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News / Business

Vancouver council sets emergency meeting on oil moratorium

Applications for new, expanded facilities face 6-month ban

By Stephanie Rice
Published: September 10, 2014, 5:00pm

The Vancouver City Council will vote on an emergency six-month moratorium “on applications for new or expanded crude oil facilities” at a special meeting at City Hall at 6:30 p.m. tonight.

The meeting was announced 5 p.m. Wednesday; public meetings require 24-hours notice.

A moratorium wouldn’t affect the oil transfer terminal proposed by Tesoro Corp. and Savage Companies, said Vancouver City Attorney Bronson Potter.

Rather, the move was prompted by speculation that another company might file an application to build a smaller oil-handling facility, Potter said.

City Manager Eric Holmes said he contacted Mayor Tim Leavitt and councilmembers by email on Wednesday afternoon, and a majority of the seven-member council agreed to have a special meeting.

No public testimony will be taken tonight, Potter said. By law, if the council adopts the moratorium, it must have a public hearing within 60 days.

At the end of six months, the council would vote whether to extend or end the moratorium, Potter said.

In the meantime, the city will work on a policy regarding crude oil facilities.

Potter said a few members of the city council have suggested a temporary moratorium, given the outcry over the Tesoro-Savage proposal.

Tuesday’s Port of Vancouver commissioner meeting was the latest venue for the public to express concerns about the proposal.

The companies want to build an oil-by-rail terminal that would receive an average of 360,000 barrels of crude per day at the port. The oil would be stored in six above-ground tanks. Each tank would have a shell capacity of 380,000 barrels, for a total storage capacity of 2.28 million barrels. The oil would be loaded onto ships bound primarily for West Coast refineries.

The port’s lease with Tesoro and Savage, approved unanimously by commissioners in 2013, involves 42 acres and is worth at least $45 million over an initial 10 years. Backers of the project say its benefits include well-paying jobs, revenue for the port and increased U.S. energy independence.

Critics cite many concerns, including potential oil spills, the volatility of North Dakota Bakken crude and global climate change.

Port commissioners have said the Tesoro-Savage proposal will be subject to additional public scrutiny and input as it undergoes an environmental impact review by the Washington State Energy Facility Site Evaluation Council.

Eventually, the evaluation council will make a recommendation to Gov. Jay Inslee, who will approve or deny the project.

The governor’s decision may be appealed to the state Supreme Court.

In June, the City Council voted to formally intervene in the EFSEC process, a legal maneuver giving the city the right to present evidence and appeal.

The council also approved a broad policy statement opposing not only the Tesoro-Savage proposal but any proposal that would result in an increase of Bakken crude oil being hauled through Clark County.

The port didn’t need city approval for the Tesoro-Savage facility because it was so large it triggered the state EFSEC process.

If a smaller oil facility was proposed, Potter said, the port would need city approval, which the city wouldn’t give if it has a moratorium on such projects.

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