CC 2015-09-22_11b Comment Letter_Phillips 66 Rail Spur ProjectTO:
FROM:
SUBJECT:
DATE:
MEMORANDUM
CITY COUNCIL
-fj'i'-{/-
TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
CONSIDERATION OF COMMENT LETTERS REGARDING THE
PHILLIPS 66 RAIL SPUR EXTENSION PROJECT AND RAIL SAFETY,
AND INFORMATION REGARDING OTHER CONCURRENT AND
MISCELLANEOUS PROJECTS RELATED TO OIL PRODUCTION
SEPTEMBER 22, 2015
RECOMMENDATION:
It is recommended that the City Council 1) provide direction whether to send comment
letters to the County of San Luis Obispo Planning Commission and the U.S. Department
of Transportation regarding the Phillips 66 Rail Spur Extension Project and rail safety
respectively; and 2) receive and file information regarding other miscellaneous and
concurrent projects of interest related to oil production.
FINANCIAL IMPACT:
There is no identified direct impact to financial and personnel resources. This item -is not
identified in the critical Needs Action Plan.
BACKGROUND:
On April 14, 2015, the City Council received a presentation by Phillips 66, Union Pacific
Railroad, and Mesa Refinery Watch Group regarding the Phillips 66 Rail Spur
expansion project. There were several public comments expressing concern regarding
the project and the Council directed staff to agendize the item for discussion at a future
date when the environmental documents were completed (Attachment 1 ).
ANALYSIS OF ISSUES:
According to the County of San Luis Obispo, Phillips 66 has applied for a Development
Plan and Coastal Development Permit to extend a rail spur off of the Union Pacific rail
mainline in order to unload up to five trains per week carrying heavy crude oil to the
Santa Maria Refinery. The rail spur would be approximatefy 6,915 feet in length and
would occupy approximately 47 acres of the 1,644 acre refinery site. A Revised Draft
Environmental Impact Report (DEIR) for the project was released on October 10, 2014
and a re-circulated DEIR is complete and available for public review. The San-Luis
Obispo County Planning and Building Department is currently working toward releasing
a Final Environmental Impact Report for the project. Updated regulations have been
released by the Federal Department of Transportation and the California Office of
Environmental Health Hazard Assessment. The County Planning and Building
Item 11.b. - Page 1
CITY COUNCIL
CONSIDERATION OF COMMENT LETTERS REGARDING THE PHILLIPS 66 RAIL
SPUR EXTENSION PROJECT AND RAIL SAFETY, AND INFORMATION REGARDING
OTHER CONCURRENT AND MISCELLANEOUS PROJECTS RELATED TO OIL
PRODUCTION
PAGE2
Department is reviewing these regulations with respect to the County's Environmental
Impact-· Report. When the Final Environmental Impact Report is complete, likely
December, and available for review, a full notification of its availability will be released.
Additional opportunities for public comment on the project will be ·during the upcoming
public hearings, which have not yet been scheduled.
The proposed rail spur project, including supporting rail infrastructure are all outside of
the City limits. Union Pacific (UP) railway is located within the adjacent Cities of Grover
Beach and Pismo Beach. Grover Beach is served by the Five Cities Fire Authority
(FCFA). The FCFA provides automatic and mutual aid to the City of Pismo Beach.
Chief Lieberman, FCFA, has stated the following for the benefit of the Cities of Grover
Be~ch and Arroyo Grande:
• Specialized training should be provided by UP. There is dialogue about UP
bringing the mobile training facility to San Luis Obispo to allow this type of
training for local agencies.
• Foam-A fire of this magnitude will take significant amounts of foam. And while
Five Cities Fire authority has a limited inventory, it will take UP several hours to
bring one of their "foam trailers" from other parts of the State (namely Roseville).
• -Lastly, if there is a significant event with explosion, fire and hazardous release
FCFA will not only require equipment and supplies, but staffing needs will be
significant and will likely strain SLO County.
Attached is a draft letter to the County of San Luis Obispo Planning Commission stating
general concerns expressed by community members and several other agencies
regarding the Phillips 66 Rail Spur project (See Attachment 2 for the City's draft
comment letter and the comment letter from the City of Pismo Beach for reference.)
Additionally, the California League of Cities has been following the issue of rail safety in
recent years, and in February, 2015, developed policy recommendations to address
hazards. The League urges each member jurisdiction to send a letter to the Secretary
of Transportation, emphasizing that the Department of Transportation consider 10
specific policy recommendations adopted by the League to improve rail safety.
Attachment 3 includes a draft comment letter as suggested by the League of California
Cities, and the League's comment letter regarding the U.S. Department of
Transportation's Pipeline and Hazardous Materials Safety Administration's Notice of
Proposed Rulemaking.
Staff has recently identified two concurrent and miscellaneous projects that are not
related to the Phillips 66 rail spur project, but involve the expansion of oil production
infrastructure in the vicinity of the City. These projects do not involve any discretionary
decision on the part of the City and are only provided here as they relate to oil
Item 11.b. - Page 2
CITY COUNCIL
CONSIDERATION OF COMMENT LETTERS REGARDING THE PHILLIPS 66 RAIL
SPUR EXTENSION PROJECT AND RAIL SAFETY, AND INFORMATION REGARDING
OTHER CONCURRENT AND MISCELLANEOUS PROJECTS RELATED TO OIL
PRODUCTION
PAGE3
production in our area. The first is a letter received by staff, from the Division of Oil,
Gas, and Geothermal Resources-District 3 (DOGGR), requesting a statement from the
City identifying if the City currently uses or intends to use water from the proposed
exempted aquifer area underlying the Price Canyon oil field. This statement would be
used in support of an action to correct a boundary discrepancy and expand the current
exempted aquifer designation of the Dollie sands of the Pismo formation in the Arroyo
Grande oil field (Attachment 4). Without an aquifer exemption, certain types of energy
production, mining, or waste disposal into Underground Sources of Drinking Water
(USDW) would be prohibited. Environmental Protection Agency makes the final
determination on granting all exemptions. Staff from the Northern Cities Management
Area agencies concurred that a statement would not be in the respective agencies' best
interest and a statement response was not sent.
Secondly, pipeline projects were recently approved by the County that includes
infrastructure piping within City utility easements. Phillips 66 applied for a Minor Use
Permit from the County of San Luis Obispo to construct, operate, and maintain a 3.9
mile segment of a proposed 5.6 mile oil pipeline and appurtenant facilities within the
unincorporated County of San Luis Obispo. The remaining 1. 7 miles of the proposed oil
pipeline and appurtenant facilities would be located within the cities of Pismo Beach (0.8
miles), Grover Beach (0.5 miles) and Arroyo Grande (0.4 miles) and require
encroachment permit approval by each respective city.
