Category Archives: Tar sands crude

BENICIA HERALD LETTER: Allowing crude by rail is asking for trouble, Kathy Kerridge

Repost from the Benicia Herald
[Editor:  No link is provided for this letter because the Benicia Herald does not publish letters in its online edition.  A version of this letter also appeared in the Contra Costa Times.  – RS]

Allowing crude by rail is asking for trouble

By Kathy Kerridge, August 16, 2015, Benicia Herald

It’s time for Benicia and California to say no to bringing in crude oil by rail (CBR). This is the highly explosive and flammable Bakken crude from North Dakota, which exploded in Lac-Megantic, Quebec, killing 47.  This is what Valero wants to bring into Benicia and other refineries want to bring into the Bay Area.  There have been 30 major crude by rail accidents since 2012, including the latest on July 17 in Montana that spilled 35,000 gallons from a train that was going the legal speed limit.

The refineries also want to bring in tar sands crude from Alberta, Canada.  A spill of tar sands crude in water cannot be cleaned up.  The substances that dilute the tar sands (like benzene) so it can be transported evaporate and the tar sands sink to the bottom of the water.  $1 billion, yes that’s right billion, has been spent on the Kalamazoo River spill of tar sands and the river is still not clean.  Do we want a spill on the Benicia Rail Bridge into the Carquinez Strait or one in the Suisun Marsh?  How about the Feather River Canyon where a train carrying corn recently derailed sending its cargo into the river?

Say no to CRB going over high hazard areas.  Every rail line into the state goes through one.  Say no to CBR by earthquake faults.   Say no to trains carrying crude in cars designed to carry corn syrup.  Say no to the new cars which have also split and spilled in recent derailments.  Say no to bomb trains going through densely populated areas like Sacramento, Davis, and the East Bay.  Just say no to putting people, our water sources and our environment at risk

US eases crude oil export ban; allows trading with Mexico

Repost from Associated Press – The Big Story

US eases crude oil export ban; allows trading with Mexico

By Josh Lederman, Aug. 14, 2015 3:34 PM EDT

AssociatedPressEDGARTOWN, Mass. (AP) — The Obama administration approved limited crude oil trading with Mexico on Friday, further easing the longstanding U.S. ban on crude exports that has drawn consternation from Republicans and energy producers.

Mexico’s state-run oil company Petroleos Mexicanos, or Pemex, had sought to import about 100,000 barrels of light crude a day and proposed a deal last year in which Mexico would trade its own heavier crude for lighter U.S. crude. A major crude exporter for decades, Mexico has seen its oil production fall in recent years.

The license applications to be approved by the U.S. Commerce Department allow for the exchange of similar amounts of U.S. and Mexican crude, said a senior Obama administration official, who wasn’t authorized to comment by name and spoke on condition of anonymity. The official didn’t disclose whether all 100,000 barrels requested would be allowed.

While the Commerce Department simultaneously rejected other applications for crude exports that violated the ban, the move to allow trading with Mexico marked a significant shift and an additional sign that the Obama administration may be open to loosening the export ban. Exchanges of oil are one of a handful of exemptions permitted under the export ban put in place by Congress.

The export ban is a relic of the 1970s, after an OPEC oil embargo led to fuel rationing, high prices and iconic images of long lines of cars waiting to fuel up. But Republicans, including House Speaker John Boehner, have said those days are long gone, arguing that lifting the ban could make the U.S. an energy superpower and boost the economy.

Republicans from energy-producing states hailed the decision, as did trade groups representing the oil industry. Sen. Lisa Murkowski of Alaska, who has pushed for lifting the ban, called it a positive step but added that she would still push for full repeal “as quickly as possible.”

“Trade with Mexico is a long-overdue step that will benefit our economy and North American energy security, but we shouldn’t stop there,” said Louis Finkel, executive vice president of the American Petroleum Institute.

But environmental groups have opposed lifting the ban out of concern it would spur further drilling for crude oil in the U.S. Pemex’s proposal has also drawn criticism in Mexico, where residents are sensitive about the country’s falling oil production despite warnings from officials that Mexico could become a net importer if it doesn’t explore new oil reserves.

The move to trade crude with Mexico comes as the Obama administration weighs a long-delayed decision about whether to approve the Keystone XL pipeline. That proposed project would carry crude oil from Canada’s tar sands to refineries on the Texas Gulf Coast, so the influx of heavy crude from Mexico could play into a decision about whether the controversial pipeline is necessary.

Last month a Senate panel approved a bill championed by Murkowski that would lift the 40-year-old-ban — plus open more areas of the Arctic, Gulf of Mexico and the Atlantic Ocean to oil and gas exploration. No Democrats on the committee voted for the bill. The environmental group Oceana called it “a massive give-away to Big Oil.”

Roger Straw: Crude by rail is dangerous — and dirty!

Repost from the Benicia Herald

Crude by rail is dangerous — and dirty!

By Roger Straw, August 2, 2015
Roger Straw

BACK IN JUNE OF 2013, I was alarmed to discover that Valero had plans to make me and all of Benicia complicit in the massive destruction taking place in the pristine forests of Alberta, Canada. With city Planning Commission approval, Valero planned to purchase crude oil taken from strip mines in Canada that are the dirtiest producers of oil on earth, then ship it on dangerous trains all across the West to our back yard.

