An Independent Evaluation of Phillips 66, its Business Strategy, and Execution

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Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Introduction

A photo of part of Marland Refinery in Ponca City, Oklahoma taken in 1919. An article from Petroleum Age in 1922 said that Marland Refinery in Ponca City had a production of 10,000-barrel per day and Marland Refinery included nearly two million barrels of steel storage for crude and finished products. An article from Petroleum Age in 1928 said "Marland refinery at Ponca City is one of the largest complete plants in the Mid-Continent field with a crude capacity of 35,000 barrels per day of which approximately half can be run down to wax. The plant is equipped with four large Dubbs units, two Cross units, and 18 Fleming stills." Derivative Photo: Hugh Pickens

by Hugh Pickens, Ponca City Oklahoma On May 1, 2012 ConocoPhillips split into two separate publicly-traded companies: an upstream company that will retain the name ConocoPhillips and concentrate on exploration and production, and a downstream company, to be named Phillips 66, that will include refining and marketing (R&M), chemicals, and midstream business segments. The refinery in Ponca City, with over 700 employees the single largest employer in Ponca City, is part of the R&M segment and will go into Phillips 66. Phillips 66 will be a publicly traded company (PSX) and a number of independent financial analysts will be following the company.

The purpose of this web site is to follow Phillips 66 to document and understand the company's plans and policies particularly with respect to its Refinery and Marketing Business Segment with a special emphasis on evaluating the impact of Phillips 66 business decisions on the refinery in Ponca City, Oklahoma. Some of the conclusions I have reached after analysis of publicly available information on Phillips 66 include the following:

  • The Refining and Marketing Business Segment will be more important to Phillips 66 than it was to ConocoPhillips.
  • The refinery in Ponca City will be more important to Phillips 66 than it was to ConocoPhillips.
  • The Refining and Marketing Business Segment is the least profitable Business Segment and will be de-emphasized with unprofitable refineries closed or sold off.
  • There will be a reduction in the capital allocated to the Refining and Marketing Segment.
  • Although Phillips 66 sold the Trainer refinery on May 1, 2012 and has tried to sell the Alliance refinery, the refinery in Ponca City is unlikely to be closed or sold for at least three to five years as margins have been strong in the Mid-Continent Segment and are expected to remain high for the medium term.
  • Profits are presently very high for the Mid-Continent refineries of which the refinery at Ponca City forms a part. The Ponca City Refinery earned profits in excess of $500 million in 2011 and based on Phillips' third quarter earnings report for 2012 with a realized crack spread of $31.83 for mid-continent refineries and a capacity utilization of 102%, the Marland Refinery in Ponca City will contribute at an annualized rate of over $1 billion ($1.032 B) of net profits in 2012 to Phillips bottom line. But these profits are due to the glut of crude oil pouring into the region from newly tapped shale oil like North Dakota’s Bakken and the high Brent to West Texas Intermediate differential and these high profits are not expected to persist for more than three to five years.
  • Phillips 66 plans and strategy to increase profitability by moving away from the low COBE and cyclical Refining and Marketing Business Segment and making massive investments in the high COBE Chemical Business Segment and Midstream Business Segment appear sound. The question for Phillips 66 now becomes now becomes one of executing the plan.[1][2]

Creation of Phillips 66

On May 1, 2012 Phillips 66 issued a press release announcing that Phillips 66 had emerged as an independent downstream energy company with industry-leading businesses in refining and marketing, midstream, and chemicals. Created through a spin-off of these assets from ConocoPhillips, Phillips 66 begins regular trading on the New York Stock Exchange this morning under the ticker symbol PSX. "Our strategic approach combines one of the world's most competitive refining and marketing operations with rapidly growing midstream and chemicals businesses," said CEO Greg Garland. "Phillips 66 will be clearly differentiated from pure-play refining companies with specific plans for enhancing returns and growing shareholder distributions. We have an exciting future ahead of us."[3] Graphic Created by: Granger Meador Used with permission
"Phillips 66 has strong brand recognition and value and it provides a link between our rich history and our exciting future," says Greg Garland, designated chairman and chief executive officer of Phillips 66. The new company's name capitalizes on public awareness and gives tribute to history, adds Garland. Photo: ConocoPhillips

Rationale for the ConocoPhillips Split

There are two ways to look at the decision to split off the downstream segment from ConocoPhillips with the creation of Phillips 66. According to Christopher Helman writing in Forbes magazine the ConocoPhillips’ split can be seen as the upstream guys seizing an opportunity to jettison their lower-returning downstream assets all at once rather than piecemeal, as they’ve been doing. On the other hand, the split "liberates downstream to pursue its own growth opportunities," according to incoming Philips 66 CEO Greg Garland. "As an integrated oil company we were pushing a lot of our capital to the Exploration and Production (E&P) space, which was the right thing to do as an integrated oil company."[4]

"If Phillips 66 has been left with the wrong end of the deal, then Greg Garland is putting in a spirited effort to persuade investors otherwise. He says the creation of Phillips 66 represents an opportunity to ensure that his company is in a strong position to make the best of the uncertain conditions in the downstream sector," writes Shaun Polczer in "The Petroleum Economist on May 25, 2012. "The company hopes that ...Phillips 66 will be better able to capitalise on its options to maintain a steady income stream from mid and downstream operations. "[5]

Simone Sebastian and Emily Pickrell writes in the Houston Chronicle that Mulva abandoned the super-major model that its retiring leader helped engineer a decade ago leaving behind "a more modest oil exploration and production company, streamlined by the aggressive asset sell-off that has defined his final years at the helm." Mulva is the last of a group of oil executives who orchestrated the model of building companies that delivered fuel from the ground to gas tanks through their own international networks of exploration, refining and distribution assets. "He appreciated the changing paradigm in the industry a decade ago when all the oil companies were combining," said Doug Terreson, head of energy research for ISI. "The oil industry is shifting toward a new competitive paradigm now and separation makes a great deal of logic."[6]

Rod Walker writes in the Tulsa World on April 28, 2012 that "the separation of ConocoPhillips and Phillips 66 is the final achievement of CEO Jim Mulva's eight-year reign atop the integrated company" although questions abound regarding the rationale behind the split one decade after the merger that created ConocoPhillips. "Why was it better to get bigger 10 years ago and not now?" asks Bruce DeShazo, assistant vice president and investment adviser at American Heritage Bank of Sapulpa. "I would think the reason they'd do something like this is to divest those losing assets. They're just having a hard time making money in refining." Outgoing ConocoPhillips CEO Jim Mulva wants to reduce the company's exposure to refining by spinning off Phillips 66. "We said sell non-core assets, position for growth. Essentially, 90 percent of our capital spending is directed towards exploration and production, and reduce our exposure to refining."[7]

According to Mulva in his presentation to financial analysts on July 14, 2011, the question is why would you spin out the downstream versus to stay integrated. "We believe more value is created in the formation of two very clear, standalone companies versus accomplishing our objectives of rationalizing our downstream within the integrated oil structure. There is generally greater external transparency of the business performance when the marketplace looks at the pure plays versus being accomplished in the integrateds. And we also believe there is more focus and attention and greater probability of success by the management team by having pure-play separate upstream and downstream companies. Our investors, we believe, have the better ability to adjust to overweight or underweight their views of investing in these segments of integration, upstream and downstream. And as I just said, there is greater management focus to customize strategies, both upstream and downstream. And we also believe with this, it really allows us to attract, retain and compensate the talent we need to create the highest probability of success upstream and downstream."[8][9]

"I think that world and that marketplace has pretty well changed. So if we look out the medium- and the long-term, we face this challenge, whether we are viewed as independent or viewed as an integrated company, the issue of competitive growth is the same, whether it is a company bigger than ourselves or it is an independent smaller than ourselves. So it doesn't change with the accomplishment of doing this transaction and spinning out the downstream. We are faced with the same challenge. Some also could argue that the larger you are, the more difficult it is, given the access issues, and in many places in the world, an emphasis of trying to move IOCs or independents more towards service contracts than it is taking equity interest. So all we are saying is whether we are classified as independent or classified as an integrated, or however we are classified and what we are structured, we still have the issue of how do we take our current reserve position and our production, how do we grow it and do it with competitive finding and development cost. So we have got the same challenge. Now, if we do that well, whether we are integrated or we are viewed as independent pure plays, if we do that well, it will be recognized in the marketplace. And that is really where we are coming from. We are not doing something cleverly just to get a higher PE multiple, but we do think the pure plays are better understood in the marketplace, and it is going to put a lot more focus on our management and our leadership to accomplish the objective, which is to convert the resources that we have. We like to always get more resource, but convert those resources to reserves, and do that really well with competitive finding and development cost, we will grow our production and we will do it in a value-creating way."[10][11]

"The other thing is we look at our Company in the marketplace, we have a number of investors that would say you are making the investment decision for us. You are putting us in both the upstream and downstream business, where we would like to make that investment decision ourselves. So by being separated, you can take your choice. You want to invest in the downstream, you want to invest in the upstream. So if you look at the integrated company, you can say, well, I think the downstream part of the company is holding back on the value creation and recognition of your E&P business. And then on the other hand, those people who are interested in the downstream would say, you are not getting recognition for the quality or the contribution of the downstream. And then there is another issue that we have seen, unfortunately. But from an enterprise risk management point of view, having two separate companies is -- we think is something that makes a lot of sense. And so it is for these different reasons and putting more focus both upstream and downstream at attention, and clear peer plays, not so much that the market can look and make the decision where they want to invest, but the leadership of the company knows clearly what business they are in and they dedicate their attention to doing it in a value-creating way."[12][13]

See also

Implementation of the ConocoPhillips Split

On May 1, 2012 Phillips 66 issued a press release announcing that Phillips 66 had emerged as an independent downstream energy company with industry-leading businesses in refining and marketing, midstream, and chemicals. Created through a spin-off of these assets from ConocoPhillips, Phillips 66 begins regular trading on the New York Stock Exchange this morning under the ticker symbol PSX. "Our strategic approach combines one of the world's most competitive refining and marketing operations with rapidly growing midstream and chemicals businesses," said CEO Greg Garland. "Phillips 66 will be clearly differentiated from pure-play refining companies with specific plans for enhancing returns and growing shareholder distributions. We have an exciting future ahead of us."[16]

On November 11, 2011 the Tulsa World reported that Phillips 66 would be the name for the new independent oil and gasoline refining and marketing firm, created as ConocoPhillips splits into two companies. ConocoPhillips will keep the current name of the company and will concentrate on the exploration and production side while Phillips 66 will include refining and marketing portions of the company. Each company will be run independently and will have different tocker names in the stock market. The refinery in Ponca City employs about 700 people while Bartlesville will be the global center for the Phillips 66 technology organization as well as the transaction services organizations for both companies.[17] ConocoPhillips CEO Jim Mulva will resign once the split is complete and Greg Garland will be the new CEO of Phillips 66.[18] The decision to name the new entity for Phillips 66 is because of name recognition and branding. "Phillips 66 has strong brand recognition and value, and it provides a link between our rich history and our exciting future," Garland said Thursday in a news release. "Our name reflects an independent spirit and drive."[19]

On April 4, 2012 ConocoPhillips' board of directors gave its final approval for the spin-off of its downstream businesses into Phillips 66.[20] ConocoPhillips executive vice president and CFO Jeffrey Sheets announced on April 23, 2012 that ConocoPhillips is putting its final touches on its spinoff of Phillips 66 this week, and the transaction will take place as scheduled on May 1, 2012.[21]

Garland Says the Spin-off of Phillips 66 Was Executed Flawlessly

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that spin-off of Phillips 66 was executed flawlessly. "I think it's a real tribute to the dedication and the capability of the Phillips 66 employees. They did a great job of getting our feet underneath this. The Company has stood up. We're ready to go. The systems are operating well. We've been running well and capturing good opportunities in the market.[22]

Decision to Name the Downstream Company Phillips 66

ConocoPhillips announced on November 11, 2011 that the new independent downstream company created through its previously announced strategic repositioning will be named Phillips 66. "With a history that goes all the way back to petroleum industry "birthplace," in Bartlesville, Oklahoma in 1917, the company will be a leading independent company with refining, marketing, midstream and chemicals businesses operating across the globe. "Phillips 66 has strong brand recognition and value and it provides a link between our rich history and our exciting future," said Greg Garland, designated chairman and chief executive officer of Phillips 66. "Our name reflects an independent spirit and drive--two attributes of our future company."[23] According to the ConocoPhillips web site "the name Phillips 66 was chosen [for the new downstream company] because it has strong brand recognition and value, which allows us to link our rich history and our exciting future. The name represents the independent spirit and drive that will be part of the culture of Phillips 66."[24] The new company's name capitalizes on the public awareness and gives tribute to history, Garland added.[25]

The company launched a new Phillips 66 website: www.phillips66.com, that provides some history of the brand:

Frank and L.E. Phillips were two of the original experts in gas. They started prospecting for oil in 1903 and founded Phillips Petroleum Company in 1917. Since then, the company has grown considerably and has expanded its product offerings through its commitment to innovation and meeting customer needs. That’s fancy talk for "we keep making it better." Phillips 66® also has a history with US Highway 66. In 1927, on the "Mother Road" during a test drive of a newly developed high-octane gasoline, the vehicle reached a cruising speed of 66 mph. The new fuel was named Phillips 66. Even the logo was inspired by the road signs that dot the length of the historic highway. And the rest is history. And gas. Very High quality gas.[26]

The Houston Chronicle reported on November 10, 2011 that according to ConocoPhillips spokesman John Roper, while Phillips 66 products will retain the traditional logo, executives haven't decided whether to make it the corporate logo as well.[27]

The Bartlesville Examiner-Enterprise editorialized on April 29, 2012 that "the downstream energy company — named Phillips 66 in a tip of the cap to its product lineage begun right here in Bartlesville — will be a leading independent refining, marketing, midstream and chemicals business."[28]

Strategic Vision for Phillips 66

There are three leading operating segments in the new company: Chemicals, Midstream, and Refining and Marketing. The refinery in Ponca City falls in the Refining and Marketing Business Segment (R&M) which in 2011 had a much lower ROCE (Return on Capital Employed) than the other two Phillips 66 business segments. ROCE is a ratio used in finance, valuation, and accounting that compares earnings with capital invested in the company is used to prove the value the business gains from its assets and liabilities. Derivative Photo: Hugh Pickens
Greg Garland told analysts at the 4th quarter earnings conference on January 30, 2013 that he expects a 15% ROCE in the R&M Business Segment going forward. "My view is that, refining historically has been kind of a 10% to 12% business," said Garland. "We think we have plans in place to advantage crude capture, yields, cost reduction, that we can move it 400 basis points. So it’s a 15% business going forward for us versus a 30% return business in Chemicals. And probably Midstream business 15% to 17% returns is kind of what we’re looking in fact. So, to the extent that we have 30% and 40% return projects in refining, we’re going to do those. I think, I mean we do get challenged by people all the time or we under investing in refining. At this point, we don’t think so. I don’t think there’s any opportunities out there, we feel that we’ve missed in terms of an investment opportunity in the refining space. Our focus is going to be very disciplined. We’re going to restrict capital in this space. We’re going to improve returns in this space. And so we don’t see a change required in our strategy at this point in time."[29] Derivative Photo: Hugh Pickens
In 2011 about 84% of Phillips 66 capital was allocated to Refinery and Marketing with 11% allocated to Chemicals and 5% to Midstream. Phillips 66 plans a major change in this allocation. "Long-term we have a vision that about 50% of our capital employed will be directed towards the R&M segment. And the other 50% will be directed towards Midstream and Chemicals." Derivative Photo: Hugh Pickens

On April 9, 2012, Greg Garland, the designated CEO of Phillips 66, presented an overview of the new company and his plans for Phillips 66. There are three leading operating segments in the new company: Chemicals, Midstream, and Refining and Marketing.[30][31][32]

The basic Phillips 66 strategy to increase profitability is to focus on the business segments that have the highest return on capital invested which are the Chemical Business Segment and the Midstream Business Segment. This means that the Refining and Marketing Business Segment which has the lowest profitability will be de-emphasized. Capital allocations for the business segments with the highest profitability will be increased. Capital allocation for the R&M business segment will be reduced. Unprofitable refineries in the R&M Business Segment will be sold or closed. Ponca City falls into the Refining and Marketing business segment of Phillips 66.

