Category Archives: Tar sands crude

San Luis Obispo Phillips 66 oil-by-rail hearing packed, continues next month

Repost from the San Luis Obispo Tribune

Phillips 66 oil-by-rail hearing continues next month

By Cynthia Lambert, February 25, 2016 11:11am

HIGHLIGHTS
• After a third all-day hearing, the county Planning Commission will revisit the issue March 11
• Hundreds of speakers have praised or panned the plan to bring crude oil by rail to the Nipomo Mesa refinery
• Supporters stress the refinery’s safety record and jobs; opponents cite environmental worries

A packed room listens to comments on the Phillips 66 oil-by-rail plan Thursday before the San Luis Obispo County Planning Commission.
A packed room listens to comments on the Phillips 66 oil-by-rail plan Thursday before the San Luis Obispo County Planning Commission. David Middlecamp

After a third all-day hearing with more than 100 speakers decrying or praising a plan by Phillips 66 Co. to upgrade its Nipomo refinery to receive crude oil by train, the San Luis Obispo County Planning Commission said Thursday that no decision will be made on the project until March 11 — or even later.

The dozens of speakers Thursday were fairly evenly split on either side of the debate, with supporters stressing the need to maintain about 200 “head-of-household” jobs at the refinery, as well as its long track record of safety and that it’s been a good neighbor in the community.

“The actual crude production in California is going down, not going up,” said Richard Black, a training administrator at Phillips 66’s Rodeo refinery in the east San Francisco Bay Area. “We have to make up the difference from somewhere.”

Opponents, meanwhile, said commissioners should not take into account the company’s safety record or personal relationships. Residents and elected officials from communities along the main rail line from San Francisco to Los Angeles have told commissioners they fear a catastrophic train derailment.

“Their plan is an irreversible disaster,” Nipomo resident Nora Lee said. “The effects will be felt instantly with poisonous air pollution.”

The company has applied to San Luis Obispo County 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.

The public has another chance to speak March 11 — county planning staff believe they’re nearing the end of public comments — and then the commissioners can ask questions, deliberate and even make a decision, or continue the process once again to a future date.

Whatever decision they make is expected to be appealed to the county Board of Supervisors, and a new round of hearings would be held.

The first two days of the Planning Commission hearing, held Feb. 4 and 5, drew hundreds of people to San Luis Obispo from around the state, with many urging the commissioners to reject the project. Planning staff has recommended 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 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.

During a previous hearing day, representatives from Phillips 66 urged the commissioners to approve an alternate plan to allow three trains a week instead of five, or a maximum of 150 trains a year.

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” at the refinery, which refers to the highest level of negative impacts referenced in the project’s final environmental impact report.

But emissions of diesel particulate matter would still remain a “Class 1” impact on-site, according to the staff report, and there would still be 10 “Class 1” impacts along the main rail line, such as impacts to air quality, water resources, potential demands on emergency response services and an increased risk to the public in the event of a derailment.

A few residents brought some audio-visuals along: One person showed a news clip of coverage of a massive train derailment in West Virginia last year; another played an audio recording of what he said a “typical crude oil terminal” sounds like, with train wheels squealing along tracks.

And the commission also watched a video comment from Marilaine Savard, a witness of the 2013 Lac-Mégantic, Québec, oil train disaster.

“Once an oil train derails and catches fire, you and your town will never fully recover,” she said. “Lac-Mégantic was a peaceful and beautiful community, just like San Luis Obispo.”

In response, supporters of the Phillips 66 project said that heavier crude oil — not lighter crude oil from the Bakken field in North Dakota or Canada that was linked to the Lac-Mégantic disaster and was being carried by a CSX train when it derailed in West Virginia — would be type of crude oil that would be transported and can be processed at the refinery.

The commission heard from more than a dozen Phillips 66 employees who work at the Nipomo Mesa refinery or at the company’s other facilities in California, as well as union representatives and other businesses owners and individuals in support of the project.

Rachel Penny, a safety and health professional at the Nipomo Mesa refinery, said she chose to work in the oil and gas industry because “it’s vital to the economy.”

“In order for us to continue providing energy and improving lives, we need crude oil,” she said, noting that the refinery would not be increasing the amount of crude oil processed at the refinery with the project.

“It is the safest company that I’ve ever worked for,” said Jerry Harshbarger, who works in purchasing. “We still have a strong demand for fossil fuels and stopping this project will not stop that demand.”

