Category Archives: Pipeline transport

Oil spill, Pipeline infrastructure, Pipeline transport

Santa Barbara area spill reopens wounds from 1969

Repost from the San Francisco Chronicle

Santa Barbara area spill reopens wounds from 1969

By Peter Fimrite and Evan Sernoffsky, May 21, 2015 10:40pm
Clean up workers gather oil-contaminated sand bags at Refugio State Beach, north of Goleta, Calif., Thursday, May 21, 2015. More than 7,700 gallons of oil has been raked, skimmed and vacuumed from a spill that stretched across 9 miles of California coast, just a fraction of the oil escaped from a broken pipeline, officials said. Photo: Jae C. Hong / Associated Press / AP
Clean up workers gather oil-contaminated sand bags at Refugio State Beach, north of Goleta, Calif., Thursday, May 21, 2015. More than 7,700 gallons of oil has been raked, skimmed and vacuumed from a spill that stretched across 9 miles of California coast, just a fraction of the oil escaped from a broken pipeline, officials said. Photo: Jae C. Hong / Associated Press / AP

GOLETA, Santa Barbara County — The scene along the Santa Barbara County coast was horrific: An oil slick 6 inches deep blackened 800 square miles of seawater, 3,500 birds were dead, and 100 dead elephant seals and sea lions were found on a San Miguel Island beach.

It was 1969.

When oil spilled again this week, the outcome — and duration — was much different, largely because that man-made disaster 46 years ago changed everything, prompting the first Earth Day and giving rise to the U.S. Environmental Protection Agency, California Coastal Commission and the landmark California Environmental Quality Act.

Still, it reopened wounds left from that unprecedented disaster.

“I’ve just been thrust back almost 50 years,” said Robert Sollen, 93, a former award-winning reporter for the Santa Barbara News-Press, referring to his coverage of the 1969 Santa Barbara oil spill. The deep water blowout of a Union Oil rig had spilled an estimated 4.2 million gallons of oil into the ocean over 11 days, but the oil giant downplayed the incident.

Fred Hartley, the president of Union Oil, refused to call it a disaster because human lives were not lost. “I am amazed at the publicity for the loss of a few birds,” he said in 1969.

This week’s spill dumped as much as 105,000 gallons of crude oil over several hours out of an onshore pipe owned by Plains All-American Pipeline. The oil flowed into the water through a culvert, prompting an immediate and enormous unified response under the command of the U.S. Coast Guard, EPA and the Oiled Wildlife Care Network.

State of emergency

Gov. Jerry Brown declared a state of emergency in Santa Barbara County as nearly 300 state and federal emergency workers and scientists raked oil off Refugio State Beach and El Capitan State Beach. Five pelicans and a sea lion were rescued and were being treated.

“There will be serious repercussions and people demanding how this could happen,” Sollen said as a shiny opaque ring of oil collected on the beaches and along the surrounding cliffs at the high tide mark. “After 50 years, that’s as it should be.”

The situation is a reminder to Sollen and many other locals who witnessed the 1969 oil spill of how vulnerable Santa Barbara County is to disaster.

The Santa Barbara Channel sits on a thick block of sedimentary rock that holds down vast quantities of oil. There is so much oil, in fact, that it sometimes seeps naturally from the sea floor.

The area is consequently a highly valuable resource for the petroleum industry. In fact, the first offshore oil drilling in the world was built in 1896 off the southern coast of Santa Barbara County, just 6 miles from the site of the catastrophic spill 73 years later.

There was anger even then as ugly oil platforms and pollution began to spoil the dramatic natural scenery and unspoiled beaches. Vigilantes, led by a local newspaper publisher named Reginald Fernald, actually tore down an oil rig at Miramar Beach.

“The protests started in the late 1890s,” said Sollen, who wrote a book called “Ocean of Oil” about the oil boom in the area. “Of course they polluted like crazy, but there were no regulations in effect at that time.”

The horror to come

The oil boom continued despite public opposition and numerous small oil spills, including one in 1968 that dumped 2,000 gallons of crude oil off the coast, inflaming local opposition. Sollen said locals had long predicted and he had written about the potential for a large spill, but he was not prepared for the horror that he would soon witness.

At 10:45 a.m. on Jan. 28, 1969, pressurized natural gas and oil exploded out of a 3,500-foot-deep well as Union Oil attempted to extract a drilling pipe at a platform called Alpha.