See also:

Benefits of Being an Independent Company

Garland talked about the benefits of Phillips 66 being an independent company. "As I think about the spin and really the strategy and the rationale behind the spin, it creates opportunity for Phillips 66 to create value that we just couldn't pursue as part of the integrated ConocoPhillips. Our existing R&M business, our Chemicals and Midstream business, all provide good, solid cash flow and we can use this cash flow to fund strategic growth. We can use it to improve returns, and also for distributions to shareholders. I think another benefit of the spin is you will see greater granularity regarding asset performance and the financial results in all three segments."[33][34][35]

Simon Moore wrote at Seeking Alpha on May 10, 2012 that ConocoPhillips was a slower, more lumbering entity but with Phillips 66 newly reduced size, its growth should accelerate.[36]

The Houston Business Journal reported on August 10, 2012 in a profile of Chevron Phillips CEO Pete Cella that with the ConocoPhillips split of its upstream and downstream business in May, Chevron Phillips makes up a more prominent part of the Phillips 66 business, which is good because the company gets more attention, said Cella.[37]

Laurie Winslow reported in the Tulsa World on October 3, 2012 that with Phillips 66 up 40.3 percent in the five months since its divestiture on May 1, 2012, the market has applauded the move by ConocoPhillips to split its exploration and production company from its refining business, creating Phillips 66. "In past years, refiners have been the dogs of the energy sector, and in 2012 they find themselves the darling of the energy sector. Phillips 66 really has spread its wings since the spinoff from ConocoPhillips, and it's gotten quite a bit of international attention," says Jake Dollarhide, CEO of Longbow Asset Management Co. "A lot of people felt that ConocoPhillips with all of the businesses together wasn't getting the market valuation it deserved."[38]

Differentiated Portfolio Creates Value Through Lower Risk, Lower Cost of Capital, and Ability to See Across Entire Value Chain

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that the three pieces of Phillips 66 business, the Refining and Marketing; the Midstream business, and the Chemicals business are more valuable together and that value is created through lower risk, lower cost of capital, the ability to see across the entire value chain. "We think we have a clear strategy in terms of capturing growth opportunities, margin enhancement opportunities, and driving return improvement in our business. I would also say that we are very purposeful and thoughtful. We're very purposeful and thoughtful about the assets that we've put in to Phillips 66 as we started the Company. We think that the three pieces of our business, the Refining and Marketing, Specialties, Transportation; the Midstream business, and the Chemicals business are more valuable together. We think value is created through lower risk, lower cost of capital, the ability to see across the entire value chain. We think it makes us better allocators of capital ultimately. We think you'll see the benefits of our management of these three businesses as we go forward."[39]

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that a differentiated portfolio is a competitive advantage for Phillips. "I would just say over the last 3.5 years, about 40% of our adjusted earnings came out of R&M or specifically refining. Then you can see 60% came out of marketing specialties and other businesses, our Chemicals business and Midstream business. The point here, we have a differentiated portfolio. We like this portfolio. We think it's a competitive advantage for us."[40]

Enhance the Return on Capital Employed (ROCE)

ROCE (Return on Capital Employed) is a ratio used in finance, valuation, and accounting that compares earnings with capital invested in the company is used to prove the value the business gains from its assets and liabilities.[41] The three operating segments of Phillips 66 have very different ROCE's. In 2011 the ROCE of the Refining and Marketing segment was 12%, the ROCE of the Midstream segment was 30%, and the ROCE of the Chemical segment was 28%. Because the ROCE of the Chemical segments and the Midstream segments is so much higher than the ROCE in the R&M segment, Garland plans to plans to aggressively grow the Chemicals and Midstream segments of Phillips 66 and de-emphasize the Refining and Marketing segments of the company.

"Here's how we plan to enhance returns on capital," says Garland in the April9, 2012 financial analysts meeting. "I think you will see continued portfolio optimization, margin improvement from us. We will drive our capital employed to higher returning businesses. You can see on the chart on the right in 2012 we plan to high grade, to move more investment to Chemicals and Midstream. And by the way, these are our equity share of the investments in Chemicals and Midstream. While we're pursuing aggressive growth at both the DCP Midstream and the Chemicals Midstream, our view is that they're going to be self funding and at the same time they will dividend cash back to Phillips 66."

Allocation of Capital to More Profitable Business Segments

Garland says that long-term Phillips 66 has "a vision that about 50% of our capital employed will be directed towards the R&M segment. And the other 50% will be directed towards Midstream and Chemicals.We'll preferentially invest in the higher return businesses and we will be very selective in how we invest in the lower return businesses."

Garland told financial analysts at an investors conference on June 5, 2012 that Phillips 66 would keep investments in its refining assets to a minimum, instead focusing on expanding its chemical-and-logistics business and that Phillips 66 will spend $2 billion on capital projects in its midstream-logistics segment, including natural-gas-liquids processing and exports infrastructure.[42]

Molly Ryan reported in the Houston Business Journal on February 11, 2014 that Phillips' decision to move forward with more than $3 billion worth of projects reflects the company’s strategic decision to chase higher-margin markets. "Midstream spending is expected to pick up in 2014 since energy companies are increasingly realizing the profits that can be found in moving the massive amount of oil and gas coming from U.S. shale plays," writes Ryan. "Phillips 66 specifically hopes to cash in on this through its new liquefied petroleum gas terminal, which will store and transport fluids, and its new fractionator facility, which will supply and transport natural gas liquid products to petrochemical companies."[43]

Plan to Aggressively Grow Chemicals and Midstream segments of Phillips 66

Garland plans to aggressively grow the Chemicals and Midstream segments of Phillips 66 and de-emphasize the Refining and Marketing segments of the company. "Over the past three years we've reduced refining capacity about 450,000 barrels a day. In our Chemicals segment we've been growing primarily through investments in the Middle East. In our Midstream segment, growth has come from expansions around the shale liquids and gas producing areas."[44][45][46] "The refining business is currently a difficult business and one where the outlook doesn't change a lot going forward," said Mark Gilman, an independent oil and gas analyst. "Phillips 66's asset quality in the refining space is, at best, kind of average."[47] The best performing divisions for Phillips 66 are expected to be its midstream joint venture and a petrochemicals company.[48]

Simon Moore wrote on Seeking Alpha on May 10, 2012 that now that Phillips 66 is no longer part of ConocoPhillips, management is planning a clear cut move to greater emphasis on Midstream and Chemicals Business Segments. "New management's long term plan is to move to 50% Refining and Marketing, 25% Chemicals, and 25% Midstream. These latter two businesses have a much higher ROCE (return on capital employed) for PSX."[49]

Phillips Capital Programs

Capital Program for Refining and Marketing Business Segment. Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips wants to try to hold sustaining capital in the Refining Business Segment to depreciation or less, or about $700 million a year. "We've got about a $1 billion program in 2014. So we've got about $300 million of high return, quick hit, fast payout projects that we're going to do. These are 40% type return projects. So these are the, what I would call, is a value accretive project that we're going to do in refining. Around export facilities, increasing yields, it's around incremental investments to process more light sweet crude. It's around capturing more LPG streams and upgrading the value of LPG streams."[50] Graphic from Phillips Presentation to USB Global Oil and Gas Conference May 21, 2013.
Capital Program for Midstream Business Segment. Phillips reported on December 6, 2013 that they plan to invest $2.167 Billion in 2014 in their Midstream Business Segment including $1.417 in direct investment and $0.750 Billion in investment with affiliate groups. Phillips expects to begin construction of a 100,000 barrel-per-day NGL fractionator and a 4.4 million-barrel-per-month liquefied petroleum gas export terminal on the U.S. Gulf Coast. In addition, several rail offloading facilities and other crude handling projects will increase the company’s access to advantaged refining feedstocks. Phillips 66 Transportation is also developing pipeline expansion and connection projects that will grow capacity and allow for greater refined product exports.[51] Graphic from Phillips Presentation to USB Global Oil and Gas Conference May 21, 2013.
Capital Program for Chemical Business Segment. Phillips reported on December 6, 2013 that they plan to invest $1.0 Billion in 2014 in their Refining and Marketing Business Segment down from $1.149 in 2013. Approximately 70 percent of the investment will be for sustaining capital related to reliability and maintenance, safety and environmental projects, including those to comply with Tier 3 emission standards. Other Refining capital investments will be directed toward relatively small, high-return projects, primarily to enhance use of advantaged crudes, as well as to improve product yields, increase energy efficiency and expand export capability.[52] Graphic from Phillips Presentation to USB Global Oil and Gas Conference May 21, 2013.

December 5, 2014: Phillips Capital Progam for 2015

Phillips 66 announced on December 5, 2014 that Phillips plans a 2015 capital budget of $4.6 billion. “The 2015 capital program reflects our commitment to grow our higher-value businesses while enhancing returns in Refining,” said chairman and CEO Greg Garland. “We are executing a portfolio of major Midstream and Chemicals projects while evaluating a significant backlog of investment opportunities. We remain committed to returning capital to shareholders through dividend growth and our share repurchase program. During the year we increased our dividend 28 percent, and through Sept. 30, 2014, we returned $3.9 billion of capital to shareholders through dividends, share repurchases and the PSPI exchange. We expect double-digit increases in dividends for the next two years, and $2.6 billion remained available at the end of the third quarter under our share repurchase authorization. Our capital structure and financial flexibility allow us to fund shareholder distributions while investing in the growth of our businesses, even in this lower commodity price environment. Sources of capital include our strong balance sheet, debt and equity issuances by our MLP, and operating cash flows from a high-returning portfolio of businesses."[53]

Phillips to Invest $1.1 Billion in 2015 in Refining and Marketing Business Segment

Phillips 66 plans $1.1 billion of capital expenditures in Refining, approximately 75 percent of which will be sustaining capital. These investments are related to reliability and maintenance, safety and environmental projects, including compliance with the new EPA Tier 3 gasoline specifications. Discretionary Refining capital investments will be directed toward small, high-return, quick pay-out projects, primarily to enhance use of advantaged crudes and improve product yields.

Phillips to Invest $3.750 Billion in 2015 in Midstream Business Segment

In Midstream, excluding DCP, Phillips 66 plans to invest $3.2 billion in its Natural Gas Liquids (NGL) and Transportation business lines. Midstream capital includes approximately $200 million expected to be spent by Phillips 66 Partners to support organic growth projects. In NGL, the company continues construction of the 100,000 barrel-per-day Sweeny Fractionator One and the 4.4 million-barrel-per-month Freeport LPG Export Terminal on the U.S. Gulf Coast. In Transportation, the company is investing in pipeline and rail infrastructure projects to move crude oil from the Bakken/Three Forks production area of North Dakota to market centers throughout the U.S. In addition, expansion of the Beaumont Terminal and related infrastructure opportunities are being pursued.

Additional Midstream investments are planned within DCP, a 50-50 joint venture with Spectra Energy that also includes DCP Midstream Partners. DCP will leverage its infrastructure to launch new gathering, processing, and NGL growth projects, mainly in the Niobrara, Denver-Julesburg, Eagle Ford and Permian basins. DCP also expects to increase natural gas processing capacity in these basins and complete other gathering system expansions during 2015. Phillips 66’s share of DCP’s 2015 planned capital expenditures is $550 million.

Phillips to Invest $1.4 Billion in 2015 in Chemical Business Segment

In Chemicals, CPChem, a 50-50 joint venture with Chevron, is investing in projects aimed at capturing cost-advantaged petrochemical feedstocks on the U.S. Gulf Coast. Phillips 66’s share of CPChem’s 2015 capital expenditures is expected to be $1.4 billion. Funding supports advancement of CPChem’s 3.3 billion-pound-per-year ethane cracker and two 1.1 billion-pound-per-year polyethylene facilities. The expected start-up for these facilities is mid-2017. In addition, the 220 million-pound-per-year expansion of CPChem’s normal alpha olefins production capacity at Cedar Bayou continues, with estimated completion in mid-2015.

Phillips to Invest $170 Million in 2014 in Marketing and Specialties

In Marketing and Specialties, the company plans to invest $170 million for growth and sustaining capital. The growth investment reflects Phillips 66’s continued plans to expand and enhance its fuel marketing business.

Phillips to Invest $155 Million at Corporate Level Primarily in IT and Facilities

In Corporate and Other, Phillips 66 plans to fund $155 million in projects primarily related to information technology and facilities.

December 6, 2014: Phillips Capital Program for 2014

On December 6, 2013 Phillips announced their plans for capital expenditures in 2014 at a level of $2.7 billion, approximately 40 percent higher than its 2013 capital target. Phillips total 2014 capital program including investments in joint ventures with DCP Midstream (DCP), Chevron Phillips Chemical Company (CPChem) and WRB Refining is expected to be $4.6 billion. “The 2014 capital program is consistent with our plans to significantly grow our Midstream and Chemicals segments,” said Chairman and CEO Greg Garland. “These are businesses that can directly capitalize on North America’s energy renaissance. Our disciplined approach to capital allocation balances reinvestment in higher-valued businesses along with growing shareholder distributions. We continue to focus on funding the most attractive growth opportunities across our portfolio.”[54]

Phillips to Invest $1.0 Billion in 2014 in Refining and Marketing Business Segment

Phillips reported on December 6, 2013 that they plan to invest $1.0 Billion in 2014 in their Refining and Marketing Business Segment down from $1.149 in 2013. Approximately 70 percent of the investment will be for sustaining capital related to reliability and maintenance, safety and environmental projects, including those to comply with Tier 3 emission standards. Other Refining capital investments will be directed toward relatively small, high-return projects, primarily to enhance use of advantaged crudes, as well as to improve product yields, increase energy efficiency and expand export capability.[55]

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips wants to try to hold sustaining capital in the Refining Business Segment to depreciation or less, or about $700 million a year. "We've got about a $1 billion program in 2014. So we've got about $300 million of high return, quick hit, fast payout projects that we're going to do. These are 40% type return projects. So these are the, what I would call, is a value accretive project that we're going to do in refining. Around export facilities, increasing yields, it's around incremental investments to process more light sweet crude. It's around capturing more LPG streams and upgrading the value of LPG streams."[56]

Phillips to Invest $2.167 Billion in 2014 in Midstream Business Segment

Phillips reported on December 6, 2013 that they plan to invest $2.167 Billion in 2014 in their Midstream Business Segment including $1.417 in direct investment and $0.750 Billion in investment with affiliate groups. Phillips expects to begin construction of a 100,000 barrel-per-day NGL fractionator and a 4.4 million-barrel-per-month liquefied petroleum gas export terminal on the U.S. Gulf Coast. In addition, several rail offloading facilities and other crude handling projects will increase the company’s access to advantaged refining feedstocks. Phillips 66 Transportation is also developing pipeline expansion and connection projects that will grow capacity and allow for greater refined product exports.[57]

Phillips expects to invest $750 Million in DCP, a 50/50 joint venture with Spectra Energy. DCP anticipates leveraging its existing NGL infrastructure to initiate new gathering and processing growth projects, mainly in the North and Permian regions. DCP also expects to increase natural gas processing capacity in the Denver-Julesburg Basin and complete other gathering system expansions during 2014.[58]

Phillips to Invest $1.046 Billion in 2014 in Chemical Business Segment

Phillips reported on December 6, 2013 that they plan to invest $1.046 Billion in their 50/50 joint venture with Chevron, representing a substantial increase over 2013. The increase primarily reflects advancement of CPChem’s 3.3 billion-pound-per-year ethane cracker and two 1.1 billion-pound-per-year polyethylene facilities. The facilities are expected to start up in 2017. Additionally, CPChem plans to complete and start up its 550 million-pound-per-year 1-hexene plant in Baytown, Texas, in the first half of next year.[59]

Phillips to Invest $140 Million in 2014 in Marketing and Specialties

Phillips reported on December 6, 2013 that they plan to invest $140 Million in 2014 in Marketing and Specialties growth and sustaining capital. The growth investment reflects Phillips 66’s intent to expand its international fuel marketing business. The company plans to add approximately 200 new retail sites in Europe over the next five years.[60]

July 10, 2014: Phillips to Increase 2014 Budget for $1.2 Billion

FueldFix reported on July 10, 2014 that Phillips will increase its 2014 capital budget by $1.2 billion for 2014 in order to fund its liquefied petroleum gas project as well as a recent acquisition. The increase will allow the company to put more cash towards the development of a new fractionator at its Sweeny refinery and a liquid petroleum gas export terminal in Freeport, among other projects. The fractionator is expected to come online in the third quarter of 2015, and the export terminal is expected to be operational in mid-2016. The fracionator will separate natural gas liquids into components including ethane, propane and butane. Some of those products will then be exported as liquefied petroleum gas from Freeport. The entire project is slated to cost $3 billion.[61]

Phillips Capital Program for 2013

Phillips reported on December 13, 2012 that they had hosted their inaugural Analyst Meeting in New York to discuss their capital program of $3.7 billion for 2013, a 6 percent increase over the $3.5 billion capital spend for 2012, and how it will to enhance returns, deliver profitable growth and increase distributions to shareholders.[62]

