Category Archives: Phillips 66

KQED NEWS: Oil Trains Face Tough Haul in California

Repost from KQED News – The California Report

Oil Trains Face Tough Haul in California

By Julie Small, February 6, 2016
A train carrying crude oil operated by BNSF railway in California. (Jake Miille/Jake Miille Photography)

A statewide conflict over whether to allow more trains carrying crude oil into California is coming to a head in communities hundreds of miles apart.

The Central Coast town of San Luis Obispo and the Bay Area city of Benicia are poised to make decisions in the coming days that would have broad implications for the future of this type of import.

Longtime San Luis Obispo resident Heidi Harmon hopes to stop trains from hauling crude through her town, citing what she calls an “elevated risk of derailment.”

Oil trains would likely have to cross a 19th century bridge just a mile from the city’s thriving downtown.

“You can see the antiquated style with which this was put together” says Harmon, gesturing to rail tracks perched on top of the trestle’s steel rods.

She describes Stenner Creek Trestle as “stunning to look at but terrifying to consider a mile-and-a-half-long oil train coming over.”

Trains hauling up to 80 tanker cars could cross the trestle bridge multiple times a week if Phillips 66 gets wins approval for a plan to build a rail spur at its nearby refinery.

The company has applied for a permit to connect its Santa Maria refinery to the nearby Union Pacific line.

A steady decline in California oil production has compelled Phillips 66 to look for ways to bring in crude from other states. The company’s landlocked refinery in Santa Maria has no pipeline connection to do that — and no nearby port terminal.

The San Luis Obispo Planning Commission held hearings that began Thursday on whether to allow the rail spur project. County staff has advised against it, saying it poses too great a risk to public health and safety.

Harmon and hundreds of other opponents packed the meeting.

San Luis Obispo resident Heidi Harmon describes Stenner Creek Trestle as “stunning to look at but terrifying to consider a mile-and-a-half long oil train coming over.”
San Luis Obispo resident Heidi Harmon describes Stenner Creek Trestle as ‘stunning to look at but terrifying to consider a mile-and-a-half-long oil train coming over.’ (Julie Small/KQED)

“We have an opportunity in San Luis Obispo to say we do not want this train” said Harmon. “We do not want the dangers — the air pollution hazards and the increased cancer risks — we do not want this in our community.”

A series of accidents, including the 2013 Lac-Mégantic rail disaster that killed 47 people in Quebec, have fueled fears and community opposition.

Phillips 66 officials declined an interview for this story but said in an email the company uses “one of the most modern railcar fleets in the industry.”

Over 100 government agencies and school boards, including many from the San Francisco Bay Area, also oppose the rail spur in San Luis Obispo.

A similar project at the Valero refinery in Benicia also faces strong opposition.

Valero also wants to connect its operations to Union Pacific.

Benicia’s planning commission has set a public hearing on that crude-by-rail project Monday. Staff there is recommending approval.

Political leadership is divided, but many residents are opposed. Some of those municipal governments of nearby cities want more safeguards included in the project. To get to Benicia, the crude would first pass through communities far north, including Auburn, Sacramento and the university town of Davis.

“The rail line passes through the heart of our downtown and has a few geographic elements to it that raise concerns when oil trains are going through it,” said Mike Webb, city planner for Davis.

“We are not trying to stop the project,” Webb emphasized. “Our primary mission is to ensure that, to the extent that these trains and these materials are going through our communities, let’s make it as safe as it can possibly be.”

Davis officials and the Sacramento Area Council of Governments (SACOG) are pushing for a commitment from Valero and UP to use technology that automatically slows trains in densely populated areas.

“Public safety and first responder advance notification is of paramount concern,” said Yolo County Supervisor Don Saylor, a former council chair.

Officials also want a commitment to provide more training and funding for first responders in communities along the route and for emergency crews to get warned before an oil train comes down the line.

Chris Howe, a manager for Valero, testified at a public hearing last year on the Benicia oil-by-rail project that the company is committed to strong safety standards and modern technology.

