CALIFORNIA UPDATE

Pacific States/British Columbia Oil Spill Task Force

Annual Meeting

Thomas CullenOSPR Administrator

Portland, OregonOctober 1, 2014

Topics

• Spill trends and 2014 highlights

• California’s adjustment to shifting trends in crude oil transport

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Marine oil spills: 2012 - 2014

2012 2013 20140

250

500

750

1000

California marine oil spillsNote: 2014 to date and estimated for full year.

Telephone (est)Advised (est)Physical (est)No response (est)

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Inland oil spills: 2012 - 2014

2012 2013 20140

100

200

300

400

500

California inland oil spillsNote: 2014 to date and estimated for full year.

Telephone (est)Advised (est)Physical (est)No response (est)

California’s Crude Oil Supply in 2012

Alaska

overseas

California - offshore

California - inland

tanker

pipeline

52%

30%

13%

5%

Where crude comes from

How crude gets here

Alaska

overseas

Bakken/North Dakota

California - offshore

California - inland

28%

7%

4%

25%

Where crude comes from

How crude gets here

36% tanker

pipeline

rail

California’s Crude Oil Supply in 2016

8

Tota

l Pro

ducti

on

9

We are here

Bakken oil production 2010-2050

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Projected Crude-by-Rail Deliveries to CaliforniaDirect by rail-to-refinery or rail-to-pipeline-to-refinery Valero (Benecia) 25.6Valero (Wilmington) 21.9Tesoro (Martinez) 2.0Plains (Bakersfield) 25.6Alon (Bakersfield) 54.8Kern (Bakersfield) unknownPhillips 66 (Santa Maria) 13.5TOTAL 143 million bbls/yr

~6 trains/day

Rail-to-barge via Portland/Vancouver areaCapacity 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)

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Crude-by-Rail Facilities in California

Valero/Benecia

Plains/Bakersfield

Phillips 66/Santa Maria

5

14

1

3

264

15

19

55

26

44

924

Alon/BakersfieldKern Oil/Bakersfield

WesPac/Pittsburg

Targa/Stockton

SAV Patriot/SacCarson Oil/Sac

KinderMorgan/Richmond

Questar/Coachella

Tesoro/Carson

Alon/Long Beach

ExxonMobil/Vernon

#

#

#

#

Currently operational

About to be operational

Reviewing Draft EIR comments

Proposed for future

# million bbls/yr capacity

If all are operational at full capacity:233 million bbls/yr (40% of Calif’s oil)~ 10 trains per day

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Possible Routes for Crude-by-Rail

Sacramento

Stockton

Roseville

Truckee

Redding

Richmond Benecia

Pittsburg

Bakersfield

Long Beach

Santa Clarita

Yuba City

San Bernardino

BarstowMojave

Fresno

Palmdale

Chico

10

5

3

2Santa Maria

# of refineries at each location

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Possible Routes for Crude-by-Rail

7,000+ waterway crossings by railroad

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Possible Routes for Crude-by-Rail

5,000+ waterway crossings by pipeline

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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

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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

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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

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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

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Marine

Inland

The Predicament We FacedOSPR’s efforts were limited to marine oil spills

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Marine vs Inland Oil Spills2012Marine Inland

# Spills/yr 1,015 1,145Volume gal/yr 61,121 1,024,705Dedicated Staff 160 0Funding/yr $30 million $0

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Marine vs Inland Oil Spills2012Marine Inland

# Spills/yr 1,015 1,145Volume gal/yr 61,121 1,024,705Dedicated Staff 160 0Funding/yr $30 million $0

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

California’s Oil Supply and UseWhere crude comes from

How crude gets here

Where crude is processed

Where product goes

Alaska

overseas

Bakken/North Dakota

California - offshore

California - inland

tanker

pipeline

railrefineries

100% 51%

fee collection points:Refineries and marine terminals

36%

28%

7%

25%

4%

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

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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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