Refineries Plan To Ship Even Dirtier Tar Sands Oil Into Bay Area, Fracked Crude By Rail Gets Too Pricey
Reporter Chrystin Ayers, April 27, 2015 11:53 PM
SAN FRANCISCO (CBS SF) — It’s an unexpected consequence of the drop in oil prices. Trains carrying explosive fracked crude oil from North Dakota are no longer rolling through our neighborhoods. Crude by rail has become too expensive.
Instead local refineries are turning to a cheaper alternative, that poses a new kind of danger.
Sejal Choksi-Chugh with San Francisco Baykeeper can’t forget the day the tanker ship Cosco Busan crashed into a Bay Bridge tower, spewing 53,000 gallons of bunker fuel into the bay. “It was getting on boats it was getting on birds it was everywhere,” she said.
But the environmentalist says that’s nothing compared to what could happen if there’s a spill of a new kind of cargo headed our way, called tar sands crude, the dirtiest crude on the planet. “We are looking at a product that sinks. Its very heavy,” she said.
There is huge supply of tar sands crude in Alberta Canada, and it’s cheap. Since they can’t get North Dakota Bakken crude by rail, refineries here in the Bay Area are gearing up to bring the Alberta crude in by ship.
“Today’s refineries are all designed to take ships in,” said energy consultant David Hackett. He says two thirds of the crude supplying Bay Area refineries already comes in on tankers, so adding tar sands to the mix makes sense.
“The California refineries are designed to process crude that is heavy and dense, and relatively high in sulfur. So the Canadian tar sands is the kind of quality that will fit in to the California refineries fairly well,” Hackett said.
The plan is to expand an existing pipeline called Transmountain, that runs from Alberta to Vancouver, and retrofit a terminal in Vancouver that will transfer the tar sands from pipeline to ship. Then tankers could move it down the coast to refineries in the bay.
Projected route of crude oil from Alberta tar sands to the Bay Area. (CBS)
Hackett predicts tankers full of tar sands crude could be coming into the San Francisco Bay in large numbers by 2018, a delivery route he believes is much safer than trains. “There are significant safety standards and operating practices that are involved,” he said.
But with all the extra ship traffic accidents are more likely to happen. Ande even one even one in the bay could be devastating. A spill on the Kalamazoo river in Michigan 5 years ago cost $1 billion to mop up, the costliest cleanup in U.S. history. That’s because tar sands crude is so dense, it sinks.
“It’s going to instantaneously cover the bottom of the bay which will almost automatically kill everything that is on the bay floor,” said Sejal. “We shouldn’t even be contemplating having those vessels come in to the bay until we are ready to deal with a spill,” she said.
Environmentalists in Canada are mounting strong opposition to the expansion of the Transmountain pipeline, but Hackett says since there’s already an existing route, the project will likely get the green light.
And by the way – most of the tar sands that will be headed down the Pacific coast will actually be exported to Asia.
By Tom Hayden, April 24, 2015 4:32pm
LOST HILLS, CA – MARCH 24: The sun rises over an oil field over the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is on the verge of a boom on March 24, 2014 near Lost Hills, California. Critics of fracking in California cite concerns over water usage and possible chemical pollution of ground water sources as California farmers are forced to leave unprecedented expanses of fields fallow in one of the worst droughts in California history. Concerns also include the possibility of earthquakes triggered by the fracking process which injects water, sand and various chemicals under high pressure into the ground to break the rock to release oil and gas for extraction though a well. The 800-mile-long San Andreas Fault runs north and south on the western side of the Monterey Formation in the Central Valley and is thought to be the most dangerous fault in the nation. Proponents of the fracking boom saying that the expansion of petroleum extraction is good for the economy and security by developing more domestic energy sources and increasing gas and oil exports. (Photo by David McNew/Getty Images)
Jerry Brown perhaps should put his DOGGR to sleep. Not his family dog, Sutter, but DOGGR — the Division of Oil, Gas and Geothermal Resources — the 100-year-old agency that’s been handing out permits for drilling in the Central Valley without records, oversight or enforcement of 21st century environmental laws.
The agency was created prior to Upton Sinclair’s 1927 novel, “Oil!,” on which Daniel Day-Lewis’ 2007 film, “There Will Be Blood,” was based. Oil was to California what cotton was to Mississippi, a booming industry based on subsistence labor, migration, racism, vigilantism, and government officials looking the other way.