“We have from the start planned to utilize in our project upgraded railcars.” Howe said.

Valero is also working with an experienced railroad.

San Antonio-based Valero Corp. is the nation's biggest refiner. The Benicia refinery is one of two the company operates in California.
San Antonio-based Valero Corp. is the nation’s biggest refiner. The Benicia refinery is one of two the company operates in California. (Craig Miller/KQED)

“We expect UP railroad — which is the prime railroad that we’ll be utilizing to move those trains — to do so safely,” Howe said. “Many of the incidents that have happened have occurred on much smaller, less well maintained railroads.”

Union Pacific says it has made changes to reduce the risk of hauling crude: implementing slower speeds in high-population areas and creating analytical tools to find the safest routes.

The two projects under consideration are among a handful of crude-by-rail projects proposed in recent years to take advantage of inexpensive crude from North Dakota, Canada and Texas.

But the recent plunge in oil prices has made hauling it by train more expensive, causing some of those plans to unravel.

“The rail economics have changed the calculus for some companies” said Gordon Schremp, a senior fuel analyst with the California Energy Commission.

Last year WesPac abandoned a plan to build a rail terminal in the Bay Area town of Pittsburg, citing a lack of investors for the project. Alon USA has yet to act on a permit the company acquired in 2012 to build a crude-by-rail terminal at an idle refinery in Bakersfield.

According to Schremp, even at the peak of industry interest rail imports comprised just 1 percent of California’s oil imports. By the end of 2015, those imports plummeted to one-tenth of 1 percent.

“Crude-by-rail was never a very important source supply,” said Schremp, “because we did not have the facilities constructed.”

SLO: Another hearing scheduled for opponents of Phillips 66 oil-by-rail plan

Repost from KCBX FM, Central Coast Public Radio
[Editor:  Significant quote: “I think that they have a strong argument in the sense that we do need every job. We do need well paid jobs. But, we’re being asked to make a choice between the long-term health and safety of our community and these specific jobs. And that’s a choice no American should ever have to make.”  – Eddie Scher of ForestEthics. Hearings will continue on February 25.  – RS]

Another hearing scheduled for opponents of Phillips 66 oil-by-rail plan

By Daniel Park, February 5, 2016

KCBX_listenThe San Luis Obispo Planning Commission wrapping up public comment Friday after hearing from hundreds of people voicing opposition to an oil-by-rail plan over a two day period.

Not everyone has been heard though, so commissioners must carry those over to the next scheduled meeting on February 25, 2016.

Opposition to the Phillips 66 plan to increase the number of trains carrying crude oil to refinery near Nipomo got a major boost Friday as well.

Phillips 66 plans to bring crude oil by train to their Santa Maria refinery. CREDIT DRAFT ENVIRONMENTAL IMPACT REPORT

Opponents received a key endorsement, as the California Coastal Commission sent a letter to the SLO Planning Commission urging members to reject the proposal based on adverse impacts to the environment.

If the Planning Commission votes no and the company appeals, the proposal could eventually end up before the Coastal Commission, which has regulatory authority over coastal land use.

Supporters say the proposal’s economic benefits would outweigh the potential costs.

Phillips 66 spokesman Dennis Nuss said Friday, the plan will provide jobs and maintain the area’s energy production.

“There’s been a decline in both onshore and offshore California crude oil productions, so additional reliable sources of crude are required to ensure that the refinery can continue to meet those critical energy needs and support jobs in the community,” Nuss said.

If approved, Phillips 66 said it will hire 200 people for construction jobs, as well as 12 permanent positions in its refinery.

Opponents say jobs aren’t worth the project’s potential damage.

Eddie Scher, the spokesperson for ForestEthics, an environmental organization that demands environmental responsibility from corporations, said that the choice between jobs and the environment isn’t fair.

“I think that they have a strong argument in the sense that we do need every job. We do need well paid jobs,” Scher said. “But, we’re being asked to make a choice between the long-term health and safety of our community and these specific jobs. And that’s a choice no American should ever have to make.”