The pipeline alignment is located within/under existing roadway right-of-way and the
project area within the City limits falls within the terms of the utilities franchise
agreement. The project would transport crude oil from the existing Oil Field (Price
Canyon/Arroyo Grande Oil Field located at Price Canyon Road) to its existing 12-inch
pipeline located at the intersection of Oak Park Drive and Grand Avenue in the City of
Arroyo Grande. The existing 12-inch pipeline connects to the existing Santa Maria oil
refinery on the Nipomo Mesa. In addition, Jhe project replaces an existing segment of
the Phillips 66 pipeline under Arroyo Grande Creek (in County jurisdiction) that is
currently under construction. Staff is in the process of reviewing the encroachment
permit application, which is a ministerial approval.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Submit the comment letters to the San Luis Obispo County Planning Commission
and U.S. Department of Transportation,, and receive and file information provided
regarding other miscellaneous and concurrent projects related to oil production;
2. Submit modified comment letters to the San Luis Obispo County Planning
Commission and U.S. Department of Transportation, and receive _and file
information provided regarding other miscellaneous and concurrent projects
related to oil production;
Item 11.b. - Page 3
CITY COUNCIL
CONSIDERATION OF COMMENT LETTERS REGARDING THE PHILLIPS 66 RAIL
SPUR EXTENSION PROJECT AND RAIL SAFETY, AND INFORMATION REGARDING
OTHER CONCURRENT AND MISCELLANEOUS PROJECTS RELATED TO OIL
PRODUCTION
PAGE4
3. Do not send comment letters to the San Luis Obispo County Planning
Commission or the U.S. Department of Transportation, and receive and file
information provided regarding other miscellaneous and concurrent projects
related to oil production;
4. Provide direction to staff.
ADVANTAGES:
Submittal of comment letters will inform the County of San Luis Obispo of the City's
concerns regarding the Phillips 66 Rail Spur project and support the League of
California Cities in their efforts to promote rail safety. Receiving and filing the
information provided regarding other concurrent and miscellaneous projects related to
oil production informs the City Council and community of ongoing projects.
DISADVANTAGES:
Submittal of the comment letter to the County of San Luis Obispo providing the City's
concerns regarding the Phillips 66 Rail Spur project involves the City in a project that is
not located directly in the City's jurisdiction and has not been fully analyzed by the City.
There are no disadvantages identified with sending the comment letter to the U.S.
Department of Transportation regarding rail safety, or in receiving and filing the
information provided regarding other concurrent and miscellaneous projects related to
oil production.
ENVIRONMENTAL REVIEW:
None required.
PUBLIC NOTIFICATION:
The Agenda was posted in front of City Hall on Thursday, September 17, 2015. The
Agenda and report were posted on the City's website on Friday, September 18, 2015.
Several public comments were received during the public comment period of the April
14, 2015 City Council meeting. A letter from Ms. Hansen, received on September 17,
2015 (Attachment 5).
Attachments:
1. April 14, 2015 City Council minutes
2. Draft comment letter to the County of San Luis Obispo regarding the Phillips 66
Santa Maria Refinery Rail Spur project, and City of Pismo Beach comment letter
for reference
3. Draft comment letter to the U.S. Department of Transportation, and the California
League of Cities Comments Regarding the U.S. Department of Transportation's
Pipeline and Hazardous Materials Safety Administration's Notice of Proposed
Rulemaking on Enhanced Tank Car Standards and Operational Controls for High
Hazard Flammable Trains, and sample letter for member jurisdictions provided
by the League of California Cities for reference
Item 11.b. - Page 4
CITY COUNCIL
CONSIDERATION OF COMMENT LETTERS REGARDING THE PHILLIPS 66 RAIL
SPUR EXTENSION PROJECT AND RAIL SAFETY, AND INFORMATION REGARDING
OTHER CONCURRENT AND MISCELLANEOUS PROJECTS RELATED TO OIL
PRODUCTION
PAGES
4. Division of Oil, Gas and Geothermal Resources letter, Aquifer Exemption
Expansion Fact Sheet
5. A letter from Ms. Hansen, received on September 17, 2015 (Attachment 5)
Item 11.b. - Page 5
ATTACHMENT 1
Minutes: City Council Regular Meeting
Tuesday, April 14, 2015
"{
City Attorney Carmel reported that the Council met in closed session to discuss the sta s of the
City Manager recruitment, and no reportable action was taken.
March 31, 2015:
Public employment pursuant to Government Code Section 54957:
Title: City Manager
Public employee performance evaluation pursuant to Gover
54957:
Title: City Attorney
City Attorney Carmel reported that the Council met in closed sess· n to discuss the status of the
City Manager recruitment and City Attorney's performance, and o reportable action was taken.
5.b. Ordinances Read in Title Only.
Council Member Brown moved, Council Member Guth ·e seconded, and the motion passed
unanimously that all ordinances presented at the m ting shall be read by title only and all
further readings be waived.
6. SPECIAL PRESENTATIONS
6.a. Honorary Proclamation
Month".
April 2015 as "Sexual Assault Awareness
Mayor Pro Tern Barneich presented Honorary Proclamation declaring April 2015 as "Sexual
Assault Awareness Month". Je e Torrey, Associate Director of RISE, accepted the
Proclamation.
6.b. on Declaring April 2015 as "Month of the Child" and "Child
onth".
Mayor Pro Tern Barn ch presented an Honorary Proclamation declaring April 2015 as "Month
of the Child" and "C Id Abuse Prevention Month". Maddy Quaglino, on behalf of the Child Care
Planning Council San Luis Obispo, accepted the Proclamation.
6.c. Hono ry Proclamation Declaring April 24, 2015 as "Arbor Day".
Mayor P Tern Barneich presented an Honorary Proclamation declaring April 24, 2015 as
"Arbor ay". Scott Dowlan, Arroyo Grande Tree Guild, accepted the Proclamation.
Ci Arborist Pete McClure presented Mayor Pro Tern Barneich with an Arbor Day flag, plaque
d hat.
6.d. Presentations by Phillips 66, Union Pacific Railroad, and Mesa Refinery Watch
Group Regarding the Santa Maria Refinery Rail Project.
Jim Anderson representing Phillips 66, Laurence Shinderman representing Mesa Refinery
Watch Group, and Liisa Stark representing Union Pacific Railroad provided PowerPoint
presentations outlining information regarding the Santa Maria Refinery Rail Project. At the
conclusion, presenters and staff responded to questions from Council regarding the project.
Item 8.c. -Page 2
Item 11.b. - Page 6
Minutes: City Council Regular Meeting
Tuesday,Aprff14,2015
Page3
7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS
Mayor Pro Tern Barneich invited public comment. Speaking from the public were: Gina
Whitaker, Arroyo Grande, in opposition to the rail spur project and urged the City Council to
submit a letter to the San Luis Obispo County Planning Department and the San Luis Obispo
County Board of Supervisors relaying citizens' concerns as a community and opposing the
proposed rail project; Kay Gore, Arroyo Grande, in opposition to the rail spur project; Martin
Akel, in opposition to the rail spur project; Gary McKible, in opposition to the rail spur project;
Tom Ryan, in opposition to the rail spur project; Kevin McCarthy, concerned about the
disruption of soil when building the rail spur project due to potential exposure to Valley Fever
(coccidioidomycosis); Patty Welsh, requested the City implement a Stage One drought
emergency and expressed concerns about the water sign at the entrance of the Village; Diana
Robertson, in opposition to the rail spur project; and Tom Sear, concerned about land values
along the rail lines after the project is built.
8. CONSENT AGENDA
Mayor Pro Tern Barneich invited public comment on the Consent Agenda.
received.
Action: Council Member Guthrie moved, and Council Member Harmon seconded th otion to
approve Consent Agenda Items 8.a. through 8.d., with the recommended cour s of action.