Since then, Benicians have learned much more about Valero’s proposal. We’ve learned that Valero would also like to ship volatile Bakken crude oil, taken from fracking facilities in North Dakota and the Upper Midwest, on these trains. Bakken oil has proven different from most other crude, based on the eight accidents since July 2013 involving derailed trains that carried Bakken oil and resulted in massive fires and explosions. Several explosive train derailments have also been loaded with diluted tar sands crude.

Benicians have also learned much more about the trains themselves. Now we know how weak the train cars are, and how the federal government has established new rules that give industry years to strengthen them. Old DOT-111 tank cars still roll down our tracks. Updated — but still highly inadequate — DOT-1232 cars continue to roll, and retrofits of the older cars are to be spread out over the next decade. The railroads circumvent reporting requirements on their shipments to our state and county emergency responders by assembling trains that carry less than a million gallons of crude oil. And even when everything else goes right, aging railroad ties and rails will break, bridges will fail, and there aren’t enough inspectors. The accidents will continue.

Americans are sick of seeing the huge balls of fire on TV. We pray that the next BIG ONE will not be in a highly populated area — but we can’t reasonably pray there will be no next BIG ONE. It’s a matter of when, not if.

Finally, even if all the public safety issues could be solved, Valero’s proposal does far more harm to the environment than the company would have us think. Beginning at the source, production of these North American “extreme crudes” is beyond ugly: oil companies strip and gouge and pollute the soil, destroy wildlife habitat and contribute to soaring cancer rates in human communities. They foul the social fabric of small towns and farming communities with a disruptive boom-and-bust economy. Then come the trains, polluting the air from the upper Midwest all the way to Benicia, clattering over mountains and through gorgeous river passes and right through the hearts of our cities and towns, rattling and clattering near our schools, retirement villages, commercial and industrial centers and homes. In all this (if we give our permission), at every step along the way, the oil and rail industries contribute mightily to the warming of planet Earth.

Valero would like us to think that crude oil trains will save on air pollution by cutting back on the number of marine oil tankers. This may hold for a small region like the San Francisco Bay Area, but the city of Benicia’s own study showed that there would be “significant and unavoidable” impacts to air quality outside the Bay Area. Experts add that there would be “toxic plumes” all along the rail lines: “This thing called ‘crude shrinkage’ happens during transport, where entrained gases escape, leading to a 0.5- to 3-percent loss of crude oil. It’s a big problem for volatile crude oils like Bakken, and coupled with the high benzene levels found in some North American crudes (up to 7 percent) …we estimate over 100 pounds per day of excess benzene emissions from the Valero proposal in the Bay Area (or 1800 times more than the draft EIR reports),” said NRDC Senior Scientist Diane Bailey. Read her blog here: http://switchboard.nrdc.org/blogs/dbailey/valeros_promise_to_benicia_wel.html.

In short, oil trains are dangerous AND dirty.

The city of Benicia will release a revised draft environmental impact report on Valero’s proposal at the end of August. Everyone should stay tuned. Be prepared to study the document, read critical reviews, and share a comment with our Planning Commission. Together, we can make a difference.

Will Utah be the new Canada of tar sands extraction?

Repost from the Financial Post

Utah set to be home of first oilsands mine project in U.S. by end of 2015

By Geoffrey Morgan | July 21, 2015 6:12 PM ET

CALGARY – Despite fierce opposition from American environmental groups, the first commercial oilsands mine in the United States is just months away from starting up after receiving final regulatory approvals from officials in Utah late last week.

“We’ll be in production later in the fall with commercial production before the end of the year,” U.S. Oil Sands Inc. chief executive Cameron Todd said about a 2,000-barrel-per-day oilsands mine being built in eastern Utah.
“We’ll be in production later in the fall with commercial production before the end of the year,” U.S. Oil Sands Inc. chief executive Cameron Todd said about a 2,000-barrel-per-day oilsands mine being built in eastern Utah. Stuart Gradon/Postmedia News

“We’ll be in production later in the fall with commercial production before the end of the year,” U.S. Oil Sands Inc. chief executive Cameron Todd said in a phone interview Tuesday.

Calgary-based U.S. Oil Sands is working through the summer to complete a 2,000-barrel-per-day oilsands mine in eastern Utah,  which would make it the first commercial oilsands mine in the United States when it begins producing later this year.

Todd noted that oilsands deposits have been used in the U.S. in the past, including in the construction of the first roads in Utah, but have never been mined on a commercial scale. The Uinta basin in the northeastern and central southeastern of the state has more than 50 identified oil sands deposits, with an estimated total of 20 to 32 billion barrels of oil in place.

Late on Friday afternoon, the Utah Department of Natural Resources’ Division of Oil, Gas and Mining announced approvals for an amendment to US Oil Sands’ mine, which is currently under construction about 200 miles southeast of Salt Lake City.

The decision, released after a public hearing on the mine, requires U.S. Oil Sands to conduct water monitoring and submit a monitoring plan for the project by Nov. 1, and the company has indicated that it will comply with those regulations.

Officials from the Utah division of oil, gas and mining did not respond to a request for comment on Tuesday.