Phillips to Invest $1.149 Billion in 2013 in Refining and Marketing Business Segment

Phillips 66 reported at their inaugural Analyst Meeting on December 13, 2013 that they intend to invest $1.149 Billion in 2013 in their Refining and Marketing Business Segment to improve capital efficiency. The company has identified sources of additional advantaged crudes and is taking steps to move these lower cost feedstocks to its refineries and expects to replace 500,000 BPD of higher cost feedstocks with new or advantaged crudes over the next few years.[63]

Other initiatives to improve margins in the R&M Business Segment include increasing clean product yields in refining and controlling costs, targeting cost reductions and value capture in excess of $200 million before-tax by the end of 2013. “Our ability to capture advantaged feedstocks, coupled with the growing international demand for refined products, enables us to maintain high utilization rates and reduce costs per unit,” said Garland. “We will continue to primarily serve domestic markets and will explore opportunities to meet growing demand overseas. Export markets support a more positive balance of trade and promote economic benefits, and jobs, here in the United States.”[64]

Phillips to Invest $2.2 Billion in 2013 in Midstream Business Segment

Phillips 66 reported at their inaugural Analyst Meeting on December 13, 2013 that DCP Midstream plans to invest $2.2 billion primarily for new logistics infrastructure and NGL production during 2013.[65]

Phillips to Invest $1.1 Billion in 2013 in Chemical Business Segment

Phillips 66 reported at their inaugural Analyst Meeting on December 13, 2013 that CPChem plans $1.1 billion of investment including several growth projects planned or under construction, such as its U.S. Gulf Coast petrochemicals complex and 1-hexene plant.[66]

Phillips to Transfer Transportation Assets To A Master Limited Partnership

Marketwatch reported on Decemeber 13, 2012 that Phillips will transfer transportation assets to a master limited partnership that will debut in the stock market in 2013. The assets could include crude and product pipelines and terminals, natural gas liquids assets, or rail cars and infrastructure, but it was unclear what portion of Phillips 66's business would go to the MPL, analysts at Simmons said in a note.[67] “We expect to use the master limited partnership as an efficient vehicle to fund growth investments in the transportation and midstream sectors,” said Phillips 66 Chairman and CEO Greg Garland. “We believe the proposed MLP will enable us to enhance value for our shareholders and increase the transparency of our business.”[68]

Governance of Phillips 66

Jim Mulva is the chairman and chief executive officer of ConocoPhillips and conceived and executed the idea of splitting up ConocoPhillips. The Houston Chronicle reported on April 23, 2012 that Jim Mulva retired on May 1, 2012 when ConocoPhillips' refining, pipelines and chemicals units spun off to form an independent, publicly traded company called Phillips 66.[69] "The separation of ConocoPhillips and Phillips 66 is the final achievement of CEO Jim Mulva’s eight-year reign atop the integrated company," writes Rod Walton. "Mulva helped oversee the 2002 merger as head of Phillips Petroleum and now walks offstage into retirement as the one company becomes two."[70] Photo: by EnergyTomorrow Flickr Creative Commons. Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0)

Jim Mulva, Chairman and CEO of ConocoPhillips

Although Jim Mulva will not be a corporate officer of Phillips 66, Mulva was the chairman and chief executive officer of ConocoPhillips who conceived and executed the idea of splitting up ConocoPhillips which resulted in the creation of Phillips 66. Mulva retired on May 1, 2012 when the split was accomplished.

Mulva served as president and chief executive officer of ConocoPhillips from 2002 to 2004. Prior to that, he served as chairman and chief executive officer of Phillips Petroleum Company from 1999 to 2002. Mulva served as Phillips’ president and chief operating officer beginning in May 1994 and executive vice president since January 1994. Mulva had been senior vice president in 1993 and chief financial officer since 1990, at which time he joined the company's management committee. Mulva began his career with Phillips in 1973.

Mulva graduated from the University of Texas in 1968 with a bachelor's degree and a master's degree in business administration finance in 1969.[71]

The Houston Chronicle reported on April 23, 2012 that Jim Mulva retired May 1, 2012 when ConocoPhillips' refining, pipelines and chemicals units spun off to form an independent, publicly traded company called Phillips 66.[72]

Rod Walton writes in the Tulsa World on April 28, 2012 that ConocoPhillips decided that bigger was better when Phillips Petroleum Co. and Conoco Inc. merged in 2002, but now has turned 180 degrees around in 10 short years now believing that smaller is what investors want. ConocoPhillips, the nation’s third-largest integrated energy firm, will now become known as a “pure play” independent when the refining and chemical side is spun off into a new company called Phillips 66. "Mulva helped oversee the 2002 merger as head of Phillips Petroleum and now walks offstage into retirement as the one company becomes two," writes Walton.[73] "Outgoing Chairman and CEO Jim Mulva, who has expertly led the company for a decade — and several years prior to that as Chairman and CEO of Bartlesville-based Phillips Petroleum Co. — steps into retirement having proven to be a true friend to the City of Bartlesville," editorialized the Bartlesville Examiner-Enterprise.[74]

Mulva Received $156 Million Severance Package in 2012

The New York Times reported on June 29, 2013 that Jim Mulva received the biggest package of any CEO in 2012 when he stepped down as CEO of ConocoPhillips. Mulva's total severance package was about $156 million and his exit sum is on top of salary, bonus and other compensation received while working for the company. "We calculated severance pay as the total of any amounts given in connection with end of service as C.E.O.,” said Aaron Boyd, director of governance research at Equilar. In Mulva’s case, much of the payout came from the market value of stock gains he received. But he also received payouts from a cash severance, a bonus and additional retirement distributions. ConocoPhillips said that the pay packages were fully disclosed to shareholders and that they were “the same pension and benefits programs as described in the proxy statement as any other retiring executive.” “The vast majority of Mulva’s compensation that he earned during his long and successful career as an executive remained in the form of company stock at his time of retirement,” Aftab Ahmed, a spokesman for ConocoPhillips, said in an e-mail.[75]

Mulva's Post-ConocoPhillips Activities

April 28, 2016: Jim Mulva Donates $13 million to St. Norbert College for Expansion of the Schuldes Sports Center

Fox 11 reported on April 28, 2016 that James J. and Miriam B. Mulva of De Pere are giving $13 million toward the renovation and expansion of the Schuldes Sports Center at St. Norbert College. In recognition of the donation, the college plans to call the expanded facility the Mulva Family Fitness and Sports Center. The fitness and sports center will be the third building on the St. Norbert campus to be named for the Mulvas. The couple has previously given donations toward the Mulva Library and the Gehl-Mulva Science Center. Both James and Miriam Mulva are from De Pere. A former naval officer, James Mulva recently retired as chairman and CEO of ConocoPhillips. He also serves on the boards of General Electric, General Motors, Green Bay Packaging and the University of Texas M.D. Anderson Cancer Center, among others. Miriam Mulva is a member of St. Norbert's board of trustees.[76]

Mulva received "an astonishing $260 million from his former employer" when he left ConocoPhillips in June, 2013 and $141 million in combined compensation and stock options in 2011.[77]

February 10, 2016: ValueWalk Analyzes the Relation Between ConocoPhillips' Stock Buybacks and the Dividend Cut

ConocoPhillips recent dividend cut from $0.74 to $0.25 per share was a jolt to many investors. 720 Global published an analysis piece on February 10, 2016 about the hidden damage buybacks impose on shareholders and the economy as well as the questionable motives driving most of these decisions and using ConocoPhillips as an example, writes that "buybacks promote higher short-term stock prices that serve largely only to benefit [management's] own compensation. The costs of these actions are felt later as the future growth for the respective companies, employees and entire economy are robbed."

COP consistently paid a dividend since 1990 and during that 25 year period the dividend was increased 19 times. COP had never decreased their dividend until now. Even during the financial crisis of 2008/09, COP raised its dividend despite the price of crude oil dropping $100 per barrel. But since 2011, COP repurchased 251.316 million shares representing roughly 20% of their shares outstanding, at an approximate cost of $14.168 billion. According to 720 Global had ConocoPhillips' management and the board of directors not engaged in repurchases, COP would still have the $14.168 billion spent on buybacks since 2011, which could be used to support the $0.74 per share dividend for almost 5 years. "More importantly, the company could be in the envious position of employing the capital to buy assets that are being liquidated by other companies at cents on the dollar. Shareholders are suffering in many ways from the abuses of management in years past and will continue to do so for years to come."

"Fortunately for James Mulva, COP’s CEO during the 2011/2012 stock buyback era, his overly generous compensation is beyond COP’s ability to reclaim. Mr. Mulva retired in June of 2012 after repurchasing approximately 20% of the company’s outstanding shares. Upon retirement he received a $260 million golden parachute from the company. That was on top of $141 million in total compensation he received in 2011. The board of directors and shareholders must have been enamored with Mulva’s performance despite poor earnings trends in his final 2 years. From 2011 to 2012 the company earnings per share fell 25% from $8.97/share to $6.72/share. Had the board factored in the effect of buybacks on earnings per share when determining Mr. Mulva’s compensation, they would have realized that earnings per share were actually 40% lower at $5.37 per share."[78]

720 Global writes that this isn’t the first time Mulva put himself before the interests of others. "In January [2009], CEO James J. Mulva cut 4% of the Houston oil giant’s workforce," wrote Jena McGregor and Nanette Byrnes in Bloomberg Businessweek. "Two months later the company announced that Mulva had earned $29 million in 2008, on top of nearly $100 million he had made in the two prior years. In Bartlesville, Okla., where a chunk of the layoffs hit, many are still looking for work. The fact that Mulva took a $10 million stock grant in 2008 instead of the $38 million he got the year before hasn’t been much comfort to former employees there, some of whom lost their homes."[79]

October 27, 2015: Jim Mulva in Talks to Help Build Proposed Cultural Center for De Pere

We Are Green Bay reported on October 27, 2015 that the De Pere City Council has given their approval to the preliminary concept, allowing planning to move forward on the $7- $9 million facility to be built by Jim and Miriam Mulva. Mulva and his wife donated $7 million towards construction of a new library at St. Norbert College dedicated six years ago. For the past year they have been in discussions with Walsh on the construction of a cultural facility. "I don't think you could have any better two people to bring this forward than the Mulva family," said De Pere Mayor Mike Walsh. The two, or three story building will offer performance spaces for both musical and theatrical groups, an atrium, meeting spaces and a Veterans Memorial. It will also have a gallery hosting two to three nationally renowned exhibits per year. De Pere will donate the building site to the Mulva's project. Walsh says the hope is to open the facility in 2017. The design team, Haley Sharpe Design, is still working on renderings of the facility. They are expected in the coming months.[80]

March 28, 2013: Jim Mulva Got $260 Million from Golden Parachute On His Way Out The Door

The Huffington Post reported on March 28, 2013 that ConocoPhillips CEO James Mulva received "an astonishing $260 million from his former employer" when he left ConocoPhillips in June, 2013 USA Today reports. Apparently, the $141 million in combined compensation and stock options he received in 2011 wasn't enough to ensure a smooth exit from the company. Unfunnily enough, Mulva's expansive severance package, or golden parachute as it's also known, is almost as large as the $266 million compensation package ConocoPhillips agreed to pay China in April after polluting 6,200 square kilometers of water off the northern coast of the country."[81]

April 26, 2012: Mulva Joins Board of Directors of General Motors

The Detroit News reported on April 26, 2012 that Mulva has been asked to join the board of directors of General Motors. "Jim's extensive experience and expertise in the energy industry and in-depth background in finance will be invaluable to GM," said General Motors Co. CEO and Chairman Dan Akerson. Mulva already serves on the board for GE, which has a partnership with GM to accelerate deploying electric vehicle charging stations in China.[82] Your Houston News reported on September 4, 2012 that Mulva will be headlining the Adult Learning Program’s Fall Session at St. John Vianney Church in Houston by speaking on the oil industry and its future in Texas on September 25, 2012.[83]

January 24, 2014: Mulva Family Donates $60 Million to Business and Engineering Schools

The University of Texas reported on January 24, 2014 that the Mulva Family Foundation has made a $60 million multiyear pledge to The University of Texas at Austin to support the McCombs School of Business and the Cockrell School of Engineering, once again demonstrating a deep commitment to the university’s future and to a continued vision of excellence in teaching and research.

  • Of the gift, $20 million will go toward the construction of the EERC, which will include the James J. and Miriam B. Mulva Conference Center and Auditorium when it is completed in 2017.
  • Another $40 million will be used to renovate the Graduate School of Business and College of Business Administration buildings, upon consideration and approval of the University of Texas System Board of Regents. The buildings will collectively be renamed the James J. and Miriam B. Mulva Hall.

"Jim Mulva's career has exemplified innovation. I am so pleased that his name and Miriam’s name will be seen by thousands of students every week in the premier facility in the U.S. for engineering innovation — and that so many students will directly benefit from the Mulvas’ gift," said Provost Gregory L. Fenves, who is a former dean of the Cockrell School of Engineering.[84]

Greg Garland, Chairman, President and CEO of Phillips 66

Greg Garland was designated the Chairman and CEO of Phillips 66, the new Downstream company created with the split-up of ConcoPhillips on May 1, 2012. Garland is expected to take charge on May 1, 2012. Greg Garland was senior vice president, Exploration and Production, Americas for ConocoPhillips at the time of the split. Photo: ConocoPhillips
A sculpture of Phillips 66 in front of the Price Tower (designed by Frank Lloyd Wright) in Bartlesville, a city in NorthEast Oklahoma that was formerly the headquarters of Phillips Petroleum Company. "I picked this company because of Bartlesville," said Phillips 66 CEO Greg Garland. "Four times over the course of 32 years I've lived here. We have good memories of Bartlesville, Oklahoma, and it's always going to be a very special place to me personally." Bartlesville has the same pride in Frank Phillips and of its century-long oil heritage as Ponca City has of oil pioneer EW Marland.
Greg Garland, Chairman, President and CEO of Phillips 66

On October 7, 2011, Greg Garland was designated the Chairman and CEO of Phillips 66, the new Downstream company created with the split-up of ConcoPhillips on May 1, 2012. Greg Garland was senior vice president, Exploration and Production, Americas for ConocoPhillips at the time of the split. Garland was previously president and chief executive officer of Chevron Phillips, a joint venture between ConocoPhillips and Chevron, with approximately 5,000 employees that is one of the world's top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics.[85][86]

According to George Pilko, founder of Pilko & Associates, a Houston- based company that advises chemical and energy companies on risk, Garland understands strategy, is a good leader and has a demeanor that makes him well liked by people who work for him. "He's got a very effective, relaxed manner," says Pilko. "Many CEOs are so hyper and wound tight, and Greg is always relaxed and in control."[87]

Garland's Education and Background

Garland was the first in his family to go to college.[88] Garland received a Bachelor of Science degree in chemical engineering from Texas A&M University in 1980. Texas A&M reported on October 30, 2014 that Garland presented a check for $1 million on behalf of Phillips 66 to the Texas A&M Foundation that will support the university’s new Engineering Education Complex (EEC). “Phillips 66 is committed to investing in education,” said Greg C. Garland, chairman and CEO of Phillips 66, and a Texas A&M chemical engineering graduate. “We need leaders from schools such as Texas A&M who will challenge the status quo and create solutions to meet rising energy needs in the decades ahead.” The company’s contribution will be used to create the “Phillips 66 Experiential Learning Laboratory” within the EEC. The new lab will help better prepare engineering students to meet the evolving needs of the engineering marketplace.[89][90]

Garland has more than 30 years of industry experience in technical and executive leadership positions with ConocoPhillips, its predecessor Phillips Petroleum Company, and Chevron Phillips Chemical Company. Garland has been with Phillips for his entire 32-year career. Garland was previously president and chief executive officer of Chevron Phillips, a joint venture between ConocoPhillips and Chevron. Before his election to that position, Garland served Chevron Phillips as senior vice president, Planning & Specialty Chemicals.[91][92]

Garland served as general manager of Qatar/Middle East for Phillips, a position he assumed in 1997.[93] Garland said that taking the job in Qatar in 1997 to manage one of the first oil operations in the Middle East for Phillips was a turning point in his career. Garland says that although he didn't want to take the job initially, he learned to view the company with a broad perspective.[94]

From 1995 to 1997, he served as general manager of natural gas liquids after serving as manager of planning and development in planning and technology. From 1992 to 1994, he was manager of the K-Resin® business unit. Garland began his career with Phillips in 1980 as a project engineer for the Plastics Technical Center. He later worked as a sales engineer for Phillips' plastics resins, business service manager for advanced materials, business development director, and olefins manager for chemicals.[95]

