Loading...
HomeMy WebLinkAboutMINUTES - 04201999 - C120 TO. BOARD OF SUPERVISORS ." -_' ";, Costa FROM; DENNIS M. BARRY, AICD County COMMUNITY DEVELOPMENT DIRECTOR , FATE: April 20, 1999 SUBJECT: REPORT ON BAL.DWIN SNIP CHANNEL/RICHMOND MARINE PIPELINE LINK PROJECT AND REQUEST FOR CORPS OF ENGINEERS SUSPENSION OF THE PROJECT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION REQO�MENDAI[ONS: AUTHORIZE Chair to sign a letter to the District Commander, U.S. Army Corps of Engineers, San Francisca District, requesting that the Carps suspend the Baldwin Ship Channel Deepening/Richmond Marine Link Project, until such time as financial support can be provided for the project by the ship channel users. FISCAL IMPACT There is nes financial impact to the County relative to the letter or suspension of the project. CONTINUED ON ATTACHMENT: YES SIGNATURE RECe)ItllMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD Cep ITTEE __L_APPROVE __ _ _ OTHER SIGNATURE (S): f ACTION OF BOARD ON April 20: 1999 APPROVED AS RECOMMENDED xL OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE )g UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES:- NOES: AND ENTERED ON THE MINUTES OF THE ABSENT. ABSTAIN: _ BOARD OF SUPERVISORS ON THE DATE SHOWN, Contact: Roberta Goulart (925-335-1226) ATTESTED April 20, 1999 cc: Community Development Department (CDD) PHIL. BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS County Administrator's Office AND COUNTY ADMINISTRATOR }. art> x . BY. F .n. � 5 frf, , DEPUTY Roberte:4-20-992.bo -2- ACKGROUND/REAS NS FQRRECOMMENDAILON The County has been Local Sponsor for the Baldwin Ship Channel Deepening Project for a number of years. The Project, authorized in 1965, was the final phase of the San Francisco-to-Stockton Ship Channel deepening project. The Baldwin segment of this Project was located west of Richmond, through San Pablo Bay, and east along the Carquinez Strait to the Avon area, east of the Martinez-Benicia Bridge. This phase of the Project called for deepening to -45 feet. A number of years of study by the Corps, using both the physical model in Sausalito, and computer modeling at the Waterways Experiment Station in Vicksburg, Mississippi, resulted in inconclusive results on water quality impacts to the delta, resulting from saltwater intrusion caused by channel deepening. The data showed an increase in salinity under all circumstances, but the degree of impact could not be determined with any accuracy at that time, and mitigation of these impacts was considered difficult and extremely expensive, if not impossible to determine. The ship channel users, (including Exxon, Wickland, Tosco, Shell and at the time, Unocal)were interested in a solution to the problem of safe transport of crude oil to the refineries along the Carquinez strait, (as a result of the Exxon Valdez disaster) having recognized the necessity of significantly reducing or eliminating lightering (the offloading of crude oil onto smaller vessels) in South San Francisco Bay. Several years ago, Wickland Oil Company offered an alternative to the dilemma, proposing use of a PG&E fuel-oil pipeline (for sale at the time), to be used in conjunction with construction of a pier and tank farm in the Point Molate area. Heavily laden vessels could call at the Richmond Pipeline Link, off loading some or all of their cargo, which would then be transported by pipeline to the respective refineries. This alternative was added to the project and underwent extensive evaluation, including scrutiny as part of the federal NEPA, and state CEQA processes. Wickland applied for permits from the Corps, BCDC, the County and others, After years of negotiation with the other oil companies for contracts for long- term use of the proposed pipeline link with no results, Wickland recently withdrew the project, indicating they could not build the project without support (in the form of contracts to use the facility). Wickland was primarily looking for a contract commitment from Exxon as the largest channel user, to no avail. On February 5, 1999, Wickland Pipelines LLC informed the County that Wickland was no longer pursuing the completion of permitting for the Baldwin Ship Channel/Marine Link Project. Both the deepening and pipeline projects have merit, and a need may again arise, requiring reconsideration of this project. The County requests suspension, rather that allowing deauthorization of the project, due to its merit, the potential need for such a project in the future should additional regulations curbing tanker traffic or lightering arise, the difficulty in getting projects authorized in the first place, and (to some degree) to protect federal funds already appropriated for the project. `c:$ > V ICKLAND PIPELINES LLC Via First Class Mail February 5, 1999 Mr. Bennis Barry Community Development Department Contra Costa County Administration Building 651 Pine Street, 4a'.Floor,Forth Wing Martinez, CA 94553-4095 Re: Richmond Marine-Lina Pipeline System Dear Dennis: It is with regret we must notify you that Wickland Pipelines LLC is no longer pursuing the completion of permitting or the construction of the Richmond Marine-Link Pipeline System.(Marine-Link). While we truly believe that the Marine-Link project was the environmentally superior alternative to either the current practice of ship-to-ship lightering or the proposed deepening of the .Baldwin Ship Channel, we must acknowledge that without user support the project is simply not viable. The development of Marine- Link would also have significantly reduced the level of ship traffic passing through the Carquinez Straits. We have made every conceivable effort to generate users for the Marine-Link system, including offering throughput rates that are significantly less than lightering costs. Nonetheless, users have repeatedly declined to commit to use the system. Wickland has spent considerable resources permitting the project and it is with great disappointment that we inform you that we must discontinue the project. It has been an enjoyable experience working with your agency and we look forward to interacting with you in the future on other projects. Sincerely, WICKLAND PIPELINES LLC rs : �Jxl Daniel E. Hall Senior Vice President DEH:ew cc: Ms. Roberta Goulart, Senior Planner, Conservation Programs, Contra Costa County V Oevelopment ProfecuV.I N KWoticatton Discontinuance of profect.doe PO-Box`3648.Sacramento CA 95853 —el(916)978-2600 o Fax(916)978-2408 3640 American River Drive 9 Sacramento CA 95884