Commissioners won’t make a decision until after hearing from everyone later this month.

Phillips 66 says it will pursue other options, should it’s proposal fail.

SAN LUIS OBISPO: Hundreds condemn Phillips 66 oil-by-rail proposal in first day of two-day hearing

Repost from The Tribune, San Luis Obispo CA
[Editor:  See also Pacific Coast Business Times, “Phillips 66 proposes fewer trains” and KSBY-TV, “Hearing begins.”  – RS]

SAN LUIS OBISPO: Hundreds condemn Phillips 66 oil-by-rail proposal in first day of two-day hearing

HIGHLIGHTS
• Planning Commission begins its two-day hearing on the proposed rail line for the Nipomo Mesa refinery
• Phillips 66 officials and county planning staff disagree on environmental impacts
• Hundreds of project opponents from across California arrive in SLO to protest the proposal

About 600 people gathered outside a San Luis Obispo County Planning Commission hearing to protest Phillips 66 Co.’s proposal to bring oil by rail to its Nipomo Mesa refinery.BY Cynthia Lambert, February 4, 2016 10:01 AM

In what was the largest turnout for a public hearing in years, hundreds of local residents and others from around California converged on San Luis Obispo Thursday to urge the county Planning Commission to reject Phillips 66 Co.’s request to receive crude oil by rail.

The hearing came about 18 months after the company submitted its project to the county for review, kicking off a firestorm and deluge of letters from around the state as residents and environmental organizations rallied opposition in communities near the Union Pacific railways.

On Thursday, the days of reckoning had finally arrived.

For several hours, planning commissioners heard appeals from 83 people — a combination of residents from San Luis Obispo County, and northern and southern California, as well as elected officials — all urging they reject a proposal to build a 1.3-mile spur with five parallel tracks from the main rail line to the Nipomo Mesa refinery, an unloading facility at the refinery and on-site pipelines.

“This affects everyone in the county in a major and adverse way,” said James Hencier of Nipomo.

He and other opponents cited numerous public safety and health impacts, air pollution and water quality problems, and the possibility — many said certainty — of a potentially disastrous oil train derailment or spill should the project be allowed to proceed.

“If this project goes forward, we can never go back and change it,” Nipomo resident Jennifer Williams said. “The damage will be done and it will be just a matter of time before an accident happens.”

About 390 people had grabbed speaker comment slips as of Thursday afternoon, including those who spoke that day. Public comment will continue Friday and possibly to a future date, depending on how many of the speakers turn out. None of the 83 public speakers on Thursday spoke in favor of the Phillips 66 proposal.

On Thursday morning in a full meeting room, the commission first heard a report from county planning staff explaining its recommendation for denial of the project, which as proposed would allow five trains a week, for a maximum of 250 trains per year to deliver crude oil to the Nipomo Mesa refinery.

Each train would have three locomotives, two buffer cars and 80 railcars carrying a total of about 2.2 million gallons of crude oil, according to county planners.

But representatives from Phillips 66 urged the commissioners to approve an alternate plan to allow three trains a week instead of five.

“The three-train-per-week project is now our proposed project,” said Jocelyn Thompson of Alston & Bird LLP.

It “eliminates all of the Class 1 impacts with respect to onsite activities,” she added, referring to the highest level of negative impacts to air quality and biological resources referenced in the project’s final Environmental Impact Report.

The county staff report states that three trains a week — or 150 a year — would reduce the significant toxic air emissions to no longer be considered a “Class 1 significant impact.”

However, the county’s planning staff said other significant impacts still would harm the environment even with three trains per week rather than five: construction of the facilities would still disturb environmentally sensitive habitat, and emissions of diesel particulate matter would still remain a “Class 1” impact.

Thompson also told the commission that federal preemption would prevent the commission from imposing conditions along the main rail line to mitigate potential environmental impacts.

