1	Should a 400,000-barrel-a-day refinery be built on prime farmland? 3-13-08 Living River Group
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4	What’s the future? “Just as the nineteenth century belonged to coal and the twentieth century to oil, the twenty-first century belongs to the sun, the wind, and energy from within the earth.” (Lester Brown)
5	Can we reduce our use of fossil fuels? YES! New Zealand will boost its renewable share of electricity to 90% by 2025. (It has already achieved 70% using hydro and geothermal sources.) Germany created more than 250,000 jobs and reduced CO₂by 20 million tons by shifting to solar and wind energy. Iceland will use 100% renewable once it finishes its hydrogen car project. Numerous other countries report extraordinary successes.
6	What is South Dakota’s REAL future? Wind energy that reduces reliance on fossil fuels By 2010, plug-in hybrid cars using wind energy will be available. Such vehicles already get 100 mpg.
7	How much black, oily, high-sulfur sour crude will be delivered to Union County? 400,000 barrels (16,800,000 gallons) a DAY OR 146,000,000 barrels (6,132,000,000 gallons) a YEAR OR 7,300,000,000 barrels in 50 years (THAT'S BILLIONS OF BARRELS!)
8	What is sour crude? Sour crude is both toxic and corrosive. Sour crude contains sulfur compounds, many of which smell like rotten eggs Contains many more impurities than sweet crude, including heavy metals. Sour crude contains mercaptans, which smell exactly like skunk odor. Sour crude is more difficult to refine than sweet crude. Source: Karen Hall, Engineer
9	"Hyperion will be processing sour..." Hyperion will be processing sour crude with the highest sulfur content, yet promises to produce the lowest sulfur fuel What happens to the excess sulfur? 100 train boxcars of sulfur will depart Elk Point every day Destination? Accidents?
10	How much sulfur will the refinery produce? 100 train boxcars of sulfur will depart Elk Point every day Destination? Accidents? Why
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12	Why is mining sour crude in Alberta the “most destructive project on earth”*? Destroys pristine boreal forest (25,000 square miles at risk) Produces massive amounts of greenhouse gasses (3 – 5 times more than drilling) Requires 20% more energy than drilling Releases carcinogens into streams and water sources Creates shortage of water Results in vast toxic tailings lakes (11 square miles in size) Depletes natural gas resources for extraction
13	How will the heavy sour (high sulfur content) crude get here? Will be under 1,700 psi (pounds per square inch) of pressure Will pass through 8 South Dakota Rural Water Systems
14	What dangers do pipelines create?
15	What dangers do pipelines create?
16	Just how much IS 400,000 barrels? Well, consider how high 400,000 barrels of sour crude oil fill one square acre.
17	Where Would Hyperion Rank among the 149 refineries in the United States?
18	Greenwashing: High-tech brainwashing? “Greenwashing” is Intentional use of green colors, green terminology, and green scenery on websites by the largest polluters. Cynical use of the opposition’s strengths in order to lull the busy, uninformed citizen into doing nothing. Adoption of green charters drafted by attorneys who use broad words that require no specific actions of the polluters. (Read Hyperion’s Green Charter!)
19	What does “meet or exceed legal requirements” mean? _________ California Laws _________ Minnesota Laws “Texas refineries are five ________________________ times dirtier than California’s” EPA/Texas/SD Requirements Denny Larson, Refinery Reform
20	Do “green refineries” release toxic pollutants? “All refineries produce emissions.” Hyperion website Therefore, the central question is: How many pollutants will the proposed refinery put into our clean air, water, and soil? (Emissions include VOC’s, toxic pollutants, greenhouse gases, heavy metals.)
21	What toxins – and in what quantity – does Hyperion request to emit into our clean air?
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23	Into our soil and water
24	Are these estimated tons per year accurate? Highly unlikely Important distinction: Reported emissions: Emissions reported by refineries using EPA/API (American Petroleum Institute) methods They are estimates based on small samples. Measured emissions: Emissions measured by new DIAL (Differential Absorption Light Detection) methods. They are actual measurements of all refinery emissions.
25	What is the best technology to measure emissions? DIAL, or Differential Absorption Light Detection
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27	What toxins – and in what quantity – does Hyperion request to emit into our clean air?
