Category Archives: oil pollution

E&E: Restoration panel adds scientific oversight to plan for spending spill fines

Annie Snider, E&E reporter
Published: Thursday, August 22, 2013

The federal-state panel tasked with overseeing the billions of dollars
expected to flow to the Gulf Coast from civil fines related to the 2010
Deepwater Horizon oil spill yesterday released a final plan for how it
will spend the money on restoring the region’s ecosystems and
economies.

The Gulf Coast Ecosystem Restoration Council received more than 41,000
comments on the draft plan it released in May and incorporated a
handful of changes into the final “Initial Comprehensive Plan” released
yesterday. The council is scheduled to vote on that plan next week in
New Orleans.

Under the RESTORE Act passed by Congress last year, 80 percent of Clean
Water Act civil penalties from the oil spill will be sent back to the
Gulf through the Gulf Coast Ecosystem Restoration Trust Fund. The
council — comprising officials from six federal agencies and the five
Gulf states — oversees 60 percent of those funds. Thirty percent will
go to projects selected by the council, and another 30 percent will go
to initiatives selected by the states and approved by the panel.

The “Initial Comprehensive Plan” sets overarching restoration goals for
the region, lays out how the council will evaluate and fund projects
and describes how it will consider states’ plans for spending their
share of the money.

Among the changes made in the final plan is an increased focus on
incorporating science into the council’s work. The plan states that the
council is considering “the most effective means of ensuring that the
Council’s decisions are based on the best available science.” This
could include forming a scientific advisory committee or another
vehicle that would work across Gulf restoration efforts, it says. In
the council’s response to public comments, it also raises the
possibility of hiring a chief scientist.

The plan also includes a greater emphasis on public engagement. It
states that the council “will take steps to create a public engagement
structure” and that additional announcements on this are forthcoming.

Like the draft plan released in May, the final document does not
include a 10-year plan for allocating the money or a list of priority
projects and programs, both of which were already due under the RESTORE
Act. The council said it did not include these elements because of
uncertainties related to the amount of money that will ultimately flow
to the Gulf Coast Ecosystem Restoration Trust Fund, the fact that the
Treasury Department has not yet issued procedures for spending the
funds, the desire to receive public comment on key elements of the plan
first and the states’ ongoing efforts to develop their own spending
plans.

The Treasury Department sent its proposed rule to the Office of
Management and Budget earlier this month, and it could be finalized
soon.

The leading coalition of environmental groups working in the Gulf Coast
released a statement on the plan last night.

“We thank the Gulf Coast Ecosystem Restoration Council for its efforts
toward a comprehensive plan to restore the invaluable Gulf ecosystem,”
said the group, which includes the Environmental Defense Fund, National
Audubon Society, National Wildlife Federation, Coalition to Restore
Coastal Louisiana and Lake Pontchartrain Basin Foundation. “As the
Council takes its next crucial step of prioritizing ecosystem
restoration projects, we urge them to embrace the Louisiana Coastal
Master Plan as its guiding document for restoring the Mississippi River
Delta, which was ground zero for the 2010 Gulf oil disaster.”

Currently, the Gulf Coast Ecosystem Restoration Trust Fund is scheduled
to receive $800 million within the next two years from Transocean
Ltd.’s Clean Water Act civil settlement. BP PLC could be facing a civil
penalty of as much as $17.6 billion under the Clean Water Act,
depending on how negligent the driller is found to have been leading up
to the spill. The second phase in the federal trial against the oil
giant is scheduled to begin next month.

Special thanks to Richard Charter

NOLA.com: Consultant’s report says unsafe welding led to fatal accident in Black Elk Energy platform

http://www.nola.com/traffic/index.ssf/2013/08/consultantprivate_report_says.html#incart_river_default

blackelkrig
Black Elk platform fire
Three workers died after a November 2012 explosion in this oil platform owned by Houston-based Black Elk Energy. A report commissioned by the firm said unsafe welding led to the accident. (Photo by Michael DeMocker, NOLA.com | The Times-Picayune)

Manuel Torres, NOLA.com | The Times-Picayune.By Manuel Torres, NOLA.com | The Times-Picayune.
Email the author | Follow on Twitter
on August 21, 2013 at 1:33 PM, updated August 21, 2013 at 7:30 PM

A consultant’s report for a Texas-based company says a deadly 2012 explosionon its Gulf of Mexico oil platform off the Louisiana coast happened when workers for a subcontractor used unsafe welding practices.