‘It was in your face’

“It was the first of its kind on that scale, and it was in your face,” said Keith Clarke, a geography professor at UC Santa Barbara, who wrote a retrospective on the disaster in 2002 for a scientific convention. “There was no way to avoid it. It was right in front of a resort town.”

The dismissive statement from the Union Oil president and subsequent revelations that the oil company had gotten a waiver from the federal government allowing them not to use casing designed to prevent such a blowout prompted a national movement and inspired wholesale changes in policy and law.

“People stood there and cried,” said Bud Bottoms, an 87-year-old artist, activist and author who helped found a group called Get Oil Out, or GOO. “There was no sound. There were no waves. It was just flat with about 2 or 3 inches of oil coming to shore.”

Fired up the activists

GOO collected 100,000 signatures on a petition to ban offshore drilling and organized a campaign to send flasks of spilled oil to politicians. Local activists also formed a group called the Environmental Defense Center.

“People were so fueled up,” Bottoms said from his Santa Barbara living room. “We marched to the wharf that had been leased by the oil company and blocked the trucks from coming onto the dock. From there we started the publicity fight.”

A subsequent ballot initiative created the California Coastal Commission to regulate coastal areas. The California Environmental Quality Act soon followed, forcing developers and other land users to consider environmental impacts.

President Richard Nixon signed the National Environmental Policy Act in 1969, mandating scrutiny of all federal projects, including drilling platforms and offshore oil leases, for environmental impacts before approval. In 1970 the Environmental Protection Agency was formed.

First Earth Day

The Santa Barbara spill inspired then-Sen. Gaylord Nelson of Wisconsin to organize Earth Day, an annual celebration of the world ecosystem that continues to this day. The State Land Commission halted offshore drilling after the spill, but Ronald Reagan lifted the ban years later when he was president.

Despite all this, rows of drilling platforms can still be seen off Highway 101 between Ventura and Santa Barbara, features of the landscape that many locals still call “Reagan’s Christmas trees.”

The platforms, and the oil glut they represent, are a sign to many locals that oil drilling is not likely to cease anytime soon.

“The bottom line is that in spite of it all, we really only pay attention to this when there are large leaks and they occur in beautiful places,” Clarke said. “There is always a level of protection that we need that we don’t seem to be able to put in place. Meanwhile, oil and water still don’t mix.”

Peter Fimrite and Evan Sernoffsky are San Francisco Chronicle staff writers.

 

Oil spill, Pipeline transport

Disastrous oil spill in Santa Barbara CA shows pipeline risk

Repost from the San Francisco Chronicle (SFGate.com)

Oil spill spreads near Santa Barbara; could happen in Bay Area

By Peter Fimrite, Wednesday, May 20, 2015 9:21 pm
The oil sheen and oil-soaked kelp befoul the ocean off the Southern California coast as cleanup continues. Photo: Brian Van Der Brug / McClatchy-Tribune News Service / Los Angeles Times
The oil sheen and oil-soaked kelp befoul the ocean off the Southern California coast as cleanup continues. Photo: Brian Van Der Brug / McClatchy-Tribune News Service / Los Angeles Times

The San Francisco Bay Area, like Santa Barbara, is home to a vast network of oil pipelines that could easily rupture and cause the same kind of disastrous spill that is blackening the Southern California coast.

A large pipeline next to Refugio State Beach in Santa Barbara County burst Tuesday and spewed up to 105,000 gallons of crude oil, and officials say much of it entered the Pacific Ocean, where it coated wildlife and prompted an emergency oil spill response.

It is the kind of disaster that local officials say could happen in the Bay Area, especially around the oil refineries in Richmond and Martinez, where petroleum is regularly transported between marine terminals and storage facilities along San Francisco Bay and the Carquinez Strait.

“Pipelines are everywhere throughout the East Bay complex, and where there are pipelines there is the possibility of a rupture,” said Ted Mar, the chief of the prevention branch of the California Department of Fish and Wildlife’s Office of Spill Prevention and Response. “There are all sorts of different reasons a pipeline might fail.”

Cause still unknown

Investigators have not yet figured out why the 24-inch pipeline burst next to Refugio State Beach in Santa Barbara County. The oil bubbled up into a culvert, ran under Highway 101 and flowed through a storm drain into the ocean. The pipeline was shut off within a few hours of its discovery. By Wednesday afternoon, a 9-mile plume of oil could be seen from the road along the scenic stretch of coastline about 20 miles northwest of Santa Barbara.

Santa Barbara County health officials shut down Refugio State Beach, where the spill was concentrated, and officials said there was a strong petroleum smell.

