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Letter from USW Local 675 on Orphan Wells

By Philip Baker and David Campbell - United Steelworkers Local 675, August 5, 2020

We write to support an important economic recovery opportunity that will create jobs, provide tremendous health and environmental benefits to frontline communities, and advance a just transition away from fossil fuels: the accelerated remediation of oil and gas wells in California.

California law already requires that oil and gas operators fully fund the cost of oil and gas well remediation in California.

The job creation from this work is substantial. A recent national study estimated a total of 15.9 total jobs (direct, indirect, and induced) per million dollars spent.

Remediation of Oil and Gas Wells Must be Accelerated in Tandem with a Halt on Permitting New Wells and a Managed Phaseout of Oil and Gas Extraction.

Read the text (PDF).

Green Stimulus for Oil and Gas Workers: Considering a Major Federal Effort to Plug Orphaned and Abandoned Wells

By Daniel Raimi, Neelesh Nerurkar, and Jason Bordoff - Columbia Center on Global Energy Policy, School of International and Public Affairs, and Resources for the Future, July 2020

The global economic damages wrought by COVID-19 have dramatically magnified the suffering caused by the deadly virus. US lawmakers have already approved $3 trillion in aid to help offset the economic damage, and additional measures are under consideration. At the same time, the need to invest trillions in economic recovery has prompted calls to “build back better” by making the recovery a greener, less carbon-intensive one.

This paper, a joint effort between Resources for the Future and the Center on Global Energy Policy at Columbia University, examines the potential to boost US employment in the oil and gas workforce while also reducing pollution through a federal program to plug orphaned and abandoned oil and gas wells. These wells can leak methane and other pollutants that contribute to climate change, poor air quality, and other health and environmental risks. This research included interviews with key regulatory and industry officials to present the most up-to-date information on this rapidly evolving issue.

While states and the federal government fund well plugging activities through bonding requirements, industry fees, and other sources, these funds have not historically been adequate to reduce the inventory of orphan unplugged wells. Many of these sites date back to the 19th and early 20th centuries, when regulations including bonding requirements were weak or, in many cases, nonexistent. Estimates for the total number of orphaned and abandoned wells range from several hundred thousand to 3 million, depending on the definition of such wells needing attention. At the same time the oil and gas industry, which has seen employment drop to levels not seen since 2006, appears able to scale up to carry out this work. Labor and equipment are readily available due to the low oil price environment created by the collapse in demand from the coronavirus.

The paper finds:

  • A significant federal program to plug orphan wells could create tens of thousands of jobs, potentially as many as 120,000 if 500,000 wells were plugged. Addressing 500,000 wells would require state, tribal, and federal agencies to identify and prioritize hundreds of thousands of additional wells, most of which are unaccounted for in current inventories of orphaned wells. These inventories indicate that the largest number of orphaned wells are in Pennsylvania.
  • A widespread federal effort to plug orphaned and abandoned oil and gas wells would reduce local air pollution, safety risks, and greenhouse gas emissions at a cost of roughly $67 to $170 per ton of CO2-equivalent, well within the range of other policy options.
  • A significant pool of labor from the oil and gas industry could be deployed toward and benefit from such a program. More than 76,000 direct industry jobs were lost from February to June of 2020, a number that is likely to rise in the months to come. The job losses have been especially acute in rural regions where domestic oil and gas production occurs and where economies are closely tied to industry fortunes, such as the Permian Basin in West Texas and New Mexico, the Marcellus in Pennsylvania and Ohio, the Bakken in North Dakota, and parts of California, Colorado, Louisiana, Oklahoma, and other states. In these regions, this downturn not only affects workers but also funding for schools, infrastructure, public safety, and more, as a prior collaboration between RFF and CGEP found.
  • The costs of plugging and restoring well sites vary widely, and the total outlay of a well plugging program to address the known inventory of 56,600 orphaned wells could plausibly range from $1.4 billion to $2.7 billion. Expanding the program to identify and plug 500,000 wells could plausibly cost between $12 and $24 billion. States have different technical requirements for plugging wells and restoring surface locations, and some wells pose greater risks to groundwater, are harder to access, or are deeper than average. All these factors affect plugging and restoration costs.
  • One potential challenge of a very large program (i.e., addressing hundreds of thousands of wells) is that state regulatory offices would likely need to scale up administrative capacity to oversee such programs.
  • While states and the federal government require oil and gas companies to post bonds or other forms of financial assurance to pay for well plugging in case firms go bankrupt before plugging wells, these bonds often do not cover the full costs. Federal funding could exacerbate this problem if states and companies see it as alleviating their responsibility to plan for future remediation costs adequately. To avoid this, a federal program could prioritize plugging wells abandoned decades ago that were not subject to modern regulatory frameworks.