The report was released Wednesday, the same day two injured workers and their spouses filed a $180 million federal lawsuit in connection with the accident.

ABSG Consulting did the study and report for Black Elk Energy Offshore Operations, which released the report and also made it available on its website. Three Filipino workers died in the Nov. 16 accident, which occurred at a time when production was shut down and a construction project was underway on the platform, according to the report.

ABSG says Grand Isle Shipyard Inc. was under contract for construction work when the blast happened. ABSG says Grand Isle had committed not to use subcontractors on Black Elk projects. However, the report says, workers doing the welding were employees of a subcontractor: DNR Offshore and Crewing Services.

A series of explosions occurred when workers were welding a pipe leading to a tank, known as a “wet oil tank,” according to the report.

“The WOT contained hydrocarbons, and the piping leading to it had not been isolated and made safe for welding,” the ABSG report said.

The report said Grand Isle and another contractor overseeing work on the platform, identified as Wood Group PSN, did not properly carry out welding processes, sometimes referred to as “hot work.” It said Grand Isle and DNR failed to stop work when “unexpected conditions” — including the smell of gas — arose.

Grand Isle’s use of a subcontractor was a factor in the accident because it prevented Black Elk from “effectively auditing the employers of all personnel on their facilities,” the report said.

The consultant also recommended that Black Elk provide additional oversight for construction activities on platforms and discourage the use of “hot work” on platforms.

Black Elk, Wood Group and others are named as defendants in a lawsuit filed Wednesday in U.S. District Court in New Orleans by two workers injured in the accident, Antonio Tamayo and Wilberto Ilagan, and their spouses.

Alleging physical and mental injuries, numerous medical expenses and loss of future wages, among other things, the four ask for $20 million each in actual damages, plus a total of $100 million in punitive damages “if any of the defendants are found to have been grossly or intentionally negligent.”

Black Elk did not return a call Wednesday seeking comment on the lawsuit. Grand Isle officials did not immediately return a call for comment. A Louisiana attorney who has done work for DNR did not return a call for comment.

Wood Group responded to a telephoned request for comment with an emailed statement. “We are committed to preventing injuries to our people and everyone we work with. We will continue to review our procedures regularly and to provide our people with the training, knowledge and tools they need to work safely and prevent future accidents,” the statement said.

The federal agency that oversees offshore oil and gas safety, the Bureau of Safety and Environmental Enforcement, is still investigating the accident, a spokeswoman, Eileen Angelico, said in response to an email query. The bureau received the consultant’s report and was reviewing it, Angelico said.

Special thanks to Richard Charter

Fuel Fix: Black Elk Energy: Fatal fire hit finances, production

http://fuelfix.com/blog/2013/08/16/black-elk-energy-fatal-fire-hit-finances-production/

Posted on August 16, 2013 at 7:30 am by Jennifer A. Dlouhy in Gulf of Mexico, Offshore

Houston-based Black Elk Energy says it is still dealing with financial fallout from last year’s fatal explosion at one of its Gulf of Mexico production platforms, even as federal investigators continue to probe the company’s overall safety.

The company said the accident hurt its financial results, that oil production slowed when the accident led to delays in obtaining permits for ordinary maintenance work and that it spent more than expected for “non-recurring regulatory, legal and platform restoration costs” tied to the incident. Black Elk provided the updates in investor guidance for the second half of 2013.

The company forecast that for July through December of this year, its daily production will average 13,500 to 14,500 barrels of oil equivalent, capital expenditures will be $45 million to $55 million and earnings before interest, taxes, depreciation and amortization will be $75 million to $85 million.

Legal fallout: Oil platform owner sued over blast in Gulf

Three people died and several others were injured in the explosion and fire last Nov. 16 at Black Elk’s West Delta 32 production platform 18 miles off the Louisiana coast. The federal Bureau of Safety and Environmental Enforcement still is probing the incident, but the company has said a cutting torch may have ignited flammable vapors on the platform standing in 56 feet of water. Black Elk Energy has promised to release the report from a third-party investigation the company commissioned.

At the safety bureau’s request, Black Elk Energy gave the federal regulators a “performance improvement plan” last December and submitted an analysis of its previous violations in January. Facilities that were not producing at the time of the explosion were forced to stay offline temporarily .