The motion passed on the following roll-call vote:
AYES:
NOES:
Guthrie, Harmon, Brown, Barneich
None
ABSENT: Hill
8.a. Consideration of Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements fo e period March 16, 2015 through
March 31, 2015.
8.b. Consideration of Approval of Minutes.
Action: Approved the minutes of the Reg r City Council Meeting of March 24, 2015
and the Special Meetings of March 24 015, March 27, 2015, March 28, 2015, and
March 31, 2015, as submitted.
8.c. Consideration of Temporary Use ermit 15-003 Regarding Street Closures for the
Amgen Tour of California Bike ace on Wednesday, May 13, 2015.
Action: Adopted a Resolutio entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO ANDE APPROVING TEMPORARY USE PERMIT CASE
NO. 15-003; AUTHOR ING STREET CLOSURES AND RELATED ACTIONS FOR
THE AMGEN TOU OF CALIFORNIA BIKE RACE; APPLIED FOR BY AEG
CYCLING, LLC".
8.d. Consideration o Declare Surplus Property.
Action: Ado ed a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE Cl OF ARROYO GRANDE DECLARING A 1984 SERVICE TRUCK AS
SURP SAND AUTHORIZING ITS SALE OR DISPOSAL".
Item 8.c. -Page 3
Item 11.b. - Page 7
DRAFT
September 23, 2015
Honorable Planning Commissioners
San Luis Obispo County Planning Commission
c/o James Bergman, Director of Planning and Building
976 Los Osos Street, Room 200
San Luis Obispo, CA 93408
SUBJECT: Phillips 66 Santa Maria Refinery Rail Spur Project
ATTACHMENT 2
This comment letter is intended to convey concerns of the City of Arroyo Grande and
those expressed by many of our citizens regarding the safety of expanding facilities at
the Phillips 66 Santa Maria Refinery in Nipomo to allow crude oil deliveries by rail for
processing (the "Project"). The Project would allow for increased transport of crude oil
using the Union Pacific Railway line through communities immediately adjacent to the
City.
The City joins with the community of Pismo Beach regarding heightened concerns
about rail safety and potential environmental threats associated with the hazards of
crude oil and the risks of accident and damage. Moreover, an increase in the potential
for disastrous conditions would directly affect our community in terms of individuals
working and going to school in areas adjacent to the rail way as well as our obligation to
provide mutual aid for any incident.
The City's General Plan Safety Element includes Objective S-5: "Reduce the potential
for harm to individuals and damage to the environment from radiation hazards,
hazardous material, electromagnetic fields, radon and hazardous trees"; and supporting
Implementation Measure Program S5-2.1 "Review commercial development projects
which use, store, or transport hazardous materials to endure necessary measures are
taken to protect public health and safety". Specifically, concerns regarding the Project
involve the potential volatility of the oil, and the questionable integrity of the tanker cars
and state of the rail line infrastructure. Given these potential concerns, the City strongly
supports the policy adopted by the League of California Cities for rail safety.
Particularly, specific to the Phillips rail spur project, the City supports that measures
necessary for increased rail safety as identified. by the League of California Cities, and
resources for adequate emergency response, training and preparedness for the Central
Coast Region are identified, secured and in place prior to allowing the project to
proceed.
Item 11.b. - Page 8
We appreciate the magnitude of the task the Planning Commission has in reviewing the
Project and we trust that rail safety aspects will be weighed appropriately during your
consideration.
Sincerely,
Jim Hill
Mayor, on behalf of the Arroyo Grande City Council
City of Arroyo Grande
Item 11.b. - Page 9
From the Office of the Mayor
Shelly Higginbotham
760 Mattie Road
Pismo Beach, CA 93449
(805) 235-6604
Honorable Planning Commissioners
San Luis Obispo County Planning Commission / .--'-.,
c/o James Al Bergman, Director of Planning and Building ,/ . /"
/ / 976 Los Osos Street, Room 200 ,/ <-.
San Luis Obispo, CA 93408 ( //'<.., ', "..,
/ . ,_,' "· '-.
RE: Phillips 66 Santa Maria Refinery Rail Projecr" .') '·"" "-,.,,.,_
f'/ ,/' -~ °"'-.
The City of Pismo Beach and many of its resld,enfu"
1
have concerns regar~lhg the safety of oil
trains passing through our city limits en route to"ttie'~anta M91ria refinery>~h'e,proposed project
runs through the city limits of Pismo Beach. " ·., / / ,, 1 • -... ·.,
/', •/
\ .._, /' '.,_/
The continued increase in the transport. .. of'cr:~de by rail' eonibined with recent rail accidents
involving oil spills and resulting fires, ha·s:seryedJo heighten concerns about rail safety and
adverse environmental impacts among\r:n'ary bf,c?i:fr,citizens\.\ '·,·, ...
\ \ ...,, ........ ~.... ' "' .... ---~~ .. --\ \ .......... ) ............. "''"" '.
Over the course of 2q,1,4 al),,d fol~_, person11~l,fro~.,Cal)~!re'S,an t:ui~ Obispo, who also serve as
Pismo Beach's Firepepaftmeilt.firiq emergency,1respdnders,hav1e conducted an ongoing dialog
with the project applic~rits .• enviror,utl~ntal cori~ult~uils, and Cc>tiflty staff; formulating mitigation
measures to address a'sl?e'cts of t8e. project idehtifi~d as being of "notable concern" culminating
in the meas.,..ur:es .. p(~sentec:qn·t~,e·'proJeict's,f~nal "Envi~onmental Impact Report".
'(,-1{!" -~~.... ., ·............. {.;~t·--""-.. -~-~~~,.,. ....... -.......... " \\ \)
Furthermor,ff'the Leag1,.1e''0f Califorhia Cities'has as,fofmal policy made recommendations to
impro~e. .. ~a!.l safety. w~·u.nderstafld, thi? area olregulation is largely preempted by federal law,
which is w~y·-.t~e Mayor Pro. te'l\1 and'yity._~anager of Pismo Beach traveled to Washington,
D.C. in Marc~ te .. ,meet with th~ S~nate ·c..om,merce Subcommittee on Surface Transportation and
Merchant Marine 'Infrastructure, Safety, ahd Security. Additionally they met with key staff from
the Federal Raii''Administration ;at the Department of Transportation to discuss the issue of rail
safety, focusing ori··vyays in whibh 9n transportation may be made safer.
..... .. / f
"\ \, I
' / /
We would appreciate the:.planl)ir'lg Commissions consideration in reviewing the rail safety
issues when evaluating the· proposed Phillips 66 Rail Spur Extension Project.
Sincerely,
Shelly Higginbotham
Mayor
cc: Ryan Hostetter, Project Manager, County of San Luis Obispo Planning and Building
Department
Cal Fire/San Luis Obispo Fire Department
Cal Fire/Pismo Beach Fire Department
CCA-2015-09-15 Item 11.b. - Page 10
DRAFT
September 23, 2015
The Honorable Anthony R. Foxx
Secretary of Transportation
United States Department of Transportation
1200 New Jersey Avenue, SE
Washington, D. C. 20590
RE: Rail Safety -Expedited Action Requested
Dear Secretary Foxx:
ATIACHMENT3
Due to a steady flow of concerns about the transport of crude oil by rail voiced by our
citizens for several months, the City of Arroyo Grande the League of California Cities in
their efforts to monitor the transport of crude oil and other hazardous materials by rail,
and host educational forums on the topic. We note that the League has recently
adopted as its policy several goals·for safety improvements based on input from our key
state agencies. The City of Arroyo Grande agrees with the League's position that
implementation of these rail safety improvements should be expedited at the federal
. level to accomplish improved rail safety as soon as possible.