Another San Luis Obispo resident said the products of gas and oil could be seen throughout the room, and he urged: “We as a community should work toward how to do this.”

“You drive a car and go up to the pump,” Laura Mordaunt said. “A truck is there filled with gas that is way more volatile. Your vehicle parked in your garage is far more dangerous than this process and yet you continue to drive.”

But another local resident, Gary Lester of the opponent organization Mesa Refinery Watch Group, said Nipomo residents moved there knowing the refinery existed and are not calling for it to be closed.

“We respect you as individuals and the work you do,” he said. “We are objecting to the construction of a loud, dangerous, invasive rail terminal just 3,000 feet from our homes.”

Phillips 66 officials have said that California crude oil production is declining and the company is looking for alternate sources outside the state. According to the company’s website, “The proposed change will help the refinery, and the approximately 200 permanent jobs it provides, remain viable under increasingly challenging business conditions.”

An attorney for Phillips 66 said during a previous hearing that crude oil would still come into California by rail should the project be denied — a point that is included in the “no project” alternative as laid out in the project’s environmental impact report, Phillips 66 officials said.

An average of about 6,800 barrels a day of crude oil is already being delivered by truck from the Paloma rail unloading facility near Bakersfield to a pump station east of Santa Maria, where it is moved by pipeline to the Nipomo Mesa refinery. That could increase to 26,000 barrels a day, according to the environmental document, adding about 100 truck trips a day traveling to the pump station for unloading.

If the rail project does not move forward, it’s likely that additional out-of-state crude oil would be brought to various rail unloading terminals in California and transferred to trucks to deliver to the Santa Maria pump station, according to the environmental report.

If this happened, some impacts would be shifted to the area in and around Santa Maria: trucking would generate higher levels of air emissions, resulting in significant cancer risk to the residences in close proximity to the roads; traffic congestion impacts; and potentially significant impacts to biological and water resources from an oil spill because of a truck accident.

Valero Crude By Rail: All about extreme crude (Canadian Tar Sands diluted bitumen)

Repost from the Sunflower Alliance

Valero Crude By Rail: Extreme Crude as Extreme Threat

By Charles Davidson, Hercules CA, February 20, 2016
CBR_3.jpg
Lynne Nittler of Davis, CA

Like many other fossil fuel infrastructure expansions in the Bay Area, the Valero Crude by Rail project is a key part of the transition to greater processing of extreme crudes. Yet another project poses significant, yet unnecessary public health hazards—this time to Benicia, the Bay Area, the Delta ecosystem and all communities up-rail from Benicia.

Valero’s recently completed Valero Improvement Project, or VIP, was designed to facilitate the processing of much higher sulfur and heavier crudes than the refinery’s former crude oil slate. The VIP permitted the Refinery to process heavier, high sulfur feedstocks as 60% of total supply, up from only 30% prior to the VIP.  The project also raised the average sulfur content of the imported raw materials from past levels of about 1 – 1.5% up to new levels of about 2 – 2.5% sulfur.

Now, Valero’s proposed Crude by Rail Project is specifically designed for the importation into Valero of so-called “mid-continent, North American” crudes, which would be either very lightweight, highly flammable shale oil from Bakken ND or extra heavy tar sands from Alberta Canada.  However, because the Valero Crude by Rail Project combined with the VIP are related parts of a single expanded heavy oil project, the Crude by Rail Project is most likely for the delivery of tar sands (bitumen).

Tar sands is open pit mined as a solid; it does not start out as a liquid. The Bitumen mined in Northern Canada needs to be heated to several hundred degrees before it can be diluted with chemical solvents and made to flow into railroad tank cars. According to the recent Carnegie Endowment study, Know Your Oil: Towards a Global Climate-Oil Index, tar sands refining produces three times the climate-changing greenhouse gases in order to make gasoline, compared to traditional lighter crudes.

Worse, in a 2007 US Geological Service study, it was reported that tar sands bitumen contains 102 times more copper, 21 times more vanadium, 11 times more sulfur, six times more nitrogen, 11 times more nickel, and 5 times more lead than conventional heavy crude oil. Sulfur and nitrogen oxide pollutants contribute to smog, soot, acid rain and odors that affect nearby residents. Because of these considerations, Benicia could likely experience an increase in local air pollution, and the refinery’s equipment could suffer enhanced sulfur corrosion, leading to potential accidents, such as documented for the 2012 Richmond Chevron fire.

