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California Update

California Update. Pacific States/British Columbia Oil Spill Task Force Annual Meeting Thomas Cullen OSPR Administrator Portland, Oregon October 1, 2014. Topics. Spill trends and 2014 highlights California’s adjustment to shifting trends in crude oil transport.

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California Update

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  1. California Update Pacific States/British Columbia Oil Spill Task Force Annual Meeting Thomas CullenOSPR Administrator Portland, Oregon October 1, 2014

  2. Topics • Spill trends and 2014 highlights • California’s adjustment to shifting trends in crude oil transport

  3. Marine oil spills: 2012 - 2014

  4. Inland oil spills: 2012 - 2014

  5. California’s Crude Oil Supply in 2012 Where crude comes from How crude gets here 13% Alaska 52% tanker overseas 5% California - offshore 30% pipeline California - inland

  6. California’s Crude Oil Supply in 2016 Where crude comes from How crude gets here 7% Alaska 36% tanker overseas 25% rail Bakken/North Dakota 4% California - offshore 28% pipeline California - inland

  7. Total Production

  8. Bakken oil production 2010-2050 We are here

  9. Projected Crude-by-Rail Deliveries to California Direct by rail-to-refinery or rail-to-pipeline-to-refinery Valero (Benecia) 25.6 Valero (Wilmington) 21.9 Tesoro (Martinez) 2.0 Plains (Bakersfield) 25.6 Alon(Bakersfield) 54.8 Kern (Bakersfield) unknown Phillips 66 (Santa Maria) 13.5 TOTAL 143 million bbls/yr ~6 trains/day Rail-to-barge via Portland/Vancouver area Capacity will be ~200 million bbls/yr, some of which will be shipped to California via barge Total projected crude-by-rail deliveries to California by 2016 100 to 200 million bbls/yr (Note: 150 million bbls/yr = 25% of Calif’s crude oil supply)

  10. Crude-by-Rail Facilities in California SAV Patriot/Sac # Currently operational Carson Oil/Sac 5 3 # About to be operational Valero/Benecia 26 # Reviewing Draft EIR comments WesPac/Pittsburg 19 4 # Proposed for future 26 Targa/Stockton # million bbls/yr capacity KinderMorgan/ Richmond If all are operational at full capacity: 233 million bbls/yr (40% of Calif’s oil) ~ 10 trains per day Plains/Bakersfield 24 55 9 Alon/Bakersfield Kern Oil/Bakersfield 15 Phillips 66/Santa Maria Questar/Coachella 44 Tesoro/Carson ExxonMobil/Vernon 1 1 4 Alon/Long Beach

  11. Possible Routes for Crude-by-Rail Redding Chico Truckee Yuba City Sacramento Roseville Richmond Benecia Stockton 5 Pittsburg # of refineries at each location Fresno 3 Bakersfield Mojave Barstow Santa Maria 2 Palmdale Santa Clarita 10 San Bernardino Long Beach

  12. Possible Routes for Crude-by-Rail 7,000+ waterway crossings by railroad

  13. Possible Routes for Crude-by-Rail 5,000+ waterway crossings by pipeline

  14. Typical crude oil “unit train” • 75-100 DOT-111 tank cars • 714 bbls (30,000 gal) per car • 64,000 bbls (2.7M gallons) per train COSCO BUSAN

  15. Typical crude oil “unit train” • 75-100 DOT-111 tank cars • 714 bbls (30,000 gal) per car • 64,000 bbls (2.7M gallons) per train • Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car

  16. Typical crude oil “unit train” • 75-100 DOT-111 tank cars • 714 bbls (30,000 gal) per car • 64,000 bbls (2.7M gallons) per train • Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car • Average accident size in 2013 = 20 tank cars

  17. Typical crude oil “unit train” • 75-100 DOT-111 tank cars • 714 bbls (30,000 gal) per car • 64,000 bbls (2.7M gallons) per train • Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car • Average accident size in 2013 = 20 tank cars = + COSCO BUSAN

  18. The Predicament We Faced OSPR’s efforts were limited to marine oil spills Inland Marine

  19. Marine vs Inland Oil Spills2012

  20. Marine vs Inland Oil Spills2012

  21. CA Senate Bill 861 Overview(a.k.a. the “statewide program”) • Extends the current 6.5 cent fee to inland and imported crude oil entering CA refineries • Creates a single statewide program to cover spills of oil or oil products from all sources in marine and inland waters • Applies industry contingency plan, drill, and financial responsibility requirements statewide • Stabilizes funding for OWCN and expand the OWCN to inland areas • Makes OSPR’s spill response trust fund accessible for responses to all oil spills. • Removes 42 gallon threshold for spill response

  22. California’s Oil Supply and Use How crude gets here Where crude comes from Where crude is processed Where product goes 7% Alaska 36% tanker overseas 100% 51% 25% refineries rail Bakken/North Dakota fee collection points: Refineries and marine terminals 4% California - offshore 28% pipeline California - inland

  23. OSPR Implementation Teams • Hire new positions • Regulations/Contingency plans/Drills • Outreach/Communication/Agency Coordination • Training • Geographic response plans • Wildlife operations • Field Response Teams (interim and long term) • Spill Communication and Data Unit

  24. Key Benefits: • Fewer oil spills from all sources • Improved spill response • Coordinated incident command with agencies and industry • Improved efficiency and effectiveness of response • Oil Spill Response Organization (OSRO) oversight • Reduced impacts, damages, and liabilities • Improved public and environmental safety • Improved public confidence

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