Category Archives: Valero Benicia Refinery

LETTER: Is “Crude by Rail” Good for Benicia?

Is “Crude by Rail” Good for Benicia?

By Craig Snider, September 23, 2015
[A version of this letter appeared in the Vallejo Times-Herald on 10/5/15.]

I’d like to share a few thoughts about Valero’s “Crude by Rail” project.

To recap, the proposal consists of constructing a depot at the Valero refinery to offload crude oil. The crude would come from fracking of shale in South Dakota or from the mining of tar sands in Canada. The shale oil is especially flammable and prone to explosion if derailed. The tar sand oil is extremely toxic. According US Department of transportation regulations, such trains are referred to as “High Hazard Flammable Trains” or HHFT’s. Two trains (100 tank cars total) per day would pass through a portion of the Benicia Industrial Park en route to the new depot. A decision is needed by the City of Benicia whether to allow construction of the depot at the proposed refinery site, or require that the depot be built outside the city and piped into the refinery, or deny the project altogether.

According to the City Manager, the industrial park is the “engine of Benicia” and the best way to generate additional revenue is to “diversify.”   In fact, according to Benicia Strategic Plan, Issue #3 – “Strengthening Economic and Fiscal Conditions,” strategies include “Strengthen Industrial Park Competitiveness” and “Retain and Attract Business.” Yet businesses are already leaving the industrial park for sites that better meet their needs.   I ask: If you wanted to locate your business in an Industrial Park, are you more likely to choose one clogged with 100 tank cars of High Hazard Flammable crude each day, or one without it? Would your customers be comfortable in the presence of such a hazard or would they take their business elsewhere?   Remember, this is the same type of crude that caught fire in 2013, exploded (leaving a .62 mile radius blast zone), and killed 47 people and destroyed the entire downtown of Lac Megantic, Quebec. Most areas of the industrial park and the NE corner of Waters End subdivision would be at risk from a similar blast zone. Would you be more, or less likely to buy a home in a community with the daily presence of HHFTs?

Valero claims that despite chronic violations of air quality, they place a high value on safety. But remember, Valero’s responsibility and control of the HHFT’s begins and ends at the refinery gate. Valero has repeatedly attempted to distance itself from any responsibility for rail shipments of crude. They have cited state and federal law in an effort to wash their hands of any responsibility for accidents that occur beyond their gates. (See Revised Draft Environmental Impact Report (RDEIR) appendix H). Yet, the freight railroad business remains virtually unregulated and their safety practices are largely secret. In fact, the Federal Railroad Administration doesn’t know how many rail bridges there are because there is no public inventory of them. Railroads inspect and maintain their own tracks and determine what condition to keep them in, but keep that information secret. And, when state or local emergency managers get information from railroads about oil trains, the railroads ask the government agencies to promise to keep the information from the public.  Why would we want 100 tank cars of highly flammable (and explosive) crude oil rolling through our town each day with no analysis or transparency regarding the safety systems employed by the railroad?

I understand that Valero contributes a major portion of the tax base for our community. Many of our citizens depend on income from Valero. But isn’t it time for all of us to begin weaning ourselves from our fossil fuel addiction? Many of us were sickened by the specter of ISIS militants shelling ancient temples and other World Heritage sites. Yet these acts pale in comparison to the tar sand mining destruction in Canada, which will supply some or all of Valero’s crude by rail. Tar sand mining destroys Boreal forests, leaving a wasteland of toxic chemicals and groundwater pollution that seeps into rivers and streams. Why decry the ISIS destruction, but ignore the vast destruction of natural systems associated with crude by rail? How can an activity that is so destructive to our world be considered “Good for Benicia”? How can unchecked greenhouse gas production, global warming, and the ruin of our planet for future generations be “Good for Benicia”? How can putting the future of our industrial park and our livelihoods at risk be “Good for Benicia”? And finally, what does it say about a community that is willing to profit from such destruction?

Maybe it’s inevitable that the city will approve the project. Shame on us if we do. But if it must be done, the best solution is Alternative 3: Offsite Unloading Terminal. Alternative 3 keeps HHFTs out of Benicia, while allowing Valero to get their crude by rail.   We need to diversify the Industrial Park and make it more (not less) attractive to other businesses. We want an inviting community, not one whose safety is compromised by ill-conceived means of procuring crude oil. It’s one thing to live in the shadow of an oil refinery with it’s own inherent hazards and pollutants. Why up the ante when we don’t have to?