Oil wells in the Midway-Sunset oil field in Fellows (Kern County). Monterey Shale, largely untouched territory near Midway-Sunset, could represent the future of California’s oil industry and a potential arena for conflict between drillers and the state’s powerful environmental interests. Photo: Jim Wilson, New York Times
Times change but slowly. Current Kern County Sheriff Donny Youngblood, who says Kern ought to be a county in Arizona, opposes President Obama’s immigrant-rights policy. There are an estimated 66,000 undocumented immigrants in Kern County, whose population is majority Latino. More than 22 percent of its people live below the poverty line, 69 percent of them within one mile of an oil well.
The barren place is a bit like Mississippi in the ’60s, powerful enough to defy progressive norms or laws on the national level. The federal government in 1982 transferred its power to California to monitor and regulate the 42,000 injection wells that dump toxic waste fluids into groundwater. That monitoring didn’t happen, a lapse that the feds say is shocking. The human carcinogen benzene has been detected in fracking wastewater at levels 700 times over federal safety standards. Health impact studies are inadequate, but Kern community hospital managers say the county has one of the highest cancer rates in the country, which is expected to double in 10 years.
How did it happen that the Obama Environmental Protection Agency is pushing the Jerry Brown EPA to comply with modern environmental law? The same Gov. Jerry Brown signed that 1982 agreement, giving Big Oil an opportunity to oversee itself. Those were the days when President Ronald Reagan’s Anne Gorsuch ran the federal EPA, perhaps convincing California that it could do a better job.
As a result of the 1982 transfer, the feds say California has failed at oversight and record-keeping. With the feds watching, the state has two years to implement a meaningful monitoring plan.
Brown has tried to fix the problem, which undercuts his claim that drilling and controversial fracking can be addressed by beefed up regulations instead of a moratorium on fracking that most environmentalists want. He has added more professional staff to DOGGR and installed a new director, Steve Bohlen, who promises to clean up the place. Since last summer, the agency has shut down 23 injection wells out of 2,500.
The preference of one experienced state official is to peel back DOGGR, move it to Cal EPA and turning it into a real regulatory agency instead of a lapdog for the oil industry. But Brown officials prefer the uphill task of reforming DOGGR from within, and have signaled they will veto any bill that brings the agency under state EPA jurisdiction. The Legislature is going along with his incremental approach, so far.
The task will be daunting. The DOGGR mandate has been to drill, baby, drill, says state Sen. Hannah-Beth Jackson, D-Santa Barbara. DOGGR’s legal mandate calls for “increasing the ultimate recovery of underground hydrocarbons,” not determining whether drilling or fracking are sustainable and safe for aquifers or human health. Her SB545 is still a work in progress, however. It stops the archaic custom of drilling permits being obtained and accepted without any written approvals or findings, which upsets the feds and shuts out the public. Until recently, an oil company simply gave notice of its intent to drill and was entitled to proceed unless the agency said no in writing within 10 days. Under Jackson’s bill, an application to drill will require written approval, and the paperwork will be posted on the DOGGR website. In addition, the bill will limit the Kern custom of keeping records about chemicals and water impacts confidential, even when a well has gone into production.
However, the bill’s language makes oversight optional by saying that DOGGR “may” require an operator to implement a monitoring plan. Decision-making power is devolved to the division district deputy in Kern, which is like expecting a Mississippi sheriff to carry out federal law in 1964 — or the present Kern sheriff to enforce immigration law today. Nor does the bill give the state EPA or health experts any shared authority in the permitting process.
Well derricks crowd the Kern River oil field in Bakersfield in 1912. Photo: Chevron, SFC
At the heart of the scandal is the historic power of Big Oil against the emergence of California’s clean-energy economy with its priorities of renewable resources and efficiency. The Democratic majority in Sacramento is hobbled by a pro-drilling contingent, led by Republicans with a number of Central Valley Democrats. The oil lobby spent $9 million in 2014 in a failed attempt to exempt themselves from the state’s cap-and-trade law. The effort was led by Assemblyman Henry Perea, D-Fresno, along with 16 Democratic legislators. In a more striking example, state Sen. Michael Rubio, D-Bakersfield, left his seat in 2013 to begin lobbying for Chevron, one of the major firms along with Occidental Petroleum operating in Kern’s oil fields. The oil lobby is spending large sums to cultivate friendly Democratic candidates and underwrite advertising campaigns warning of a “hidden gas tax” if their privileges are threatened.
