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CC 2015-09-22 Rail Spur PPItem 11.a. 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 City Council Meeting September 22, 2015 1 Background – Phillips 66 Rail Spur project April 14, 2015 City Council received a presentation by Phillips 66, Union Pacific Railroad, and Mesa Refinery watch Group regarding the proposed project Council direct staff to agendize the item for discussion The City has no discretionary authority on the project 2 Phillips 66 project and status County has discretionary authority Extension of rail spur off of the Union Pacific rail mainline in order to upload up to five trains per week carrying heavy crude oil to the Santa Maria Refinery Approx. 6,915 ft. in length, 47 acres Revised draft EIR and re-circulated DEIR, Final EIR likely by the end of the year. Recently updated rules by the Federal Department of Transportation and the California office of Health Hazard Assessment. Additional comment opportunities as the project goes to the public hearing process. 3 Phillips 66 Rail Spur, cont. Five Cities Fire Authority observations: 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. Many safety concerns expressed on the project. General 4 1.8 miles 1.38 miles 1.16 miles 0.85 miles 1.1 miles 5 Phillips 66 Rail Spur cont. Many safety concerns expressed on the project. General approaches – express at the federal level – DOT League of California Cities stance Federal Rules adopted in May, 2015 included several of the concerns comment to the County for project specific concerns 6 Two additional oil related projects The AG oil field is state designated oil field since 1919 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 The Water Boards staff provided a preliminary concurrence with the exemption request, pending public comment. EPA has reviewing authority. The NCMA TG recommended not to submit a statement to regulating agencies regarding potential existing or future beneficial use of the aquifer. 7 Proposed Expanded Exempt Aquifer Boundary 8 Pipeline project within utility easement Phillips 66 application to the County for new pipeline sections through areas of the County including AG Through the utility easement in existing ROW and within terms of franchise agreement September 22, 2015 City Council 9 Recommendation Provide direction whether to send comment letters to the San Luis Obispo County Planning Commission and U.S. Department of Transportation regarding the Phillips 66 Rail Spur Extension project, and; Receive and file information provided regarding other concurrent projects related to oil production 10