How Garland Was Selected for CEO of Phillips

By October 2010, CEO James Mulva was expected to retire within two years and wanted to establish a cabinet of possible successors. On October 7, 2010, ConocoPhillips announced a sweeping overhaul of its executive suite. The executive changes included the departure of the president and chief operating officer, John Carrig, and the chief financial officer, Sigmund Cornelius, as well as two senior level vice presidents. ConocoPhillips spokeswoman Cathy Cram said the changes are part of a plan to provide for a smooth transition in anticipation of Mulva's retirement. "You can assume the next leader will come from this team," Cram said. "They've been taking a lot of steps to position the company as well as they can for Mulva's successor," said Phil Weiss, an energy analyst with Argus Research who said he was pleased the company had lined up management with strong operations experience. "One of the biggest issues that many people believe Conoco faces is a somewhat lackluster production portfolio, as compared to other large integrated companies," he said. "I was of the opinion that to have someone with an operating background would be better than somebody that doesn't."[96]

Tom Fowler reported in FuelFix on October 7, 2010 that the management team reporting to Mulva at the end of the shakeup consisted of:

  • Alan Hirshberg, senior vice president, planning & strategy; formerly vice president, worldwide deep-water and Africa projects, for Exxon Mobil;
  • Greg Garland, senior vice president, exploration and production-Americas; formerly president and CEO of Chevron Phillips Chemical Co;
  • Jeff Sheets, senior vice president, finance and chief financial officer; formerly senior vice president, commercial and planning and strategy;
  • Willie C.W. Chiang, senior vice president, refining, marketing & transportation, adding responsibility for the company's commercial business activities;
  • Ryan Lance, senior vice president, exploration and production, international, and
  • Larry Archibald, senior vice president, exploration and business development, continuing in those roles.[97]

Tom Fowler reported in FuelFix on October 7, 2010 that since 2006 about a dozen executive-vice-president-level staff members moved on from ConocoPhillips, for a wide range of reasons and that a number of observers note there's been an oversized churn of talented executives from ConocoPhillips who one might have expected to stick around longer. According to Fowler some observers think the turnover may have more to do with the command-and-control management style of Chairman and CEO Jim Mulva than the day-to-day stress of working at an oil major. "It sounds like the head coach firing all the assistant coaches for a bad season, when it's really the head coach who's the problem," said one analyst. A former ConocoPhillips executive puts it another way: The company is seen by many as a major international corporation with an Oklahoma mentality (he's referring to the Bartlesville, Okla. roots of Phillips Petroleum, where Mulva worked when the firm merged with Conoco in 2002). "The latest round of departures is to clear the way for a likely successor to Mulva, who is expected to leave in a couple of years," writes Fowler. "It appears outgoing COO John Carrig didn't have the operations background the company wanted to fill that role."[98]

Brian Youngberg, an analyst with Edward Jones, says Garland's selection as CEO of Phillips was likely due to Garland's experience as chief executive officer of Chevron Phillips because he brings a wider view to Phillips including chemicals, the likely growth engine for the downstream company. Youngberg said Phillips will continue to de-emphasize refining over time, so "having someone with a broader background like Garland makes sense." ConocoPhillips brought in Garland in 2010 to oversee exploration and production in a management shake-up that included the retirement of former Chief Operating Officer John Carrig, who had been seen as Mulva's successor.[99]

Garland, who formerly headed Chevron Phillips Chemical, was selected to head the new company over Willy Chiang, senior vice president of ConocoPhillips' refining division.[100] Oxy reported on May 23, 2012 that Chiang left Phillips 66 and went to work as Executive Vice President, Operations at Occidental Petroleum Corporation with responsibility for oversight of Occidental's Midstream businesses.[101] Kristen Hays wrote at Reuters on October 7, 2011 that according to Deutsche Bank analyst Paul Sankey "we believe that Chiang sees himself as a future CEO, and he would have to find that role in a different company."[102]

Latest News About Greg Garland

November 14, 2016: Garland Sells $6.4 Million in Phillips 66 Stock

Gurufocus reported on November 14, 2016 that Phillips 66 CEO Greg C. Garland sold 76,165 shares of Phillips on November 10, 2016 at an average price of $83.48 a share for a total sale of $6.4 million.[103]

June 6, 2016: Garland Sells 62,500 Shares of Phillips Stock

The Bibey Post reported on June 6, 2016 that the Chairman and CEO of Phillips 66 and company’s insider Greg Garland sold 62,500 shares of Phillips stock at $80.0 of a share. The transaction’s shares had a value of around $4,996,881 U.S. Dollars. Garland now owns 122,930 shares of Phillips stock.[104]

November 9, 2015: Garland Elected Chair of the Finance Committee at American Petroleum Institute

The American Petroleum Institute announced on November 9, 2015 that Phillips CEO Greg Garland has been elected cchair of the Finance Committee at the American Petroleum Institute. “Greg Garland’s long record of leadership and unique insight as well as operational knowledge of the industry’s financial landscape will maximize value for our members and provide guidance for API’s strategy. API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 25 million Americans.[105]

July 25, 2015: Oil is Down but Garland's Pay is Up
The Houston Chronicle reported on July 25, 2015 that despite domestic oil's long and lingering swoon that began last summer, Phillips CEO Greg Garland's pay is up for 2014. Garland ranked No 2 in pay for CEO's of publicaly traded companies just behind Ryan Lance of ConocoPhillips.[106] Photo: Houston Chronicle

The Houston Chronicle reported on July 25, 2015 that despite domestic oil's long and lingering swoon that began last summer, Phillips CEO Greg Garland's pay is up for 2014. Garland ranked No 2 in pay for CEO's of publicaly traded companies just behind Ryan Lance of ConocoPhillips.[107] Phillips 66's Board of Directors cut Chief Executive Greg Garland's bonus pay by 35 percent in 2014, citing market conditions and stock performance. While the company performed well against financial and operational targets, the filing states, "market conditions and stock performance at the end of 2014 did not, in the Compensation Committee's view, justify a full payout" of the incentive pay that Garland and other top executives were eligible to receive.[108]

June 29, 2015: Greg Garland is No 1 Houstonian to Know in 2015 Despite Phillips Decrease in Revenue and Stock Price

B. Candace Beeke wrote in Houston Business Journal on June 29, 2015 that Greg Garland, CEO and chairman of Phillips 66 — is still holding tight to the No. 1 spot of the "Top 100 Public Companies" based in Houston. Phillips 66 "saw one of the largest decreases in revenue, stock price and assets on The List, year over year," writes Beeke. "Despite that, it’s still No. 1 in revenue and high on the list of total assets in fiscal year 2014."[109]

March 9, 2015: Board of Directors Cuts Garland's Bonus By 35 percent after Phillips 2014 Share Decline

Reuters reported on March 9, 2015 that Phillips 66's Board of Directors cut Chief Executive Greg Garland's bonus pay by 35 percent in 2014, citing market conditions and stock performance. While the company performed well against financial and operational targets, the filing states, "market conditions and stock performance at the end of 2014 did not, in the Compensation Committee's view, justify a full payout" of the incentive pay that Garland and other top executives were eligible to receive.

Garland received a total of $24.5 million for the year, up from $19.8 million in 2013, driven largely by a higher value calculated for future pension payments. Garland's base salary rose to $1.51 million in 2014 from $1.44 million in 2013. But the value of incentive payments to Garland fell to $2.66 million in 2014 from $4.11 million in 2013. [110]

March 2, 2015: Garland Sees Brent-WTI Spread Widening to $6-10/bl

Argus Media reported on March 2, 2015 that Phillips CEO Greg Garland sees the Brent-WTI differential widening to $6-10/bl. Inventories of crude storage at Cushing have gained for 12 consecutive weeks at an average pace of 2mn bl per week. Inventories climbed during the week ending 20 February by 2.4mn bl to 48.7mn bl, the highest level since June 2013. Stock levels have doubled since the end of October, growing at a pace unmatched in more than 10 years of records kept by the Energy Information Administration (EIA). "I believe that Cushing is going to fill or close to fill to the operating level, and that will carry over through a decent portion of the year in terms of impacting inland versus coastal crude differentials," says HollyFrontier chief executive Mike Jennings.[111]

September 25, 2014: Garland Places Ethics and Safety at the Top of His List

The Daily Cougar reported on September 25, 2014 that Phillips CEO Greg Garland spoke to students at the Bauer College of Business at the University of Houston on September 23, 2014 about the importance of ethical responsibility in the business world and the place of responsible, socially conscious decisions in modern commercial enterprise as part of the school's ongoing "Distinguished Leaders Program." "You've got to have high standards if you're going to be ethical. It has to start at the very top," Garland said. "(I) fundamentally disagree with people who say that energy companies can't be good corporate citizens … I think that good ethics makes for good business." Garland stressed that aside from being the responsible and morally correct decision, good ethical business and environmental safety is also profitable long-term. "We have people who invest literally billions of dollars in our company, and I want them to know they're investing in safety," Garland said. "One major accident can absolutely devastate shareholder value." Garland also offered some words of encouragement to UH students entering the energy industry. "Your education is actually just the launching pad for a lifetime and career of learning in this industry," Garland said. "And if you're at the top of your class, I want to talk to you after the show."[112]

August 13, 2014: Garland Wants to Find a Company to Lease the North and South Towers in Ponca City
The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Photo: Hugh Pickens
Ponca City resident Hugh Pickens (left) speaks with Phillips CEO Greg Garland (right)[113] about the disposition of the North Tower, South Tower, and Research West after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.
The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Some of Phillips 66's other refineries do not run as safely or trouble-free as the refinery in Ponca City says Hugh Pickens, a private investor who closely follows Phillips' worldwide refinery operations. "For example, the Borger Refinery, operated by Phillips 66 since 1927[114], has a troubled history that includes two employee deaths and eleven injured by deadly fumes from a paralyzing gas in 1979 for which OSHA cited Phillips for "willful and serious" safety violations," says Pickens. More recently Phillips' Borger Refinery suffered three serious employee injuries in March, 2014, an employee fatality in 2012, a penalty for violations of the Clean Air Act in 2014, and an unscheduled shutdown in July, 2014 that closed down the refinery for 35 days for repairs. "Borger hasn't run well this year," says Garland.[115][116] [117] [118] [119][120] [121] [122] [123] [124] [125] [126][127] Borger Refinery Photo by: Philip Klein All Rights Reserved. Photo used with permission of the photographer
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.[128]

Phillips 66 CEO Greg Garland spoke to over 250 community leaders at the Bartlesville Chamber of Commerce on August 13, 2014 about initiatives Phillips is taking to benefit communities in the state of Oklahoma including Phillips 66's new initiative to expand the Research Center in Bartlesville and Phillips 66's gift of $1.7 million to Bartlesville Public Schools to create new innovative laboratories on three school campuses to support science, technology, engineering and math classes and research projects.[129][130]

With regard to Ponca City, Garland announced at the forum that Phillips 66 has been working hard with state and local officials to figure out what to do with the North and South Towers and if Phillips and Ponca City can find a company or companies that would like to use those buildings, "I think we would like to go down that route." Garland praised the buildings and their condition effusively. "I did a refinery review in Ponca City the week before last. We actually had our review in the Marland Board Room. It is a beautiful building, a great facility," said Garland. "There is no question that these are great buildings that are part of the rich heritage of Ponca City."[131]

Garland's public statement about the North and South Towers came in response to a question from the audience from Ponca City resident Hugh Pickens. "Phillips 66 has two beautiful, nine-story office buildings in Ponca City, the North and South Towers, that together contain over 250,000 square feet of Class A office space suitable for several hundred employees that have been essentially vacant for several years," said Pickens. "Could you talk about what options you are considering for these two empty office towers? Specifically, what are the chances that you are going to continue to leave the buildings vacant, tear the two buildings down, or sell or lease them to a company or companies that could utilize them to benefit the community of Ponca City and could you share your rationale for your decision."[132]

The reason there is so much unused office space at the refinery complex is that on February 17, 2009 ConocoPhillips announced they had decided to relocate all of its 750 non-refinery positions out of Ponca City within two years and that the first 250 jobs would be moved in 2009 with 180 jobs going to Houston and 70 jobs to Bartlesville. The positions moving first included jobs in technical services, research and development, engineering and support, human resources and Internet technology, among others. Management met with hundreds of Ponca City employees to tell them the news. "It's a difficult time in general for all ConocoPhillips employees," said ConocoPhillips spokesman Tracy Harlow. "We made the strategic decision to consolidate locations for the most effective corporate operations." The decision to consolidate operations in Bartlesville and Houston was made by ConocoPhillips CEO Jim Mulva, formerly President and CEO of Phillips 66 before the merger with Conoco.[133]

"What can citizens of Ponca City do to support and encourage Greg Garland's initiative? First, if you are an employee of Phillips 66, thank Refinery Manager Tim Seidel for Garland's initiative and for Phillips 66's willingness to work with our community. Tell Mr. Seidel how important this is for Ponca City and offer your support for Phillips' decision to work with local Ponca City officials at the Ponca City Development Authority (PCDA) to find companies that will come to Ponca City to occupy space in the North Tower, South Tower, and Research West," says Pickens. "It is also extremely important that retirees of Conoco, ConocoPhillips, and Phillips 66 make their voices heard. Retirees are very influential because they know first hand the world-class resources at the refinery complex and how they have gone unused for so many years. For example, when you meet with Phillips managers and executives at retiree meetings, tell them that you do not want to see the North and South Towers torn down, that these facilities still have many years of good service left in them, and tell Phillips managers and executives that you know that Phillips 66, working together with the community of Ponca City, can use these buildings to benefit both Phillips and Ponca City."

Garland told community leaders at the Bartlesville Regional Chamber of Commerce forum that the company's commitment to Bartlesville continues and that there are no plans to close any of the Bartlesville facilities or move any of Phillips' 2,000 employees out of Bartlesville. "Bartlesville is a special and unique place," said Garland. "It has a rich part of our heritage and our legacy. It is important today. It will be important in the future of Phillips 66… A big part of the day-to-day operations and the successes of Phillips 66 are born by the people here in Bartlesville." Even with expansion at the Houston headquarters, Garland said that the space there is already at capacity and the Bartlesville facilities will continue to be full as well. Garland talked about an expansion that is currently underway at the Research Center in Bartlesville to continue the development of polyethylene technologies.[134]

During his talk to the Bartlesville Chamber, Garland also announced that Phillips will be giving $1.7 million to Bartlesville Public Schools to create new innovative laboratories on three school campuses to support science, technology, engineering and math classes and research projects. "We want to create a place where our students will come and be excited, be challenged and hopefully be encouraged to follow a career at a place like Phillips 66," Garland said. "We want to put the right kind of tools in the hands of students in Bartlesville so they can be more successful."[135] An application by the Ponca City School System for a STEM grant under the Signature Community Initiative was turned down by Phillips 66.[136]

The funds came through a Phillips 66 Signature Community Initiative grant application submitted to the company under an effort spearheaded by Scott Bilger, a Bartlesville school board member and Phillips 66 employee, and Granger Meador, a physics teacher who heads up Bartlesville High's science department. The new laboratories and major new course offerings will be at the high school, along with Madison and Central Middle Schools. "We are just really, really excited about the opportunity this is going to provide our students," Superintendent Gary Quinn said. "It cannot be overstated what this is going to mean to our students."[137]

October 16, 2013: Garland Appointed to Board of Directors of Amgen

On October 16, 2013 Amgen Inc. announced the appointment of Garland to the Company's Board of Directors. Garland will serve on the Governance and Nominating Committee and the Audit Committee of the Board. "We are pleased to welcome Greg Garland to the Amgen Board," said Robert A. Bradway, Chairman and CEO of Amgen. "In addition to his leadership experiences as a chief executive officer, Greg brings more than 30 years of international experience in a highly regulated industry. At a time when Amgen is expanding its global presence to serve more patients, we look forward to Greg's contributions to the Board."[138]

August 27, 2013: Garland Recognizes Contribution of E. W. Marland

ConocoPhillips announced on November 11, 2011 that the new independent downstream company created through its previously announced strategic repositioning would be named Phillips 66. When Phillips went public on May 1, 2012, Garland recognized the contribution of Frank and L.E. Phillips and the company's "birthplace" in Bartlesville, Oklahoma in 1917. "With a history that goes all the way back to petroleum industry "birthplace," in Bartlesville, Oklahoma in 1917, the company will be a leading independent company with refining, marketing, midstream and chemicals businesses operating across the globe. "Phillips 66 has strong brand recognition and value and it provides a link between our rich history and our exciting future," said Greg Garland, designated chairman and chief executive officer of Phillips 66. "Our name reflects an independent spirit and drive--two attributes of our future company."[139] According to the ConocoPhillips web site "the name Phillips 66 was chosen [for the new downstream company] because it has strong brand recognition and value, which allows us to link our rich history and our exciting future. The name represents the independent spirit and drive that will be part of the culture of Phillips 66."[140] The new company's name capitalizes on the public awareness and gives tribute to history, Garland added.[25]

