Category Archives: Valero Crude By Rail

OIL TRAINS: Mass casualty exercise planned for May 18 in Roseville CA

By Roger Straw, May 13, 2016

PlacerCounty_logoPlacer County is planning a mass casualty training exercise related to oil train explosions on May 18th in Roseville, California.  The exercise will take place at PFE Road and Hilltop Circle in Roseville.

Union Pacific Railroad’s J.R. Davis Yard in Roseville is the the largest rail facility on the West Coast, and a major train staging area.  The Roseville Yard would be the location for receiving and dispatching crude oil trains in Northern California if approved by Benicia’s City Council.

A few alert citizens from Roseville have written letters and attended hearings in Benicia to oppose Valero’s dangerous and dirty crude by rail proposal.  Perhaps this training exercise (from 7AM to 1PM on May 18) will be another wake up call for the people of Roseville to the danger of transporting crude by rail to Benicia.

Repost from County of Placer

Mass casualty exercise planned for May 18 in Roseville

Low flying helicopters, scores of first responders, various emergency vehicles, sirens and other loud noises, and dozens of people made up to look like accident victims can be expected in Roseville May 18, as firefighters and law enforcement officers from throughout Placer County will team up to practice and ensure preparedness for a mass casualty incident.

Placer County’s Office of Emergency Services is holding the training exercise to give first responders from various agencies the opportunity to practice working together and test how well they can come together in a crisis. It is also a great chance to test the county’s recently finalized oil-by-rail response guide, which was developed to aid our first responder fire and law enforcement community and specialized response teams in the unlikely event an oil train disaster were to occur here.

“We want to get the word out now to as many people as possible about this exercise to avoid causing any panic on the day of the drill,” said John McEldowney, program manager for Placer County Office of Emergency Services. “The opportunity for all of these various groups to get hands-on experience in a safe but realistic-as-possible practice setting is crucial to making sure we are ready for whatever disasters come our way. But that does, unfortunately, come with some disturbance to the neighborhood.”

Anyone in the area of PFE Road and Hilltop Circle in Roseville between the hours of 7 a.m. and 1 p.m. can expect to see a significant amount of activity that could appear very realistic, including a simulated train accident, a simulated hazardous materials spill, many accident ‘victims’ made up to appear injured, and helicopters transporting people to hospitals. People are encouraged to avoid this area, if at all possible, due to the large volume of emergency vehicles responding to this area for the exercise.

“We also hope that anyone who lives, works or plays in Placer County will take this opportunity to register for our Placer Alert system,” McEldowney added. “Placer Alert will notify you by either a phone call, text or email – whatever your preference is – in the case of an actual emergency.”

To register for the Placer Alert system, go to www.placer-alert.org .

Aerial view of Roseville
An aerial view of the location where the exercise will take place at PFE Road and Hilltop Circle in Roseville. (Placer County photo/Erik Bergen)

BLOOMBERG: Local opposition to crude by rail is succeeding in California

Repost from Bloomberg
[Editor:  Note 3 mentions of crude by rail, and in the final paragraph a reference to local opposition to CBR in Santa Maria, Pittsburg and Benicia.  – RS]

California Isn’t Feeling U.S. Oil Boom as OPEC Dependence Grows

By Robert Tuttle, May 4, 2016 9:01 PM PDT

• State sourced a record 52% of its crude from overseas in 2015
• Falling in-state and Alaska production is driving imports

BBGThe shale oil boom that cut U.S. crude imports by 32 percent in a decade isn’t being felt out west as California grows increasingly dependent on Middle East supplies.

California brought in a record 52 percent of its crude from abroad last year, up from just 9 percent 20 years earlier, according to California Energy Commission data. The state hasn’t yet released the specific countries that supplied that oil in 2015, but in 2014, about 58 percent came from Saudi Arabia and Iraq, the most recent data show.

Foreign dependence is only expected to grow as supplies from within the state and Alaska diminish and efforts to bring U.S. crude from the Midwest by rail face local opposition.

“Regulatory impediments have kept California isolated from the growing sources of domestic crude production,” John Auers, executive vice president at Turner Mason & Co., said by phone from Dallas. “California refiners won’t be able to take advantage”’ of lower-priced domestic crude.