In addition, she said, if the project is denied, crude oil will still come into California by rail and eventually reach the refinery, albeit by a different route: Oil would arrive in the Central Valley by train and then be trucked about 110 miles through San Luis Obispo County to Santa Maria, where it would be pumped into a pipeline and sent to the refinery.

“It’s impermissible for you to say that you’re going to deny the project because there’s a train on the tracks,” she said. “The train will come to the San Joaquin Valley and you will be dealing with trucks.”

In response, several local residents said they would prefer trucks over trains, and one San Jose resident said that wouldn’t mean anything to Bay Area residents. “That doesn’t mean anything to us in Northern California,” Jill Sardegna said. “For us there will be trains, one mile long.”

Trains carrying crude oil could enter California at five locations, so the exact routes may vary. Trains from Northern California would generally pass through the Union Pacific rail yard in Roseville, near Sacramento; trains traveling from Southern California would likely pass through the Colton rail yard in San Bernardino County.

The company now receives crude by pipeline.

Phillips 66 officials have repeatedly said oil production in California is dropping, and bringing in crude oil by rail from a wider range of sources would allow the company to offset any reduction in deliveries from its current suppliers. Phillips 66 officials have said the project would maintain more than 200 jobs at the refinery, plus $2.2 million in annual tax revenue to the county.

When asked during a break if layoffs could happen if the project is denied, Phillips 66 spokesman Dennis Nuss said, “We’re going to wait and see what is going to happen with the process.”

Several speakers argued that Phillips 66 does not need the project to maintain its current number of employees, but is only interested in increasing profits.

“All they want are some tracks for a rail spur, that all sounds quite harmless,” Nipomo resident Michele Schneiderman said. “They want to make SLO County a hub for the corporation’s stated crude oil by rail strategy.”

If the plan is approved, the refinery would not increase the amount of material processed there, and no crude oil or refined product would be transported out of the refinery by rail, the company has said. The refined product would be piped to the Rodeo Refinery in Contra Costa County — the same as the refinery’s current operation, according to a staff report.

Currently, no more than six freight trains and six passenger trains pass through San Luis Obispo County each day on the Union Pacific’s Coast line. Freight trains already carry crude oil, as well as lumber, vehicles and hazardous materials, according to the rail project’s environmental report. A crude oil train traverses the county as it moves from San Ardo to Los Angeles two to three times a week. It has been in operation for about 20 years.

San Luis Obispo Mayor Jan Marx was among the elected officials or their representatives who urged denial of the project. “Whether it’s five or three trains, our city would be placed at unique risk to this project,” she said.

Paso Robles High School student Gabby Davis also spoke “on behalf of peers at school and youth in the community.”

“How would it make you feel to know that one day you get a phone call and because of an oil train derailment one of your great grandchildren will be impacted,” she asked the commissioners. “Oil trains are dinosaurs and dinosaurs belong in museums.”

At lunch, about 600 people from around the state rallied across the street from the hearing to protest the project. Some supporters were seen too, with green “Protect Jobs” signs, but they were far outnumbered by opponents with “Stop Oil Trains Now” posters and signs proclaiming, “We Risk, They Benefit” and “Invest in Solar.”

Environmental activist candidate Heidi Harmon, a protest organizer, initiated a call-and-response chant, “childen’s safety under attack … stand up, fight back.”

Among the rally speakers were 24th District congressional candidates Helene Schneider and Salud Carbajal of Santa Barbara.

“All it takes is just one train for a disaster to occur that could wreak havoc,” Schneider, who is mayor of Santa Barbara, told the sign-waving crowd of activists who came from as far away as Los Angeles, Ventura, the San Francisco Bay Area, Fresno and other communities that would be affected by the proposed rail project.

Carbajal, a Santa Barbara County supervisor, cited his opposition to fracking and concerns about public health and safety as his reasons for opposing the Phillips proposal.

“You have to put action to your words or else you’re just blowing hot air,” Carbajal said.

Project opponents at the protest rally included representatives of the California Nurses Association, Surfrider Foundation, and teachers who said school districts along the rail line throughout the state opposed the project. Many had sent letters of opposition to the county over the past year.