The firm had racked up more than 300 documented mistakes and violations offshore before the fatal fire, and a safety bureau official said Thursday that the rates of those incidents – called incidents of non-compliance – have not declined since.

“We still have a lot of concerns,” the official said, who spoke on condition of anonymity because the investigation is ongoing.

“Black Elk has met most of the requirements that were stipulated,” the official said, but the company “has not done enough to demonstrate to us that their overall performance is improving to the point we think it should be.”

Related story: Black Elk CEO vows vindication

Regulators have not given Black Elk Energy approval to resume production at its damaged platform, but they allowed repairs to begin in May. Those repairs are complete, the company said in a statement, adding:
“Over the past eight months, Black Elk officials, staff and advisers have worked cooperatively with government officials at the local, state and federal level to provide support for the victims and their families, analyze the underlying causes of the incident and implement policy and procedural improvements to minimize the risk of similar incidents in the future.”

The company otherwise had no response to the comments from the regulatory official.
The Black Elk explosion was the first in a recent spate of accidents in shallow Gulf of Mexico waters that have revived concerns about the risks of oil and gas production close to shore.

Last month, a gas well in the Gulf of Mexico blew out, forcing the evacuation of 44 workers and igniting a fire that raged for nearly two days.

Just weeks before, a briny mix of gas, light condensate and salt water began leaking out of a 40-year-old Energy Resource Technology well while workers were trying to permanently plug it.

Founded in 2007 by a former BP and Amoco executive, Black Elk now holds interests in more than 1,000 wells connected to 176 platforms in the Gulf of Mexico. It has been operating facilities in the Gulf of Mexico since 2010.

Its aggressive acquisition strategy has focused on buying old facilities and reworking offshore wells to eke out more hydrocarbons.

Special thanks to Richard Charter

CBS News: Fishermen concerned about industry if fracking approved

http://www.cbc.ca/news/canada/newfoundland-labrador/story/2013/08/15/nl-fracking-port-au-port-815.html
Posted: Aug 15, 2013 2:40 PM NT Last Updated: Aug 15, 2013 6:02 PM NT

West coast fishermen wary of possible problems

Port au Port Peninsula fishermen voiced concerns at a meeting Wednesday night about the future of their industry if fracking were to be approved near the waters where they fish. About 100 people showed up to the meeting in Lourdes to discuss the possible implications of the process.

Fracking involves injecting chemicals and water into rock at a high pressure in order to extract oil. Terry Tucker, a fisherman in the area, said he doesn’t think fracking is a fool-proof process.

Fishermen on the Port au Port Peninsula are concerned about fracking plans in the area. Fracking is a technique which injects oil, water and chemicals into wells to draw out oil.Fishermen on the Port au Port Peninsula are concerned about fracking plans in the area. “They’re pumping a bunch of chemicals down into the ground, they’re pumping it down into a mile down – no one really knows what goes on down there,” Tucker said.

“This is all just a guess and this is a big chance to take. If things go wrong and there’s no fix, and NASA engineers can’t fix it, and it’s just unfixable. So then this place here just goes – everything goes.”

Tucker said he actually used to work in the fracking industry, but he didn’t like what he saw.

“It’s actually scary when you think of what they were doing because after the job was done, I went over cause I was just there watching, and I grabbed a handful of the Š sand that we put down into the ground, and just dumped on the ground,” he said.

“And when I had Š the sand in my hand, one of the chief engineers ran over to me and said, ‘Get that out of your hand, wash your hands, do you know what’s in that?’ They just dumped it in a field, just in a cattle field, so it seems to me that they weren’t really too concerned about just dumping that stuff into a cattle field and I don’t think they’d be really concerned about dumping that stuff into Bay St. George or Port au Port Bay where I fish.”

Tucker said he would be happy to have more development in the area, but doesn’t think it would be worth the risk to the natural environment.

“I’d love to see development here. I’d love to see companies coming in and bring jobs and bring money and bring everything to the place, but I don’t think it’s worth the chance of destroying something, even if there’s a small, small chance that it could just go to crap,” he said.

“I hope that the government really, really looks into this. I hope they’re not blinded by what some of the oil companies are probably going to offer.”