“We are starting to get some oiled wildlife in our facility,” said Steve Gonzalez, the spokesman for the Office of Spill Prevention and Response, adding that the slick is spreading at a rate of 3 to 4 miles a day. “We don’t have any hard numbers, but we do have some oiled wildlife.”

Gonzalez said the pipeline was transporting crude from the Exxon Mobil plant inland to Bakersfield. The pipe, operated by Plains All American Pipeline LP, a Houston company, is called the Flores to Gaviota Pipeline.

Company efforts

“The culvert has been blocked so no additional oil is reaching the water,” the company said in a statement. “Plains deeply regrets this release has occurred and is making every effort to limit its environmental impact.”

Most of the pipelines in the Bay Area are not large transmission lines pumping crude long distances like the one that ruptured at Refugio beach, Mar said. Still, a rupture could easily happen at one of the many underground pipes at petroleum companies on and around San Francisco Bay.

The last major pipeline disaster in the Bay Area was in 2004 when an underground 14-inch diameter pipe owned by Kinder Morgan Energy Partners ruptured, spewing 123,774 gallons of diesel fuel into Suisun Marsh, near Fairfield, sliming birds, fish and mammals and spoiling some 224 acres of wetlands. The pipeline was taken out after the spill.

Plains has a checkered history in California and around the country. The company was fined $1.3 million for Clean Water Act violations in March 2005 when 142,506 gallons of oil spilled into Pyramid Lake, part of the California Aqueduct 60 miles northwest of Los Angeles.

The company, which was then called Pacific Pipeline Systems LLP, was forced to abandon 70 miles of pipeline that ruptured because of a landslide, according to Suzanne Skadowski, the spokeswoman for the U.S. Environmental Protection Agency.

The pipeline giant also paid at least $1.5 million for the April 2011 release of 1.2 million gallons of crude oil near a Cree community in northwest Alberta, the largest oil spill in Canada in more than three decades.

Alberta’s energy regulator issued a scathing report after that spill, accusing a subsidiary of the company of improperly inspecting welds, failing to backfill around the pipe and placing a higher priority on keeping the pipeline running than containing the leak.

Plains has three storage facilities in the Bay Area but no pipelines. Mar said most of the lines in the Bay Area are smaller pipes that connect the oil refineries in Richmond and Martinez to storage tanks and marine terminals. Their proximity to populated areas makes disaster a little less likely.

The long transmission pipelines “are the lines that carry the product long distances between regulated areas,” Mar said. “Those are the ones to worry about, because those are the ones away from people looking at them constantly. They can go quite a distance before someone realizes they are leaking.”

Odor was the tip-off

The ruptured pipeline in Santa Barbara was discovered only after authorities went to the beach to investigate reports of a foul smell.

The Santa Barbara coastline is also an oil-rich area, with rigs and drilling operations out in the ocean. It was on the same stretch of coast where hundreds of thousands of gallons of oil spilled in 1969 after a blowout on an oil platform. That spill, the largest in U.S. history at the time, killed thousands of seabirds and marine mammals and was credited with starting the modern American environmental movement, which prompted major regulations against the oil industry.

“That region has a lengthy history. Its a high-producing area,” according to Mike Ziccardi, director of the Oiled Wildlife Care Network at UC Davis. “There are natural seeps there. We receive from 150 to 200 birds every year from there coated with oil that wasn’t from spills. It’s from natural seeps.”

Mar said cracks, valve malfunctions or other mishaps could easily happen in the Bay Area, especially during an earthquake, but “oil spills are more an exception than the rule.”

“When they happen, we need to respond quickly to protect the environment and California’s resources,” he said. “We are all stakeholders.”

Peter Fimrite is a San Francisco Chronicle staff writer.
Alberta Canada, Canadian regulation, Crude By Rail, Electoral politics, Oil prices, Pipeline transport, Tar sands crude

Alberta election could send tremors through Montana economy

Repost from The Missoulian
[Editor:  Pay attention to Alberta!  Changes there will send ripples all along the rails in the U.S., from the Upper Midwest to the East Coast, West Coast and Gulf Coast.  Congratulations to Rachel Notley and the New Democratic Party!  – RS]

Alberta election could send tremors through Montana economy

By Rob Chaney, May 09, 2015 5:30 pm
Rachel Notley
Alberta New Democratic Party leader Rachel Notley speaks on stage Tuesday night in Edmonton after being elected Alberta’s new premier. The NDP won a majority in the provincial Legislative Assembly by toppling the Progressive Conservative colossus that has dominated the province for more than four decades. Photo: NATHAN DENETTE, Canadian Press

Montana’s political seismograph didn’t rattle much last Tuesday when its neighbor to the north underwent a governmental earthquake.