If you would like to voice your concerns about Valero’s Crude by Rail project, attend the Planning Commission meeting scheduled for September 29 at 6:30 pm at the City Council Chambers or send in comments on the Revised Draft Environmental Impact Report before October 16th. For more information contact Benicians for a Safe and Healthy Community at safebenicia.org.

VALLEJO TIMES-HERALD LETTER: Valero is NOT good neighbor!

Repost from the Vallejo Times-Herald

Valero is NOT a good neighbor!

By Rebekah Ramos, September 25, 2015

Valero’s self-proclaimed “Good Neighbor” status is laughable when you begin to peel back the onion and remove the layers of misinformation (or missing information) and reveal the same flavor of corporate propaganda and fearmongering that is used to hold small communities hostage.

There are hidden costs to having Valero as a neighbor that you may not be aware of.

Valero says the City of Benicia is losing more than $360K per year in revenue because of delays in approving their crude by rail project, which could get us 4 new police officers.

Valero DOESN’T say…

    • CEQA (California Environmental Quality Act) is a law that requires due diligence to properly evaluate environmental impacts and most importantly, inform the public of those impacts. City staff initially attempted to push this project through, under the radar, and without LITTLE public notification – skirting the law. Had it not been for a group of alert citizens bringing this to the public’s attention Valero would have gotten away with implementing a project that would have enormous ramifications to our health, safety, and economic viability, not only in our community, but every community along the rails.
    • Our personal safety is NOT at risk because we are short on police officers, it’s at risk because transporting highly volatile crude oil by rail is extremely risky business. More than 17 major oil train accidents have occurred in the last 24 months resulting in explosions, spills, and derailments.

Valero says they contribute 25% to Benicia’s general fund.

Valero DOESN’T say…

  • That number is actually 20% AND it doesn’t reflect the millions that Valero has taken away from the city’s coffers in recent years.
  • The City of Benicia was forced to pay Valero $2.3 million because Valero filed an appeal for a reduction in its property value from $1.02 billion to $230 million and $964 million to $100 million in 2012 and 2013 respectively despite climbing profits and gas prices since 2010. Benicia loses $2.3 million AND any on-going revenue generated from Valero’s property taxes. How many police officers do you think $2.3 million get us?

Valero says the crude by rail project will reduce air emissions and decrease greenhouse gases. In addition, they say they are entitled to $57million in emission reduction credits because of improvements made to the refinery.

Valero DOESN’T say…

  • The recirculated EIR for their crude by rail project specifically states that there will be significant increases in air emissions and greenhouse gases.
  • Valero has received dozens of notices of emissions violations nearly every single month of 2014 and 2015 including a violation for Benzene.
  • Valero has failed to install any publically accessible emissions monitoring equipment despite their pledge to do so since 2008.
  • Emission reduction credits would allow Valero to increase their emissions for new projects, sell or trade their credits to other polluters. Because of Cap and Trade legislation, big polluters in our own backyards get to pollute even more.
  • According to the EPA, Valero is the biggest polluter in Solano County, contributing 82% of all toxic releases in 2013. Data for 2014 and 15 is not available.

Valero is desperate to turn a profit and will use whatever means is necessary – squeeze money from the city coffers, pollute our environment, and put our lives at risk – to satisfy the short-term interests of their shareholders. They even threaten to lay people off or sell the refinery if the city doesn’t comply.

We can’t let one business keep our community in such an economically vulnerable situation. The City of Benicia has adopted a Climate Action Plan, but can’t seem to address THE REAL CLIMATE ELEPHANT IN THE ROOM, which is Valero. It’s time that serious action be taken to seek out and invite other, more sustainable industries to our city because Valero is NOT a Good Neighbor!

BENICIA HERALD LETTER: Too many ‘hitches’ to crude by rail

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. – RS]

Too many ‘hitches’ to crude by rail

By Jan Cox-Golovich, September 9, 2015, Benicia Herald

“When we try to pick out anything by itself, we find it hitched to everything else in the universe.” – John Muir

And so it is with the Valero Crude-by-Rail Project.  When it was first presented to the community two years ago, we were told that is would be a simple railway expansion without any environmental impacts at all; that was simply untrue. We quickly discovered that this project would have profound effects locally, regionally, nationally and world-wide.