On August 27, 2013 Garland spoke to the Bartlesville Chamber of Commerce and said that the reputation and success of Phillips were built from the "giants" who first created the company and recognized E. W. Marland's contribution for the first time. "We are standing on the shoulders of giants," said Garland. "People like E. W. Marland, who started Marland Oil in 1911, and Frank and L. E. Phillips that started Phillips Petroleum in 1917. I could go on and on and list the giants that have come before us that have so well positioned this company for the success that we enjoy today."[141]

September 11, 2012: Bartlesville a Special Place for Garland

The Tulsa World reported on September 12, 2012 that Garland spoke on September 11, 2012 at a packed Bartlesville Area Chamber of Commerce Forum at the city's community center downtown carrying on a tradition started several years ago by his predecessor, ConocoPhillips CEO Jim Mulva. Garland was adamant that Bartlesville's value as a global web center, combined with its heritage as home city of the original Phillips Petroleum Co. always make it important to the company's future plans. "We have deep roots here," Garland said adding that he visits the company's local operations several times a year. "It's a cost-efficient place for us to do business. I think we made the right decision." Garland noted that office space is almost maxed out locally, so he does not see more than "modest growth" adding to the 2,000 jobs Phillips 66 already has in Bartlesville. Garland was recruited out of Texas A&M by Phillips and lived many years in Bartlesville with his wife and four children.[142]

The Bartlesville Examiner-Enterprise reported on September 12, 2012 that Garland went to work for Phillips 66 as his first job out of college because of Bartlesville. "I picked this company because of Bartlesville. Four times over the course of 32 years I've lived here. We have good memories of Bartlesville, Oklahoma, and it's always going to be a very special place to me personally," said Garland. "As we were approaching the repositioning and spinning Phillips 66 out of ConocoPhillips, there was never any question that Bartlesville would continue to be a strategic and important part of our company, in the support of our company operations, for a very long time."[143]

September 11, 2012: Conoco the Only Company That Didn't Offer Garland a Job

In an anecdote that reveals Garland's humorous side and long memory, Garland told members of the Bartlesville Chamber of Commerce during his speech in September 2012 that when Garland was looking for his first job as a chemical engineer after graduating with honors from Texas A&M in 1980, Garland interviewed with 17 companies but only received job offers from 16 of the companies. More than thirty years later, Garland was still able to quote from memory to his Bartlesville audience the contents of the rejection letter he received from the only company that did not offer him a job. According to Jessica Miller writing in the Bartlesville Examiner-Enterprise, when Garland disclosed the name of the one company that did not offer him a job, "his revelation of the company - Conoco - garnered laughter from the audience."[144]

Garland's Compensation as CEO of Phillips

Businessweek reports that as of the fiscal year 2012 Garland's Total Annual Calculated Compensation is $14,423,038 including his salary and stock options.[145]

John Lowe, Member of the Phillips 66 Board of Directors

Apart from Greg Garland, J.E. (John) Lowe is the only present or former employee of ConocoPhillips serving as a member of the Board of Directors of Phillips 66. Lower was executive vice president, planning, strategy and corporate affairs, of ConocoPhillips with responsibility for emerging businesses, as well as government affairs and communications. Lowe previously served as senior vice president, corporate strategy and development and was responsible for the forward strategy, development opportunities and public relations functions of Phillips Petroleum Company. Lowe was named to this position in 2001 after serving as senior vice president of planning and strategic transactions in 2000 and vice president of planning and strategic transactions in 1999. Lowe currently serves on the board of directors for Chevron Phillips Chemical Company, Duke Energy Field Services and the Houston Museum of Natural Science.

Lowe was born in 1959 in Oskaloosa, Iowa. Lowe received a bachelor of science degree in finance and accounting from Pittsburg State University in Pittsburg, Kansas, in 1981. Lowe is a certified public accountant.[146]

Board of Directors

On April 16, 2012 Phillips 66 announced the names of the seven members of its future board of directors. Greg Garland will serve as Phillips 66' chairman, president and CEO. He most recently served as senior vice president, Exploration and Production -- Americas for ConocoPhillips. The other members of the board will be:

  • Greg Garland, Phillips 66 chairman, president and CEO
  • John Lowe, who has served as assistant to the CEO of ConocoPhillips. Lower currently serves as assistant to the CEO of ConocoPhillips, a position he has held since 2008. He previously held a series of executive positions with ConocoPhillips, including executive vice president, Exploration & Production, from 2007 to 2008 and executive vice president, Commercial, from 2006 to 2007. He currently serves on the board of Agrium Inc.
  • J. Brian Ferguson, retired chairman and CEO of Eastman Chemical Co. Ferguson served as chairman of Eastman Chemical Company (Eastman) in 2010 until his retirement and as CEO of Eastman in 2009. He became the chairman and CEO of Eastman in 2002. He currently serves on the boards of Owens Corning and NextEra Energy Inc.
  • William Loomis Jr., an independent advisor who formerly served as CEO of Lazard LLC . Loomis has been an independent financial advisor since 2009. He was a general partner and managing director of Lazard Freres & Co. from 1984 to 2002, the CEO of Lazard LLC from 2000 to 2001 and a limited managing director of Lazard LLC from 2002 to 2004. He currently serves on the boards of Pacific Capital Bancorp and Limited Brands Inc., and is also a senior advisor to Lazard LLC and China International Capital Corporation.
  • Harold McGraw III, current chairman, president and CEO of The McGraw Hill Companies. McGraw currently serves as chairman, president and CEO of The McGraw-Hill Companies. Prior to his service as chairman, he served as president and CEO from 1998 to 2000 and president and chief operating officer from 1993 to 1998. He currently serves on the boards of The McGraw-Hill Companies, ConocoPhillips and United Technologies Corporation.
  • Glen Tilton, chairman of the Midwest and was formerly chairman and CEO of United Airlines. Tilton currently serves as chairman of the Midwest of JPMorgan Chase & Co. He was chairman and CEO of United Airlines Inc. from 2002 to 2010, having previously spent more than 30 years in increasingly senior roles with Texaco Inc. including chairman and CEO in 2001. He currently serves on the boards of United Continental Holdings Inc. (as non-executive chairman), Abbot Laboratories and Corning Inc.
  • Victoria Tschinkel, chairwoman of 1000 Friends of Florida. Tschinkel served as state director of the Florida Nature Conservancy from 2003 to 2006, was senior environmental consultant to Landers & Parsons, a Tallahassee, Florida law firm, from 1987 to 2002, and was the secretary of the Florida Department of Environmental Regulation from 1981 to 1987. She currently serves on the board of ConocoPhillips.
  • Dr. Marna C. Whittington, chief executive officer of Allianz Global Investors Capital, a diversified global investment firm, from 2002 until her retirement in January 2012. Whittington was chief operating officer of Allianz Global Investors, the parent company of Allianz Global Investors Capital, from 2001 to 2011. Prior to that, she was managing director and chief operating officer of Morgan Stanley Asset Management. Whittington started in the investment management industry in 1992, joining Philadelphia-based Miller Anderson & Sherrerd. The election of Dr. Whittington on May 9, 2012 increases the total number of Phillips 66 directors to eight.[147]

"We have assembled a strong board of directors, consisting of individuals with appropriate skills and experiences to meet their governance responsibilities and contribute effectively to our company," said Garland. "Our board reflects a range of talents, diversity and expertise, particularly in the areas of accounting and finance, domestic and international markets, government and regulatory affairs, management and leadership and petroleum-related industries, sufficient to provide sound and prudent guidance with respect to our operations and interests."[148][149]

October 7, 2016: Phillips 66 Board Elects New Directors

Businesswire reported on October 7, 2016 that board of directors of Phillips 66 elected Denise L. Ramos and Gary K. Adams to serve as independent directors. The election on October 6, 2016, increases the total number of Phillips 66 directors to 10.

Ramos will serve on the Audit and Finance Committee, the Nominating and Governance Committee and the Public Policy Committee. Adams will serve on the Human Resources and Compensation Committee and the Public Policy Committee.

Ramos, 60, was appointed chief executive officer, president and a director of ITT Inc. (formerly ITT Corporation) in October 2011. She previously served as senior vice president and chief financial officer of ITT. Prior to joining ITT, Ms. Ramos served as chief financial officer for Furniture Brands International from 2005 to 2007. From 2000 to 2005, Ms. Ramos served as senior vice president and corporate treasurer at Yum! Brands, Inc. and chief financial officer for the U.S. division of KFC Corporation. Ms. Ramos began her career in 1979 at Atlantic Richfield Company (ARCO), where she spent more than 20 years serving in a number of finance positions including corporate general auditor and assistant treasurer. Ms. Ramos served on the board of Praxair, Inc. from April 2014 to September 2016. She serves on the board of trustees for the Manufacturers Alliance for Productivity and Innovation, and is also a member of the Business Roundtable and the Business Council.

Adams, 65, is currently the chief advisor of chemicals for IHS Inc. He started his chemical industry career with Union Carbide. After 15 years serving in a number of positions at Union Carbide, Mr. Adams joined Chemical Market Associates Inc. (CMAI). He served as president, CEO and chairman of the board of CMAI from 1997 until its acquisition by IHS in 2011. Mr. Adams is a director of Trecora Resources and previously served on the boards of Westlake Chemical Partners LP from July 2014 to October 2016, and Phillips 66 Partners LP from September 2013 to August 2016.[150]

Management and Governance Effectiveness at Phillips 66

December 3, 2012: Standard and Poor Judges Management and Governance to be 'Fair' at Phillips 66

Standard and Poor reported on December 3, 2012 that they judged Phillips 66 Co.'s management and governance to be 'fair' based on a consolidated approach to the Phillips 66 entities. "While the best positioned of Phillips 66 Co.'s refineries are highly competitive, the overall quality of its operations is mixed, with some facilities being, in our view, candidates for divestiture or closure over the next few years."[151]

Financial Stability of Phillips 66 and Risk Management

September 7, 2015: Phillips 66 Receives 'A' Credit Rating from Morningstar

WatchList News reported on September 7, 2015 that Phillips 66 has earned an “A” credit rating from analysts at Morningstar. The firm’s “A” rating suggests that the company is a low default risk. They also gave their stock a three star rating.[152]

April 27, 2015: Phillips 66 Receives 'A' Credit Rating from Morningstar

Mideast Times reported on April 27, 2015 that Phillips 66 has received an “A” credit rating from analysts at Morningstar. The research firm’s “A” rating indicates that the company is a low default risk.[153]

August 26, 2014: Moody's Upgrades Phillip from Baa1 to A3

Moody's reported on August 26, 2014 that they have upgraded Phillips from Baa1 to A3. The rating outlook is stable. "The upgrade of Phillips 66's senior unsecured ratings to A3 reflects the company's clearly delineated strategic focus and capital structure since its spinoff from ConocoPhillips (A1 stable) in May 2012," said Terry Marshall, Moody's Senior Vice President. "The company's significant equity investments in Chevron Phillips Chemical Company LLC (CPChem, A3 positive) and DCP Midstream LLC (Baa2 stable) add a material credit enhancement to Phillips 66's large and diversified refining assets." According to Moody's "Phillip 66's A3 senior unsecured rating is driven by the scope and diversity of its refining business, which represents about half of its proportionate EBITDA, coupled with the further diversity provided by ownership of fast-growing chemicals and midstream businesses and moderate financial leverage. The equity investments add business diversification and are two of the three principal growth vehicles for Phillips 66 along with its in-house midstream and transportation businesses. The rating is further supported by excellent liquidity, and management's commitment to balancing shareholder returns with a strong balance sheet."[154]

June 6, 2013: A.M. Best Affirms Excellent Rating for Phillips' Captive Insurer

The Fort Mills Times reported on June 6, 2013 that A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Spirit Insurance Company of Burlington, VT, the captive insurer for its ultimate parent, Phillips 66. "Business written by Spirit has a history of strong underwriting results and operating returns. The company’s loss experience has remained favorable due in part to its strong loss control program at the parent. Phillips 66 will conduct periodic reviews of Spirit’s potential loss exposures through a specialist in industrial risks," reads the report.[155]

However the report also observes that a single occurrence could result in a large loss that approaches Spirit’s limits, that partially offsetting A.M. Best's positive rating factors are Spirit’s exposure to large losses due to the limits offered on its policies as well as its significant dependence on reinsurance protection and that although the majority of Spirit’s capital is loaned to its parent, there is limited counterparty risk due to the affiliation of the two companies.[156]

December 3, 2012: Standard and Poor Assigns BBB/Stable/A-2 Corporate Credit Rating, Judges Financial Risk Profile as 'Intermediate'

Standard and Poor reported on December 3, 2012 that they had assigned a BBB/Stable/A-2 corporate credit rating to Phillips 66 Co. based on a consolidated approach to the Phillips 66 entities. "The rating on Phillips 66 Co. reflects Standard & Poor's assessment of the company's business risk profile as 'satisfactory' and financial risk profile as 'intermediate' (as our criteria define these terms)," says the report prepared by Primary Credit Analyst Mark Habib. "We view the refining sector as having significantly higher-than-average industry risk, given its exceptional degree of volatility and fixed- and working-capital intensity. Notwithstanding the relatively favorable market conditions at times over the past year, we view long-range industry fundamentals as difficult given persisting excess production capacity globally and a secular decline in demand for some key transportation fuel products in developed markets."[157]

Government Relations

Phil Brady, the president of National Automobile Dealers Association, was named senior vice president of government affairs for Phillips 66 on July 30, 2012. Brady, who will be based in Washington, will be responsible for the company's federal, state and international policy and governmental affairs efforts.[158] Photo: Businesswire

October 20, 2014: Candidates for US Congress Discuss Wood River Refinery

The Telegraph reported on October 20, 2014 that Republican challenger for the Illinois Congressional District 12, Mike Bost, was joined by fellow Republican, John Shimkus (R- IL Dist. 15) at the Phillips 66 refinery in Wood River to discuss energy issues that affect Illinois residents. Shimkus is on the Congressional Energy Subcommittee, and was at the refinery to support Bost as well as future legislation regarding the controversial Keystone Pipeline XL. Shimkus said that the general public was not aware of how many pipelines there were in everyday use. “It is the safest, cheapest, and most environmentally sound way to move liquid product,” said Shimkus and added that Democrats in Congress were “dragging their feet” on the matter and he said that it was “ridiculous.” The two were discussing the expansion of the Keystone Pipeline with Phillips 66 in the background to display how many jobs American energy creates. According to representatives from Phillips 66, the refinery employs as many as 850 people directly and 400 indirectly through contract work. Many jobs were created when the refinery spent $4 billion to prepare for the incoming Canadian crude oil according to Shimkus. “They gave us jobs in a time when there wasn’t a lot of jobs in the area,” said Shimkus. After their short statements at the Phillips 66 refinery in Wood River, Shimkus and Bost went to Percy, Ill. to tour the Nighthawk Coal Mine.[159]

February 20, 2013: Phillips Retains Van Ness Feldman as New DC Lobbyists

Legal Times reported on February 20, 2013 that Phillips has retained Van Ness Feldman as their first outside firm to lobby in Washington to advocate for it on oil and gas industry matters, tax reform and the looming $85 billion in spending cuts known as the sequester, according to lobbying registration paperwork filed with Congress.[160]

February 20, 2013: Phillips Spent $1.5 million Lobbying Federal Government in 2012

Legal Times reported on February 20, 2013 that according to congressional records, Phillips has spent $1.5 million on federal government advocacy since it submitted lobbying registration paperwork to Congress in June 2012 and deployed three of its employees to lobby for it. In 2012 Phillips lobbied on U.S. Environmental Protection Agency issues concerning the oil and gas industry, the EPA's renewable fuel standard program and refinery rulemaking.[161]

November 14, 2012: Greg Garland Expects More Government Regulations During Second Obama Term

Fuel Fix reported on November 14, 2012 that Greg Garland expects President Barack Obama’s second term to bring a wave of regulations on their industry that portends another four years of policies that will reduce demand for their refineries’ petroleum-based fuels. “With the election now decided, I see a very active regulatory environment for the next four years,” says Garland. "There’s no question, between renewables and CAFE standards, over the next 10 to 20 years, you’re looking at a 10 to 20 percent reduction in gasoline demand. That’s something that concerns us.” Garland and Marathon Petroleum CEO Gary Heminger said new and expanded federal regulations, including the Renewable Fuel Standard and the Corporate Average Fuel Economy (CAFE) standards, have cost their companies billions over the years while cutting use of their products.[162]

