California county rejects P66 rail terminal

OREANDA-NEWS. October 10, 2016. Local California regulators have rejected Phillips 66's proposed 38,000 b/d crude-by-rail unloading terminal.

The planning commission in San Luis Obispo County voted 3-2 against the project on 5 October.

Phillips 66 is seeking to build the crude unloading terminal at the southern end of its 120,000 b/d San Francisco refinery complex at Santa Maria. The refiner unveiled the project in 2013 and it has been opposed by environmentalists and some residents.

A planning commission staff report in January recommended denial of the permit, saying that the necessary rail spur would remove about 20 acres of habitat area for rare species, could result in spills or fires that affect habitats along the mainline rail route, would generate emissions exceeding local standards and would reduce the refinery's buffer with nearby residents.

Phillips 66 is weighing options after the planning commission vote. It could appeal to the San Luis Obispo County Board of Supervisors.

"We presented a strong proposal, and will review the concerns raised and consider our options, including the right to appeal," the company said.

Other terminal proposals along the Pacific coast have also come under intense opposition from environmentalists, many residents and politicians.

Shell today suspended its efforts to build a crude-by-rail facility at its 147,000 b/d refinery in Anacortes, Washington, saying the global crude market does not justify it.