Growing imports mean that California refiners have some of the highest crude costs in the U.S., which are passed onto consumers in the form of higher gasoline prices, David Hackett, president of Irving, California-based Stillwater Associates, said in a phone interview.

Imported crude is priced off Brent, which was selling at less than a $1 premium to U.S. West Texas Intermediate Wednesday. While the lifting of restrictions on U.S. oil exports has narrowed the gap from as high as $15 a barrel in 2014, the spread between the grades could widen again when oil rises and U.S. shale oil production picks up, Hackett said.

Drivers in Los Angeles paid the highest pump prices in the U.S. for much of last year, exceeding $4 a gallon last summer, according to AAA.

Domestic Supply

Alaska supplied the state with 73,000 barrels a day of crude in 2015, about 12 percent of California’s total supply, state data show. That’s down from as high as 46 percent in the early 1990s and may fall further as Alaska’s production is forecast to drop to 319,100 barrels a day in 2023, down from almost 500,000 barrels a day this year, official datashow.

California itself produced about 225,000 barrels a day in 2015, supplying about 36 percent of its own needs, according to state data. That’s a drop from 240,000 barrels a day in 2014. The decline in the state’s own production came as producers cut output amid falling oil prices and following the shutdown of the Plains All American pipeline near Santa Barbara after a spill curtailed about 38,000 barrels a day of offshore production, Stillwater’s Hackett said.

California could benefit from cheaper Midwestern oil if crude by rail terminals were built. New terminals planned for Santa Maria, Pittsburg and Benicia have been stymied by local opposition and regulatory holdups, Hackett said. In February, for example, Valero Energy Corp’s planned crude-by-rail project was rejected by a city commission.

GRANT COOKE: Time to Shed the Company Town Label

With permission by the author. (Published in the Benicia Herald, 5/3/16, no online presence, thus no link…)

Time to Shed the Company Town Label

By Grant Cooke, April 29, 2016
Grant Cooke
Grant Cooke

I have a great deal of respect and gratitude toward municipal politicians, particularly those who toil on the city council and commission level. The hours are long, the decisions tough, and the pay bad to non-existent. Heaven knows that without good folks looking after the stuff that keeps a social contract intact, Thomas Hobbes’s “natural state” of chaos, violence, and potholes would be the norm.

This goes for the folks who lead our fair city. Benicia’s mayor and members of the council seem like fine people. They attend the meetings, do the horrific amount of homework required to be conversant with the issues, and overall appear to be decent folks with a sincere believe that they are doing the collective good by serving their fellow citizens. I’m grateful for their service; but I just wish that three of them—Alan Schwartzman, Christina Strawbridge and Mark Hughes—would resign.

Their collective efforts to secure Valero’s delay of the crude-by-rail decision against overwhelming community disapproval, the unanimous rejection of the project by the Planning Commission, the concerns of every major city along the proposed rail path, and the thousands of letters and statements against the project by informed and credible experts raises the bar of small town political shamefulness.

That it was clear from the start that the three council members were going to side with Valero verges on chicanery. Why put the town’s citizens through the hope of believing that their concerns of health and wellbeing are being heard and matter, if you support a volatile project that has a blast zone that includes an elementary school?

Since none of the three has stepped forward with a clear and convincing argument about why they sided with Valero—after all Valero would still bring the oil in by existing means and really doesn’t need the continuous line of daily rail tankers to stay in business and pay its taxes—we are left with the impression that once again, a small American town is at the mercy of a major oil company.

The history of the US oil industry is a trail of tears going back to the early days of ruthless land grabs, the mendacity and murder of Standard Oil’s oligarchy, the tragic violence of the Middle East, and the rise of climate change and environmental pollution. And to think, all this could, and still can, be avoided by shifting from carbon-based to renewable energy.

(As an aside, look at Denton Texas. This small Texas oil town, home to many of Dallas’s oil executives, banned fracking and drilling in the city limits. Evidently, they didn’t want to run the risk of an accident close to parks and schools. There’s a lesson here for Benicia. As a state, New York stood tall against the oil industry, but Denton is the only US small town I know of to have the self-respect required to say enough.)

So, the question before the citizens of Benicia is now what? What good is Benicia’s formal planning process if corporate power can bludgeon a thorough and lengthy review and rejection of the crude-by-rail proposal? Why put the residents through all the work and hope of participating in the democratic process if there is no intention by the council to understand their concerns or follow their wishes?

