Hearing examiner says Shell oil project needs full review

SEATTLE — A Skagit County hearing examiner handed conservation groups a victory Monday, ruling that an oil-by-rail project at the Shell Puget Sound Refinery near Anacortes should undergo a full environmental review.

“Shell’s proposal is a major action significantly affecting the quality of the environment,” and a full review should be prepared, Skagit County Hearing Examiner Wick Dufford said in Monday’s ruling.

The review should take into account the potential risks of spills and explosions, the safety of railroad bridges and the impact of oil-train spills to sensitive natural areas such as Padilla Bay, Dufford wrote.

Tom Rizzo, general manager for the Royal Dutch Shell PLC refinery, said in a statement the company was disappointed in the ruling and would decide next steps after reviewing it in detail.

“This project is critical for the refinery, and we strongly believe that the county’s environmental analysis was thorough and based on sound science and evidence,” Rizzo said.

The company is committed to safe operations, and only newer rail cars with increased safety features would be used, Rizzo said.

In 2013, Shell sought a development permit from Skagit County to build a rail spur from existing railroad tracks to handle oil brought in by trains. The project would handle 60,000 barrels of crude oil, or about one mile-long train a day.

In August, county officials concluded there weren’t significant impacts to the project that couldn’t be mitigated.

Within weeks, several environmental groups appealed, including RE Sources for Sustainable Communities, Friends of the San Juans, ForestEthics and Washington Environmental Council. They were represented by Earthjustice.

In an email Monday, Skagit County senior planner Leah Forbes said the hearing examiner’s decision was “well thought out and provides clear direction going forward. We look forward to working with the parties as this project continues.”

Opponents say the oil trains would pose increased risks to people and the environment.

“Before allowing more oil trains, Skagit County must make sure they pose no threat to our communities, our waters, and our way of life,” said Jan Hasselman, a lawyer with Earthjustice, in a statement.

The overall production at Shell’s refinery would not change. Like other refineries in the state, it wants to bring crude oil from the Bakken region of North Dakota and Montana, as its supply of crude oil that comes by tanker ships from Alaska has decreased.

Near the Shell refinery, Tesoro Corp. has been receiving oil trains since 2012. The BP PLC refinery and Phillips 66 refinery in Ferndale are receiving or have been cleared to receive crude by rail off the BNSF line, according to the hearing examiner.

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