But that could change in the coming weeks, as the citizens of Alberta absorb the magnitude of their replacement of Canada’s longest-standing political party rulers with a left-wing opposition pledged to look hard at its energy economy.

“The Progressive Conservative Party has been in power two years longer than I’ve been alive,” said University of Montana biology professor Mark Hebblewhite, a 42-year-old Alberta native. “I think this is a real response to the ongoing mismanagement of Alberta’s bounty. One thing that hit the nail on the head was how the province went from being overrun with money to crashing in another bust. People get really tired of it.”

The New Democratic Party took 53 seats in the Alberta Parliament in Tuesday’s election. Another traditional minority group, the Wildrose Party, surprisingly found itself in second place with 21 seats. The Progressive Conservatives held onto just 10 seats.

NDP party leader Rachel Notley was credited for a remarkable political ground game that unseated Progressive Conservative Party leader Jim Prentice – a man widely considered a future leader of all Canada. Prentice resigned from his post on election night and said he was at least temporarily leaving politics.

Alberta’s entire United States border runs along Montana, from the western edge of Waterton-Glacier International Peace Park to the 110th Meridian north of Havre. The province and state share the spine of the Rocky Mountains and the beginnings of the great mid-continental prairies.

They also share a relatively recent surge in energy development. Over the past decade while Montana has exploited its Bakken oil and gas fields along the border with North Dakota, Alberta has been opening massive production in tar sands petroleum near Fort McMurray.

Oil from the tar sands has become both a political and social controversy.

New Democratic Party officials have questioned the need for the Keystone XL pipeline that would run south from Alberta, through a corner of Montana and down to refineries in Oklahoma and Texas. The Obama administration has stalled permitting of the international border crossing, while Montana’s bipartisan congressional delegation has supported it.

“If the Keystone XL doesn’t happen, the amount of rail traffic leaving Alberta would be impacted significantly from that decision,” said Bentek Energy senior analyst Jenna Delaney. “Currently, taking the Keystone XL out would increase petroleum unit trains by five a day out of Alberta. And Transport Canada officials say residents in Canada are very concerned with rail traveling through their communities.”

Moving petroleum by rail has become an issue in both Canada and the United States, signposted most recently by last week’s explosion of a group of oil tank cars near Heimdal, North Dakota.

Caryn Miske of the Flathead Basin Commission said the prospect of moving more oil trains along the southern border of Glacier National Park is under close scrutiny.

“We’re already seeing impacts from the amount of oil that’s moving around,” Miske said. “The number of trains and cars carrying oil has increased, and that’s really concerning, considering how many near-misses we’ve had.”

Burlington Northern Santa Fe has a freight line that runs out of Alberta into Montana at Sweet Grass, although there’s not much cross-border oil traffic there yet.

***

Delaney said another factor of the government change could be the NDP’s campaign pledge to revamp the province’s tax structure on energy development.

“They’re looking at increasing income taxes and royalty rates to corporations, which the oil companies aren’t happy about,” Delaney said. “The last time I was in Calgary, the atmosphere was already a little bleak. If taxes are raised on corporations, I don’t know how they might respond. Companies with offices in other places might shift people away from Calgary.”

Much of the province’s energy economy has extremely expensive initial start-up costs. Energy analysts have already been forecasting a drop in Albertan oil production as new projects slip below their break-even points with falling oil prices.

Delaney said that could have an impact on Montana’s economy, as the demand for megaloads of oil field equipment transported across the state stalls.

Longtime conservation activist Stephen Legault said the provincial government’s failure to manage its oil wealth led to great voter frustration.

“We’re drilling 20,000 wells a year in Alberta, and we’re $7 billion in the hole economically,” Legault said. “That’s largely because when oil goes below $75 a barrel, provincial coffers take a massive hit.”

The result has been a government unable to fix damage from the floods that ravaged Calgary in 2013, or even to send land management officials to cross-border conferences in Montana.

While the new government has majority control of Alberta’s Parliament, its influence over the provincial agencies could be a murkier matter. Those departments have had decades of one-party control appointing their directors and staffs.

“If I was south of the border looking north, I wouldn’t expect to see anything dramatic right away,” Legault said. “We’ve had five changes of government since 1905. The bureaucracy is so deeply entrenched after 45 years of one-party rule, it’s going to take years for a new government to put in place the people it wants to create change.”