The continued increase in the transport of crude oil by rail, combined with recent rail
'accidents involving oil spills and resulting fires, has served to heighten concerns about
rail safety among many of our citizens. Specifically, two derailments accompanied by
fires involving unit trains (100 or more tank cars) carrying crude oil in West Virginia and
in Ontario, Canada last mont~ have greatly increased public anxiety about what steps
the relevant federal regulatory agencies are taking to improve rail ~afety, and on what
timetable. The Board of Directors of the League of California Cities at its February 20,
2015 meeting adopted ten specific recommendations as official policy on this issue. The
City of Arroyo Grande respectfully submits these recommendations to you as priority
items for improving rail safety.
We have three points to emphasize in submitting these recommendations. First,
irrespective of whether these improvements are required of railroads, petrochemical
companies, hazardous materials shippers, or the owners or lessees of rail tank cars, we
urge that they take the form of mandates, rather than the more traditional
recommendations. Second, the mandates should be accompanied by the imposition of
a hard deadline for their implementation. Third, we strongly recommend that the
Department of Transportation include these recommendations for .improved rail safety in
the final rule for the Safe Trcmsportation of Crude Oil and Flammable Materials.
League of Cities Policy Recommendations -Oil by Rail
The City of Arroyo Grande urges the federal agencies with appropriate jurisdiction
(primarily the National Transportation Safety Board, the Federal Railroad
Administration, and the Pipeline and Hazardous Materials Safety Administration) to take
>-
Item 11.b. - Page 11
the following actions to improve rail safety with respect to the transport of Bakken crude
oil and other hazardous materials by rail:
1) Mandate Electronically Controlled Braking Systems:. Require installation of
electronically controlled, pneumatic braking systems (ECP) on trains carrying Bakken
crude and ethanol by a date certain. This technology allows for faster and more efficient
braking to a full stop.
2) Expedite retrofit or phase-out of tank cars failing to meet current safety
standards: Require phase-out or retrofitting of older, DOT-111 tank cars manufactured
prior to October 2011, to be completed by a date certain. The Association of American
Railroads adopted higher manufacturing standards requiring greater structural integrity
for these tank cars which took effect at that time to facilitate safer transport of flammable
liquids, including ethanol and all crude oil.
3) Mandate Provision of Real-Time Information to first responders in event of
accidents: Require via federal regulations that railroads and producers of petroleum
and other hazardous materials shipped by rail make available to first responders, via a
secure access portal on their websites, the cargo manifest information, or "consist," on
trains containing these substances. This information ideally should also be accessible
via mobile applications, allowing rapid access by first responders to cargo manifest
information in real time, particularly in accidents where the manifest is not available on
the train.
4) Federal funding for first responders: Increase federal funding for training and
equipment purchases for first responders, to improve their ability to respond to
hazardous materials accidents.
5) Mandatory Speed Limits: Impose mandatory maximum speed limits in all areas.
6) Mandate Stricter Reporting Requirements: Lower the threshold for the number of
tank cars that trigger a reporting requirement to the California Energy Commission and
the State Emergency Response Commission, from 33 to 20. Currently petroleum
producers and railroads only have to submit reports of trains carrying Bakken crude oil if
the train includes 33 or more tank cars. Each tank car holds 34, 500 gallons. This will
lower the trigger for the reporting requirement from shipments of 1.1 million gallons or
more, to shipment of 690,000 gallons or more.
7) Identity priority routes for positive train control (PTC): PTC is an advanced
technology incorporating GPS tracking to automatically stop or slow trains before an
accident can occur. It is specifically designed to prevent train-on-train collisions,
derailments due to excessive speed, and unauthorized movement of trains. Require
"PTC to be employed· on all rail lines used for the transport of hazardous materials, with
a date certain by which the technology will be online.
8) Mandate railroad industry compliance with Individual Voluntary Agreement
negotiated with the U.S. Department of Transportation by codifying the following
actions as requirements: (Note: The requirements below have been voluntarily agreed
Item 11.b. - Page 12
to by railroads, but there is currently no legal or regulatory requirement for their
compliance. Such requirements should be codified, given their significant impact on rail
safety):
• Reduced speed for crude oil trains with older tank cars going through urban areas
•Analyses to determine the safest routes for crude oil trains
• Increased track inspections
• Enhanced braking systems (electronically controlled pneumatic brakes) ECP
• Installation of wayside defective bearing detectors along tracks
• Better emergency response plans
•Improved emergency response training
• Working with communities _through which oil trains must move to address community
concerns
9) Clear methodology for funding: Devise a clear methodology on how funds are to
be distributed, to ensure that sufficient funds pass through that state and county
agencies to the local agencies involved in first response.
10) Regulate the parking and storage of tank cars: Mandate improved safety
regulations addressing the storage or parking of tank cars in populated areas. The City
of Arroyo Grande understands that this area of regulation is largely pre-empted by
federal law; that is why we are urging specific and timely action by the federal agencies
charged with regulatory oversight in this area. We do not .expect that derailments and
accidents will cease altogether, but we anticipate that stricter safety standards will
reduce their numbers over time.
Thank you for your attention to this matter. Please contact me or my city manager,
Dianne Thompson at (805) 473-5400 with any questions.
Sincerely,
Mayor Jim Hill, City of Arroyo Grande
cc: Senator Dianne Feinstein
Senator Barbara Boxer
Members of the California Congressional delegation
Federal Railroad Administration
National Transportation Safety Board
Item 11.b. - Page 13
LEAGUE®
·OF CALIFORNIA
CITlE·s
1400 K Street, Suite 400 •Sacramento, California 95814
Phone: 916.658.8200 Fax: 916.658.8240
www.cacities.org
League of California Cities Comments Regarding the U.S. Department of Transportation's
Pipeline and Hazardous Materials Safety Administration's
Notice of Proposed Rulemaking on Enhanced Tank Car Standards and
Operational Controls for High-Hazard Flammable Trains
(Docket No. PHMSA-2012-0082, HM-2510)
The League of California Cities appreciates the opportunity to comment on the Notice of
Proposed Rulemaking (NPRM), which includes new operational requirements for certain trains
transporting ~ large volume of Class 3 flammable liquids and improvements to tank car
standards, both designed to lessen the frequency and consequences of train accidents and
incidents involving the transport of large volumes of flammable liquids. With the significant
increase in the volumes of crude oil being shipped, and proposed to be shipped, throughout the
country, the safety of the millions of people that live and work in close proximity to the railroad
lines is at significant risk.
The League of California Cities is an association representing California's 482 cities dedicated to
protecting and restoring local control to provide for the public health, safety, and welfare of their
-residents, and to enhance the quality of life for all Californians. Our members are public agencies
with public safety and emergency response responsibilities and employ first responders.
