Port of Olympia, Rainbow Ceramics, and Cows

Above: The Port of Olympia was seeing an increase in rainbows and revenue at its marine terminal in 2014. The port saw its busiest years in 2013-14 with its contract with Rainbow Ceramics, signed in 2012. According to Port of Olympia executive director Ed Galligan, 15 longshore workers were assigned to the port to assist with the cargo of ceramic proppants, adding more than 30,000 hours in each of those years. The industry has declined ever since. 

By Janine Gates
Little Hollywood

https://janineslittlehollywood.blogspot.com

The Port of Olympia contract with Rainbow Ceramics expires July 14, 2019, and for many, it can’t come soon enough.

There is a scheduled discussion and vote on acceptable cargo at the Port of Olympia’s regular Monday night meeting of its commissioners on December 12, 5:30 p.m., at 626 Columbia Street NW, Suite 1-B. 

Staff has drafted a “decision needed” resolution that explains the parameters around the port's imports and exports. 

The resolution centers around the Federal Shipping Act of 1984 that states that “terminal operators cannot unreasonably discriminate in the provision of terminal services.” 

The resolution also makes several statements regarding the port's expectations for law enforcement agencies with jurisdiction to promptly take appropriate action in the event protest activities violate local, state and/or federal laws.

The agenda is available at http://www.portolympia.com/ArchiveCenter/ViewFile/Item/2853

The conversation about the port's cargo at its marine terminal has been going on for years, from its long-term contract with the Weyerhaeuser Co., to an eclectic mix of cars, wind blades, garnet, military equipment, corn and cows. 

The previous commission's acceptance in 2012 of a five year contract with Rainbow Ceramics to accept ceramic proppants has particularly attracted the attention of many community members not previously involved with port issues. 

According to port documents, an early September review of the Rainbow Ceramics contract states that the Port of Olympia has received $6,568,102 in revenue from Rainbow Ceramics since 2012.

Expenses related to the acceptance of the cargo totaled $3,893,547 from 2012 through September 2016, for a profit of $2,674,555.

Jeff Smith, port financial officer, said that the expenses involved with the import of ceramic proppants include longshore labor to discharge cargo or load it onto rail or truck to send out, line labor to tie up or loosen ship from dock, discharge and load out machinery, and mandatory security from the U.S. Coast Guard and Department of Homeland Security when there is a vessel in berth.

Vessel counts for 2012 was four, 2013 was 10, 2014 was 11, and in 2015, just one.

It is undetermined how many more proppant shipments the port anticipates.

“The number of ships that Rainbow brings in is predicated on the market. We do not have a forecast,” said the port stated in an emailed response to a request for information.

Above: Union Pacific Train 404 leaves Olympia loaded with 15 cars of ceramic proppants, escorted by the Washington State Patrol and Thurston County Sheriff's Deparmtent, in the early morning hours of November 18.

Union Pacific Train 404, which left the Port of Olympia loaded with 15 cars of ceramic proppants in the early morning hours of Friday, November 18, came back into port on Tuesday, November 22, just before noon.

The train whistle has blown several more times since that date, possibly indicating more shipments, however, requests for information by Little Hollywood to the Port of Olympia to learn if shipments since November 18 have taken place have not been answered.

Keith Bausch, former president of the Local 47, International Longshore and Warehouse Union (ILWU), attended Commissioner Zita's community chat last week.

“If I understand correctly from longshore leader Keith Bausch, 13 rail cars of proppants moved out in the recent operation, with 64 bags of proppants per car, approximately 1.5 tons per bag,” said Commissioner Zita to Little Hollywood this weekend.

“If I understand correctly from port finance director Jeff Smith, the Port grosses about $10 per ton of proppants, and nets about $1 per ton after direct expenses. So, 13 cars x 64 bags x 1.5 tons per bag X $1 per ton would net the Port under $2,000, if my calculations are correct.

