergency response to accidents and spills involving rail transports of crude oil and other hazardous materials.”

Union Pacific and Burlington Northern Santa Fe railroads filed suit against the state in October, claiming that California or any other state does not have the authority to impose safety requirements on them because federal law already does that.

That may put a damper on a new North Dakota law passed Thursday that requires companies to stabilize the volatility of Bakken crude before shipping it out of the state. Texas already requires such handling.

In the meantime, Nittler is busy trying to drum up support for a letter-writing campaign to the SLO Board of Supervisors before a 4:30 p.m. deadline Monday for comments on its draft environmental review.

“If they don’t build it, they won’t come,” Shinderman said.

Sacramento Area leaders call for strong safety controls on oil trains headed west and south

Repost from The Sacramento Bee

Sacramento leaders call for more crude-oil train safety

By Tony Bizjak, 11/14/2014
A tanker truck is filled from railway cars containing crude oil at McClellan Park in March.
A tanker truck is filled from railway cars containing crude oil at McClellan Park in March. Randall Benton

Concerned about potential oil spills and fires, Sacramento leaders are calling for stronger safety controls on a Phillips 66 proposal to transport crude oil via trains through Sacramento neighborhoods to the oil company’s refinery in San Luis Obispo County.

In a letter approved Thursday by board members of the Sacramento Area Council of Governments, regional officials are asking San Luis Obispo County to require the oil company to notify local fire officials before any crude oil train comes through the area, limit the parking of crude-oil-laden trains in the urban area, provide funding for training on fighting oil fires, and require trains and tracks to have modern safety features.

SACOG officials said they are not taking a stance against rail shipments of crude oil in general.

“Our intent is not to prohibit any types of shipments, our intent is to ensure that where they are shipped that we impose the most reasonably feasible safety measures for our communities,” the agency’s attorney Kirk Trost said during a board briefing this week.

A boom in domestic oil production in North Dakota, Colorado, Texas and other Western states in recent years has prompted safety concerns after several high-profile oil-train explosions, including one in Canada that killed 47 people last year. The federal government is formulating new safety regulations, including a requirement for sturdier tank cars.

SACOG’s letter comes in response to a Phillips 66 proposal to ship oil via train five days a week to its Santa Maria Refinery in San Luis Obispo County. Many of those trains are likely to come through Northern California, via Roseville, and run through downtown Sacramento, West Sacramento, downtown Davis and East Bay cities. Some could take a route through Sacramento to Stockton, then west into the Bay Area. The route east of Roseville is unknown.

The Sacramento group, in its letter, also joined a growing national chorus of cities and states demanding that particularly flammable crude oil from the Bakken region of North Dakota be stripped of its more volatile elements before being loaded on trains.

In an email to The Sacramento Bee, Phillips 66 spokesman Dennis Nuss said Phillips does not plan to ship Bakken oil to its Santa Maria Refinery. He did not specify which types of crude oil the refinery will receive.

“Phillips 66 is working to ensure the long-term viability of the Santa Maria Refinery and the many jobs it provides,” he wrote. “Our plans for this project reflect our company’s commitment to operational excellence and safety while enhancing the competitiveness of the facility.”

SACOG, a transportation planning agency formed by the region’s six counties and 22 cities, previously called for similar safety measures on another oil company plan to transport oil, likely Bakken, through Sacramento to a Benicia refinery. Valero Refining Co. officials say they hope to start next year shipping two 50-car oil trains a day through Sacramento to that plant.

Railroads have long successfully argued that federal railroad regulations pre-empt states, counties and cities from imposing any rules on their operations. In their letter, Sacramento officials contend that San Luis Obispo County and Benicia can require the oil refineries to write safety measures into their contracts with the rail carrier companies. A rail law expert, Mike Conneran of the Hanson Bridgett law firm in San Francisco, said Sacramento’s argument might have legal merit, but likely will have to be tested in court.

Crude-oil trains have proliferated in recent years around the country as producers use newer fracking technologies to unearth previously trapped oil deposits in the West. California Energy Commission analysts say very little of that oil is being transported on rail into California currently, but they say as much as 22 percent of the state’s oil will arrive by train by 2016.

One such shipment comes through Sacramento, traveling on the rail line that cuts through North Sacramento, midtown, Land Park and Meadowview en route to Richmond in the Bay Area. The BNSF Railway company recently filed papers with state emergency officials indicating they are running up to two trains a week on that route, an increase from one train a week earlier this year.

Another major crude-by-rail facility, outside of Bakersfield, is expected to open before the end of this year and may take shipments of crude oil on rail that will come through Sacramento. A spokesman for Plains All American, owner of the facility, declined comment on the routes the trains will take, saying that will be a decision the railroad companies will make.

Read more here: http://www.sacbee.com/news/local/transportation/article3935260.html#storylink=cpy

 

Oakland City Council votes to oppose coal, crude oil trains

Repost from Reuters
[Editor: See also “Oakland City Council Votes to Divest from Fossil Fuel Companies”  – RS]

Oakland City Council votes to oppose coal, crude oil trains

By Rory Carroll, San Francisco, June 18, 2014

(Reuters) – The Oakland City Council has unanimously backed a resolution opposing the use of the city’s rail lines to transport crude oil and coal, a move that supporters hope will call attention to proposed projects that would sharply increase the amount of such cargo rolling through the densely populated city.

