Port of St. Helens Acts on Crude Oil Shipments to Clatskanie Area

OILMONSTER.COM-  In a unanimous vote, the Port of St. Helens commissioners on Wednesday agreed to allow a wider range of crude oil grades to be shipped by train to Global Partners' Port Westward export dock.

The action eventually will lead to an expansion of crude oil shipments to the Clatskanie-area facility, but not in the short term, said representatives of Global Partners Inc., which requested the change in its lease with the port.

Port commissioners limited crude shipments to oil that is lighter than water, which means it won't sink if it is spilled in waterways. They stressed that the crude that it has authorized for shipping to Port Westward is less volatile and explosive than the ethanol Global Partners has been railroading there for a few years.

Global Partners already was allowed to send 24 mile-long unit trains of oil a month to Port Westward, but it is now shipping mostly ethanol, according to the port. Wednesday's action does not increase the number of trains allowed nor the length of the trains. Nor does it affect the 10 mph speed limit through Rainier, St. Helens and other communities along the tracks from Portland.

Global representatives said they requested permission to handle a wider range of crude because they want to cater to a wider market. There is no timeline for undertaking a planned $75 million investment in the company's Port Westward facilities related to its long-range plan to ship crude from the site.

"That's something we are constantly looking at," said Dylan Remley, senior vice president of terminal operations at Global. "Like in any business, we are looking for additional flexibility to move to a wider range of markets."

Port commissioners acted after three hours of public testimony, little of which addressed the crude oil weight issue. Most citizens who spoke Wednesday focused on the safety of trains passing through the hearts of Columbia County communities and the effects of the possibility of derailment or spills from trains carrying oil.

"Today’s vote paves the way for more catastrophic oil trains barreling through communities across the region," said Dan Serres, the conservation director for conservation group Columbia Riverkeeper, who attended the meeting.

"The port commission chose to ignore local elected officials from St. Helens and people that live along the rail line. ... Oil trains impose tremendous risks to public health, drinking water, and fishing grounds. The Port’s rush to approve more oil trains is uninformed, unconscionable, and reckless," Serres said in a written statement following the meeting.

But Scott Smith, spill contingency planner with Oregon Department of Environmental Quality, said he has worked with Global since 2012 and has confidence in their preparedness and procedures to operate safely.

"They regularly go above and beyond," Smith said.

Global Partners owns the Columbia Pacific Bio-Refinery at Port Westward, which is owned by the Port of St. Helens. The refinery initially built to manufacture ethanol but went bankrupt shortly after opening in 2009, when JH Kelly sold it to Global Partners. Oil shipping began from the site in 2012.

Oregon regulators fined Global $102,000 in 2016 for exceeding a 50-million gallon limit for the site that was authorized by the state. Global had shipped 300-million gallons during 2013, triggering the fine.

Port commissioners on Wednesday promised to hold more public meetings about safety with community officials and Global representatives. The commissioners said they have received close to 500 emails on this topic and heard similar concerns at their Nov. 28 meeting.

Port Treasurer Patrick Trapp said the lease amendment dates back to 2012, when Global first approached the port about lifting the oil weight restrictions. At that time, the port told Global they would consider an amendment in the future based on the company's safety, performance and spill management. Trapp said the port now feels Global has conducted business well enough to approve the changes.

Courtesy: https://tdn.com