Black Spruce Exploration is planning to establish fracking wells on the Port au Port Peninsula, pending approvals from government and the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Fishermen concerned about industry if fracking approved, West coast fishermen wary of possible problems

Special thanks to Richard Charter

NewYork Times: Amid Pipeline Debate, Two Costly Cleanups Forever Change Towns

August 10, 2013

By DAN FROSCH
MARSHALL, Mich. – As the Obama administration inches closer to a decision on whether to approve construction of the much-debated Keystone XL pipeline, costly cleanup efforts in two communities stricken by oil spills portend the potential hazards of transporting heavy Canadian crude.

PIPELINE-1-articleLarge
Sean Proctor for The New York Times

The Environmental Protection Agency estimated in May that 180,000 gallons of oil sands crude remained in the Kalamazoo River in Michigan, three years after a pipeline ruptured.

It has been three years since an Enbridge Energy pipeline ruptured beneath this small western Michigan town, spewing more than 840,000 gallons of thick oil sands crude into the Kalamazoo River and Talmadge Creek, the largest oil pipeline failure in the country’s history. Last March, an Exxon Mobil pipeline burst in Mayflower, Ark., releasing thousands of gallons of oil and forcing the evacuation of 22 homes.

Both pipeline companies have spent tens of millions of dollars trying to recover the heavy crude, similar to the product Keystone XL would carry. River and floodplain ecosystems have had to be restored, and neighborhoods are still being refurbished. Legal battles are being waged, and residents’ lives have been forever changed.

“All oil spills are pretty ugly and not easy to clean up,” said Stephen K. Hamilton, a professor of aquatic ecology at Michigan State University who is advising the Environmental Protection Agency and the state on the cleanup in Marshall. “But this kind of an oil is even harder to clean up because of its tendency to stick to surfaces and its tendency to become submerged.” Before July 26, 2010, hardly anyone in Marshall had heard of Enbridge Energy Partners, a Houston firm whose parent company is based in Calgary, Alberta.

On a recent midsummer morning, the Kalamazoo looked almost the way it once did. Towering oak trees draped over the water in the heat. Hawks patrolled the deep green riverbanks. An elderly couple lugged fishing tackle toward a shady area. If not for two motorboats whirring downstream and three men probing the water with poles, there would have been no sign that anything had gone wrong.

Much of Kalamazoo’s plant and animal life has returned. But ridding the water of all the oil – some of which sank to the river floor and continues to generate a kaleidoscopic sheen – has proved elusive. Though a 40-mile stretch of the river has reopened after being closed for two years and most of the oil has been recovered or has evaporated, vestiges of the spill are everywhere. “For Sale” signs dot the rolling cornfields and soy farms. Once-coveted riverfront homes sit vacant.

Matt Davis, a real estate agent here, said he had struggled to sell homes since the spill. “Enbridge hopes people forget,” Mr. Davis said. “But this is my town. This is where I grew up. Enbridge isn’t from around here. “We didn’t ask for them to have their pipeline burst in our backyard. Make it right. Take care of the mess you made.”

In May, the E.P.A. found that Enbridge had drastically underestimated the amount of oil still in the river. The agency estimated that 180,000 gallons had most likely drifted to the bottom, more than 100 times Enbridge’s projection. It has ordered Enbridge to dredge sections of the river where stubborn beads of oil remain submerged. The dredging started on July 30, and stretches of the river are being closed again. Construction crews have rumbled onto the riverfront in nearby Comstock Township, angering residents and business owners who remain fearful of another accident.

Jason Manshum, an Enbridge spokesman, said the company was working to address the township’s concerns as it followed the orders of the E.P.A. “This is the single-largest incident in the history of our organization,” he said. “From the beginning, in July 2010, we said that we would be committed to this community and the natural environment, for as long as it would take to right the rupture that happened. About three years later to the day, we’re still here.”

Larry Bell, who owns Bell’s Brewery, one of the country’s largest craft beer makers, was shocked earlier this summer to see workers clear a staging area next to his brewery near Marshall. “We’re going to be downwind of this thing,” said Mr. Bell, who filed a lawsuit last month asserting that Enbridge did not get permission from the local condominium association to build its dredge pad.

“If those airborne contaminants come in, it’s going to get into our ingredients,” Mr. Bell said. “We see that as irreparable. They can’t compensate me for taking away my business.”

Since the spill, Enbridge has become one of the largest landowners in the area – buying out 154 residential properties within a 200-foot swath that the company determined was most affected. By many accounts, Enbridge paid a fair price and has begun to put some properties up for sale. The company has also donated millions of dollars to build roads and parks along the river. Still, the emotional scars of losing property run deep.