The tar sand diluent itself adds significant risk: it is a highly flammable solvent that tends to separate from the heavier mixture during travel.  In a derailment this could cause an explosive fire with a uniquely hazardous tar sands smoke plume. The diluted tar sands mixture would tend to rapidly sink very deep into the soil, with the diluent eventually evaporating and then leaving the tar sands bitumen deep underground.

A significant tar sands spill, in places like the environmentally sensitive Feather River Canyon, the Delta or the Suisun Marsh would be impossible to clean up.  This was proven in Michigan’s 2010 Kalamazoo River Enbridge pipeline rupture, which will never be remediated, despite the spending of over 1 billion dollars to date. Nearby public infrastructure needs to be considered from a public health perspective; for example, East Bay MUD and others are doing a brackish delta water desalination pilot study near Pittsburg.

We must deny Valero the CBR permit and help keep the world’s absolutely dirtiest oil in the ground. To do so would comply with the expressed wishes of the Sacramento Area Council of Governments composed of six counties and 22 municipalities up-rail from Valero who have also asked that this project be denied. Our massive turnout at the Planning Commission hearings achieved our first step in this goal with a unanimous vote of the Planning Commission to deny the land use permit.  Now we must continue our opposition to insure the full Benicia City Council follows this path.

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.”

Critics say oil train report underestimates risk

Repost from the Spokane Spokesman-Review
[Editor:  Oh…this sounds SO familiar….  Benicia sends solidarity and support to our friends in Washington state.  – RS]

Critics say oil trains report underestimates risk

By Becky Kramer, December 18, 2015
In this Oct. 1, 2014 file photo, train cars carrying flammable liquids heads west through downtown Spokane, Wash. | Dan Pelle photo

The chance of an oil train derailing and dumping its cargo between Spokane and a new terminal proposed for Vancouver, Washington, is extremely low, according to a risk assessment prepared for state officials.

Such a derailment would probably occur only once every 12 years, and in the most likely scenario, only half a tank car of oil would be spilled, according to the report.

But critics say the risk assessment – which includes work by three Texas consultants who are former BNSF Railway employees and count the railroad as a client – is based on generic accident data, and likely lowballs the risk of a fiery derailment in Spokane and other communities on the trains’ route.

The consultants didn’t use accident data from oil train wrecks when they calculated the low probability of a derailment and spill. The report says that shipping large amounts of oil by rail is such a recent phenomanon that there isn’t enough data to produce a statistically valid risk assessment. Instead, the consultants drew on decades of state and national data about train accidents.

That approach is problematic, said Fred Millar, an expert in hazardous materials shipments.

Probability research is “a shaky science” to begin with, said Millar, who is a consultant for Earthjustice, an environmental law firm opposed to the terminal. “The only way that you can get anything that’s even partly respectable in a quantitative risk assessment is if you have a full set of relevant data.”

To look at accident rates for freight trains, and assume you can draw credible comparisons for oil trains, is “very chancy,” he said. “Unit trains of crude oil are a much different animal…They’re very long and heavy, that makes them hard to handle. They come off the rails.”

And, they’re carrying highly flammable fuel, he said.

Terminal would bring four more oil trains through Spokane daily
The proposed Vancouver Energy terminal would be one of the largest in the nation, accepting about 360,000 barrels of crude oil daily from North Dakota’s Bakken oil fields and Alberta’s tar sands. For Spokane and Sandpoint, the terminal would mean four more 100-car oil trains rumbling through town each day – on top of the two or three per day that currently make the trip.

The proposed $210 million terminal is a joint venture between Tesoro Corp. and Savage Companies. Oil from rail cars would be unloaded at the terminal and barged down the Columbia River en route to West Coast refineries.

A spill risk assessment was part of the project’s draft environmental impact statement, which was released late last month. A public meeting on the draft EIS takes place Jan. 14 in Spokane Valley. State officials are accepting public comments on the document through Jan. 22.

The spill risk work was done by a New York company – Environmental Research Consulting – and MainLine Management of Texas, whose three employees are former BNSF employees, and whose website lists BNSF Railway as a client. The company has also done work for the Port of Vancouver, where the terminal would be located.

The risk analysis assumes the trains would make a 1,000-mile loop through the state. From Spokane, the mile-long oil trains would head south, following the Columbia River to Vancouver. After the trains unloaded the oil, they would head north, crossing the Cascade Range at Stampede Pass before returning through Spokane with empty cars.