California and the Nation Are At Risk from the Transportation of Crude Oil by Rail
As an association representing government agencies responsible for local public safety, we
believe that the rail transport system for crude oil and other Class 3 volatile substances needs to
be improved to provide day-to-day safety on and near that rail system and to reduce the risk of
catastrophic harm.
The data gathered by Pipeline and Hazardous Materials Safety Administration and Federal
Railroad Administration from August 2013 to May 2014 confirms that the Bakken Crude
currently being shipped across the country is significantly more volatile than more traditional
crude oil. The average Bakken shipment travels over 1,000 miles to refmeries in California and
other locations. In the last 2 years, the volume of Bakken crude shipped has increased from 9500
rail car loads to 415,000 rail car loads, and continued high growth is expected. Much, if not all,
of this crude is extracted through methods not known or not commercially used until recent
years.
Given the volumes of Bakken crude oil and other Class 3 flammable liquids being shipped by
rail, the large distances that these shipments travel, and the many towns and cities that the rail
lines transect, it is vitally important to have a rail delivery system that safeguards the public from
the significant -risks of an accident or derailment.
In California, the rail system flows through all major metropolitan areas, bisects cities and
communities, and crosses many habitat areas. Currently, in addition to existing oil shipments,
Item 11.b. - Page 14
there are proposals to ship well over 200 rail car loads of crude on the Union Pacific main line
that runs from the City of Roseville, through the Sacramento region, and into the San Francisco
Bay Area. Some ofthis crude will head to refineries on the San Francisco Bay, and some will
traverse the Bay Area going through Berkeley, Oakland, and other metropolitan areas along the
central coast of California. Similar shipments are occurring in the Central Valley and Southern
California, and more are expected there as well. This increasing transport of Bakken crude oil by
rail should not be permitted to place the residents and businesses of California at an increased
risk of catastrophic human and environmental harm.
As is well known, there have been a number of crude oil train incidents that have occurred within
the last 18 months.
• Lac Megantic, Quebec-On July 5, 2013, a train with 72 loaded tank cars of crude oil
from North Dakota moving from Montreal, Quebec, to St. John, New Brunswick, stopped
at Nantes, Quebec, at 11: 00 pm. At about 1: 00 AM, it appears the train began rolling
down the descending grade toward the town ofLac-Megantic, about 30 miles from the
U.S. border. Near the center of town, 63 tank cars derailed, resulting in multiple
explosions and subsequent fires. There were 4 7 fatalities and extensive damage to the
town. 2,000 people were evacuated. The initial determination was that the braking force
applied to the train was insufficient to hold it on the 1.2% grade and that the crude oil
released was more volatile than expected.
• Gainford, Alberta-On October 19, 2013, nine tank cars of propane and four tank cars of
crude oil from Canada derailed as a Canadian National train was entering a siding at 22
miles per hour. About 100 residents were evacuated. Three of the propane cars burned,
but the tank cars carrying oil were pushed away and did not bum. No one was injured or
killed. The cause of the derailment is under investigation.
• Aliceville, Alabama-On November 8, 2013, a train hauling 90 cars of crude oil from
North Dakota to a refinery near Mobile, AL, derailed on a section of track through a
wetland near Aliceville, AL. Thirty tank cars derailed and some dozen of these burned.
No one was injured or killed. The derailment occurred on a shortline railroad's track that
had been inspected a few days earlier. The train was travelling under the speed limit for
this track. The cause of the derailment is under investigation.
• Casselton, North Dakota-On December 30, 2013, an eastbound BNSF Railway train
hauling 106 tank cars of crude oil struck a westbound train carrying grain that shortly
before had derailed onto the eastbound track. Some 34 cars from both trains derailed,
including 20 cars carrying crude, which exploded and burned for over 24 hours. About
1,400 residents of Casselton were evacuated but no injuries were reported. The cause of
the derailments and subsequent fire is under investigation.
• Plaster Rock, New Brunswick-On January 7, 2014, 17 cars of a mixed train hauling
crude oil, propane, and other goods derailed likely due to a sudden wheel or axle failure.
Five tank cars carrying crude oil caught fire and exploded. The train reportedly was
Item 11.b. - Page 15
delivering crude from Manitoba and Alberta to the Irving Oil refinery in Saint John, New
Brunswick. About 45 homes were evacuated but no injuries were reported.
• Philadelphia, Pennsylvania-On January 20, 2014, 7 cars of a 101-car CSX train,
including 6 carrying crude oil, derailed on a bridge over the Schuylkill River. No injuries
and no leakage were reported, but press photographs showed two cars, one a tanker,
leaning over the river.
• Vandergrift, Pennsylvania-On February 13, 2014, 21 tank cars of a 120-cartrain
derailed outside Pittsburgh. Nineteen of the derailed cars were carrying crude oil from
western Canada, and four of them released product. There was no fire or injuries.
• Lynchburg, Virginia-On April 30, 2014, 15 cars in a crude oil train derailed in the
downtown area of this city. Three cars caught fire, and some cars derailed into a river
along the tracks. The immediate area surrounding the derailment was evacuated. No
injuries were reported.
These recent incidents only reinforce the lesson that local governments have learned over the last
100 years: prevention is key to reducing the costs of disasters. Today, we routinely require safety
standards in building construction to address new hazards and to incorporate improved building
materials and techniques that were unknown just a generation ago. We also safeguard air quality,
water quality, and habitat to help conserve our natural and build environments for today and for
the future. Of particular relevance, in light the recent Napa/ American Canyon Earthquake 1
(which was directly in the area ofrailroad operations) are the earthquake safety requirements
incorporated into new building standards; these standards have significantly reduced injuries and
property damage in earthquake prone areas. The fire prevention standards that have been adopted
for large buildings and for residential homes are yet another example of the benefits of
prevention. These safety standards have significantly reduced fires overall, and have reduced the
impact of fires that do occur. Both earthquake and fire safety standards have significantly
reduced the loss of life and the financial and environmental impacts of such catastrophic events.
With the enormous increase in r?il shipments of crude oil, we believe the same types of
enhanced safety requirements are necessary to fulfill the duty to safeguard the public's safety.
Prevention is less expensive than the cost of responding to emergency events and the damage to
people and places.
Recommendations
We urge the Department of Transportation to adopt the most safety-oriented alternatives in the
NPRM and also to consider adding requirements or incentives for companies that would require
removal of a significant amount of the volatile elements, such as flammable natural gas liquids
from crude oil before it is loaded into rail cars for transport.
1 Another potential severe earthquake in the Napa area could have a direct negative impact on this alignment
including tracks, signals, and bridges.
Item 11.b. - Page 16
We join in the suggestions made to Secretary Foxx on July 1, 2014, by Congress Members Doris
Matsui, George Miller, Mike Thompson, and John Garamendi, a copy of which is attached. A
requirement to remove volatiles through stabilization or other processes prior to shipment, in
conjunction with improved rail car requirements, improved rail lines, and the other safety
measures proposed would greatly enhance public safety and reduce the risks of catastrophic
incidents.
Specifically, we have the following recommendations:
Provide more information to first responders: The NPRM proposes a robust and verified
program for classification and characterization, with oversight to assure that materials are
appropriately handled. We support such a program as a reasonable and proper safety precaution.