“When fracking proppant cargos peaked in 2014-2015, the marine terminal was still in the red….What are other costs of doing this business? Greenhouse gas emissions from transport of proppants, fracking operations, and transport and burning of harvested fossil fuels….Environmental, social, and cultural costs of fracking, pipelines, and fossil fuel transport, e.g. Standing Rock….Potential injury and distress to concerned citizens, workers, and/or law enforcement….Polarization of communities such as Olympia.

“We need open, civil discussions to weigh costs and benefits of this fracking business. Public servants have an obligation to share relevant information with the public, to facilitate open, civil discussions, and to weigh costs and benefits in decision making,” said Zita.

Bausch also told her that corn was loaded and ready to go by rail to its destination.  

“I am generally not informed about port movements of cargo, despite repeated requests to the executive director,” said Zita.

There is ample evidence to refute the Port’s assertion that it just accepts whatever cargo comes its way.

An article, “Port Cargo Concerns Community,” by Hildi Flores was published in the South Sound Green Pages’ Spring 2013 issue, and explores the same questions and concerns raised by community members now.

In the article, Flores describes how the Port actively solicited the contract of Rainbow Ceramics by sending its port business development manager, Jim Knight, to North Dakota. According to Knight, the cargo was a good fit for the port’s break-bulk facilities.

In keeping with the conversation in 2013, meeting minutes for the April 22 port meeting indicate that former port commissioner Jeff Davis asked that if the port should decide against shipping proppants through the port, what would the next step be to halt fracking in the Midwest? 

Davis, a longshore worker, said it might be beneficial to commissioners to learn what that might entail because the port has deferred shipment of other materials only to have them shipped from another port. 

As for studies related to climate change and the industry's use of proppants, employing fracking to extract oil, and the impacts of the use of petroleum products, the port does not have any such studies in conjunction with or related to contracting with Rainbow Ceramics. 

“Industry-wide impacts would constitute Scope 3 emissions from a carbon accounting standpoint. Department of Ecology’s greenhouse gas (GHG) accounting methodology that is used for those entities with emissions large enough to mandate reporting, excluded Scope 2 and Scope 3 emissions. Scope 2 emissions are excluded due to the high risk for double counting that would result from their inclusion. Scope 3 emissions are excluded due to their being outside of the jurisdiction of the reporting entity. Scope 3 emissions are those outside of the Port's capacity and capability to directly affect,” wrote Galligan in an email to Commissioner Zita in September.

Cameron Powell, operations and service manager for Rainbow Ceramics in Houston, coordinates logistics from Rainbow Ceramics' manufacturing plants in China to Canada and U.S. ports, which are the Port of Houston Authority, San Antonio, and Olympia. 

Her job is to “research new projects to capitalize on various shale plays such as the Bakken, Eagle Ford, and Permian Basin, analyze inventory and reports of incoming and outgoing ceramic proppant, and manage rail cars going to and from transloading facilities in North America.”

Per Powell’s request, rather than speaking on the phone, Little Hollywood offered a written list of about 15 questions on December 1 pertaining to its business and contract with the Port of Olympia. Those questions have yet to be answered.

As for alternatives to ceramic proppants and other controversial cargo, community member Greg Schundler was one of the speakers at a recent port meeting who encouraged the Port to use data to drive its goals toward a more sustainable existence.

He offered his research on this issue, available at www.slideshare.net/gregschundler/port-of-olympia-from-extraction-economy-to-sustainable-growth

Oh, and those cows?

In November 2015, the Port of Olympia was proud to announce their involvement in the movement of 1,400 head of dairy cattle to Vietnam.

According to the port’s press release at the time, Vietnam launched a campaign geared toward minimizing childhood malnourishment through a strategy of providing one glass of milk per child per day. The dairy cows came from Idaho and Washington farms, and following a required holding period, were then loaded onto a ship.

Through a public records request, Little Hollywood found out that the port showed net revenue of approximately $25,000 for the shipment.