July 30, 2012: Phil Brady Named Top Lobbyist for Phillips 66

The Detroit News reported on July 30, 2012 that Phil Brady, the president of National Automobile Dealers Association, has been named senior vice president of government affairs for Phillips 66. Brady, who will be based in Washington, will be responsible for the company's federal, state and international policy and governmental affairs efforts. Brady has previously served in senior White House positions for President Ronald Reagan and President George H.W. Bush and also served as general counsel at the U.S Transportation Department, and in senior positions with the U.S. Justice Department and Congress.[163] “It is important that our key constituents understand the economic value that energy companies like Phillips 66 bring to our country as a U.S. manufacturer, and Phil will help us to effectively share that story,” says Phillips 66 CEO Greg Garland. “Over just the past few months as an independent company, Phillips 66 has already put together an exceptional management team and strategy to grow in meeting the energy needs of this country,” says Brady. “I look forward to joining the team to help re-introduce this iconic energy company to our government leaders.”[164]

Public Relations and Media Relations

March 6, 2015: Phillips 66 Us Marketing Wins The American Marketing Association Houston Chapter 2014 Marketer Of The Year Award

TESTING Virtual Strategy reported on March 6, 2015 that the Houston Chapter of the American Marketing Association award Phillips 66 the Marketer Of The Year Award for 2014. To address the challenge of B2B customers bypassing their US Fuels sales representatives during initial stages of the buying process, the Phillips 66 US Marketing launched an online business-to-business digital marketing program to assist sales in acquiring new customers and retaining existing customers that included a campaign geared to cross-sell/up-sell Convenience Store Alliance (CSA) to existing customers plus other tactical programs. The campaign increased the number of customers adopting programs from an average of 16 customers per month to 103 and achieved an overall 246% increase in existing customers participating in the CSA program.[165]

December 31, 2014: The Shredder Writes: "There’s a plethora of people eager to tell you all about how Phillips 66 has done so much for the community"

Anonymous columnist "The Shredder" wrote in the New Times on December 31, 2014 that there's "here’s a plethora of people eager to tell you all about how Phillips 66 has done so much for the community, how much Phillips 66 cares about us all, and how very much it would hurt Phillips 66’s feelings if we denied the company its rail spur project. The problem is, Phillips 66 has greased the verbal wheels by giving these people a lot of money, and then turned around and given even more money to a local PR firm to tell the rest of the community just how great Phillips 66 really is. Call me a cynic, but as soon as I know someone’s been paid to say something, they lose credibility in my eyes, and I’m speaking as someone who has never been paid. Maybe they really mean it. But if that were the case, why wouldn’t they say it without being paid?"

The reality is that Phillips 66’s “good neighbor” moments tend to be choreographed, right down to photographs of a smiling spokesperson handing over an enormous check. And that’s OK. That’s what for-profit corporations do. It is not, however, what good neighbors do. I know, because my neighbor is still miffed about the time I offered to pay up front so my dog can freely pop squats in his yard. In fact, a company is not a neighbor at all, regardless of how many times a PR company repeats the term. A corporation is not a human being with human concerns; corporations are motivated by one thing: profit.

While I don’t fault Phillips 66 for behaving like a corporation any more than I fault a wild animal for behaving like a wild animal, I don’t much appreciate the fact that they’re trotting out platitudes about being there for the community in lieu of substantive discussion about the impacts of what they’re proposing. Hiring a company to attempt to wrangle and limit the media while feeding the public a heavily manipulated image of an oil company as Mr. Rogers—if Mr. Rogers was in the habit of doling out enormous checks—is a fairly oily thing to do.[166]

December 23, 2014: Judge Rules That Phillips 66 Policy Prohibiting Santa Maria Refinery Employees from Talking to the Media Violates the Law

David Minsky reports at the Santa Maria Sun that on November 25, 2014 a National Labor Relations Board administrative law judge found that Phillips policy of prohibiting Phillips employees at the Santa Maria Refinery from speaking to reporters violated the law. According to case documents, attorneys representing Phillips 66 argued in court that the policy was meant to prohibit employees from speaking on the company’s behalf about any confidential operations. But the judge rejected this argument, saying the policy was ambiguous and violates the law because employees could “reasonably construe” that it would prohibit them from discussing, among other things, labor disputes or conditions of work. Reached by email last week, Phillips 66 spokesperson Dennis H. Nuss said the company is aware of the recent decision, but didn’t make specific comments about the case. However Nuss did write: “Our company’s top priority is the safety of everyone who works at our sites and lives in our neighboring communities. In 2012, Phillips 66 redistributed certain safety-related functions and responsibilities among personnel at the Santa Maria Refinery, and there were no staff reductions. These changes have helped maintain and improve the refinery’s high standards for safety performance.”[167]

January 2, 2013: Gregg Laskoski at US News and World Report is Critical of Lack of Tranparency at Phillips 66

Gregg Laskoski wrote at US News and World Report on January 2, 2013 that after Reuters reported that some 7,700 gallons of fuel spilled from Phillips 66's Bayway refinery in Linden, N.J., after Hurricane Sandy in November, 2012, New Jersey environmental protection officials said they were not made aware of a major spill at the Bayway plant, and the refinery failed to respond to inquiries from Reuters reporters. "Too many times, history has shown us, the Phillips 66 response or lack thereof characterizes the standard practice of the oil industry. Refineries often fail or are slow to communicate problems that create significant disruptions to fuel supplies and spikes in retail gasoline prices. More often than not, scant information is provided reluctantly, if at all," writes Laskoski. "When such things occur is silence from refineries acceptable? Or does our government and the electorate who put them there have a right to know what's really going on? "[168]

November 5, 2012: Motor Trend Journalist Takes Money To Be Spokesperson For Phillip 66

Matt Hardigree reported on Jalopnik on November 5, 2012 that Motor Trend's Jessi Lang is being paid to represent oil company Phillips 66 as a spokesperson who is trying to help influence young people to buy their gas, "something Motor Trend doesn't appear to be telling its readers." Last month a PR firm hired by Phillips 66 reached out to reporters with the results of a survey designed to evaluate the buying habits of "millenials" and offered a quote from Lang, who they identified as a spokesperson and host of Motor Trend's weekly automotive news roundup "Wide Open Throttle" on YouTube. "Taking payment from a potential newsmaker is a generally frowned upon practice, but Lang, and the PR firm representing Phillips 66, say Motor Trend approves of her simultaneously representing an automotive publication and a company that's part of the automotive industry," writes Hardigree who asked Lang if it was proper for her to take money from Phillips 66 and work as a journalist for Motor Trend at the same time. "I get paid by Motor Trend to be a journalist and to help educate others and that doesn't at all call into question my integrity as a writer," said Lang adding that "anyone within a capitalist society" should be compensated for their work. Motor Trend's Editor-in-Chief Ed Loh declined to comment if there is a conflict of interest. "In the case of Lang, Motor Trend, and Phillips 66 it seems they've skipped ahead from trying to woo car writers with free trips to paying them outright," writes Hardigree.[169]

September 6, 2012: Motor Trend's Jessi Lang says Drivers Can Clean Their Engines with Top Tier Gas Like Phillips 66

PR Newswire reported on September 6, 2012 that Jessi Lang, host of Motor Trend's "Wide Open Throttle" and Phillips 66 spokesperson, says that "millennials think they're saving money by seeking out cheaper gas, but what they don't realize is that the unbranded gasoline they're buying actually can cost them money in the long run by compromising their fuel economy and causing build-up in their engine. "By using branded TOP TIER gas like Phillips 66, 76 and Conoco, these drivers can clean up their engines and accrue significant savings over time -- especially now that these brands have had the detergent additive treat rate increased by more than 25 percent in all fuel grades."[170]

New Phillips 66 Headquarters

December 17, 2014: Phillips Places Final Beam in New Headquarters

The Houston Business Journal reported on December 17, 2014 that the final beam was cautiously placed at the highest level of Phillips' new headquarters building with a ceremonial 22-foot tree placed on top. The topping off construction milestone for the headquarters will soon "bring everybody home" from a geographically fractured family of seven Phillips 66 buildings in the Houston area, said Mike Wirkowski, Phillips 66 general manager for projects. "It's a great symbol of the commitment our company has to our employees," added Debbie Adams Phillips 66 senior vice president of HSE, projects and procurement, as well as a symbol of an old company being new again. The headquarters project is running on time for Phillips 66 even though the company switched contractors from Houston-based W.S. Bellows Construction to Rhode Island-based Gilbane Building Co. in November for undisclosed reasons.[171]

October 31, 2014: Phillips Switches Building Contractors on New Houston Headquarters

Jordan Blum reported at the Houston Business Journal on October 31, 2014 that Phillips is switching contractors for its big corporate headquarters under construction in the Westchase District terminating its deal with Houston-based W.S. Bellows Construction and has contracted with Rhode Island-based Gilbane Building Co. Dennis Nuss, Phillips 66 media relations director, did not disclose the reason for the change calling it a private contractual matter. but says that the scope, cost and timeline of the project will not be impacted, although he would not elaborate on the reason for the change. "The construction of the new Phillips 66 campus remains on schedule and is expected to be completed by mid-2016." The Phillips 66 campus is designed to house the downstream company that spun off from Houston oil major ConocoPhillips (NYSE: COP) two years ago, and will include a soccer field, café, fitness center, credit union, covered parking and training and development center. The company has leased 210,745 square feet of space for its interim headquarters at Pinnacle Westchase.[172]

November 22, 2013: Phillips Breaks Ground on New Headquarters Building

The Houston Business Journal reported on November 22, 2013 that Phillips broke ground on November 22, 2013 on its new 1.1 million-square-foot corporate campus in the Westchase District that will house all of the company’s 1,800 Houston-area employees once construction is finished in about three years.[173]

July 23, 2013: Phillips Shares Conceptual Rendering of New HQ

The Houston Chronicle reported on July 23, 2013 that Phillips' new headquarters, still in "conceptual design phase,” will include about 1.1 million square-feet of space in multiple buildings, along with a cafeteria, fitness center, coffee shop and conference center. The new facility, located on about 14 acres, will provide office space for the 1,800 employees that work for the company in Houston. Construction is expected to start by the end of the year. We are excited about our new state-of-the art Phillips 66 headquarters facility, which when built, will provide a location for all of our Houston employees to work together at one location, and it will provide our global employees with a place to meet, train and grow,” said spokeswoman Janet Grothe.[174]

September 12, 2012: Phillips Selects Site for New Global Headquarters

Phillips reported on September 9, 2012 that the company will build its new global headquarters at a 14-acre site located off Beltway 8 West, between Westheimer Road and Briar Forest Drive. “We searched for several months for the right site to build a headquarters campus where our employees and future employees can come together to work, and develop their skills and talents,” said Greg C. Garland, chairman and chief executive officer of Phillips 66. “This property is conveniently located in the Westchase District and a location that aligns with our commitment to making our company a great place to work.” Once ground is broken at the new site, construction is expected to take between 24-36 months.[175]

July 9, 2012: Interim Headquarters Selected

CSPNet reported on July 9, 2012 that Janet Grothe, senior adviser for health, safety and the environment at Phillips 66, confirmed that Phillips 66 has settled on a temporary headquarters in the Pinnacle Westchase building near ConocoPhillips' home office in the Houston "Energy Corridor." ConocoPhillips' headquarters is about eight miles away. In March, 2012 it sent an email to employees that said the new headquarters would be constructed near Interstate 10, within 10 miles of ConocoPhillips' current headquarters. The Pinnacle Westchase building fits that general description.[176]

March 20, 2012: Phillips 66 Headquarters to be Located in Houston

Houston Business Journals reported on March 20, 2012 that according to an email sent to employees, the new headquarters of refining and marketing spin-off company Phillips 66 will be near Interstate 10 and Beltway 8, within 10 miles of ConocoPhillips' current headquarters at 600 N. Dairy Ashford Road. The decision to locate in Houston was made because the company’s oil and gas infrastructure is already present. During the two- to three-year construction period on the new facility, Phillips 66 employees will be located in temporary locations in the company’s current space.[177]

Bartlesville Technology Hub

January 24, 2015: Phillips Is Looking at Controllable Expenses Not Personnel Cuts

Bartlesville Radio KWON reported on January 23, 2015 that Phillips 66 is looking at controllable costs including travel, supplies, hiring, the use of consultants, memberships and projects or resources that aren’t critical to the business. Company spokesman Summer Austin says Phillips 66 is asking all of its employees to identify areas where expenses can be cut or controlled because of lower oil prices and other economic factors. Although rumors are circulating that Phillips is looking at personnel costs and possible personnel cuts, Austin says she has not been told of any specific job cuts and when it comes to the possibility of layoffs, Phillips 66 executive leadership views layoffs as a last resort — never as a prime strategy.[178]

January 23. 2015: Phillips 66's Commitment to Bartlesville Will Remain Strong

The Bartlesville Examiner-Enterprise reported on January 24, 2015 that Merl Lindstrom, vice president of technology for Phillips 66, told Bartlesville’s Daybreak Rotary Club on January 23, 2015 that the company’s commitment to the local area will remain strong. “This is a time of upheaval in the energy industry,” Lindstrom said. “Things are changing pretty quickly, and so as we move through the next few months we will certainly have some changes (in the industry), but we will do our best… We’ve been here (in Bartlesville) many, many years. We’ve been around refining since the early 1900s and continue to be there.”

Lindstrom said that approximately 1,750 Phillips 66 employees work out of the company’s offices in downtown Bartlesville and another 450 are based at the Research Center in west Bartlesville. “This is one of the largest sites anywhere in the world for the concentration of Phillips 66 employees,” Lindstrom said. “Currently, I can’t see anything changing. Our Bartlesville operations and the Research Center is a great place to be. There’s none like it. This is a great place, and we have no problems attracting people to Bartlesville.”

Lindstrom said that approximately 75 percent of the work done at the Research Center is dedicated to refining, and as the technology in producing the elements in oil and gas products evolves, Phillips 66 will be able to evolve with it. Lindstrom said the Bartlesville facility — with its partnerships with ConocoPhillips, ChevronPhillips and other companies — will be at the forefront to develop new methods and technologies.[179]

December 5, 2015: Chevron Phillips Chemical Completes Sale of its Ryton® PPS Business to Solvay including Pilot Plant and PPS Assets in Bartlesville

Businesswire reported on December 5, 2015 that Chevron Phillips Chemical Company has completed the sale of its Ryton® polyphenylene sulfide (PPS) business to Solvay’s Global Business Unit (GBU) Specialty Polymers (Solvay) for $220 million. As part of the transaction, Solvay purchased the Ryton® PPS unit in Chevron Phillips Chemical’s plant in Borger, Texas; the pilot plant along with the PPS research and development assets in Bartlesville, Oklahoma; the compounding plant in Kallo-Beveren, Belgium; and certain intellectual property relating to the Ryton® PPS business. While the Ryton® PPS business is a better strategic fit for Solvay, we remain committed to our sites in Borger, Texas and Bartlesville, Oklahoma,” said Ron Corn, senior vice president of specialties, aromatics and styrenics for Chevron Phillips Chemical. Chevron Phillips Chemical recently announced plans to build a new polyethylene pilot plant at its research center in Bartlesville.[180]

December 19, 2014: CP Chemical to Build New Polyethylene Pilot Plant in Bartlesville

The Tulsa World reported on December 19, 2014 that Chevron Phillips Chemical Co. LP plans to build a polyethylene pilot plant at its research and technology facility in Bartlesville that should be completed in 2017. The new facility will replace the current site, which has been focused on “developing improvements in current resins or new polymer kind of innovations” since the 1970s. “As a global producer of polyethylene, we strive to support our customers with the latest technological advances and process improvements through the efforts of our research and development personnel,” said Don Lycette, vice president of research and technology for Chevron Phillips Chemical, in a written statement. “Chevron Phillips Chemical continues to build on a long history of scientific discoveries, particularly at our facility in Bartlesville, which was originally built in 1950 by Phillips Petroleum Co.” The new pilot plant will incorporate Chevron Phillips Chemical’s proprietary MarTech process for polyethylene production and technology that enables production of bimodal polyethylene resins for advanced applications.[181]

Philips CEO Greg Garland previously made mention of the expansion at the Research Center when he spoke to the Bartlesville Chamber of Commerce in August 2014.[182]

December 5, 2014: Phillips to Invest $155 Million at Corporate Level Primarily in IT and Facilities

Phillips 66 announced on December 5, 2014 that in Corporate and Other, Phillips 66 plans to fund $155 million in projects primarily related to information technology and facilities.[183]

November 19, 2014: Phillips Donates $50,000 to Restore Goff Tower in Bartlesville