I grew up in rural America and know what a “company town” is. In some ways, it was simple and easy, letting the company bosses tell you where to work, what and who to like, what to believe in and who to vote for.

But it lacked fulfillment and self-determination, and I moved to the Bay Area to be part of the epicenter of the world’s intellectual and scientific renaissance where freedom of thought, action, and the ideals of local democracy are so highly acclaimed. Yet, ironically, I end up in a “company town”, where a huge carbon polluter can seemly send three decent council members scurrying to service its greed.

The problems of 21st century cities, big and small, are complex and can no longer be inclusive of one economic driver or administered by one major corporate power. For Benicia to move forward and join the extraordinary Bay Area knowledge-based economy we need to say goodbye to those three council members who lack the wherewithal to help the city past its company-town era.

Other once-rural Bay Area cities have thrown of the oppressive yoke of being run by a single company, exchanging “easy” for self-determination. Cities like Sunnyvale and Mountain View long ago threw off the yoke of the defense industry and learned to reinvent themselves and flourish. Walnut Creek, Livermore, and now Richmond are joining the prosperity of a sophisticated diverse economy. Vallejo and the other cities along I-80 are showing signs of change as the robust modern Bay Area economy moves outward from Silicon Valley.

If Benicia hopes to continue as a fully functioning city with a compliment of services and a healthy and vigorous citizenry, it has to look forward, shed its dependence on Valero, and embrace a 21st century reality.

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Cooke is a long-time Benicia resident, author and CEO of Sustainable Energy Associates. His newest book, Smart Green Cities: Toward a Carbon Neutral World was published in April. The Green Industrial Revolution: Energy, Engineering and Economics was published last year.

Benicia City Manager leaving to take post in Martinez, CA

By Roger Straw, April 30, 2016

City Manager Brad Kilger oversaw Valero Crude By Rail proposal, not sticking around for outcome

Brad Kilger, City Manager of Benicia, 2010-2016
Brad Kilger, City Manager of Benicia, 2010-2016

In Benicia’s Council/Manager form of government, there is no more powerful person than the City Manager.  The Mayor and City Council supposedly run the city, and they do make the final decisions. Some decisions are also made by Commissions, but the real power in Benicia is the city manager.

The CM presides over staff, and staff guides every decision of our elected and appointed officials, making recommendations and consulting with officials outside of public meetings. For instance, the city manager works with the mayor in setting the agenda for every Council meeting.

Brad Kilger was hired as Benicia’s city manager in 2010, and has overseen the Valero Crude By Rail (CBR) proposal from the start. Outwardly, CBR has been routed through the City’s Community Development Department and its Planning Division. Those offices have undergone personnel changes during the lengthy 3½ year Valero process, but Mr. Kilger has remained in charge throughout.

Kilger is due to begin work in Martinez on June 13, leaving only 6 weeks to finish up here in Benicia. As of this writing, no word has been released as to Kilger’s final day in Benicia. Nor have details been given about his rather sudden departure.

Getting out of dodge before a decision on CBR may very well be a smart career move. Everyone expects litigation, which would be any manager’s nightmare, and a loss either way could be expected to leave a blemish on his professional profile.

Kilger was welcomed to Benicia by Council members and citizens in 2010 as a promising new presence, bringing credentials and commitments that offered hope in the area of environmental sustainability. Indeed, his tenure has seen numerous advances on that front. But many of those advances can be credited primarily to the leadership of Mayor Elizabeth Patterson and the Community Sustainability Commission.

City Council during Kilger’s time in Benicia has often been contentious. Collegiality has often been wanting among Council members, and the public has come into fierce conflict with staff over staff’s seemingly blind support for Valero’s CBR proposal.

The City will no doubt bring in an interim. No telling how long the interim will be in charge, but it seems highly likely a permanent replacement would not be in place until January 2017, after elections, and under the authority of a new City Council.

It seems likely the City Council will face a decision on Valero CBR in September with a new and possibly untested interim city manager. If the delay for review by the federal Surface Transportation Board results in a re-write and recirculation of the environmental report with attendant written comments and lengthy public hearings, it could be a real handful for whoever is in charge.

It may be a real challenge locating a qualified candidate who is willing to step in at this critical moment in Benicia’s history.