Many Sacramento insiders believe that Brown has made concessions to Big Oil in order to protect his considerable progress toward clean-energy goals while not confronting the industry the way he took on the nuclear lobby in the ’70s. That’s understandable, if it works. Now, however, his regulatory reputation needs rebuilding. What if his DOGGR won’t hunt? What if it’s beyond reform? What will the governor and Legislature do if facing open defiance from the powers that be in Kern on a range of issues from clean air and water to the protection of children’s health to environmental justice? With the drought on everyone’s mind, can he allow the state’s aquifers to be threatened by the carcinogenic wastewater of oil production?
The DOGGR scandal drills deeply into the foundations on which state politics are built.
Tom Hayden writes, speaks and consults on climate politics and serves on the editorial board of the Nation. His latest book is “Listen Yankee!: Why Cuba Matters.” (Seven Stories Press, 2015).
LETTERS: Safety of ‘bomb trains’ is public health priority
By Dr. Lewis Cuthbert, 04/25/15, 2:00 AM EDT
The Mercury article of Feb. 23, “We just have to hope that nothing happens” has profound implications to everyone in the Greater Philadelphia Region. We applaud the March 1 Mercury editorial conclusion, “Clearly, hope is not enough to maintain safety…”
So-called “bomb trains” containing up to 3 million gallons of explosive, flammable, hazardous crude oil travel right through Pottstown and the Limerick Nuclear Plant Site. A derailment, explosion and days-long fire ball near Limerick’s reactors and deadly fuel pools could trigger simultaneous meltdowns with catastrophic radioactive releases. Millions of Greater Philadelphia Region residents could lose everything forever.
Days of thick black smoke from a crude oil fire could be devastating. Even Occidental Chemical’s large vinyl chloride accidents (seven-tenths of a mile from Limerick) caused problems at Limerick, according to employees, some of whom are very worried about crude oil train derailments.
Risks are increasing. Emergency responders are smart to be concerned. They shouldn’t be expected to be on the front lines of such devastating uncontrollable disasters.
Train derailment disasters should be anticipated. Sixty-five tank cars bound for Philadelphia had loose, leaking, or missing safety components to prevent flammable, hazardous contents from escaping (Hazmat report – last two years). A fuel-oil train already derailed a few miles from Philadelphia.
Heat from the rupture and ignition of one 30,000-gallon car can set off a chain reaction, causing other cars to explode, releasing a days-long fireball. Basically, responders must let it burn out.
Over 100 railcars, estimated to hold three million gallons, regularly sit on tracks from the Dollar General in Stowe to Montgomery County Community College.
ProPublica data from the federal Pipeline and Hazardous Materials Safety Administration (2011-2014) shows incidents in over 250 municipalities. The worst of eight major crude oil train accidents include:
A train derailment and explosion killed 47 and destroyed 30 buildings in Quebec.
2,300 residents were evacuated in North Dakota. The fireball was observed states away.
Safer trains aren’t the answer. A new safer-design derailed February 2015 in West Virginia, despite adhering to the speed limit. Hundreds of families had to flee their homes in frigid weather. Burning continued for days. Drinking water and electricity were lost. Leaking crude oil poisoned the water supply. Fireballs erupted from crumbled tank cars, underscoring volatility of crude oil’s propane, butane, etc.
Safe evacuation from our densely populated region is an illusion. Limerick Nuclear Plant’s evacuation plan is unworkable and unrealistic, not robust as claimed by a health official. Just consider work hour traffic combined with deteriorated roads and bridges. We encourage officials to visit www.acereport.org to view ACE’s 2012 video-blog series on the reality of Limerick’s evacuation plan. For a graphic presentation call (610) 326-2387.
Who pays to deal with irreversible devastation from train derailments and meltdowns? Clearly, not the oil industry, nuclear industry, railroad or government. We’d be on our own, despite:
Long-term ecological damage that would leave ghost towns that can’t be cleaned up safely.
Risking the vital drinking water resource for almost two million people (Pottstown to Philadelphia).
Millions of people losing their homes, businesses and health.
Richard Lengel, Pottstown’s Fire Chief, admitted, “If something catastrophic happens, there’s no municipality along the railroad that can handle it, the volume [crude oil] is too great. We just have to hope that nothing happens, honestly.”