Report used data on hazardous materials spills

Oil train derailments have been responsible for a string of fiery explosions across North America in the past three years – including a 2013 accident that killed 47 people in the small town of Lac-Megantic, Quebec. Other oil train derailments have led to evacuations, oil spills into waterways and fires that burned for days.

But since shipping crude oil by train is relatively new, there’s not enough statistical information about oil train accidents to do risk calculations, the consultants said several times in the risk assessment.

Instead, they looked at federal and state data on train derailments and spills of hazardous materials dating back to 1975, determining that the extra oil train traffic between Spokane and Vancouver posed little risk to communities.

Dagmar Schmidt Etkin, president of Environmental Research Consulting, declined to answer questions about the risk assessment. Calls to MainLine Management, which is working under Schmidt Etkin, were not returned.

Stephen Posner, manager for the state’s Energy Facilities Siting Council, which is overseeing the preparation of the environmental impact statement, dismissed questions about potential conflicts of interest.

“There aren’t a lot of people who have the expertise to do this type of analysis,” Posner said.

Schmidt Etkin also worked on a 2014 oil train report to the Washington Legislature, he said. “She’s highly regarded in the field.”

According to her company website, Schmidt Etkin has a doctorate from Harvard in evolutionary biology. The site says she provides spill and risk analysis to government regulators, nonprofits and industry groups. Her client list includes the U.S. Environmental Protection Agency, the Coast Guard and the American Petroleum Institute.

Posner reviewed the scope of work outlined for the spill risk analysis.

“We put together the best analysis we could with limited sources of information,” he said. “This is a draft document. We’re looking for input from the public on how we can make it better.”

Spokane ‘a more perilous situation’

The “worst case” scenario developed for the risk assessment has also drawn criticism. The consultants based it on an oil train losing 20,000 barrels of oil during a derailment. The risk assessment indicates that would be an improbable event, occurring only once every 12,000 to 22,000 years.

In fact, twice as much crude oil was released during the 2013 Lac-Megantic accident in Quebec, said Matt Krogh, who works for Forest Ethics in Bellingham, Washington, which also opposes construction of the Vancouver Energy Terminal.

“If I was looking at this as a state regulator, and I saw this was wrong – quite wrong – I would have them go back to the drawing board for all of it,” Krogh said.

Krogh said he’s disappointed that former BNSF employees didn’t use their expertise to provide a more meaningful risk analysis. Instead of looking at national data, they could have addressed specific risks in the Northwest, he said.

Oil trains roll through downtown Spokane on elevated bridges, in close proximity to schools, hospitals, apartments and work places. In recent years, the bridges have seen an increase in both coal and oil train traffic, Krogh said.

“The No. 1 cause of derailments is broken tracks, and the No. 1 cause of broken tracks is axle weight,” he said. “We can talk about national figures, but when you talk about Spokane as a rail funnel for the Northwest, you have a more perilous situation based on the large number of heavy trains.”

Elevated rail bridges pose an added risk for communities, said Millar, the Earthjustice consultant. The Lac-Megantic accident was so deadly because the unmanned train sped downhill and tank cars crashed into each other, he said. Not all of the cars were punctured in the crash, but once the oil started burning, the fire spread, he said.

“If you have elevated tracks and the cars start falling off the tracks, they’re piling on top of each other,” Millar said. “That’s what Spokane has to worry about – the cars setting each other off.”

Governor has the final say

Railroad industry officials say that 99.9 percent of trains carrying hazardous materials reach their destination without releases. According to the risk assessment, BNSF had only three reported train derailments per year in 2011, 2012 and 2013. The railroad has spent millions of dollars upgrading tracks in Washington in recent years, and the tracks get inspected regularly, according to company officials.

Whether the Vancouver Energy Terminal is built is ultimately Gov. Jay Inslee’s decision. After the final environment impact statement is released, the 10-member Energy and Facilities Siting Council will make a recommendation to the governor, who has the final say.

Environmental impact statements lay out the risks of projects, allowing regulators to seek mitigation. So, it’s important that the EIS is accurate, said Krogh, of Forest Ethics.

In Kern County, California, Earthjustice is suing over the environmental impact statement prepared for an oil refinery expansion. According to the lawsuit, the EIS failed to adequately address the risk to communities from increased oil train traffic.

“If you have a risk that’s grossly underestimated, you’ll be making public policy decisions based on flawed data,” Krogh said.