Pittsburg: WesPac oil storage project no longer includes Bakken crude trains

Originally published in the San Jose Mercury News, April 01, 2015.

By Sam Richards

Amid the growing national debate over the safety of transporting crude oil by trains, an energy firm has dropped the rail component from a controversial proposal to transform an old PG&E tank farm into a regional oil storage facility here.

WesPac Midstream LLC’s proposed Pittsburg Terminal Project, which had been attacked by local activists as posing a serious safety threat, is back on the table after a year of dormancy.

But the elimination of the crude-by-rail element doesn’t mean critics are satisfied that a revived oil storage and shipping operation would be safe for the community. The dormant tanks are less than a half-mile from hundreds of houses and apartments on West 10th Street and in the downtown area between Eighth Street and the waterfront.

WESPACADV“There are still environmental issues … having the stored oil in those tanks so close to homes, ground pollution issues, vapors from the big tanks,” said Frank Gordon of Pittsburg, a vocal opponent of the project in the past.

The City Council on Monday is expected to approve another review of the proposed oil storage facility’s environmental impact reports — this time excluding the prospect of rail deliveries.

The WesPac plan, as presented in October 2013, included facilities just north of Parkside Avenue — south of the tank farm — to handle as many as five 104-car oil trainloads a week.

Art Diefenbach, WesPac’s Pittsburg project manager then and now, said this week that the “regulatory environment” surrounding rail shipments of crude oil — in particular, the more volatile Bakken crude from an area covering parts of North Dakota, Montana and Saskatchewan in Canada — isn’t stable enough to plan a major project around.

“We just can’t proceed with that uncertainty floating out there,” said Diefenbach, also noting that falling crude prices help make shipping oil by rail a less attractive alternative, at least in the short term.

He said protests against the crude oil trains — in Pittsburg, the East Bay and the nation — were a factor in the plan change, too. Such decisions, he said, “are always a combination of factors.”

Oil trains, he said, are out of the picture for the foreseeable future.

Several communities in the East Bay have expressed alarm in recent months about the transport of crude by rail through the region in the wake of several high-profile derailments and accidents in North America in recent years, including one in Quebec in 2013 that killed 47 people and destroyed part of a town. At a meeting in Crockett last week, residents raised concerns about plans to ship oil by rail through Contra Costa County and other parts of the Bay Area to a refinery in Central California.

Without trains, all oil arriving at the WesPac facility would be via either ship or a pipeline from the southern reaches of the Central Valley.

Pittsburg Mayor Pete Longmire said removing the trains from the WesPac equation should result in a safer project for the community. “And it’s probably less controversial than before,” he said.

Although the council will decide Monday night on only an amendment to one of the project’s environmental studies, Longmire expects a large crowd to turn out to discuss what many still likely see as a polluting facility that could present a health danger to the hundreds of people who live near the old tanks.

WesPac Energy, as the company was called then, first applied in March 2011 for needed permits to renovate and restart the former PG&E oil storage and transfer facilities off West 10th Street on the city’s northwestern edge. The $200 million project calls for an average of 242,000 barrels of crude or partially refined crude oil to be unloaded daily from ships on the nearby Sacramento River, and from pipelines, and stored in 16 tanks on 125 acres.

The oil would then be moved to Contra Costa County refineries, and the Valero refinery in Benicia, via pipeline for processing.

The Pittsburg Defense Council, a group of opponents to the WesPac project in general, had decried the prospect of Bakken crude oil coming into town for unloading. Some already has rolled through Pittsburg on BNSF rails, destined for a Kinder-Morgan facility in Richmond.

Diefenbach said that, assuming various approvals come at a typical pace, construction could begin in early 2016, and likely would take from 18 to 24 months.

Longmire said he doesn’t have strong feelings about WesPac either way at this point but insists that the project — with its jobs and its boost to the local economy — must be safe. Gordon said he is still leaning against it. They agree, though, the formal permitting process must be allowed to play out.

Said Gordon, “We’ll have to see what they do with the new” environmental impact report.

 

The Pittsburg City Council meets at 7 p.m. Monday at City Hall council chamber, 65 Civic Ave. in Pittsburg. The public is welcome.

Contact Sam Richards at 925-943-8241. Follow him at Twitter.com/samrichardsWC

 

 

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