A pre-shipment program implemented in this manner would increase the safety of the supply
chain and provide great public benefit with little overall cost. The program would help ensure .
that flammable and volatile liquids are shipped in Class 3 tank cars that have' the appropriate
safety features, and would assist first responders with a better understanding of the properties of
the liquids being shipped -information that is critical in the event of a derailment or a spill. We
further propose that the classification and characterization of these liquids be included in the
information that is made available to first responders during emergencies and on a real-time
basis.
Provide training and notification to emergency response providers: California cities provide
first responder emergency response in their communities and are required to respond to greater
and more varied types of risks. Consequently, cities need adequate training and equipment,
advance information in order to-plan and prepare for emergencies, and real-time information
when an emergency occurs. Under the current system, local emergency workers often must
respond without the key information that they need. Jn addition, local governments are often
without any ability to increase funding to provide for adequate response capabilities, including
the full costs of training and equipment, and the costs of emergency response, cleanup, and
recovery. Accordingly, we urge the adoption of regulations that provide funding for training and
equipment, integration of manifest and shipment information in to the emergency response
system, and real-time information during emergencies.
California, like many other states, integrates its emergency operations with the federal National
Incident Management System. At the state level, the Office of Emergency Services works with
regional and then county and city emergency response agencies so that local and regional entities
can coordinate and plan for emergencies, and so that the local agencies have the real-time
information they need to respond. As an example, Pacific Gas & Electric (PG&E) now provides
a direct log in to its emergency systems, including the locations and sizes of its gas lines, to
facilitate emergency response. This system has provided firefighters working to cont'!-in wildfires
with critical real-time PG&E gas system information. A similar system for rail transport would
greatly enhance emergency response to 4erailments and other train accidents.
Accordingly, we urge the adoption ofregulations to fund, train, equip, and fully-inform
emergency responders including:
Item 11.b. - Page 17
• Fully-funded regular training programs that cover the cost of training, including
backfill employee costs, to ensure that first responders are trained, and remain trained, on
up-to-date procedures to address the unique risks posed by these shipments.
• Routine information on Class 3 train shipments upon request to provide information for
planning and training.
• Coordinated emergency response plans and programs that include and involve state,
regional, and local emergency responders. The regulations should include requirements
for two-way coordination with industry emergency response at the state and regional
level. Most importantly, these plans should provide for the obligation to pay for recovery,
including all required clean-up.
• Real-time information available to local fire and emergency personnel so that first
responders can have the necessary information of the contents of rail shipments and their
classifications and characterizations at the time it is necessary to make first response
decisions.
• Require comprehensive Oil Spill Response Plans (OSRPs) for every type of train and
every rail line that will transport more than 3,500 gallons of Class 3 liquids per train per
month, and require that rail operators coordinate their oil spill response plan with state
plans. For instance, in California, there are regional OSPRs that are coordinated through
the state. Railroads' OSPRs should also be coordinated and consistent with state and
regional plans.
Use all available data to assess the risk and consequences of crude rail car accidents: The
proposed rule estimates the risk of high consequence accidents, such as the devastating and fatal
Lac Megantic, Quebec accident, using accident data across all commodities transported by rail. It
omits from its analysis the numerous crude rail accidents that have occurred in 2014 as well as
all crude rail accidents that have occurred in Canada. The proposed rule also fails to address the
potential high cost damages of tar sands spills into waterways, and that high consequence events
have resulted in tax payers footing the bill for clean-up. As a result of these omissions, DOT may
underestimate the risks of and damages from high consequence events, thereby downplaying the
benefits of the most stringent safety standards.
Mandate speed limits in all areas: Speed clearly increases the risk of an accident and of a
derailment. Accordingly, we urge .the adoption of a maximum speed limit of 40 miles per hour in
all areas for all transport of Class 3 flammable liquids. 2
A briefreview of a map of.the nation's high threat urban areas quickly highlights that the
NPRM' s option to limit the 40 mile per hour speed limit to just those high threat urban areas
should be rejected in favor of a nation-wide limit. For example, the "Sacramento Area" high
threat urban area covers only half of the City of Davis, stopping just short of the downtown area.
2 It is our understanding that there would be no significant impact to passenger rail and other intermodal rail
services by reason of a nation-wide speed limit for rail transport of Class 3 flammable liquids.
Item 11.b. - Page 18
Rail cars directly run through downtown Davis, traversing a rail line curve that has been a safety
concern for many years. The Sacramento Area high threat urban area also excludes the
University of California at Davis, a research and learning institute with an average daily
population of approximately 30,000 students located immediately adjacent to the rail line.
All areas of the nation deserve protection Hem: afforded by the same safety standards granted
now to only certain areas. The NPRM's-option to limit the 40 mile per hour speed limit to areas
with a population of 100,000 or more arbitrarily excludes communities entitled to a common
level of protection. Throughout the rail routes in California, there are numerous at grade
crossings or other points where the risk of accidents are high. These areas do not solely exist in
urban areas with a population of over 100,000. Appropriate nation-wide speed limits for the
transport of Class 3 flammable liquids will greatly enhance safety at a reasonable cost.
Study the risks of multi-car trains: We call for more study to ascertain the relative risks from
trains transporting 20 or more Class 3 tank cars of crude oil or more compared to trains carrying
fewer cars. We would recommend that any safety measures indicated by such studies then be
adopted into regulation.
Quickly phase-out unsafe tank cars: Require that retrofitted Class 3 tank cars meet the same
safety standard as new cars and/or require that tank cars not meeting new safety standards be
phased out as expeditiously as possible. To the extent that tank cars that do not meet the new
safety standards continue to operate at all, however briefly, we urge that they only be used on
low risk routes outside of populated and habitat-sensitive areas.
Require enhanced tank car features: In the interests of public safety, we support the adoption of
NPRM· Option 1 which would require that Class 3 tank cars have 9/16 inch steel, electronically
controlled pneumatic brakes, and rollover protection. The marginal cost of these features would
be recouped through the additional safety benefits, reduction in accidents, and reduction in
derailments. This tank car type would experience fewer punctures, fires and explosions, and
fewer releases of hazardous and flammable liquids. Moreover, the Option 1 measures are simply
necessary to make the crude oil shipments safe; to the extent they increase the .cost of shipping
such crude oil, they only ensure that the costs of shipment reflect the real cost to make such
shipments safe.
Regulate the transport and storage of crude on railroad sidings: We urge the adoption of
regulations that prohibit the storage of Class 3 tank cars on railroad sidings in urban areas, except
in unusual circumstances, and even then there should be specific time limits. Siding storage in
such areas poses a high risk to the neighboring residents and businesses. Unattended trains
carrying flammable materials left to sit for days or weeks on sidings pose an unacceptable risk to
harm to the public. Tankers with Class 3 materials should be held in yards with acceptable
security measures. To the extent that even limited, unusual circumstance, storage of Class 3 tank
cars is allowed it should be required to include enhanced safety including monitoring and notice
to the local agency public safety and emergency services.
Item 11.b. - Page 19
Conclusion
The League of California Cities appreciates the opportunity to comment on the Notice of
Proposed Rulemaking. California cities are committed to maintaining a safe environment in
which our citizens and work and live. With the submission of these comments, we request that
the Administration continue its long-standing commitment to safety.
