Vancouver Face Huge Risks From Proposed Tesoro Savage Oil Terminal
The study, while likely an understatement of the impacts of a large oil spill, shows that salmon habitat and salmon fishing would be decimated by a large oil spill from an oil tanker or derailed oil train.
The study finds:
- Basic environmental remediation would exceed $171 million, excluding the cost of oil discharged to the ocean.
- Recreational and commercial fishing would lose at least $17.8 million and $4.5 million, respectively, in revenues.
- Local businesses that depend on anglers would suffer an additional $14.4 million in revenue.
- Interestingly, the report stops short of attempting to project the full damage of a worst-case oil spill. The report admits that its $171 is likely an underestimate. The report does provide a range of possible damages based on past major spills. Using this method, the report shows that an 8 million gallon spill into the Lower Columbia River could cause $232 million to $1.16 billion in damages.
- It Gets Worse! City of Vancouver estimates $5-$6 billion in potential damages from a major derailment, with no insurance available to cover it.
In a separate filing, the City of Vancouver offered testimony from a risk management expert that bluntly concludes the potential damages from a major worst-case oil train derailment, explosion, and fire in Vancouver could reach $5-$6 billion. The testimony of Robert Blackburn of Blackburn Group uses damage estimates from previous major oil train accidents and other industrial incidents to reach its “rough figure” of up to $6 billion in “maximum foreseeable losses.” Blackburn states, “That the total risk values are into the billions is not surprising.”
Disturbingly, the Blackburn report for the City of Vancouver also concludes that there is not enough insurance available on the market to address the liability, and the project is woefully under-insured. Blackburn states, “There is no market to cover that entire risk at present. Further, based on what I have been provided from the application, Draft EIS excerpts, and lease requirements, the proposed financial security is minimal in terms of covering worst case scenarios. It certainly would not cover a MFL (maximum foreseeable losses) event. The lease with the property owner requires the tenant to have $10 million per occurrence and $15 million aggregate liability insurance, coupled with $25 million in environmental pollution coverage. Very little is documented at this point confirming what the applicant is assuming and would pay over to injured parties, in the event of a catastrophic accident.”
Based on these two reports alone, it is increasingly clear that the Tesoro Savage project poses significant risks to Vancouver and the Columbia River – risks that cannot be mitigated and threaten the safety, economy, and health of communities all along Tesoro’s proposed oil shipping routes.
- Download the Council For the Environment’s Report on Oil Spill Damages.
- Download testimony from Blackburn Group on oil train risks, submitted by the City of Vancouver.
What’s Next?
Heard enough? Join us to find out how you can help to put a stop to the reckless Tesoro Savage oil terminal proposal. We can get you up to speed on the effort to steer Vancouver away from North America’s largest proposed oil-by-rail terminal
- Vancouver Stands Up to Oil: The Truth About Jobs and Dangerous Oil Trains
- Please plan to join us along with our friends from Vancouver 101, ILWU, and the Stand Up to Oil campaign. Sample the excellent Trap Door beer, and get fired up for the next steps in the fight to stop Tesoro-Savage!
- Wednesday, June 15, 2016, at 6:30PM
- Trap Door Brewing. located at 2315 Main St, Vancouver, WA