Read the text (PDF).

IBU blows whistle on big oil’s dangerous move in Alaska

By staff - ILWU Dispatcher, November 17, 2017

The Inlandboatmen’s Union (IBU), ILWU’s Marine Division, is blowing the whistle on a dangerous plan to replace experienced union mariners who have successfully protected Alaska’s pristine Prince William Sound for almost three decades – with a cut-rate, nonunion company that has a poor safety record.

The shocking decision was made by oil company executives who own the Alyeska pipeline that carries oil from Alaska’s North Slope oilfield – which is the size of Indiana – across mountains and tundra to Prince William Sound, where it is pumped into giant tankers that carry the crude south to refineries in the lower 48. Low oil prices and falling production have left the Alyeska pipeline operating at only 25% of capacity, and may have been a factor in the oil companies’ decision to take a chance on a low-cost, cut-rate contractor with a dismal safety record.

It was 27 years ago that the Exxon Valdez, filled with North Slope crude, ran aground and dumped millions of gallons into the Prince William Sound, an event that shocked the nation and resulted in massive fines, staggering clean-up costs, and damage to the environment that required a lengthy recovery.

It also demonstrated the need for highly-trained and experienced cleanup crews and safety personnel, including tug operators. Instead of learning from that disaster and the importance of maintaining the highest quality emergency response teams, Exxon and other oil companies have decided to roll the dice by hiring a non-union outfit with a history of mistakes and near-disasters.

What Did the 2010 Deepwater Horizon Oil Spill and Offshore Drilling Moratorium Mean for the Workforce?

By Joseph E. Aldy - Common Resources, August 22, 2014

On April 20, 2010, the Transocean Deepwater Horizon suffered a catastrophic blowout while drilling in a BP lease in the Gulf of Mexico’s Macondo Prospect. This accident resulted in the largest oil spill in US history and an unprecedented spill response effort. Due to the ongoing spill and concerns about the safety of offshore oil drilling, the US Department of the Interior suspended offshore deep water oil and gas drilling operations on May 27, 2010, in what became known as the offshore drilling moratorium. The media portrayed the impacts of these events on local employment, with images of closed fisheries, idle rigs, as well as boats skimming oil and workers cleaning oiled beaches.

In a new RFF discussion paper, “The Labor Market Impacts of the 2010 Deepwater Horizon Oil Spill and Offshore Drilling Moratorium,” I estimate and examine the net impact of the oil spill, the drilling moratorium, and spill response on employment and wages in the Gulf Coast. The spill and moratorium represented unexpected events in the region, and the resulting economic impacts varied within and among the Gulf states. Coastal counties and parishes were expected to bear the vast majority of the burden of these two events, while inland areas were expected to be largely unaffected. The moratorium was expected to affect Louisiana—with significant support of the offshore drilling industry—but not, for example, Florida, which had no active drilling off of its coastline. Beyond the economic impacts, the timing and magnitude of the spill response varied across the states over the course of the spill as well.

Despite predictions of major job losses in Louisiana resulting from these events, I find that the most oil-intensive parishes in Louisiana experienced a net increase in employment and wages. In contrast, Gulf Coast Florida counties south of the Panhandle experienced a decline in employment. Analysis of the number of business establishments, worker migration, accommodations industry employment and wages, sales tax data, and commercial air arrivals likewise show positive economic activity impacts in the oil-intensive coastal parishes of Louisiana and reduced economic activity along the non-Panhandle Florida Gulf Coast. The billions of dollars of spill response and clean-up mobilized over the course of the spring and summer of 2010 positively impacted economic activity, similar to the effect of fiscal stimulus. The geographic variation in labor market impacts reflects the focus of spill response efforts in Louisiana and the absence of oil and thus spill response along the Gulf coast of Florida south of the Panhandle.

Read the report (PDF).

Train Cars Carrying Undocumented Hazardous Materials Pose Risks

By Minnesota Public Radio News - Prarie Business, September 25, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

At least 18 times in the past three years BNSF Railway freight trains rolled west out of Minneapolis pulling cars filled with hazardous chemicals that were not on the trains’ official cargo list, according to train crew complaints.

