Showing posts with label weyerhaeuser. Show all posts
Showing posts with label weyerhaeuser. Show all posts

Sunday, November 19, 2017

Port of Olympia Woes: Proppants, Logs and Videotape


Above: Log exports are the primary line of business at the Port of Olympia marine terminal, as seen here from Rotary Park on Sunday afternoon. The Washington Public Ports Association says the log export boom was over as of 2014, with no future growth in sight. A 2018 Port budget proposal includes $3 million to purchase two new log loaders.

-Rail Blockade Continues
-2018 Port Budget Vote Set for November 27
-Port Staff Describes Missing Public Meeting Videos a “glitch”

By Janine Gates
Little Hollywood

There is still no clear mandate for the Port of Olympia’s marine terminal operation located in downtown Olympia, just days after an election in which a progressive candidate for port commissioner apparently lost by a few hundred votes.  

Despite significant public outcry, port commissioners and staff appear entrenched in business as usual, seeking out contracts that cater to the fossil fuel industry, and continuing the export of raw logs to Asia well into the foreseeable future.

By doing so, they ensure continued controversy, protests and lawsuits well into 2018.

Above: Activists continued a railroad track blockade near Seventh and Jefferson Street in downtown Olympia this weekend. The blockade began on Friday.

Ceramic Proppant Rail Blockade

It was a quiet weekend for activists who began a railroad track blockade on Friday near Seventh and Jefferson Street in downtown Olympia. The blockade continues.

Their goal is to prevent another possible trainload of ceramic proppants from leaving the Port of Olympia. The ceramic proppants are used in the process of hydraulic fracking for gas and oil extraction in North Dakota.

The process of hydraulic fracking is messy and degrades the environment, contaminates groundwater and causes earthquakes. Each time a well is fracked it uses two to eight million gallons of fresh water.

The activists, collectively known as Olympia Stand, have used their time without law enforcement intervention this weekend to fortify barriers on and around the tracks.

Last year’s eight day rail blockade may have been the longest, continuously occupied direct action disruption of a fossil fuel industry shipment in state history.

Above: Activists took the opportunity to project a message on a train car, “This Train Shall Not Pass!” for Port of Olympia officials on Saturday night. The train car is parked at the Port of Olympia and is one of several cars allegedly containing ceramic proppants.

2018 Budget Includes New Log Loaders

Keen eyed port activists are also filing citizen complaints about other issues as well, such as the Port’s upcoming 2018 budget, a questionable expenditure for new log loaders and a failure to videotape public meetings.

The 2018 Port of Olympia budget proposal will be explained by port executive director Ed Galligan at a special commission work session on November 21, from 1:00 – 3:30 p.m. at port offices, 626 Columbia Street NW, Suite B in Olympia. He is scheduled to speak for two hours.

The budget includes the purchase of two new log loaders. The loaders cost $1.8 million if they are bought outright, but $3 million with financing over 20 years. 

Of further concern to port watchers is that Galligan signed a legally binding lease agreement in June for the log loaders that cumulatively exceeds the amount he is authorized to sign for, $300,000, without a vote of the commissioners. 

Helen Wheatley of Olympia spends a considerable amount of time researching the port’s budget expenditures. 

She thinks Weyerhaeuser should pay for the log loaders or, if that's not possible, the commissioners should delay their decision and continue to lease them instead of purchasing them. Since this is a “lease to buy” arrangement with delayed penalties, it would cost very little to postpone this purchase even for a year. 

“A delay could be used to gather better information and financing options. The current plan of ten years of low payments and ten years of high payments contributes to the additional $1.2 million over the named price,” she said in recent public testimony in front of the commissioners.

The long-term viability of the log export market is also questionable. The Washington Public Port Association says that demand for log exports will remain flat or even possibly decline in the foreseeable future.

“In March, Weyerhaeuser said it is ready to bring its extensive Southeastern timber holdings into production. Meanwhile, Washington’s timber looks increasingly like toothpicks. Who do the commissioners expect to pay for this? The taxpayers. They claim that it will somehow lead to even more log exports, and that is good for us all, but Japan, for example, is growing its own trees now….

“Port commissioners never seem to think strategically about the future, or think about where our own trees are in these global cycles of timber extraction. They pretend that ‘if you build it, they will come,’ and instead of expecting the timber exporting business to pay for itself, they expect Thurston County taxpayers to pay for it with promises that miracles will happen,” says Wheatley.

Commissioner E.J. Zita is looking for alternatives to Galligan’s budget, as Galligan has not yet provided any other options.

The commissioners are set to vote on the final 2018 Port budget on November 27.

Missing, Edited Videotape

And if you wanted to binge watch Port of Olympia meetings and catch up on all the drama, there's a problem:

Since February 2016, the Port has recorded its own meetings, taking the contract away from the well-respected services of Thurston Community Media who contracts with the cities of Olympia, Lacey and Tumwater and Thurston County to cover official meetings. The results have been dismal.

For well over a month, port staff has only videotaped their meetings for a couple of hours. Some port meetings last over four hours. And, the port is also apparently editing its own meeting video through an outside vendor. From the beginning, audio quality is also a persistent problem.

Bev Bassett of Olympia, another avid port watcher and budget cruncher, recently wrote a formal complaint to the port about inadequate and unsatisfactory citizen access to meeting videos from the Port's website. She says only the most recent 40 videos can be accessed.

“The October 20, 2017 Budget Study Session video will not stream beyond two hours, 22 minutes. Additionally, the video for the marathon five and a half hour commission meeting on October 23, 2017 is completely unavailable on video - only audio is available,” she wrote to port staff.

About heavy video editing, Bassett says that the first part of a video from a meeting where the public content section included a skit parodying Galligan and Commissioners Bill McGregor and Joe Downing, plus a six minute presentation about Port involvement in climate change by Bassett and another port activist remains unavailable. 

“It seems an unlikely coincidence that the Port's video system usually malfunctions when there are contentious meetings about difficult and controversial subjects.  These are only a few examples of these recurring problems with video access to records of public Port Commission meetings,” says Bassett.

Port staff responded to Bassett’s complaint on November 16 saying they regretted the “glitch,” saying the meeting minutes serve as the official public record for Commission meetings.

“Audio recordings are not required, but rather a value-added service we provide in order to facilitate public access to Port discussions and decisions.  In other words, we regret the glitch and will work to resolve it promptly, but can assure you a formal record is being taken,” said port communications manager Jennie Foglia-Jones.

At the same time the port took over its own video recording, Commissioner McGregor initiated and successfully changed the format of meeting minutes so that a brief synopsis of an individual's public comment was eliminated from the minutes. 

His stated reasoning, at the time, was that the public could go to the videos to hear what was said. 

Above: The rail blockade in downtown Olympia continued on Saturday and Sunday with little to no obvious law enforcement presence. Activists used their time to fortify their blockade.

Editor's Note, November 21, 2017: Previous versions of this article said that the 2018 Port of Olympia budget meeting was set to be voted upon on November 28. The date is actually Monday, November 27. Also, port executive director Ed Galligan signed the lease agreement for the log loaders in June, not July. Little Hollywood regrets the errors.

Little Hollywood has written extensively about Port of Olympia issues, including last year’s rail blockade, ceramic proppants, Rainbow Ceramics, sea level rise, and more. For more information and photos, go to www.janineslittlehollywood.blogspot.com and type key words into the search engine.

Sunday, December 11, 2016

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

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.


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.