Category Archives: Valero Crude By Rail

Davis City Council to staff: prepare a resolution opposing crude by rail

Repost from The Davis Vanguard
[Editor: Note that this article appeared six weeks ago.  – RS]

Council Takes Stand on Crude Oil Transport by Rail

By Michelle Millet  |  March 15, 2014

Richard-2nd-St

Last Tuesday [March 11, 2014] Mike Webb, Director of Community Development & Sustainability, presented a status update to council on the Benicia/Valero Oil by Rail Project.

In December of 2012 the City of Benicia was presented with a Land Use Permit Application from the Valero Refining Company who owns and operates an oil refinery located in Benicia, California.

Valero is proposing the “Crude by Rail Project” which would allow the refinery to receive a larger proportion of its crude oil deliveries by railcar.

The Land Use Permit Application states,  ”The primary purpose of the Project is to allow Valero access to more North American sourced crudes that have recently become available. The only viable option for transporting the crude oil from the North American sources to the Refinery is by railroad. Therefore, the objective of this Project is to enable Valero to replace up to 70,000 bbl per day of the crude oil currently supplied to the Benicia Refinery by marine vessel with an equivalent amount of crude oil transported by rail cars.”

According to Webb’s staff presentation the city of Benicia is currently in the review process. It is preparing an Environmental Impact Report that is expected to be released for public review and comment in the next month. Once the report is released it is assumed that there will be a 45 day comment period, and hearings at the Benicia Planning Commission and City Council are likely.

The amount of crude oil being moved by train in this country is growing. According to an Associated Press article, “U.S. crude oil production is forecast to reach 8.5 million barrels a day by the end of 2014, up from 5 million barrels a day in 2008. The increase is overwhelmingly due to the fracking boom in the Bakken region, which is mainly in North Dakota, but also extends into parts of Montana and Canada.”

If the Benicia Valero Project is approved it is estimated that 100 rail cars carrying Bakken crude oil in tank cars could soon be coming through Davis every day. Concerns have been expressed over the fact that the older tank cars that carry much of this flammable crude oil are inadequate and prone to rupture easily.

On January 23, 2014 the National Transportation and Safety Board called for tougher standards on trains carrying crude oil “The large-scale shipment of crude oil by rail simply didn’t exist ten years ago, and our safety regulations need to catch up with this new reality,” said NTSB Chairman Deborah A.P. Hersman. “While this energy boom is good for business, the people and the environment along rail corridors must be protected from harm.”

In February Davis citizens  Lynne Nittler, Milton Kalish, and Matt Biers-Ariel wrote an article for the Vanguard where they laid out some of the concerns community members have expressed over the potential dangers that come with transporting crude oil by train car.

They stated, “In the last year there have been 10 major rail accidents involving oil trains in the U.S. and Canada.  Last July, 47 people perished in a massive fireball when a train containing Bakken crude derailed and exploded in the Canadian town of Lac-Megantic, Quebec. Four more oil trains have derailed in Canada since then. In November, a train carrying the same Bakken crude derailed in Alabama, possibly caused by trestle tracks that collapsed under the weight of the heavy tank cars. Twelve of the cars exploded, fortunately not in a populated area. In the last week of December, another 18 tank cars carrying Bakken crude derailed and exploded just outside of Casselton, North Dakota, forcing the town to evacuate to avoid the plumes of toxic smoke from the ensuing fires that burned for more than a day.  Another oil train derailed and exploded in New Brunswick days later.”

On January 27th over 50 people attended the Natural Resource Commission meeting where this topic was addressed.  During public comment on Tuesday night NRC member Allan Pryor stated,  ”The NRC had the largest turn out in over 3-4 years over this issue the chambers were packed. We have never had a crowd so large, and they were vocal and unanimous in their opposition.”

After over an hour of public comment during their January meeting NRC members voted to approve a list of recommendations to council. Among the recommendations was a request that the City of Davis submit formal comments to the Draft Environmental Impact Report for the Benicia Valero Project when it is released for public comment.

One February 12, in an open letter to the Mayor of Benicia Mayor Pro Tem Dan Wolk stated, ”I am writing to express my and my constituents’ serious concerns over the proposed upgrading of the rail terminal at the Valero refinery to take in as much as 70,000 barrels of crude oil a day.”  He continued, “In both a literal and figurative sense, that rail line runs through the heart of our community.  I myself commute along this same rail line to and from my “day job” as a Deputy County Counsel for Solano County.  The thought of 100 tank cars full of Bakken Shale oil running through our community each day is absolutely disconcerting.  A similar accident in Davis as the one in Quebec would likely produce even more catastrophic results, in terms of loss of life and the destruction of our downtown.”