28	"“The EPA has failed..." “The EPA has failed to improve monitoring and reporting of toxic air pollution. In fact, EPA has moved in the opposite direction. In 2004, EPA actually adopted new rules that weaken air emission reporting requirements. Because EPA continues to knowingly allow industrial facilities to underreport toxic emissions, the public remains in the dark about the true extent of their exposure.”
29	Will Hyperion use DIAL technology? No. When questioned, Hyperion officials were unaware of it. The American Petroleum Institute (API) has specifically fought any attempt by the EPA to require DIAL technology
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31	Is Hyperion’s proposed refinery greener than other refineries?
32	Why is Hyperion not green? Hyperion claims the refinery will be green because it will use BACT (Best Available Control Technology) IGCC (Integrated Gasification Combined Cycle) Let’s look closer at BACT and IGCC…
33	What is BACT, and is it “green”? “Best” does not mean best. There are many levels of best available technology. LAER (Lowest Achievable Emission Rate) is truly the best. Hyperion will not use LAER. PSD (Prevention of Significant Deterioration) is the worst of the best. Hyperion will use PSD. Why is Hyperion NOT using LAER? Since South Dakota has clean air (making us an “attainment state”), the EPA requires only PSD not LAER. Hyperion will save millions of dollars by using PSD and emitting more air pollution.
34	What is IGCC, and is it feasible? Purpose: To burn coke (the worst petroleum by-product) to power the refinery. No IGCC exists for a refinery of this size. As of October, 2007 Five IGCCs for coal plants have been cancelled Four have been put on hold Two have gone bankrupt
35	Are IGCC’s green? “In April 2007, Minnesota’s Office of Administrative Hearings found NOx and mercury emissions with IGCCs are not any better than from a convention coal plant. The technology does not qualify as an “Innovative Energy Project”.
36	Will Hyperion really hire 1,800 employees? Rosemont 285,000 barrels/day Only 825 employees Hyperion 400,000 barrels/day 1,800? (Proportionally would be only 1,157)
37	Do emissions cause health problems? A 2007 study by the University of Texas School of Public Health “showed that children living within two miles of the heavily industrialized Houston ship channel have a 56% greater risk of contracting acute lymphocytic leukemia than children living farther away.” Source: Chicago Tribune, July 29, 2007 Young children, asthmatics, and elderly are most affected Other health issues include respiratory problems (asthma, coughing, chest pain, bronchitis), skin irritations, nausea, itchy eyes, headaches, birth defects, leukemia, cancer http://www.groundwork.org.za/oil_refineries.htm
38	Location of Rural Refineries
39	Location of Highest Rural Cancer http://www.epa.gov/ttn/uatw/nata/maprisk.html Also see: www.epa.gov/mxplorer/All_Facilities.kmz
40	What would SD get if investors put $10 Billion into… Higher fuel efficiency (more miles per gallon)? More hybrid vehicles? Closed-loop ethanol plants? Biodiesel? Cellulosic ethanol? Wind energy? Solar energy? Geothermal energy? 100’s of energy saving devices: CFL’s Local producers of food (Iowa State Study)
41	"“Anything else you’re interested..." “Anything else you’re interested in is not going to happen if you can’t breathe the air and drink the water. Don’t sit this one out. Do something.” -- Carl Sagan
42	DO WE NEED NEW REFINERIES? “Over the last decade, we have added the equivalent of a new 200,000 barrel-a-day refinery each year. The Department of Energy expects this trend to continue.” Red Cavaney President and CEO of American Petroleum Institute Why not put any new refineries in existing brown fields?
43	Does Vermillion want to be a refinery town?
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46	Sources Targeting the Oil Sands A UBS Investment Research Report by UBS Securities, Canada, Inc., Mar. 12, 2007 TransCanada-Keystone Crude Oil Pipeline Report prepared by WEB Water Development Assoc., Inc. (Available at http://www.webwater.org Oil Refineries Fail to Report Millions of Pounds of Harmful Emissions Special Investigations Division Report for the U.S. House of Representatives, Nov. 10, 1999 Head in the Oil Sands? Climate Change Risks in Canada’s Oil and Gas Sector Report by The Ethical Funds Company, Mar. 2007 U.S.- Canada Relations Session on Energy, Presentation by Francis Bradley, VP Canadian Electricity Association presentation at the 60^th Annual Meeting of the Midwestern Legislative Conference, Aug. 1, 2005 Wall Street Journal, Aug. 2, 2007 Refinery Reform http://www.refineryreform.org Houston Area Research Center (HARC) http://www.harc.edu/Projects/AirQuality/About/GreenRefineries The “Save Union County” group has two websites, www.saveunioncounty.com and www.elkpointgorilla.com that explain the expected impact.
