The Vancouver City Council reaffirmed a six-month moratorium Monday on new or expanded facilities that would accept crude oil.
The council passed an emergency moratorium on Sept. 11, and had a public hearing on Monday to fulfill a legal requirement.
Last month’s emergency measure was an attempt to head off plans by NuStar Energy LP of San Antonio to apply to start storing crude oil at its two bulk tank terminals in Vancouver, one at the port and one at 5420 Fruit Valley Road. The meeting was announced Sept. 10 in accordance with a state law requiring 24-hour public notice, and NuStar submitted a preliminary application shortly after the city announced the meeting.
Assistant City Attorney Brent Boger said Monday that the pre-application qualifies the NuStar project as vested, and therefore exempt from the moratorium.
The moratorium also won’t affect the oil transfer terminal proposed by Tesoro Corp. and Savage Companies that’s currently under review by the state.
Eleven people testified Monday during the hearing, and all were in favor of the moratorium. Many said they also appreciated action taken in June, when the city council voted to formally intervene in the state review process of the Tesoro-Savage proposal, a legal maneuver giving the city the right to present evidence and appeal. The council also approved a broad policy statement opposing any proposal that would result in an increase of Bakken crude oil being hauled through Clark County.
Tesoro-Savage wants to build an oil-by-rail terminal that would receive an average of 360,000 barrels of crude per day at the port.
Eventually, the state evaluation council will make a recommendation to Gov. Jay Inslee, who will approve or deny the project.
Amendments possible
The moratorium, meanwhile, will give the city time to consider possible amendments to its land use and development codes concerning the transportation and storage of crude oil.
Any changes to city code would require a public hearing, Boger said.
The city’s moratorium, slated to end in March, defines crude oil as “any petroleum product that requires further refinement before its intended use by consumers.”
NuStar spokesman Chris Cho said Tuesday that the company anticipates it would handle an average of 22,000 barrels per day.
“It will provide revenue to the port, create jobs, bring more low-cost crude to the region, and further support North America’s energy independence,” Cho said. “It will be a state-of-the-art facility that will be operated safely, in accordance with NuStar’s very high safety standards. The safety of our neighbors, employees and the environment is our absolute highest priority, which is why the safety performance at our facilities is the best in the industry.
NuStar has handled jet fuel, antifreeze, diesel, methanol and other products at its Vancouver terminals, but not crude oil.
In April, NuStar submitted an application for an air quality permit with the Southwest Clean Air Agency to convert a tank at each of its locations to handle crude oil.
The terminals would receive oil by rail, and then ship it out by barge.