Based on economic viability, its ongoing conflicts with the City of Olympia, and stress on local, regional and state law enforcement agencies, the Port of Olympia marine terminal may be looking at some hard choices in its future.

Above: Bags of ceramic proppants are still at the Port of Olympia, as seen in November. Commissioner Zita was told at her informal community chat that there were about 20 rail cars of proppants still at the port with no set date for shipment.  

Editor’s Comment/Full Disclosure: The South Sound Green Pages was a print and online publication of the South Puget Environmental Education Clearinghouse (SPEECH). Janine Gates, then Janine Unsoeld, was president of the organization and editor of the publication at the time. The article by Hildi Flores is at http://oly-wa.us/GreenPages/Article.php?id=2013;05;201305e

For more pictures and information about the rail blockade of the Union Pacific train in downtown Olympia in November, the Port of Olympia, Rainbow Ceramics, ceramic proppants, and the City of Olympia, go to Little Hollywood, http://janineslittlehollywood.blogspot.com, and type key words into the search button.

All Eyes on Tumwater’s Historic Old Brewery

 

Above: No bulldozers in sight. An aerial photograph taken today over Tumwater’s Old Brewery reveals the area disturbed by significant grading and fill placement in October. City of Tumwater staff met with staff members from the state Department of Ecology’s Shorelands Program and Water Quality Program as well as the U.S. Army Corps of Engineers to inspect the site on November 14.

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

As 2014 draws to a close, several sets of eyes are still fixed on the historic Old Brewhouse property in Tumwater. The stop work order continues, put in place by the City of Tumwater in October due to a citizen complaint about significant activities that adversely impacted the environment.

“The stop work order is still in place and will be in place until a mitigation plan is developed for the wetland impact, said Chris Carlson, permitting manager for the City of Tumwater, who has given regular updates on the situation to Little Hollywood.

Carlson said that city staff met with staff members from the state Department of Ecology’s Shorelands Program and Water Quality Program as well as the U.S. Army Corps of Engineers on site on November 14 at the Old Brewhouse property. 

“We all agreed that a mitigation plan needs to be developed and submitted to the city for review and approval. The property owner will also be required to make application(s) to the U.S. Army Corps of Engineers for the unauthorized work and be subject to any mitigation required under federal law,” said Carlson.

“As a part of the stop work order we have required that a Storm Water Pollution Prevention Plan (SWPPP) be developed and implemented for the disturbed areas on the south side of the building to prevent water quality impacts. The SWPPP has been submitted to the city and approved. …The SWPPP we approved includes seeding the disturbed areas and covering the disturbed areas with coconut fabric. Staking in straw waddles will also be done on both sides of the road that leads around the building as well as putting a filter fabric stock in the exposed catch basin on the south side of the building,” said Carlson in an email to Little Hollywood in mid- November.

Carlson initially expected applications and mitigation plans to be submitted to the city, Ecology and the Corps for review within 30 days from the day of the initial site visit, however, that expectation turned out to be overly optimistic.

In an email dated December 13 to Little Hollywood, Carlson said the city just got the survey on December 11 outlining the area of the Category III wetland behind the brewhouse that was partially filled.

“Since we received the survey, we’ve been working with the wetland consultants -both the property owner’s and the one working on the Brewery Planned Action Environmental Impact Statement - to identify a mitigation site along the Deschutes River corridor so work on the mitigation plan can begin,” said Carlson. Carlson said he will keep Little Hollywood posted when the city decides on a site and the draft mitigation plan is submitted for review.

Carlson provided Little Hollywood with a map that indicates two disturbed wetland areas directly south of the brewhouse on the hillside containing artesian springs. The area disturbed by grading and fill placement encompasses a combined 5,011 square feet.

There are currently no permits in place at the Old Brewhouse site, says City of Tumwater building official John Darnell.  