The resolution will not halt crude oil trains from entering Oakland since U.S. railroads are federally regulated, but backers hope it will stoke debate about plans for export facilities that would boost demand.

Backers of the resolution are particularly concerned about a proposed upgrade to Phillips 66’s Santa Maria refinery that would allow it to take in more crude oil from North Dakota on trains that would pass by rail through Oakland.

They are also worried about the redevelopment of the Oakland Army Base, which includes the building of a commodities facility that they believe will be used to export coal. The coal would also be moved through the city by rail.

“These proposed export facilities are a serious threat to Oakland and the East Bay communities,” said Jess Dervin-Ackerman of the San Francisco Bay Chapter of the Sierra Club.

“If oil and coal companies have their way, the Bay Area will become the biggest fossil fuel export hub on the West Coast,” she said.

The fuels will not be consumed in the Bay Area, she added, but would just pass through the area on their way to overseas markets.

California has in recent years seen a surge in crude oil arriving by rail on the back of an oil boom in North Dakota’s Bakken shale formation and in Canada, prompting safety and environmental concerns.

Crude oil-by-rail shipments into California increased from about 70 rail tanker carloads in 2009 to nearly 9,500 carloads in 2013, according to state regulators. They are projected to soar in the next few years.

Last July, 47 people were killed in Lac-Megantic, Quebec, when a freight train carrying Bakken crude oil derailed and exploded. Since then, there have been a number of fiery derailments in the United States that have caused environmental damage, but no fatalities.

Separately, the Oakland City Council on Tuesday night unanimously passed a resolution to divest money from city employees from fossil fuel companies, although none of that money is currently invested in those types of businesses.

The move is intended to put pressure on the California Public Employees Retirement System (CalPERS), which does hold such investments, to follow suit.

CalPERS is one of the country’s largest managers of public pensions, with $288 billion in retiree assets under management. (Reporting by Rory Carroll, editing by G Crosse)

Martinez Gazette op ed: Wait a minute

Repost from The Martinez Gazette

Martinez Environmental Group: Wait a minute

By Guy Cooper | June 5, 2014

Several local refinery permits and associated Environmental Impact Reports (EIRs) are currently pending approval. For instance, Westpac in Pittsburg wants to receive, store and distribute explosive Bakken and toxic tar sands crude-by-rail at an old PG&E tank farm right next to homes and schools.

The Valero refinery in Benicia wants to bring to town daily 100 car unit trains of the same. Phillips 66 seeks to increase their volatiles storage and transportation in Rodeo and also enormously expand crude-by-rail traffic through our rail corridor to feed their San Luis Obispo facility. Finally, Shell wants to revamp the Martinez refinery to process lighter, sweeter crudes like Bakken. They will ship crude by rail from North Dakota to Bakersfield then by pipeline to Martinez, or by rail from North Dakota to a Washington State marine terminal that will load tankers bound for Martinez. Other plans are in the works.

So the debates ensue. I’d like to frame the discussions in a different context.

A common way to compare corporate apples to country oranges is by looking at corporate revenues as compared to national gross domestic product (GDP). According to the Fortune 500, the combined parent corporate revenues of the five major refiners in this area – Valero, Chevron, Shell, Phillips 66 and Tesoro – was $1.1 trillion in 2013. That ranked them 16th of 187 countries in the world in GDP according to the International Monetary Fund (IMF). If California was a country it would be 8th in the world, at over $2 trillion. You might imagine that the economic power of Contra Costa County and Martinez ranked somewhat lower.

So, Mr. Big Oil, would you say we have a level playing field?

  • At public hearings, you have Power Point presentations. We have pieces of paper.
  • You meet in corporate back rooms. We meet in neighborhood back yards.
  • You have professional political operatives. We operate with volunteer political naiveté.
  • You sponsor political junkets and infomercials. We do flyers and lawn signs.
  • You have a PR budget. We pass the hat for printing.
  • You have PACs. We have potlucks.

According to Citizens United and the Supreme Court, we are equal. I think not.

The EIR process, despite the original best of intentions, is skewed in your favor.

You get to frame the discussion with the help of consultants, lobbyists and lawyers. Fly in whomever you need. Your political relationships are built on bucks, your policies on billions.

Your vast assets steer the political discourse, whether through direct political contributions, lobbying to de-fund government oversight and regulation, or by endowing non-think-tanks and pseudo-public forums that aim to skew legitimate science towards your view.

Our interests are more than what you narrowly consider to be of public concern. We value social, ethical, moral, esthetic, environmental, family, property, public health and safety issues that go beyond your narrow economic focus.

We live here.

So who gets to call the shots?

The trains, or the towns the trains run through? The refiners and oil producers, or the communities in their midst?

Who should pay for oil industry impacts? The locals that bear the brunt, or the producers that reap the billions?

I’m sorry, but if we don’t like your proposals, as local residents/citizens, we have a right to reject them. We have to work hard to overcome your advantage, but … the Supreme Court has spoken, Mr. Citizens United. You get your vote, we get the rest.

(If you want to stay updated on these issues and learn how to get involved, please go to http://mrtenvgrp.com/category/meetings).