Tim Cromartie
Legislative Representative
League of California Cities
Item 11.b. - Page 20
SAMPLE LETTER
OIL BY RAIL SAFETY RECOMMENDATIONS
DATEXXXX
The Honorable Anthony R. Foxx
Secretary of Transportation
United States Department of Transportation
1200 New Jersey Avenue, SE
Washington, D. C. 20590
RE: Rail Safety-Expedited Action Requested
Dear Secretary Foxx:
Due to a steady flow of concerns about the transport of crude oil by rail voiced by our citizens
for several months, the City of has been in contact with the League of California
Cities, which has been monitoring transport of crude oil and other hazardous materials by rail, as
well as hosting educational forums on the topic. .We note that the League has recently adopted as
its policy several goals for safety improvements based on input from our key state agencies. The
City of agrees with the League's position that implementation of these rail safety
improvements should be expedited at the federal level to accomplish improved rail safety as soon
as possible.
"The continued increase in the transport of crude oil by rail, combined with recent rail accidents
involving oil spills and resulting fires, has served to heighten concerns about rail safety among
many of our citizens. Specifically, two derailments accompanied by fires involving unit trains
(100 or more tank cars) carrying crude oil in West Virgini~ and in Ontario, Canada last month
have greatly increased public anxiety about what steps the relevant federal regulatory agencies
are taking to improve rail safety, and on what timetable.
The Board of Directors of the League of California Cities at its February 20, 2015 meeting
adopted ten specific recommendations as official policy on this issue. The City of ___ _
respectfully submits these recommendations to you as priority items for impJ;oving rail safety.
We have three points to emphasize in submitting these recommendations. First, irrespective of
whether these improvements are required of railroads, petrochemical companies, hazardous
' materials shippers, or the owners or lessees of rail tank cars, we urge that they take the form of
mandates, rather than the more traditional recommendations. Second, the mandates should be
accompanied by the imposition of a hard deadline for their implementation. Third, we strongly
recommend that the Department of Transportation include these recommendations for improved
rail safety in the final rule for the Safe Transportation of Crude Oil and Flammable Materials.
Item 11.b. - Page 21
League of Cities Policy Recommendations -Oil by Rail
The City of urges the federal agencies with appropriate jurisdiction
(primarily the National Transportation Safety Board, the Federal Railroad Administration, and
the Pipeline and Hazardous Materials Safety Administration) to take the following actions to
improve rail safety with respect to the transport of Bakken crude oil and other hazardous
materials by rail:
1) Mandate Electronically Controlled Braking Systems: Require installation of
electronically controlled, pneumatic braking systems (ECP) on trains carrying Bakken
crude and ethanol by a date certain. This technology allows for faster and more efficient
braking to a full stop.
2) Expedite retrofit or phase-out of tank cars failing to meet current safety standards:
Require phase-out or retrofitting of older, DOT-111 tank cars manufactured prior to
October 2011, to be completed by a date certain. The Association of American Railroads
adopted higher manufacturing standards requiring greater structural integrity for these
tank cars which took effect at that time to facilitate safer transport of flammable liquids,
including ethanol and all crude oil.
3) Mandate Provision of Real-Time Information to first responders in event of
accidents: Require via federal regulations that railroads and producers of petroleum and
other hazardous materials shipped by rail make available to first responders, via a secure
access portal on their websites, the cargo manifest information, or "consist," on trains
containing these substances. This information ideally should also be accessible via
mobile applications, allowing rapid access by first responders to cargo manifest
information in real time, particularly in accidents where the manifest is not available on
the train. I'
4) Federal funding for first responders: Increase federal funding for training and
equipment purchases for first responders, to improve their ability to respond to hazardous
materials accidents.
5) Mandatory Speed Limits: Impose mandatory maximum speed limits in all areas.
6) Mandate Stricter Reporting Requirements: Lower the threshold for the number of
tank cars that trigger a reporting requirement to the California Energy Commission and
the State Emergency Response Commission, from 33 to 20. Currently petroleum
producers and railroads only have to submit reports of trains carrying Bakken crude oil if
the train includes 33 or more tank cars. Each tank car holds 34, 500 gallons. This will
lower the trigger for the reporting requirement from shipments of 1.1 million gallons or
more, to shipment of 690,000 gallons or more.
7) Identity priority routes for positive train control (PTC): PTC is an advanced
technology incorporating GPS tracking to automatically stop or slow trains before an
Item 11.b. - Page 22
accident can occur. It is specifically designed to prevent train-on-train collisions,
derailments due to excessive speed, and unauthorized movement of trains. Require PTC
to be employed on all rail lines used for the transport of hazardous materials, with a date
certain by which the technology will be online.
8) Mandate railroad industry compliance with Individual Voluntary Agreement
negotiated with the U.S. Department of Transportation by codifying the following
actions as requirements: (Note: The requirements below have been voluntarily agreed
to by railroads, but there is currently no legal or regulatory requirement for their
compliance. Such requirements should be codified, given their significant impact on rail
safety)
• Reduced speed for crude oil trains with older tank cars going through urban areas
• Analyses to determine the safest routes for crude oil trains
• Increased track inspections
• Enhanced braking systems (electronically controlled pneumatic brakes) ECP
• Installation of wayside defective bearing detectors along tracks
• Better emergency response plans
• Improved emergency response training
• Working with communities through which oil trains must move to address
community concerns
9) Clear methodology for funding: Devise a clear methodology on how funds are to be
distributed, to ensure that sufficient funds pass through that state and county agencies to
the local agencies involved in first response.
10) Regulate the parking and storage of tank cars: Mandate improved safety regulations
addressing the storage or parking of tank cars in populated areas.
The City of understands that this area of regulation is largely pre-empted by
federal law; that is why we are urging specific and timely action by the federal agencies charged
with regulatory oversight in this area. We do not expect that derailments and accidents will
cease altogether, but we anticipate that stricter safety standards will reduce their numbers over
time.
Thank you for your attention to this matter. Please contact me or my city manager, ____ at
( ) _-__ with any questions ..
Sincerely,
Mayor
cc: Senator Dianne Feinstein
Senator Barbara Boxer
Members of the California Congressional delegation
Federal Railroad Administration
Item 11.b. - Page 23
National Transportation Safety Board
Item 11.b. - Page 24
State ct California • Nct1Hal Resources Agency Edmund G. Brown Jr., Gwemor
Department of Conservwon
Division of Oil, Gas, and Geothermal Resources -District 3
195 South Broadway• Slite 101
Orrutt, CA 93455
(805) 937-n46 •FAX (805) 937-ffi73
August18, 2015
Ms. Teresa McClish
Arroyo Community Development
300 E. Branc St.
Arroyo Grande, CA 93420
Dear Ms. McClish:
ATTACHMENT 4
~EC~OV!ED
AUG 2 4 2015
CITY OF AR~ovo
1 COMMUNITY GRANDE
-=--DEVELOPMENT
The California Department of Conservation, Division of Oil, Gas, and Geothermal Resources
("Division"), in consultatjon with the State Water Resources Control Board and the Central Coast
_RegionaLWater-Quality_Control-Board-(collectively~Water-Boar:ds"), are-consider:ing-a-pmposal-to------
expand the current aquifer exemption designation for the Dollie sands of the Pismo formation in the
Arroyo Grande oil field. Subject to approval by the United States Environmental Protection Agency
("US EPA"), the proposed aquifer exemption would allow the State, in compliance with the federal
Safe Drinking Water Act, to approve Class II injection into the identified area, either for enhanced
oil recovery or for injection disposal of fluids associated with oil and gas production.