KWON reported on November 19, 2014 that Phillips 66 donated $50,000 and the Lyons Foundation donated $20,875 to help restore Goff Tower, designed by famed architect Bruce Goff and presented in 1964 as a gift from Mrs. H.C. Price to the children of Bartlesville. Citizens are invited for the re-opening ceremony of the Sooner Park Play Tower scheduled for Wednesday, November 26th at 2 pm.[184]

August 13, 2014: Phillips Has No Plans to Close Any Bartlesville Facilities

Nathan Thompson reported in the Bartlesville Examiner-Enterprise on August 13, 2014 that Greg Garland told a group of community leaders at the Bartlesville Regional Chamber of Commerce forum on August 12, 2014 that the company’s commitment to Bartlesville continues and that there are no plans to close any of the Bartlesville facilities. “Bartlesville is a special and unique place,” said Garland. “It has a rich part of our heritage and our legacy. It is important today. It will be important in the future of Phillips 66… A big part of the day-to-day operations and the successes of Phillips 66 are born by the people here in Bartlesville.” Garland mentioned an expansion that is currently underway at the Research Center to continue the development of polyethylene technologies. We also have a world-class research facility here in Bartlesville,” Garland said. “That differentiates us from a Valero (Energy Corporation), or a Marathon (Oil Corporation). It is very unique to our space (in the market).” Even with expansion at the Houston headquarters, Garland said the the space is already at capacity — and the Bartlesville facilities continue to be full as well.[185]

August 13, 2014: Phillips Pledges $1,700,000 to Support STEM Education in Bartlesville

The Tulsa World reported on August 13, 2014 that Phillips will be giving $1.7 million to Bartlesville Public Schools to create new innovative laboratories on three school campuses to support science, technology, engineering and math classes and research projects. “We want to create a place where our students will come and be excited, be challenged and hopefully be encouraged to follow a career at a place like Phillips 66,” he said. “We want to put the right kind of tools in the hands of students in Bartlesville so they can be more successful.”[186]

The funds came through a Phillips 66 Signature Community Initiative grant application submitted to the company under an effort spearheaded by Scott Bilger, a Bartlesville school board member and Phillips 66 employee, and Granger Meador, a physics teacher who heads up Bartlesville High’s science department. The new laboratories and major new course offerings will be at the high school, along with Madison and Central Middle Schools. “We are just really, really excited about the opportunity this is going to provide our students,” Superintendent Gary Quinn said. “It cannot be overstated what this is going to mean to our students.” Phillips 66 has about 2,000 workers in Bartlesville.[187]

September 1, 2013: Garland Praises Bartlesville

The Bartlesville Examiner-Enterprise reported on September 1, 2013 that Garland praised the Bartlesville and state of Oklahoma for its “rich heritage” and as a source of employee talent it provides to the company. “Oklahoma is a special place to Phillips 66,” Chairman/CEO Greg Garland told a crowd at the first forum in a series hosted by the Bartlesville Regional Chamber of Commerce held Tuesday afternoon. “This is where it all started for us. It became a rich heritage.” Of the company’s 13,500 employees worldwide, Garland said Bartlesville and Houston are the two largest population centers for employees. The headquarters in Houston employs approximately 1,800. “We have nearly three thousand employees in Oklahoma today — two thousand right here in Bartlesville,” he said. “… It’s where our global services are headquartered out of, and really the service is a machine that runs Phillips 66 each and every day, so it is a very important place.” Garland also said the reputation and success of the company were built from the “giants” who first created it, and that success continues because of those giants. “We are standing on the shoulders of giants,” said Garland. “People like E. W. Marland, who started Marland Oil in 1911, and Frank and L. E. Phillips that started Phillips Petroleum in 1917. I could go on and on and list the giants that have come before us that have so well positioned this company for the success that we envoy today.”[188]

October 27, 2012: Bartlesville Research Center Dodges a Bullet

Rod Walton reported in the Tulsa World on October 27, 2012 that with Phillips decision not to build a long-planned major research and training center in Colorado, Bartlesville employees are breathing a sigh of relief because many feared that their piece of the company might be headed to the Rocky Mountains. "Any time a major employer in the community makes a sizable investment in another location, it generates concerns," said David Wood, president of Bartlesville Development Corp. "The formal announcement that Phillips 66 will be selling the Louisville property puts this issue to rest." The Bartlesville research center has a long history. Phillips Petroleum Co. had its headquarters in the city from the early 20th century until the merger with Conoco Inc. in 2002. Now it looks like the research center is safe and sound for some years to come. "Without being complacent, indications are that the research center will continue to be a large, high-wage employer in Bartlesville for the foreseeable future," Wood said. "We couldn't be more pleased with that outcome."[189]

September 12, 2012: Bartlesville a Special Place for Garland

The Tulsa World reported on September 12, 2012 that Garland spoke on September 11, 2012 at a packed Bartlesville Area Chamber of Commerce Forum at the city's community center downtown carrying on a tradition started several years ago by his predecessor, ConocoPhillips CEO Jim Mulva. Garland was adamant that Bartlesville's value as a global web center, combined with its heritage as home city of the original Phillips Petroleum Co. always make it important to the company's future plans. "We have deep roots here," Garland said adding that he visits the company's local operations several times a year. "It's a cost-efficient place for us to do business. I think we made the right decision." Garland noted that office space is almost maxed out locally, so he does not see more than "modest growth" adding to the 2,000 jobs Phillips 66 already has in Bartlesville. Garland was recruited out of Texas A&M by Phillips and lived many years in Bartlesville with his wife and four children.[190]

The Bartlesville Examiner-Enterprise reported on September 12, 2012 that Garland went to work for Phillips 66 as his first job out of college because of Bartlesville. “I picked this company because of Bartlesville. Four times over the course of 32 years I’ve lived here. We have good memories of Bartlesville, Oklahoma, and it’s always going to be a very special place to me personally," said Garland. “As we were approaching the repositioning and spinning Phillips 66 out of ConocoPhillips, there was never any question that Bartlesville would continue to be a strategic and important part of our company, in the support of our company operations, for a very long time."[191]

May 1, 2012: Phillips Has 'Deep Roots' in Bartlesville

ConocoPhillips CEO Ryan Lance and Phillips 66 CEO Greg Garland reassured its employees in Oklahoma in an op-ed they wrote for the Bartlesville Examiner-Enterprise titled "ConocoPhillips, Phillips 66 have deep roots in Bartlesville" that "ConocoPhillips and Phillips 66 together employ nearly 4,500 people in Oklahoma, an increase in recent years. Going forward, we will both maintain Global Services Centers in Bartlesville providing essential finance, information technology and other vital support to our personnel around the world. Elsewhere, Phillips 66 will continue operating the Ponca City Refinery, by far Oklahoma’s largest, and will remain the leading gasoline marketer. ConocoPhillips will continue producing oil and natural gas from the Anadarko Basin and the Panhandle area." Lance and Garland added that "we continue encouraging both current and incoming employees to maintain our proud tradition of community service. Bartlesville is a special place to work, live and raise a family, and we want to help keep it that way. This is an exciting time for ConocoPhillips and Phillips 66. All of our Oklahoma communities are great homes to our people and businesses, and we both look forward to long and bright futures here."[192]

April 29, 2012: Jim Mulva is a "True Friend of Bartlesville

The Bartlesville Examiner-Enterprise editorialized on April 29, 2012 that Jim Mulva has "proven to be a true friend to the City of Bartlesville."[193] According to Rod Walton, Bartlesville was a big beneficiary of the ConocoPhillips merger and seems to have lived a charmed life economically over the past ten years. Although the home of Frank Phillips doesn't employ 9,000 company workers as it did in the early days, the 1,000 employees added since 2002 have kept downtown buildings such as Plaza and Adams full of mid-level computer, credit and other support personnel. But now Bartlesville operations are in flux and there is much uncertainty about the future. "All employees are being moved to one of the two companies, with co-workers who once sat side to side now literally shifted to separate buildings," writes Walton. ConocoPhillips will employ about 1,700 people in the downtown Plaza and Frank Phillips Tower Center buildings and in the Adams warehouse. Phillips 66's Bartlesville workforce will number 1,900 people, housed in the main Adams and Phillips buildings and the Research and Development Center on the west edge of the city.[194] The Bartlesville Examiner-Enterprise reported on April 29, 2012 that the "split or 'repositioning' as it has been called by company officials, has required many existing local employees to shift jobs and even physically move from one building to another within the extensive downtown Bartlesville office complex" adding that "while no one can predict the future with perfect clarity, Bartlesville appears no worse for the wear during this complex process."[195]

Litigation and Legal Issues with Phillips

March 17, 2015: Recent Lawsuits Signal a Litigious Future for Santa Maria and Rodeo Refineries

Rhys Heyden writes in the Santa Maria Sun that three recent lawsuits filed in Contra Costa County against the Propane Recovery Project at Rodeo Refinery highlighted an important similarity between the two Philips 66 refineries. Namely, that Phillips operates a refinery in each county, and a proprietary pipeline links the two and that legal action has a direct connection to SLO County and the Santa Maria Refinery in Nipomo. “Folks who are watching the Santa Maria Refinery and its rail spur extension project should also keep a close eye on Rodeo,” said Roger Lin, an attorney representing environmental group Communities for a Better Environment (CBE) in one of the three suits. “We’ve always held the position that the two refineries are really just one whole.”

"In an oversimplified sense, Lin’s opinion is the nexus of the trio of lawsuits," writes Heyden. "Phillips 66 insists that a “propane recovery project” at the Rodeo Refinery and the rail spur project at the Santa Maria Refinery are discrete entities, and their opponents insist that the two projects are inextricable." “The county improperly ‘piecemealed’ its review of the [propane recovery] project from other related projects … designed to accommodate the switch from California crudes to out-of-state imports,” argues the SAFER suit. “People in SLO County, just like those in Contra Costa County, have the right to have all these impacts evaluated in one place,” said Marc Joseph, an attorney representing SAFER California. “It’s truly baffling that the powers that be refuse to analyze this project as a whole.”

“We’ve been saying all along that the fastest way to a conclusion is for Phillips 66 to just admit that these two projects are linked,” Lin said. “If Phillips 66 wants to shortcut this legal process and just tell the truth, we welcome that.” As for how Phillips 66—the prime mover of this entire situation—thinks legal action in Contra Costa County could affect its SLO County proposal, it’s anyone’s guess. In response to that exact question, Phillips spokesman Dennis Nuss simply answered, “We remain committed to the proposed Santa Maria rail project.”[196]

March 6, 2014: Phillips 66 Project Faces Additional Lawsuits Over Rodeo Refinery Propane and Butane Recovery Project

The San Jose Mercury News reported on March 6, 2015 that on March 4, 2015 Communities for a Better Environment sued the county and Phillips 66, contending the propane and butane recovery project at a Rodeo refinery is part of a grander plan to process heavy, dirty tar sands crude that would come to California by rail. On March 5, 2015 Rodeo Citizens Association filed suit in Contra Costa Superior Court, Martinez against Contra Costa County and the Phillips 66 Co., contending Phillips wants to transport heavy and dirty tar sands crude by rail from outside the state to a sister refinery in San Luis Obispo County and pipe the semi-refined oil to Rodeo. On March 5, 2015 Safe Fuel Energy Resources of California, a group representing workers at the Rodeo refinery, sued the county and Phillips 66 in Superior Court, Martinez, according to an announcement by the firm Public Good PR LLC. "Following two years of careful analysis by the Contra Costa County board (of Supervisors) and its expert staff, claims that this project is a crude by rail project were dismissed," said Phillips 66 spokesman Paul Adler.[197]

March 4, 2015: Rodeo Refinery Propane and Butane Recovery Project Subject to Legal Challenge

The Fort Bragg Advocate-News reported on March 4, 2015 that the environmental group "Communities for a Better Environment" has sued Contra Costa County over its approval of a propane and butane recovery project at a Rodeo refinery, contending it is a piece of a grander plan to process heavy, dirty tar sands crude that would come to California by rail. CBE has said that the refinery, with the acquiescence of authorities, seeks to "piecemeal" what the environmental group describes as "a tar sands refining project that could worsen pollution, climate, and refinery and rail explosion hazards." The EIR, CBE contends, "hid the project from the public and failed to mitigate its significant environmental impacts." Phillips 66 spokesman Paul Adler said Wednesday the company would be issuing a statement in response to the filing. Officials at County Counsel Sharon Anderson's office could not immediately be reached for comment.

Along with the Rodeo project's EIR, the Board of Supervisors on Feb. 3 rejected two appeals of a November 2013 county Planning Commission-approved use permit for the project. The appellants were CBE and the law firm of Shute, Mihaly and Weinberger on behalf of the Rodeo Citizens Association. The board vote was 4-1, with Supervisor John Gioia voting no.[198]

January 22, 2015: Teagan Clive Says Contra Costa County Recently Created a New Tax Base for Phillips 66 Reducing Payments from $3,900 per acre for their main lot to $42

Teagan Clive wrote a letter to the Martinez News-Gazette on January 22, 2015 reporting that according to Tax Assessor Gus Kramer, Phillips 66’s taxes were now based on “profits, not property.” Since the refinery owns 37 percent of the land in Rodeo, this went far to reduce their tax burden. Kramer couldn’t say off-hand how much Phillips has reduced their tax burden but public records show that, in 2014, they paid $3,900 per acre for their main lot and now they’re paying only $42 per acre. BOS Chairman John Gioia confirmed the new “profit-sharing” relationship with P66. "This begs the question: How can the BOS objectively vote on any matter concerning P66 – like the controversial Propane Project which is believed to involve notorious tar sands – if the County has become a “business partner”? Although Phillips ranks No. 6 on the Fortune 500, the County is now obliged to help them make money. This might explain why Supervisor Glover “lost” his long-time assistant, Paul Adler, who went to work for the refinery this month, in “government affairs.”"[199]

December 31, 2014: The Pros and Cons of a Controversial Phillips 66 Oil-by-Rail Project at the Santa Maria Refinery

Rhys Heyden wrote in the New Times on December 31, 2014 that Phillips 66's Santa Maria Refinery would like to transport much of its crude oil into San Luis Obispo County via train, while opponents would prefer such plans to be driven out of the county on a rail. "Many stakeholders adamantly support the project, while many locals virulently oppose the proposed rail spur that would allow this transportation method to materialize," writes Heyden. "There are plenty of lawyers involved and lots of money tied up in each side of the issue, and the project itself reaches far beyond the borders of SLO County."

Seeking to understand why many people support the project, New Times reached out to Phillips 66 to get their point of view. Though New Times requested a tour of the refinery and access to speak with a variety of Phillips 66 employees, the company—working with SLO-based PR firm Barnett Cox & Associates—declined to provide either, instead offering a presentation and interview with two company spokespeople. Essentially, Phillips argues that oil production in Santa Barbara County (the refinery’s predominant current source of oil at about 65 to 80 percent of total sourcing) is in decline. Anticipating further falloff, the company wants to diversify how it receives oil and where it receives it from.

Project adversaries disagreed with what they see as “specious” arguments from Phillips 66. They feel that the company has not been a good neighbor and is pursuing the crude-by-rail strategy primarily to enhance profits, not because any refinery jobs or the local oil supply are truly at risk. “There are just no grounds on which to support this project,” says Sierra Club leader Andrew Christie. “The impacts are understated, the EIR has been deficient from the start, and there are still 11 ‘significant and unavoidable’ impacts in a defective EIR.” All of these impacts are essentially due to the potential for high levels of toxic emissions from the oil trains or the mushrooming consequences of a possible crude oil spill and/or derailment.