Their main concerns were the potential for dangerous explosions from oil trains and toxins released from the transport of diesel fuel.

Cal Poly student Kyle Jordan said the university’s Associated Students Inc. student government board voted in favor of a resolution opposing the project as well.

“The official voice of 20,000 students encourages the Planning Commission to reject this proposal,” Jordan said.

Tribune staff writer Nick Wilson contributed to this report.

San Luis Obispo Planning Department recommends DENIAL of proposed Phillips 66 oil trains terminal

From an email by Ethan Buckner of ForestEthics
[Editor:  Here is the San Luis Obispo County staff document, “Findings for Denial.” This and more documents can be found on the County’s website.  See also Ethan’s update: “SLO County Staff Tells County to DENY Phillips 66 Oil Train Terminal” with info on how YOU can attend the hearings in San Luis Obispo.  – RS]

BREAKING: San Luis Obispo Planning Department recommends DENIAL of proposed Phillips 66 oil trains terminal

By Ethan Buckner, January 25, 2016
BREAKING: SLO County Planning Department Staff recommends denial of the Phillips 66 oil trains terminal
Click here for info on transportation to the hearings & rally.

Extraordinary news this afternoon out of San Luis Obispo, California, where Phillips 66 proposed to build an oil trains terminal at its refinery on the Nipomo Mesa.

Ahead of critical county Planning Commission hearings on the project, the SLO County Planning Department released their staff report recommending denial of the projectThis document is pretty unprecedented from municipal or county planning staff, who in most cases serve as conduits for industry and placaters of public concern. This document reflects a bold assertion of principles of public health, safety, and climate protection over corporate profit. At the bottom of the email, I’ve pasted the main arguments the county is using to recommend denial.

Come hearing time on February 4 and 5, local activists and allies across California will converge on SLO to make sure that Planning Commissioners listen to their own experts and overwhelming public opposition and stamp in this project’s denial. For those of you able to join us in SLO, here’s some info on transportation to the hearings & rally.

The Planning Department’s recommendations do not come out of nowhere. Over the past two years grassroots activists in SLO and beyond have catalyzed a powerful campaign that’s engaged thousands of Californians and enrolled dozens upon dozens of cities, counties, school boards, unions, and campuses to pressure SLO County to deny this project. This recommendation is an affirmation of our collective power.

Many thanks for all your tireless work, and hope to see you in SLO on February 4 and 5!

In solidarity,
Ethan

1. The Department of Planning and Building has found the Project to be inconsistent with several goals and policies of the following plans:

a. Coastal Zone Framework for Planning

b. County’s Conservation and Open Space Element

c. Costal Plan Policies d. Safety Element

e. Coastal Zone Land Use Ordinance

f. South County Area Plan

2. The Project would be detrimental to the health, safety and welfare of the public and the residents of San Luis Obispo County due to the increase of hazardous accidents as a result of the Project.

3. The Project includes a significant and unavoidable environmental impact with regards to cancer risk (air quality) for the population near the proposed rail spur.

4. The Project includes a significant and unavoidable environmental impact with regards to diesel particulate matter (air quality) due to an exceedance of the SLOCAPCD CEQA threshold.

5. The Project would result in 10 significant and unavoidable environmental impacts (agricultural resources, four which are air quality, biological, cultural, hazards, public services, and water resources), with regards to the mainline rail operations within the County as a result of the Project. Planning Commission Development Plan/Coastal Development Permit #DRC2012-00095 / Phillips 66 Company Page 6

6. The Project would result in 10 significant and unavoidable environmental impacts (agricultural resources, four which are air quality, biological, cultural, hazards, public services, and water resources), with regards to the mainline rail operations beyond San Luis Obispo County and throughout the State.

7. There is a lack of specific overriding economic, legal, social, technological, or other benefits of the Project that outweigh the significant effects on the environment, as would be required to approve the Project pursuant to Public Resources Code section 21081.