City of Vancouver's crude oil ban may not affect terminal planned for Port of Vancouver

VANCOUVER, Wash.  (AP)  — The Vancouver City Council has voted to prohibit new or expanded crude oil storage facilities in the city.

But it’ll likely have little effect on a massive oil shipping terminal planned for the Port of Vancouver.

The city council voted unanimously Monday night,to prohibit the expansion of existing and new crude oil refineries and facilities within the city, that average less than 50,000 barrels a day.

A state energy panel is currently reviewing a project by Tesoro Corporation and Savage Services.


Last month, the state's Department of Natural Resources urged the panel to reject the project application.   DNR officials said the Energy Facility Site Evaluation Council can't assure there are enough safeguards to protect the public.

Tesoro Corporation and Savage Services, two oil refining companies, want to build a rail-to-marine oil transfer terminal along the Columbia River that can handle an average 360,000 barrels of crude per day.
The companies formed a joint venture called “Vancouver Energy” to build and operate a terminal that would accept and ship crude oil from the east at the Port of Vancouver USA, including from the Bakken formation.

The crude oil would be temporarily stored in tanks, then transferred to vessels to be shipped to West Coast oil refineries, and converted into transportation fuels and other products.

Supporters of the city’s ban say the facilities threaten public safety and the environment. Some who testified at Monday's meeting recalled last month's fiery derailment in the tiny town of Mosier, Oregon.

Those who opposed it are concerned it could restrict economic development in the region.

The city's ban follows an emergency moratorium already in place prohibiting oil facilities that would have expired in August.