Alberta Canada, Canadian regulation, Electoral politics, Natural gas, Oil Industry, Oil prices, Pipeline transport, Tar sands crude

Alberta’s possible pivot to the left alarms Canadian oil sector

Repost from Reuters

Alberta’s possible pivot to the left alarms Canadian oil sector

By Scott Haggett and Nia Williams, May 4, 2015 7:07am EDT
Alberta NDP Leader Rachel Notley meets with Mayor Naheed Nenshi in his office in Calgary, Alberta, April 30, 2015. REUTERS/Todd Korol

(Reuters: CALGARY, Alberta) – Canada’s oil-rich province of Alberta is on the cusp of electing a left-wing government that can make life harder for the energy industry with its plans to raise taxes, end support for key pipeline projects and seek a bigger cut of oil revenues.

Polls suggest Tuesday’s election is set to end the Conservative’s 44-year reign in the province that boasts the world’s third-largest proven oil reserves and now faces recession because of the slide in crude prices.

Surveys have proven wrong in Canadian provincial elections before and voters may end up merely downgrading the Conservatives’ grip on power to a minority government.

Yet the meteoric rise of the New Democratic Party and the way it already challenges the status-quo of close ties between the industry and the ruling establishment has alarmed oil executives. The proposed review of royalties oil and gas companies pay the government for using natural resources and which could lead to higher levies, is a matter of particular concern.

“Now is not the time for a review of oil and natural gas royalties,” Tim McMillan, president of the Canadian Association of Petroleum Producers, the country’s top oil lobby, said in a statement.

A 2007 increase in the levy was rolled back when the global financial crisis struck and oil executives say today the time is equally bad to try it again.

Yet the left’s leader Rachel Notley, a former union activist and law school graduate, has shot up in popularity ratings in the past months advocating policies that have been anathema for many conservative administrations.

She says she would not lobby on behalf of TransCanada Corp’s controversial Keystone XL pipeline or support building of Enbridge Inc’s Northern Gateway pipeline to link the province’s oil sands with a Pacific port in British Columbia. Citing heavy resistance from aboriginal groups to the Enbridge line, Notley says Alberta should back those that are more realistic such as TransCanada’s Energy East pipeline to the Atlantic ocean.

PACKING UP?

Notley also advocates a 2 percentage point rise in Alberta’s corporate tax rate to 12 percent to shore up its budget that is expected to swing from a surplus to a C$5 billion deficit in 2015/2016 as energy-related royalty payments and tax revenues shrink.

Even with the proposed corporate tax hike Alberta’s overall taxes would remain the lowest nationally. Oil executives warn, however, that any new burdens at a time when the industry is in a downturn, shedding jobs and cutting spending, could prompt firms to move corporate head offices out of the province.

“Business is mobile,” said Adam Legge, president of the Chamber of Commerce in Calgary where most of Canada’s oil industry is based. “Capital, people and companies move.”

Ironically, the challenge the oil industry and the Conservatives face is in part a by-product of Alberta’s rapid growth fueled by the oil-sands boom.

The influx of immigrants from other parts of Canada and overseas has changed the once overwhelmingly white and rural province. Today Alberta is one of the youngest provinces and polls show younger and more diverse population is more likely to support left-wing causes such as environment and education and more critical of big business. The New Democratic Party still only got 10 percent of the votes in the 2012 vote, but an election of a Muslim politician as a mayor of Calgary in 2010 served as an early sign of the changing political landscape.

The Conservatives themselves and their gaffe-prone leader Premier Jim Prentice also share the blame for the reversal of fortunes with one poll showing them trailing the left by 21 percent to 44 percent.

Prentice angered voters when he told Albertans to “look in the mirror” to find reasons for the province’s fiscal woes and then passed a budget in March that raised individual taxes and fees for government services but spared corporations.

Scandals – Prentice’ s predecessor left last year because of a controversy over lavish spending – and blunders added to the party’s woes.

The NDP vaulted to the top of the polls after Notley’s strong performance in an April 23 televised debate, when Prentice, former investment banker, drew fire for suggesting his rival struggled with math.

Then there is voter fatigue with a party seen as too comfortable and scandal-prone after decades in power.

“It’s still the same gang, the same policy, same procedures, the same concept of entitlement,” said one executive at a large oil and gas producer who declined to be named because he is not authorized to talk to the media. “I know some extremely neo-conservative guys who have said enough is enough.”

(Additional reporting by Julie Gordon in Vancouver and Mike De Souza in Ottawa; Editing by Amran Abocar and Tomasz Janowski)