47	How does the Rosemont Refinery (Minn.) compare with the proposed Hyperion Refinery (S. Dak.)? 285,000 barrels a day 5150 tons of reported pollutants per year into the air 820 employees 400,000 barrels a day 7228 tons of estimated pollutants per year into the air 1000 employees (not 1800)
48	Pine Bend Refinery, Rosemount,Minn. (Total Air Emissions=5150 tons)
49	What is a “green” refinery? It’s defined by a group of business people in Houston who have formed the “Green Refineries Project”. The group’s name is HARC (Houston Area Research Center) http://www.harc.edu/Projects/AirQuality/About/GreenRefineries
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51	Does a “green” refinery exist at this time? NO It is a concept created by HARC Emissions data, if collected by HARC, “would not be made available to regulators, environmental groups, or the general public” See “Green refineries score card”
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53	Under the “green score card”, what amount of VOC’s are allowed for a “green” refinery? The score card allows a “green” refinery to emit up to .01 pounds of Volatile Organic Compounds (VOCs) into the air for each barrel processed. Thus, if the Hyperion Refinery processes 400,000 barrels a day, it is still considered “green” when it emits 4000 pounds of VOCs (400,000 X .01) into the air every day that it processes 400,000 barrels. 1,460,000 pounds of VOCs per year
54	What are SARA III compounds? Consist of hundreds of specific toxic chemicals and groups of chemicals Listed in EPCRA (Emergency Planning and Community Right to Know Act), which seeks to inform the community after a major toxic spill Include mercury, chlordane, dioxin, lead, toxaphene, and numerous other compounds Source: http://www.epa.gov/tri/tridata/tri05/pdfs/sectionsC.pdf
55	Under the “green score card”, how much toxic pollution (SARA III compounds) may a “green” refinery emit? A green refinery may release 1 pound per barrel of SARA III compounds “into the air, land, and water” That’s 400,000 pounds per day That’s 146,000,000 pounds per year That’s 73,000,000,000 pounds over 50 years
56	Under the “green score card” how much green house gas (GHG) may be released? 10 pounds per barrel may be released by a “green” refinery That’s 4,000,000 pounds per day That’s 1,460,000,000 pounds per year That’s 730,000,000,000 pounds over 50 years Though large, these amounts of emissions represent minimums; all present refineries release far more than these minimums.
57	Will Hyperion be REQUIRED to limit its emissions to the “green” levels listed in the “green scorecard”? NO Joining the “Green Refineries Project” is completely voluntary. Thus, Hyperion could drop it’s “green” goals at any time and could do so immediately after the refinery is built.
58	Rather than require DIAL technology, the EPA has weakened the reporting of air emissions. Source: Scorecard.org, on Toxic Release Inventory (TRI) “The Environmental Integrity Project report . . . reveals that emissions of specific toxic chemicals, including recognized carcinogens such as benzene and butadiene, may be four to five times higher than is reported to TRI. “The Environmental Integrity Project identified two primary explanations for this underreporting: “1) The root problem is the lack of adequate emissions monitoring. . . .A 2001 General Accounting Office study documented that only four percent of all emissions reporting used direct monitoring or testing. The other 96 percent were based on estimates calculated using emissions factors. “2) The EPA has failed to improve monitoring and reporting of toxic air pollution. In fact, EPA has moved in the opposite direction . . . . In 2004, EPA actually adopted new rules that weaken air emission reporting requirements. Because EPA continues to knowingly allow industrial facilities to underreport toxic emissions, the public remains in the dark about the true extent of their exposure.”
59	What pollutants are regulated by the EPA? EPA regulates only six pollutants These six pollutants are called “criteria” pollutants
60	What are the “Criteria” Pollutants? Sulfur dioxide, SO₂ Nitrogen oxides, NOx Particulate matter TSP PM₁₀ Lead, Pb Carbon Monoxide, CO Volatile organic compounds, VOCs
61	What are other typical refinery wastes? Used oil Waste solvents, paints Oily rags WWTP sludges Spent catalyst Sewer sludges Oily rags Expired chemicals
62	Clean Growth v. Dirty Growth Clean growth - adds to a safe, clean, and neighborly life style. - does not threaten environmental destruction, out food chain, clean water, clean air, and traditional lifestyles. Dirty growth - threatens our social and religious values that care for creation. - cannot demonstrate with evidence that the short-term economic benefits outweigh long- term harms.