On MQnday August 10, 2015, our office met with the North Cities Management Area Technical Group
to present the proposed expansion of the current exempt aquifer in the Arroyo Grande oil field. The
information presented included a description of the hydrocarbon and groundwater resources,
geology, and hydrogeology which included a discussion of the reduction of piezometric potential by
net withdrawal of fluids from the syncline. The complete aquifer exemption proposal, including
pertinent data can be accessed at: www.conservation.ca.gov/dog/Pages/Aquifer_Exemptions.aspx or
obtained from the local Division Office, 195 S. Broadway, Ste 101, Orcutt, CA 93455 or by contacting
Jon Iverson, 805-937-7246.
The Division is requesting a statement from your organization identifying if you currently use the
proposed exempted aquifer area water for beneficial use and whether or not you plan to use the
proposed area in the future. Your statement would be used in the submittal of the proposed aquifer
exemption application to the US EPA. Your response by September 21 5 1, 2015 would be greatly
appreciated.
Sincerely,
~
Patricia A. Abel
District Deputy
Jl:pd
cc: Ben Fine
Greg Ray
Paavo Ogren
Chrono
RWQCB
Follow-up
Item 11.b. - Page 25
Arroyo Grande Oil Field
Aquifer Exemption Expansion Fact Sheet
Overview: The California Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR)
oversees the Underground Injection Control (UIC) Program which is responsible for regulating injection
wells that place fluids underground for enhanced oil recovery (steamflood or cyclic steam wells) and
water disposal. DOGGR, in consultation with the State Water Resources Control Board and the Central
Coast Regional Water Quality Control Board (collectively "Water Boards") are considering a proposal to
expand the current exempted aquifer designation of the Dollie sands of the Pismo formation in the
Arroyo Grande (AG) oil field from the United States Environmental Protection Agency (EPA), under the
Safe Drinking Water Act (SOWA). The expansion of the Exemption Area will allow the current operator,
Freemont-McMoRan, to continue their enhanced oil recovery and water disposal operations, some of
which are currently outside of the EPA's designated Exempt Aquifer boundary. The expansion of Aquifer
Exemption designated area will correct a boundary discrepancy between DOGGR and EPA. DOGGR has
requested that local water agencies provide a Letter of Concurrence acknowledging that each agency
does not have current or future plans for beneficial use of water in the proposed exempted aquifer
area. Each agency with need to evaluate whether or not to respond to the DOGGR request for
concurrence. A copy of the Letter is included as an attachment.
What is an Exempted Aquifer?
An aquifer, or a portion of an aquifer, that meets the criteria for a underground source of drinking water, for which
protection under the SOWA has been waived by the EPA. Under 40 CFR Part 146.4 an aquifer may be exempted if it is
not currently being used -and will not be used in the future -as a drinking water source, or it is not reasonably
expected to supply a public water system due to a high total dissolved solids content (greater than 10,000 parts per
million), or meets the criteria for exempted aquifers under 40 CFR §146.6 (a) and (b)(l, 2, or 3) or (c). Without an
aquifer exemption, certain types of energy production, mining, or waste disposal into USDWs would be prohibited.
EPA makes the final determination on granting all exemptions.
Location: The AG oil field is located in Price Canyon, three miles northeast of Pismo Beach (PB), in an
unincorporated area of San Luis Obispo County. The area is approximately 4,800 ft wide 7,700 ft long,
and 1,700 ft deep. A map of the existing Exempt Aquifer and proposed expanded Exempt Aquifer
boundary is included on the following page.
History: The AG oil field has been a state designated oil field since 1919. Today there are 260 wells in operation.
To date, 560 wells drilled with about 19 million barrels of oil produced. There is evidence of extensive oil
accumulation in the oil field.
Impact: _The Water Boards staff provided a preliminary concurrence with the exemption request, pending public
comment. Concurrence was granted since the area does not serve as a source of drinking water and will
not in the future because it is hydrocarbon energy producing or capable of hydrocarbon production. The
injected fluids are expected to be contained in the injection area due to geological barriers, and there is
no expected impact on water quality that may reasonably be used for any beneficial use.
Additional Information:
Complete Aquifer Exemption Application and the RWQCB Preliminary Concurrence Letter:
http://www.conservation.ca.gov/dog/Pages/Aquifer_Exemptions.aspx or contact Jon Iverson by email at
jon.iverson@conservation or phone at (805) 937-7246
Statement from local agency submittal:
Mail: Patricia A. Abel, District Deputy
195 S. Broadway, Suite 101
, Orcutt, CA 93455
Item 11.b. - Page 26
Opportunities for Comment:
A public hearing will be held on September 21, 2015 from 4pm-7pm. The hearing will be held at:
Courtyard Marriot
1605 Calle Joaquin Road
San Luis Obispo, CA 93405
Public comments on this project must be submitted no later than 8:00 P.M., on September 21, 2015.
Written comments can be submitted by email to Comments@conservation.ca.gov; by facsimile (FAX) to
(916) 324-0948; by mail to: Department of Conservation, 801 K Street, MS 24-02, Sacramento, CA
95814, ATTN: Aquifer Exemption; or by submitting them at the public comment hearing.
Proposed
Expanded
Exempt
Aquifer
Boundary
--.Active Field Areas:_
1973174 PrQducfive-Soundary
~ -u~iHioundafy --,
-OOGGRN;lmin Boundary
Pmposed' Aquifer Ex/boundary
Existing
Exempt
Aquifer
Boundary
Item 11.b. - Page 27
09/15/2015 00:05 8057732773 HANSEN-PROPERTIES
MARILYN S HANSEN ·JD
PO Box 3073
Sheff Beach, -~aCifo~ia 93448
805-773--2773 --
SptemEer 1~ 2015.
City of An·oyo Grande FAX: 473-0386
City Clerk
City Council
Community Development Department
300 East Branch _
Arroyo Grande CA 93420
Req,uest for the City to Urge the County of SLO, for a Decision-of
Denial of the Phillips 66 Rail ExtensiOli Project
To: THE CITY COUNCIL & OFFICIALS OF THE CITY OF ARROYO
GRANDE,
' '
PAGE 01/01
I own the land and buildings at 160-174 Station Way, Arroyo Grande.
· This is an urgent request for the City of Arroyo Grande to send written
conespondence to the San Luis Obispo County Plarining Commission and
Board of Supervisors, expressing concerns about the safety impacts of the
increased :frequency of ?il trains along freight line corridors, and a specific
request for the county to deny the project. _ -_
We just had a devast8:ting pipeline._ nil spill at ~efugio Beach, and
pipelines are far safer than trai_ns. ·
For the entire California Central Coast, the Phillips 66 project poses a
, direct risk to the public safety and environment.
In addition to possible train derailment and explosion, the proposed
oil train facility will create unacceptably significant and unavoidable levels
of air pollution, including toxic sulfur dioxide and cancer~causing
chemicals.
Sincerely,
ATTACHMENT 5
Item 11.b. - Page 28