That’s contrary to federal regulation because in case of an accident, local firefighters can be left in the dark, unable to take quick action to protect vulnerable residents.

In one case, a train traveled more than 20 miles through the western suburbs with six carloads of anhydrous ammonia, a toxic corrosive gas used as a farm fertilizer, before the train crew knew the chemical was on the train, a complaint said. In another, a complaint said a train traveled about 90 miles west to Willmar before its cargo list — called a manifest — was corrected to show an extra car of ammonia.

The complaints were filed with the Federal Railroad Administration, the federal agency that regulates railroads, and they provide a snapshot of one rail line across Minnesota, a BNSF Railway line from Minneapolis to Willmar. BNSF is the largest rail operator in Minnesota. Provided to MPR News by railroad union members, they are evidence of a problem the FRA said poses “unreasonable risks to health, safety and property.”

Hauling hazardous material without proper documentation is a problem federal officials have been aware of for years. When federal inspectors checked manifests of all rail haulers in Minnesota over a three-year period, one in five contained inaccurate information about cars hauling hazardous materials, according to FRA records obtained through a Freedom of Information Act request.

Enbridge Attempted Murder failed on family of Whistle Blower John Bolenbaugh at HELPPA.org

By John Bolenbaugh - helppa.org, June 11, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Tesoro: A Track Record of Pollution, Hostility to Workers, and Meddling in Politics

By Eric de Place - Sightline Daily, March 21, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Right about now, oil executives in Texas are boarding a plane bound for the Northwest. Their goal? To steam roll opposition to the monster oil train terminal that Tesoro wants to construct on the downtown waterfront of Vancouver, Washington.

Hot on the heels of learning that the local city council is narrowly opposed to the project, the oil refining giant is going on a full court press lobbying mission in Vancouver, Washington. The companies leadership, including senior VPs and CEO Greg Goff, will be meeting behind closed doors with members of the city council and the Port of Vancouver. Then on Tuesday, March 25 from 1:00 to 2:00, they are holding a private meeting with 40 business leaders at the Heathman Lodge.

As a public service to the community of Vancouver, it’s worth explaining what Tesoro is—and why their oil train terminal has no place on the Columbia River.

Why Nothing Is Being Done to Improve Oil by Rail Safety

By Justin Mikulka - DeSmog Blog, February 14, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Since the oil train explosion in Lac-Megantic in July of 2013, we have learned that there are some obvious safety issues that need to be addressed regarding transportation of crude oil by rail. The first is that the majority of the rail cars transporting this oil are DOT-111’s which have been deemed unsafe due to their tendency to rupture in accidents. The second is that Bakken crude oil can be explosive and isn’t being properly classified for transport.  

Since Lac-Megantic we have heard many calls for increased rail safety. In August of 2013, Senator Chuck Schumer (D-NY) wrote a letter to the Federal Railway Adminstration (FRA) and the Pipeline and Hazardous Materials Safety Adminstration (PHMSA) requesting that the agency begin a phase out of the DOT-111 rail cars. Senator Schumer also referenced a March 2012 letter written by National Transportation Safety Board (NTSB) Chairman Deborah Hersman requesting safety upgrades to existing DOT-111 rail cars.

On January 15th, 2014, Representative Corrinne Brown (D-FL) wrote a letter to Jeff Denham (R-CA), who is Chairman of the Railroads, Pipelines and Hazardous Wastes Congressional Subcommittee, requesting a hearing be held regarding rail safety.  In her letter she mentions that several members of the Subcommittee have already written letters requesting a hearing on rail safety as far back as August 2013.  Brown wrote:

“Again, we urge the subcommittee to hold a hearing immediately on rail safety.  We believe the hearing should, at a minimum, include representatives from the NTSB, FRA, PHMSA, the rail industry, and rail labor.  Thank you in advance for consideration of this request.”

Additionally, there are concerned elected officials across the country who have requested action on rail safety. Even Rahm Emanuel, former White House Chief of Staff and current Mayor of Chicago has joined the chorus of people requesting improved rail safety.

Last week, the PHMSA released the first results regarding the testing of Bakken Crude. This testing began in November 2013 and is one of the few changes that have been made since the explosion in Lac-Megantic. The results were not good as over 50% of the samples taken were found to be improperly classified. The offenders paid fines ranging from $12,000 to $51,530.

The Fate Of The New Carissa

By Arthur J Miller

Environmentalism and the Maritime Industry

Chapter 18 of Yardbird Blues - by Arthur Miller

Pages

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