Our local economy has been “hitched” to the refinery for 50 years;  this 19th century industry is becoming obsolete in a state moving towards reducing greenhouse gases by 80% in 2050, while government and market forces transition to clean energy.  California is suffering from the most devastating drought in its history and the refinery uses almost half of our water.  The drought has been exacerbated by the hottest year on record, which in turn has been exacerbated by climate change, which in turn is caused by the burning of fossil fuels.   This “hitches” back to the refinery where 600 “other” businesses in the Industrial Park will, on a good day, experience transportation woes and worsening air quality because of the daily oil deliveries and — on a bad day — will be risking everything by virtue of being in the oil blast zone.

The Crude By Rail project is “hitched” to 1,700 miles of antiquated, dilapidated rail line, moving hazardous cargo from Canadian tar sands and North Dakota Bakken fracked oil fields to the Valero refinery, exposing millions to the dangers of explosions, fires, derailments, spills and permanent environmental damage to their land, water and air.  Many up-rail folks have made the trek down to City Hall to beg us not to do this to them.  This is an ethical “hitch” that we cannot deny or justify.

On a global scale, this project is “hitched” to the utter destruction of the boreal forest in Alberta and the fracking process ravaging North Dakota, where foul-smelling wastewater ponds are threatening agricultural land, animals, the water supply and human health, and where toxic methane gas flares light up the night sky as bright as any American city on the Google night map.  Scientists say the continued extraction of these extreme fuels is “game over” for the planet and human life upon it.   The Pope’s recent encyclical has “hitched” climate change to a moral imperative:  trade in our short-sighted greed for an alternative path to save our children and life on earth.

John Muir, naturalist, visionary and Martinez neighbor, spoke words that resonate with us today.  Benicia is “hitched” to the rest of the world.  We don’t live in a bubble where a town of 28,000 people can make decisions based on short-term financial gain at the expense of endangering human lives or contributing to the destruction of forests, waterways and the atmosphere, just because they are out of our sight.  Our provincial days are over; time for Benicia to reject crude by rail.

Jan Cox Golovich
Former City Councilmember

Valero will soon have fifth refinery processing 100 percent North American crude

Repost from the San Antonio Business Journal
[Editor: Note brief reference to Valero’s Benicia Refinery at end of this article.   – RS]

Valero will soon have fifth refinery processing 100 percent North American crude

By Sergio Chapa, Sep 11, 2015, 6:44pm CDT
File photo Valero Energy Corporation's Jean Gaulin Refinery in Quebec City
File photo – Valero Energy Corporation’s Jean Gaulin Refinery in Quebec City

San Antonio-based Valero Energy Corp. is expected to have its fifth refinery capable of processing nothing but North American crude by the end of the year.

Valero (NYSE: VLO) revealed in an investors’ presentation released earlier this week that its Jean Gaulin Refinery in Quebec will be processing 100 percent North American crude oil by the end of the year.

Company figures show that the refinery was 100 percent dependent on foreign crude oil in first quarter 2013, but production from the tar sands region of Canada and the shale plays of the United States has dramatically changed the situation.

The Jean Gaulin Refinery is processing about 80 percent North American-sourced crude oil but will be at 100 percent once a project to modify the Enbridge Line 9B Pipeline is completed in the fourth quarter. The project will reverse the flow of the pipeline to enable oil from the tar sands region of Alberta to flow east to Valero’s refinery in Quebec.

Most refineries were built decades ago and were configured to process to Middle Eastern oil, but Valero spokesman Bill Day told the San Antonio Business Journal that the Jean Gaulin Refinery is lined up to be the fifth of the company’s refinery capable of processing 100 percent North American crude oil.

Day said Valero’s Ardmore, McKee, Memphis and Three Rivers refineries can already process 100 percent North American crude oil, while other plants are processing an increasing amount of North American crude.

The investors presentation shows that Valero is expanding its capacity to process a total of 185,000 barrels per day of light sweet crude from the Eagle Ford and other shale plays at the company’s McKee, Houston and Corpus Christi refineries in Texas.

Day said that the addition of the Keystone XL Pipeline would enable Valero to replace foreign heavy crude with heavy crude from Canada. He also noted that a proposed rail terminal at the company’s Benicia refinery in California, would enable Valero to offset foreign crude brought in by ship with North American crude brought in by rail.