“The stop work order is still in effect. They will need to submit plans and engineering to us for review before any additional work can be completed….The on-site erosion control measures that the city required the owner to put in place are complete. I will continue to monitor throughout the winter,” said Darnell.

Above: An aerial photograph taken this morning over the Old Brewery and the Deschutes River.

 

Role of the Tumwater Historic Commission

Meanwhile, the Tumwater Historic Commission reviews applications for projects within the historic district and approves or denies applicant requests for a certificate of appropriateness, which is required as a part of the permitting process.

The commission is looking at several upcoming projects which will require the historical commission’s review before they are approved for development, including projects at the Old Brewhouse.

Chuck Denney, City of Tumwater Parks and Recreation director said George Heidgerken, owner of the historic Old Brewhouse property, does not have a Certificate of Appropriateness before the Historic Commission at this time. 

“….Should any of his brewery projects solidify and he reaches the point where he is submitting paperwork for a development permit – meaning he has a site development plan and is prepared to move forward with construction – he will then be required to obtain the certificate from the commission as a part of the permitting process.  The work he is currently doing does not trigger that requirement. There are several projects in the planning stages in the Historic District that may require the commission’s approval.  Those may include something from Mr. Heidgerken, but also include development of the Deschutes Valley Trail through the Historic District and the reconstruction of the fish hatchery at Tumwater Falls Park,” said Denney.

Public Comment to Proposed Land Use Options

Several state agencies, local governments, nonprofit organizations and individuals weighed in by the October 20 deadline to comment on the city’s land use determination of significance for redevelopment of the site.

The Nisqually Indian Tribe, Washington State Departments of Archaeology and Historical Preservation, Natural Resources, and Ecology, City of Olympia, LOTT Clean Water Alliance, Black Hills Audubon Society, Deschutes Estuary Restoration Team, South Puget Environmental Education Clearinghouse (SPEECH), and the World Temperate Rainforest Network plus seven individuals provided the City of Tumwater with detailed comments about the proposed land use options provided by the city.

Jackie Wall of the Nisqually Indian Tribe, wrote, “The Deschutes River is a very Culturally Sensitive Area that was used by our people for thousands of years. The Nisqually Indian Tribe requests an Archaeological Survey be done by a qualified Archaeologist before there are any ground disturbing activities. I would like to receive a copy of the survey results. The Nisqually Indian Tribe also requests that an Inadvertent Discovery Plan be put in place for this project.”

She also asked to be informed if there are any inadvertent discoveries of archaeological resources or human burials.

A letter and paper submitted by Pat Rasmussen documents that the Steh-chass people lived in a permanent village at the base of Tumwater Falls for time immemorial.

“The village was originally Nisqually but after the Treaty of 1855 became part of Squaxin Island, in their Stehchass Inlet. As the Steh-chass were driven from the permanent village site by settlers who took it over, some fled to Nisqually and others to Squaxin, so there are likely descendents with knowledge of what happened there.” 

She attached an 1854 map she received from the Washington State Historical Society that shows the area with the name Steh-chass on the river, now called the Deschutes River.

For several past stories on Tumwater and its Brewery District Plan, the Old Brewhouse owner and developer George Heidgerken, and the stop work order, go to Little Hollywood, www.janineslittlehollywood.blogspot.com and type key words into the search engine. Recent stories were posted on February 19, October 12, October 16, October 30, and November 5, 2014.

Editor’s Note: Janine Unsoeld also met the October 20 deadline to comment on the city’s Determination of Significance and as a private citizen, requested a stop work order on all activities at the Old Brewery site. This is documented in an article on Little Hollywood dated October 30, 2014. Unsoeld is also a long-time board member of the South Puget Environmental Education Clearinghouse (SPEECH), a 25-year-old nonprofit organization that publishes the South Sound Green Pages.

Above: An aerial photograph taken this morning approaching the Old Brewery from Olympia places the site in the context of the Deschutes River, Tumwater Historic Park and Interstate 5.