Hope is no solution! Neither is denying the reality of our unacceptable devastating risks.
The catastrophic disasters we face can, and must, be prevented with foresight and political will to face the facts and take action. Enough of corporate profits jeopardizing public safety.
Wake up! Speak up! Tell local, state and federal elected officials to stop this insanity!
Say no to dangerous crude oil trains traveling through our communities and the Limerick site.
Say no to continued Limerick Nuclear Plant operations to avoid meltdowns that can be triggered by cyber/terrorist attacks, embrittled/cracking reactors, earthquakes and now oil-train explosions/fires.
Repost from CBC News [Editor: Spokesperson John Hill has publicly stated that Valero Benicia Refinery shipped Bakken crude on a barge through our beautiful Carquinez Strait. Presumably this barge came from the Pacific Northwest. Canadian dilbit and North Dakota Bakken crude are increasingly making their way to the Pacific, either for refining or for transfer to ships bound for more southerly destinations. Marine transport is clearly an expanding threat for bringing dangerous and dirty North American crude to Northern and Southern California. English Bay in Vancouver this year; is San Francisco Bay next? Oh, and imagine if you will: volatile Bakken crude spilled and burning in our waters. – RS]
Toxic fuel spill in English Bay is wake-up call for port, says marine expert
Critics of pipeline expansion say response proves Vancouver isn’t ready for heavy tanker traffic
By Jason Proctor, Apr 10, 2015 9:10 AM PT
Critics say the response to an oil spill in English Bay raises serious questions about proposed pipeline expansion increasing tanker traffic. (Darryl Dyck/Canadian Press)
Joe Spears calls it a wake-up call.
An international shipping expert, Spears says Canada is supposed to be a world leader at dealing with maritime emergencies.
But he says the response to an oil spill into Vancouver’s English Bay on Thursday [April 9, 2015] was anything but world class.
“We’ve got to do better,” he said.
“We’re Canada’s largest port. We’ve lost our way.”
Expansion fears
Spears joined a chorus of critics who said the spill reinforces fears about proposed pipeline expansion, which could bring increased oil tanker traffic into the B.C.’s coastal waters.
But even as critics pointed to perceived problems, Coast guard assistant commissioner Roger Girouard claimed the response was textbook.
Opponents of the proposed Kinder Morgan pipeline expansion fear the plan will increase the chance of oil spills in Burrard Inlet. (Greg Rasmussen/CBC)
“From where I sit, from an operational perspective, this has gone in accordance with the doctrine,” Girouard said.
“Port Metro is the largest port in Canada. They have a very solid team. They saw a problem, they called in the partners and we’ve put together a unified command centre to be able to take a look at this and do it the right way.”
‘More than words’
But Spears says responders should have tracked the movement of the spill with buoys and drones within minutes of becoming aware of oil on the water.
He also questions a perceived lack of communications that saw City of Vancouver officials alerted to the spill 13 hours after Port Metro Vancouver first learned about it at 5 p.m. PT Wednesday.
“To make a world-class response means more than words,” said Spears.
“We’ve got to bring all the players together. This is a glimpse of the future. If we can’t handle a small bunkering spill, how are we going to deal with a major tanker?”
Vancouver City Coun. Geoff Meggs raised similar concerns about the failure to notify the city immediately.
B.C. NDP MLA Spencer Chandra Herbert, Official Opposition environment critic, says citizens were unaware of the dangers posed by the oil spill in English Bay. (CBC)
“What may seem like a small spill to an offshore mariner is very, very significant to the people of Vancouver. These are some of our most precious public assets,” he said.
“So it’s in that context that we probably need to have a further conversation, so that they understand what’s important to us.”
‘It could have been better’
The NDP’s Spencer Chandra Herbert, the Official Opposition’s environment critic, said citizens should be part of that discussion.
The MLA for the Vancouver-West End/Coal Harbour represents a riding that sits directly in the path of the spill.
“People were out there last night, playing with their dogs, having fun in the water. Meanwhile, we were having bunker fuel oil — they still can’t tell us what it is — in our water, potentially causing harm,” he said.
“I think it’s a huge wake-up call.”
Girouard acknowledged the public’s concerns.
“In an absolute sense, it could have been better,” he said.
“One of the challenges with this many jurisdictions and partners is, ‘Who’s got what piece?’, and it took us a little while to get through that.”
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