63	Is Hyperion proposing to build the cleanest refinery? No Hyperion’s website states that it will build “one of the… refineries that releases fewer pollutants during the refining process.” (Note the greenwashing vagueness) - “one of” how many refineries? - “fewer” than which refineries? Governor Rounds has said that Hyperion has “promised to build the most green energy center in the country.” (Source: Aug. 10, 2007 letter to Jacquelyn Heckathorn)
64	Is this refinery needed? No “Over the last decade, we have added the equivalent of a new 200,000 barrel – a – day refinery each year. The Department of Energy expects this trend to continue, ‘with an additional 1 million barrels per day coming on line at existing refineries by 2011.’” Red Cavaney President and CEO of American Petroleum Institute Alternative No. 1: Build refineries at existing sites with existing pipeline routes.
65	Other Alternatives to Fossil Fuel Energy to Reduce Greenhouse Gases Efficiency and Conservation: 1. Increase fuel economy in cars (CAFÉ of 35 mpg) 2. Drive less with an increase in public transportation 3. Cut electricity use in homes and offices Power Generation 4. Raise efficiency at large coal fired plants 5. Replace coal fired power plants with natural gas-fired plants. Source: Scientific American (Special Issue 2006)
66	Alternatives (Cont’d) Carbon Capture and Storage (CCS) 6. Install CCS at coal-fire power plants 7. Install CCS at hydrogen producing plants 8. Install CCS at coal to syngas plants Alternative Energy Sources 9. Nuclear output to displace coal plants 10. Increase wind power 40 fold to displace coal plants Source: Scientific American (Special Issue 2006)
67	Alternatives (cont’d) Alternative Energy Sources 11. Increase solar power 700-fold to displace coal 12. Increase wind power to make hydrogen for cars 13. Drive two billion cars on ethanol produced from cellulose and sugar cane Agriculture and forestry 14. Stop all deforestation 15. Expand conservation tillage to 100% of cropland Plan B: Transfer U.S. financing from big oil and coal companies to Nuclear Fusion, Space Based Solar, Waves and Tides, Designer Microbes, and newer technologies. Source: Scientific American (Special Issue 2006)
68	Crude Imports UNITED STATES (Oil Dependent) USES >20 MILLION BARRELS OF PETROLEUM/DAY TOP FIVE SOURCES CANADA 2.0 MILLION SAUDI ABABIA 1.5 O.D. MEXICO 1.5 O.D. VENEZUELA 1.O O.D. NIGERIA 1.0 O.D.
69	Can conservation and alternate energy free us from oil dependence? “You hear a lot of talk about gaining independence from Middle East oil. That can’t happen as long as demand keeps growing. The only way for us to gain independence from Middle East oil is for us to do something about demand growth and develop other energy sources.” Mike Rogers, Senior Director at PFC Energy USA Today, September 7, 2004
70	BOOM AND BUST In 1981 there were 324 refineries in the U.S. Today there are only 141 However, the Darwinian survivors continue to increase capacity.
71	Oil Corporations as Growth Stocks Mr. Ben Halliburton says, “More companies are going to have to make additional acquisitions to replace reserves and production or they’re going to shrink their companies dramatically.” Wall Street Journal, (August 2, 2007) Mr. Halliburton, CIO, Traditional Capital Management
72	OPTIONS? Beyond Developing Countries OFF SHORE LEASES e.g., Royal Dutch Shell leased rights from U. S. Government (FEB. 2008) to drill up to 15 billion gallons in the Arctic Ocean e.g., drill in the Gulf of Mexico
73	REFINE SOUR CRUDE VENEZUELA – pre-adapts to sour crude GULF OIL OIL SHALE (?) OIL SANDS (TAR SANDS) MAJOR DEPOSITS IN ALBERTA (25,000 SQ.MILES) SEVERAL SMALLER DEPOSITS IN U.S.
74	REFINERIES EXPANDING AND/OR UPGRADING FOR SOUR CRUDE CONOCO PHILLIPS IN ROXINA ILLINOIS BP IN WHITING INDIANNA MURPHY OIL IN LAKE SUPERIOR WI MARATHON OIL IN DETROIT MI MANY OTHERS
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