Wolk clarified at Tuesday’s meeting that he was not against the proposed project, and spoke in favor of the jobs the project could create. But he reiterated his concerns over the safety implications that it presented.

In their report presented to council staff states that their efforts are currently focused on gathering background information and initiating collaboration with other jurisdictions and with elected representatives from Davis and the region, including the offices of State Senator Wolk, State Representative Yamada, and U.S. Representatives Garamendi, Matsui, and Thompson.

Staff presented council with two following recommendations on how to proceed:

  1. Direct staff to continue to gather data, monitor the Benicia Valero project, and actively partner with other agencies, and State and Federal Representatives, on coordination of review and comments.
  2. Direct staff to continue to engage with appropriate regulatory authorities regarding the safety of the existing railroad operations/speeds/curve in Davis.

Mayor Krovoza suggested a third recommendation that directed staff to prepare a resolution stating that the city of Davis would oppose crude oil by rail transport through our community.

Council member Brett Lee expressed concerns that a resolution of this sort was largely symbolic and too open ended to have the impact they were hoping for.  When Korvoza disagreed Lee  posed the question, “Do you really think the railroad is going to stop transporting oil on the railroad line because the Davis City Council says we don’t want it passing through our community?”

He continued, “I think a more effective way would be to focus on the safety aspects so that our community is protected and other communities are protected.”  Lee clarified that he was not in favor of these cars coming through our community, and went on to say that he did not believe that having a symbolic gesture “excuses us or take us off the hook for dealing with the public safety issue.”

Ultimately Krovoza put forth a motion, that was seconded by Lee, which directed staff to begin preparation of a resolution where by the city of Davis would oppose crude by rail transport through our community due to public safety concerns until further consideration, including understanding of risks and needed mitigation measures.

Sacramento area mayors, emergency responders to send letter of concern to Valero

 Repost from KTXL FOX40 Sacramento/Stockton
[Editor: This is an excellent video report, but I can’t post it to run here because it runs commercial ads ad nauseum.  My apologies but you really should click on the image which takes you to the KTXL page where you can view this video.  It has footage from Valero’s community meeting, brief comments by West Sacramento Mayor Chris Cobaldon and Fire Chief Rick Martinez of West Sacramento, and an update from the April 17 Sacramento Area Council of Governments.  The text below summarizes the video, if you can’t stomach the commercials.  – RS]

Communities Concerned Over Crude Oil Train Plan

Note - this will take you to KTXL's website for the video.  Please be patient - commercial ad content.
Note – this will take you to KTXL’s website for the video. Please be patient – commercial ad content.

SACRAMENTO 17 Apr 2014 – Amtrak’s Capitol Corridor train is the chauffeur-driven commute for thousands in the Sacramento region.

But those runs to the Bay and back may soon be sharing the rails with something that could turn those trips of ease into trips of angst.

“That could be scary. It might deter me from taking the train,” rider Mary Pierschbacher said.

Those fears are about Valero’s plan to send up to 100 train cars full of a highly flammable crude oil through downtown Sacramento every day.

The cars would be traveling on Union Pacific lines through Roseville, West Sacramento, Davis and on into Benicia to a proposed rail terminal at Valero’s refinery there.

Tempers flared at public meetings in Benicia as the company and homeowners debated the potential threat that could be rolling through neighborhoods.

“Our crew, the railroad and the community is clearly capable of responding to an incident that happens,” Valero’s Chris Howe said.

Late notice of the impact in the Valley sent reps from targeted cities into a Thursday meeting at the Sacramento Area Council of Governments.

Mayors and emergency responders plan to draft a letter of concern to Valero.

“We can’t plan for every eventuality, but we need to know what the range of possibilities are so we can make the appropriate preparations. And if we can’t then we need to raise our voices and object to the project,” said West Sacramento Mayor Chris Cabaldon.

“I think  we still have a lot of work ahead of us to come to to a real solution, but i think we’ve taken some good first steps today,” said Rick Martinez, Fire Chief of West Sacramento.