For nearly 30 years, Deb Miller and her husband owned a carpet store along the Kalamazoo. After the spill, Enbridge offered to buy the property but not the store, Ms. Miller said. Nearing retirement and worried that the land’s value would plummet, the Millers liquidated their business and sold the land. “We could have worked that store for another 10 years,” said Ms. Miller, 59, who now has two part-time jobs. “For us to physically move our business at our age was more than we could fathom. It was an agonizing decision.”

The same sentiment echoes in Mayflower, Ark., a quiet, working-class town of about 2,200 tucked among the wetlands and dogwood thickets near Little Rock. On March 29, an Exxon Mobil pipeline burst near the Northwoods subdivision, spilling an estimated 210,000 gallons of heavy Canadian crude, coating a residential street with oil. Twenty-two homes were evacuated.
Now, four months later, the neighborhood of low-slung brick homes is largely deserted, a ghostly column of empty driveways and darkened windows, the silence broken only by the groan of heavy machinery pawing at the ground as remediation continues.
After E.P.A. monitoring found air quality to be safe, residents of 17 of the homes were allowed back. But only a few have returned.

“People here are still unsure about whether it’s safe for their families,” said April Lane of the Faulkner County Citizens Advisory Group, a community organization working with residents. Exxon has offered to buy the 22 evacuated homes, or to compensate owners for diminished property value. The company also said it would buy 40 additional properties if the owners could not sell them within four months. So far, Exxon has spent $2 million on temporary housing for residents and more than $44 million on the cleanup, said Aaron Stryk, an Exxon spokesman.

“We can’t say it enough: We are so, so sorry this incident took place and for the disruption and for the inconvenience that has taken place,” Mr. Stryk said. “We are staying in Mayflower until the job is done.” For some, the money cannot replace the lives they once led. Jimmy Arguello and his wife, Tiffany, lived in Northwoods for six years, in the first home they owned, built by Mr. Arguello, a plumber, and his friends.

The day the pipeline broke, the Arguellos were told by the police to pack for a few days. But for three months, the couple and their two young sons stayed at hotels – six in all – before settling into an apartment in nearby Conway. Exxon has paid their living expenses, but the impact on the family has been “heartbreaking,” Mr. Arguello said. Worried about raising his children near an oil spill, he has decided to sell his home to Exxon. “It’s hard not to know where your family is going to go and where we’re going to end up,” he said. “I built that house six years ago. And now I’m not going back.” Ryan Senia, a 29-year-old engineer, is also selling to Exxon. Mr. Senia, who has stayed at a friend’s house since being evacuated, said he worried he would never be able to put his home on the market otherwise. “Everyone you know is gone,” he said.

During the last few months, several lawsuits have been filed on behalf of dozens of residents who live both in and near the subdivision. The State of Arkansas and the Justice Department have also filed a claim, saying that the spill polluted waterways and that Exxon did not immediately repair the pipeline.

Exxon would not comment on pending litigation, Mr. Stryk said, adding that it had been transparent in its clean up efforts.
There is no sense of how long those efforts will continue. A protective boom has been strung across Lake Conway; so far, no oil has reached it. Workers were still searching for residual oil in a nearby marsh. And crews in Northwoods continue to monitor for oil that seeped into the foundations of several homes. “We’re tired of it,” Mr. Arguello said. “We’re ready for it to be over.”
Here in Marshall, Enbridge projects that its total cleanup cost will run to nearly $1 billion.

An E.P.A. spokeswoman, Anne Rowan, said that even after the company dredges the Kalamazoo, about 162,000 gallons of oil will remain. It cannot be recovered immediately without causing a significant adverse impact to the river, Ms. Rowan said.
Michigan’s Department of Environmental Quality, meanwhile, has undertaken a huge study to examine soil and sediment. Since the spills, the pipeline industry has emphasized that oil lines remain safe and reliable, and that major spills are rare. “Are we satisfied? No,” said Peter T. Lidiak, the American Petroleum Institute’s pipeline director. “We are trying to not have any releases and not have properties damaged and people impacted. Because that’s not the business we’re in.”
For Deb Miller, the spill will forever haunt Marshall. “They can try and beautify along the river, but they can never give us back all of our neighbors who have moved out,” Ms. Miller said. “There are not enough zeros to pay us for what we’ve been through.”

Special thanks to Richard Charter