The plan for more crude to ride the rails is a way to keep pace with increased fracking in places like northeastern North Dakota in the Bakken oil fields.

The trouble is that explosion in production is bringing to the surface oil that is lighter and more flammable than other types.

Bakken crude was in the 72 runaway train cars that derailed and exploded in Lac Megantic, Quebec last July – killing 47 people and decimating the town’s center.

If a crash like that happened along the Capitol Corridor route through Sacramento,  the new Kings arena could be just one of many city investments destroyed.

And as of right now,  crews forced to respond would have little information about how many rail cars were filled with what.

“For our first responders who are supposed to be taking care of the emergency…it doesn’t help with even less information for them to go on,” said Adams.

California Assembly: new safety legislation for emergency readiness

Repost from The Sacramento Bee, Capitol Alert
[Editor: for more on Assemblyman Dickinson’s bill, see his press release here.  I am unable to find the bill’s number as of this writing.  The press release concludes with “The bill will be heard by the legislature in the coming months.”  More info via Dickinson’s office: Contact: Taryn Kinney, State Capitol, P.O. Box 942849, Sacramento, CA 94249-0007, Tel: (916) 319-2007, Fax: (916) 319-2107  – RS]

VIDEO: Dickinson bill seeks crude oil train emergency preparedness

April 17, 2014  |  VIDEO BELOW: The Sacramento Bee/Dan Smith

IMG_RB_Crude_Oil_7.JPG_5_1_F420A1K7_L47055198.JPGPointing to the catastrophic derailment in Quebec of a train transporting oil and similar accidents, Assemblyman Roger Dickinson, D-Sacramento, has unveiled legislation to get emergency responders more information about crude-carrying trains that roll through California.

As the United States reaps the fruits of a domestic energy boom, driven in part by huge volumes natural gas extracted via hydraulic fracturing, the amount of oil transported via rail has grown apace. According to the California Energy Commission, 6.1 million barrels of crude chugged into California on trains in 2013, accounting for 1.1 percent of the amount processed at California refineries.

“It is safe to say that we’ve all become alarmed with learning about the large increase in certain types of crude oil and oil products that California refineries will be receiving,” Dickinson said during a Thursday news conference at the downtown Sacramento train station.

Cities have begun raising the alarm about safety hazards, and officials have testified to Congress that most communities are ill-prepared to handle the aftermath of a derailment. In addition to the deadly derailment in Lac-Megantic, Quebec, oil trains have jumped the tracks and ignited in Alabama and  North Dakota.

Now, with a Bay Area refinery planning to move huge amounts of crude oil on a rail line running through downtown Sacramento, Dickinson has proposed legislation requiring railroads to disclose more information about oil shipments to those who would be dispatched to handle a potential rail accident.

“Because of this rapid change in the transportation of crude by rail, state safety rules are simply not what they need to be,” Dickinson said.

Currently, railroads don’t have to notify cities in advance about their cargo. Trains carrying hazardous materials, like oil or acid, must have warnings stenciled on the side of the cars containing the dangerous commodities.

Under Dickinson’s bill, blueprints detailing facts like the volume of oil being transported in a given day; how many cars are being used; and the characteristics of the oil being conveyed would go to local officials. The state agency that now obtains that information would be compelled to share it with local fire and police departments.

“If (responders) know what they’re dealing with,” Dickinson said, “they’ve got a much better chance of controlling and containing the incident and also protecting their own lives.”

Gov. Jerry Brown has also taken note of the growing risk. Under the governor’s budget, the state’s Office of Oil Spill Prevention and Response would get more money and staff to deal with the growing risk of inland oil spills. As it stands now, the agency responds to oil spills in marine areas.

PHOTO: A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. The Sacramento Bee/Randall Benton.
VIDEO: The Sacramento Bee/Dan Smith

SF Chronicle: Green groups sue Bay Area Air Quality Management District

Repost from the San Francisco Chronicle

Oil trains into Richmond spark lawsuit

By David R. Baker, April 5, 2014
A BNSF Railway train, above, hauls crude oil near Wolf Point, Mont. Photo: Matthew Brown, Associated Press
A BNSF Railway train, above, hauls crude oil near Wolf Point, Mont. Photo: Matthew Brown, Associated Press

Little noticed by neighbors, trains carrying crude oil from the Great Plains have been rumbling into a Richmond rail yard.

The cargo is the same kind of crude that fueled a deadly explosion last summer when a train carrying the oil derailed in a small Quebec town, killing 47. Now environmentalists are suing to prevent any more shipments to Richmond.

The suit, filed last week in state Superior Court in San Francisco, would revoke a permit issued by a regional agency in February that allows Kinder Morgan to unload oil trains in Richmond at a facility originally built to unload ethanol.

The Bay Area Air Quality Management District granted the permit without studying how the switch from shipping ethanol to oil could affect the environment, said Kristen Boyles, staff attorney with Earthjustice, the group that filed the suit on behalf of four other environmental organizations.

A placard on a tank car in North Dakota, below, warns that it's carrying flammable crude oil. Trains like these are being used more frequently to deliver petroleum to California. Photo: Matthew Brown, Associated Press
A placard on a tank car in North Dakota, below, warns that it’s carrying flammable crude oil. Trains like these are being used more frequently to deliver petroleum to California. Photo: Matthew Brown, Associated Press

“These things are going in without a lot of thought to their safety, their impact on the environment and their possible health effects,” Boyles said. “That’s what’s really frustrating with this situation – how little we know until this is rolling through our backyards.”

Kinder Morgan declined comment.

Ralph Borrmann, an agency spokesman, said the change in fuels handled by Kinder Morgan’s rail-yard facility would not increase air pollution – his agency’s primary concern.

“There were no emissions consequences as a result of the permit, no net increase of emissions, which is what we look at,” Borrmann said.

Just a few years ago, California didn’t import oil by rail. But that’s changing fast.

In 2009, railways carried just 45,000 barrels of oil into the Golden State, according to the California Energy Commission. By last year, that number had soared to 6.2 million barrels. A barrel equals 42 gallons.

Petroleum glut

California’s refineries have turned to rail to access a glut of petroleum in the Great Plains. Oil production in the Bakken Shale formation that lies beneath North Dakota and Montana has surged so much, so quickly, that area’s pipelines lack the capacity to transport the fuel. As a result, the Bakken oil sells at a discount to other kinds of crude.

Oil by rail is “about discounted oil, delivered to your doorstep,” said Gordon Schremp, senior analyst with the Energy Commission.

The amount of oil carried by rail is rising nationwide. While most of those shipments reach their destination without incident, the United States and Canada have recently seen a series of oil-train accidents leading to explosions and fires, including last July’s derailment in Lac-Megantic, Quebec. In January, the U.S. Pipeline and Hazardous Materials Safety Administration issued an alert warning that Bakken crude, much lighter than many other grades of oil, may be more flammable as well.

Benicia refinery

The warning spurred opposition to a series of oil-by-rail projects in California. Valero’s refinery in Benicia is seeking approval to build a rail yard that could move 70,000 barrels of oil each day, replacing more than half of the petroleum the refinery now imports from abroad, via ship.

In Pittsburg, another project would bring in oil by ship, pipeline and rail. The $200 million proposal, by WesPac Energy, would refurbish an old Pacific Gas and Electric Co. facility to import, store and supply oil to Bay Area refineries.

Community groups have spent months fighting those proposals. But most Richmond residents knew nothing about Kinder Morgan’s Richmond rail facility until television station KPIX reported on the issue last month.

Kinder Morgan applied to convert its existing ethanol offloading facility last year, and won an operating permit from the air district in February. KPIX filmed trucks carrying oil from the facility to the Tesoro refinery in Martinez.

Tesoro’s comment

A Tesoro spokeswoman on Friday declined to confirm whether the refinery collaborates with Kinder Morgan’s Richmond facility. But she said the refinery uses about 5,000 to 10,000 barrels of oil per day taken from rail shipments, equal to between two and four train shipments per month.

Earthjustice and its partners in the suit – the Asian Pacific Environmental Network, Communities for a Better Environment, the Natural Resources Defense Council and the Sierra Club – want Kinder Morgan’s operating permit in Richmond revoked until the company conducts a full environmental impact review.

“The risk of train accidents is huge with this kind of crude oil,” Boyles said.

A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. North Highlands is a suburb just outside the city limits of Sacramento, CA. (Randall Benton/Sacramento Bee/MCT) Photo: Randall Benton, McClatchy-Tribune News Service
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. North Highlands is a suburb just outside the city limits of Sacramento, CA. (Randall Benton/Sacramento Bee/MCT) Photo: Randall Benton, McClatchy-Tribune News Service