Unsurprisingly for a project of this magnitude, many politicos polled by New Times said they saw the rail spur project likely being appealed by one side or the other—from the Planning Commission, to the Board of Supervisors, to the California Coastal Commission (the refinery is in the coastal zone)—and then likely being settled in court in a years-long struggle.“Ultimately, it comes down to this: Is what they’re proposing appropriate for the community, or are the impacts just too great?,” said District 3 Supervisor Adam Hill. “It will be interesting to see how that question is answered.”[200]

December 31, 2014: Tax Settlement Money from Wood River Refinery Has Been Distributed

The Alton Daily News reported on December 31, 2014 that the money promised in a settlement between Wood River Refinery and three taxing bodies has been distributed with $8.5-million going to the school district, $1.8-million to the village of Roxana, and almost $300,000 to the Roxana Community Park District. According to the terms of the agreement, none of those bodies had to repay taxes collected from the refinery in 2011 and 2012, and the refinery will have a lower assessed value for 2013. This settlement comes after the refinery objected to how much it paid in local property taxes from 2010 to 2011.[201]

December 23, 2014: Judge Rules That Phillips 66 Policy Prohibiting Santa Maria Refinery Employees from Talking to the Media Violates the Law

David Minsky reports at the Santa Maria Sun that on November 25, 2014 a National Labor Relations Board administrative law judge found that Phillips policy of prohibiting Phillips employees at the Santa Maria Refinery from speaking to reporters violated the law. According to case documents, attorneys representing Phillips 66 argued in court that the policy was meant to prohibit employees from speaking on the company’s behalf about any confidential operations. But the judge rejected this argument, saying the policy was ambiguous and violates the law because employees could “reasonably construe” that it would prohibit them from discussing, among other things, labor disputes or conditions of work. Reached by email last week, Phillips 66 spokesperson Dennis H. Nuss said the company is aware of the recent decision, but didn’t make specific comments about the case. However Nuss did write: “Our company’s top priority is the safety of everyone who works at our sites and lives in our neighboring communities. In 2012, Phillips 66 redistributed certain safety-related functions and responsibilities among personnel at the Santa Maria Refinery, and there were no staff reductions. These changes have helped maintain and improve the refinery’s high standards for safety performance.”[202]

December 2, 2014: Yellowstone County Reduces Phillips 66’s Tax Bill for Billings Refinery after Settlement

The Billings Gazette reported on December 2, 2014 that Yellowstone County will be disbursing about $3.3 million in protested taxes from the Phillips 66 oil refinery in Billings after the company and the Montana Department of Revenue settled a tax dispute. After making adjustments based on the settlement, the county will return $1.8 million, plus interest, to Phillips 66 and distribute $1.4 million to local taxing jurisdictions. The settlement, said county assessor Max Lenington, resulted in amended valuations for the refinery. The appraised value for 2014 was reduced by $82 million to $579 million, he said. And the appraised value for 2013 was reduced by $114 million to $599 million. Phillips 66 protested its 2013 taxes but paid its 2014 taxes at about the time of the settlement. Lenington said the 2014 tax statement will be corrected to reflect the settlement and re-sent. The settlement reduced the 2014 taxes from $9.3 million to $7.9 million, he said.[203]

November 20, 2013: Village of Roxana Will Not Have to Repay Million of Dollars to Philips 66 in Wood River Refinery Tax Assessment Case

The Alton Daily News reported on November 20, 2014 that the local school district of the village of Roxana will not have to repay millions of dollars that the Madison County State’s Attorney says it overtaxed Phillips 66 for the Wood River Refinery. An agreement between numerous taxing bodies and the owners of the Phillips 66 Wood River Refinery has been reached that would eliminate repayment for taxes collected in 2011 and 2012, and lower the refinery’s 2013 assessed value by about $100-million. Phillips filed an objection earlier this year over the amount of taxes levied by the Village of Roxana, the Roxana Park District, Roxana Library District and the Roxana School District. Parties still have to sign off on the agreement.[204]

August 5, 2014: Yellowstone County Distributes Protested Taxes From Phillips 66

The Billings Gazette reported on August 5, 2014 that with the settlement of several major tax disputes, millions of dollars in protested taxes have been distributed throughout Yellowstone County in one-time payments. Three of the recently resolved tax disputes involved Charter Communications, which protested tax years 2010-2013; Verizon Wireless, which protested years 2009-2013; and Phillips 66, which protested years 2010-2012. Phillips 66 protested a total of about $6.48 million and received a refund of $2 million, or about 32 percent. Tax protests remaining unresolved include about $3.29 million from Phillips 66 for 2013. While it is good to have the disputes resolved and taxes disbursed, said Yellowstone County Finance Director Scott Turner, there will be an overall decrease in the county’s base value because of the settlements. That means one mill levied will raise fewer tax dollars.[205]

July 30, 2014: Judge Grants Phillips Pipeline Access From Canada to Billings

Cheminfo reported on July 30, 2014 that Phillips will be able to continue operating three pipelines that transport crude oil from Canada after a judge granted access to the final land parcel whose easement had expired. Phillips 66 had negotiated access agreements with about 600 landowners and the tribe where the pipelines cross the Blackfeet Reservation, but filed a condemnation complaint in federal court against the owners of one parcel when negotiations failed. U.S. District Judge Sam Haddon ruled in favor of Phillips 66 and ordered the company to pay the landowners $1,450 in compensation for access to the final parcel concluding that the pipeline locations are reasonable and they are necessary for public use. The company said relocating the 8-inch and two 12-inch pipelines would have cost $2 million.[206]

May 28, 2014: International Tribunal Supports Phillips' Takeover of Coker at Sweeny Refinery

Fuelfix reported on May 28, 2014 that the International Chamber of Commerce’s Court of Arbitration has upheld Phillips 66’s right to exercise a call option in 2009 and assume Petroleos de Venezuela SA's (PDVSA) interest in Merey Sweeny LP. The partnership owns a 70,000-barrel- per-day delayed coker and related facilities at the refinery. “Certain defaults by PDVSA with respect to supply of crude oil to the Sweeny refinery triggered the right to acquire PDVSA’s 50 percent ownership interest,” says Phillips spokesman Rich Johnson. State-owned PDVSA initiated arbitration with the ICC, claiming the exercise of the call right was invalid. “Since there is not a lot of crude imported into the U.S. anymore, this decision hurts PDVSA on several fronts. First, the company loses the refinery and production, and secondly it loses the opportunity to bring crude into the refinery,” says Carl Larry.[207]

April 16, 2014: Health and Safety Specialists at Santa Maria Refinery Claim They Were Punished for Unionizing

Colin Rigley reported at the New Times on April 16, 2014 that health and safety specialists at Phillips' Santa Maria Refinery allege Phillips officials warned them in January, 2012 that if they joined the United Steelworkers Union they would lose hours, be stripped of managerial powers, and as many as three of them could lose their jobs. “The insinuation here was that, ‘We may not need all of you,’” one of the specialists said in a written statement submitted to the labor board.[208]

When the newly unionized group went to the bargaining table in December, 2012, the specialists say in a complaint filed with the National Labor Relations Board that Phillips management carried out its threats. Phillips' proposed contract on December 10, 2012 allegedly included the threatened reductions of hours and responsibilities. The refinery’s health and safety specialists serve as organizers of the plant’s emergency response crew. Though none of the health and safety specialists was fired, three of them were transferred from their primary roles into regular plant operations, according to the complaint. The union is seeking to recover lost wages for the health and safety specialists, and to have their original job functions restored. Those lost wages totaled as much as $17,000 per year for some employees. In its complaint, the union further alleges that Phillips 66 bargained in bad faith when it imposed the 2012 contract.[209]

Phillips 66, in its responses to the union’s complaint, said the company reduced the five health and safety specialists to two as part of regular staffing changes, and the job functions were distributed across other personnel. “There is no value more important in our company than ensuring the safety of everyone who works at our sites as well as the safety of our neighboring communities,” Phillips spokesman Dennis Nuss said in a written statement to New Times. “In 2012, Phillips 66 redistributed certain safety-related functions and responsibilities among personnel at the Santa Maria Refinery, and there were no staff reductions. These changes have helped maintain and improve the refinery’s high standards for safety performance.”[210]

In addition to the reduced contract for health and safety specialists, the union alleges that the company violated federal labor laws when it implemented “news media guidelines” in October 2012. Those guidelines instructed employees not to speak to news media and, “It is against company policy for anyone but an authorized company spokespersons [sic] to speak to the news media.” The company defends its policy as a routine business practice that violated no labor laws.[211]

March 26, 2014: Phillips Pays $500,000 Fine for Clean Air Violations at Five Refineries

CSP Daily News reported on March 26, 2014 that Phillips will pay a $500,000 penalty for violations of the Clean Air Act at the Sweeny Refinery in Old Ocean, Texas, the Alliance Refinery in Belle Chasse, La., the Wood River Refinery in Roxana, Ill., the Lake Charles Refinery in Westlake, La., the Borger Refinery in Borger, Texas, and several terminals across the country. Phillips also agreed to retire more than 21 billion sulfur credits that could have been used in the production of gasoline, which could potentially lead to significantly less pollution from vehicles. In a administrative settlement agreement, the EPA alleged that the company generated invalid sulfur credits between 2006 and 2012 and that Phillips failed to comply with recordkeeping, reporting, sampling and testing requirements at the five refineries. EPA discovered these violations during facility inspections and through a review of company records, which included the results of third-party company audits required by the Clean Air Act.[212]

March 10, 2014: Phillips Fined $230,900 for Air Quality Violations at Rodeo Refinery in 2008 and 2009

Denis Cuff reported in the Contra Costa Times that the Bay Area Air Quality Management District announced on March 10, 2014 that it had reached a civil settlement with Phillips for the payment of $230,900 in air pollution penalties for 19 air quality violations at their Rodeo Refinery in 2008 and 2009 that included late or missed flare gas samples, failure to install and inspect required emission controls on the wastewater system, and operating a storage tank while control valves were open.The refinery also exceeded hydrogen sulfide limits in fuel gas. "The air district has the responsibility to ensure that refineries operate their facilities in full compliance of air quality regulations to protect the health of local residents," said Jack Broadbent, the air district's executive officer. "Any violation of these regulations, no matter how minor, will not be tolerated."[213] Officials at Phillips said the company had disclosed most of the violations to the air district and fixed the problems quickly. "We continue to make improvements in our procedures, training and monitoring to minimize if not eliminate the likelihood of recurrence," said Janet Grothe, a spokeswoman for Phillips.[214]

February 28, 2014: Phillips Faces Compliance Hearing for Pollution Monitoring System at Rodeo Refinery

The Contra Costa Times reported on February 28, 2014 that the Contra Costa County Zoning Administrator will hold a compliance meeting on March 3, 2014 on the land use permit of the Phillips 66 Rodeo Refinery to determine if the fence line pollution monitoring system, deemed deficient in October, has been fixed. The system is supposed to function 95 percent of the time, according to an agreement between the refinery and an environmental working group that is a condition of a Clean Fuels Expansion Project. According to the staff report, a contractor found the monitoring system exceeded the 95 percent standard during four months of a 10-month period, and failed to meet the standard during six of those months.[215]

January 29, 2014: Phillips Settles Claim for Water Pollution Violations from Rodeo Refinery

The Contra Costa Times reported on January 29, 2014 that Phillips has agreed to pay $6,000 in fines to the state for exceeding discharge limits for selenium on two different occasions at its Rodeo refinery along San Pablo Bay that occurred on July 2, 2012 and September 5, 2012. Phillips agreed to waive its right to a hearing and to settle the matter under the board's Expedited Payment Program. The settlement is pending acceptance by the board's executive officer following a public comment period that runs until 5 p.m. on February 28, 2014.[216]

January 14, 2014: Phillips Settle Claims of Defrauding Utah State Fund of $25 Million for Cleanups of Leaking Underground Tanks

The Insurance Journal reported on January 14, 2014 that Phillips has paid $2 million to settle allegations it helped itself to Utah’s Petroleum Storage Tank Fund for cleaning up damage from leaking fuel storage tanks even though it had insurance to cover the cleanups. Phillips was said to have relied on the fund for cleanups at 82 service stations. Consistently, these guys were saying, ‘No, we don’t have any insurance,” said Therron Blatter, a branch manager for underground storage tanks at the Utah Division of Environmental Response and Remediation. “Clearly, they did have the insurance.”[217]

According to the Salt Lake City Tribune Phillips was accused of defrauding the Utah’s Petroleum Storage Tank Fund to the tune of $25 million for cleanups associated with leaking underground tanks. In its lawsuit filed in 2012, the division alleged ConocoPhillips collected $25 million in payouts to cover cleanups at 82 service stations by falsely reporting that these sites were not covered by independent insurance. The suit sought to recover this money, plus punitive damages and fines totalling $10,000 for every day ConocoPhillips violated the law. But as lawyers gathered evidence it became apparent some of the claims were not that strong, said Brent Everett, director of the state Division of Environmental Response and Remediation. Officials said they are satisfied with the $2 million settlement, which amounts to less than 10 percent of what they originally claimed was misappropriated.[218][219]

May 31, 2013: Phillips Continues Tax Protest of Billings Refinery

Clair Johnson reported in the Billings Gazette on May 31, 2013 that Phillips paid its second-half 2012 Yellowstone County property taxes of $3.9 million with $1.3 million protested while its long-running tax dispute with the state of Montana continues. Taxes paid under protest are held in an escrow account pending resolution of the dispute. Taxing jurisdictions can demand distribution of the protested taxes but may have to repay the money depending on how the issues are resolved. Phillips 66 appealed its tax assessment to the Yellowstone County Tax Appeals Board, which sided with the company. The Revenue Department then appealed that decision to the Montana State Tax Appeals Board, which has not yet ruled. Another oil refiner, CHS refinery in Laurel, paid $4.08 million, with $1.6 million paid under protest.[220]

April 19, 2013: DCP Pipeline Awaits Approval in Colorado

Steve Block reported in the Trinidad Times on April 19, 2013 that a proposed 13.75-mile pipeline section planned to go through northeast Las Animas County, Colorado is awaiting approval from the county planning commission and then the county board. As designed, the pipeline has a capacity of 150,000 barrels per day, which could be readily expanded to approximately 230,000 barrels per day and could begin service in the fourth quarter of 2013. Permit land agent Mike Rutherford said the company thought it only needed a special-use permit from the county for the project, which it had in hand before the state gave its final approval. It later turned out that it also needed a 1041 permit under county regulations. “We thought it was just going to be an SUP only and we already had that,” Rutherford said. “I guess if we’d known it was going to be a full-blown 1041, we could have gotten that four or five months ago, and been through this temporary approval process months ago.” The permitting process requires public notice of the application, followed by a 30-day period for comment from interested parties to the county board. Meanwhile, the application must work its way through the planning department approval process. Fourteen days after that, the planning commission and county board can approve the application at the same time, thus speeding up the process. Dixie Newnam, county attorney, said the entire process could take 45 – 60 days from the time the application was submitted.[221]

April 2, 2013: DCP Midstream Withdraws Plan to Build Megatank in Searsport

Abigal Curtis reported in the Bangor Daily News on April 2, 2013 that DCP Midstream is withdrawing thire application to build a controversial liquid propane gas terminal and storage tank project at Mack Point in Searsport. “We really, really wanted to do business in Maine,” said Roz Elliott, spokesperson for Denver-based DCP Midstream, citing the Searsport Planning Board’s initial meetings last week to review the $40 million project before issuing a final decision later this spring. “It’s unfortunate, but with these local circumstances, we don’t forsee doing future capital development in Maine.” The board members found that certain elements of the project did not meet the town’s ordinances. “Very extensive time, resources, passion — we really believed in this,” Elliott said, adding that the company decided to withdraw the application “as a courtesy” to the Searsport Planning Board.[222]

January 2, 2013: California Sues Phillips for Environmental Violations at Gas Stations

Bloomberg reported on January 2, 2013 that California Attorney General Kamala Harris and and seven county district attorneys filed a complaint on January 2, 2013 in state court seeking an order to force ConocoPhillips and Phillips 66 to comply with California’s laws for underground gasoline storage tanks as well as unspecified civil penalties for violating the state’s health and safety code. “The state’s hazardous waste laws help protect our residents from contaminated groundwater,” Harris said in a statement. “This lawsuit safeguards public health by ensuring proper maintenance of the tanks that store fuel beneath many California communities.” The People v. Phillips 66, RG13661894, Superior Court of California, Alameda County (Oakland) accuses the two companies of improperly monitoring, inspecting and maintaining underground storage tanks.[223]

November 12, 2012: Proposed Consent Decree Reached over Contamination at Cahokia Site

The Madison Record reported on November 12, 2012 that the federal government last week sued and reached a proposed settlement with thePhillips 66 Pipeline LLC in St. Clair County seeking to recover some of the money it spent on cleaning up the Rogers Cartage Site in Cahokia after the Environmental Protection Agency (EPA) issued an enforcement action memorandum in 2011 noting the presence of polychlorinated biphenyls (PCBs) at the site and directing Phillips 66 to excavate and remove about 16,575 tons of soil. Rogers Cartage Co. and its corporate parent, Tankstar Inc., were listed as potentially responsible parties to the contamination in a 2009 EPA liability notice. Phillips 66 received the notice as the current owner of the site. In 2011, Phillips 66 sued Rogers Cartage for cost recovery and injunctive relief. Phillips 66 will amend its complaint to pursue a claim for contribution if the proposed decree is approved.[224]

October 24, 2012: Louisiana Supreme Court Asked to Review Phillips 66 I-10 Bridge Case

KPLC reported on October 24, 2012 that the Louisiana Department of Transportation and Development (DOTD ) hopes the Louisiana Supreme Court will reverse the decision by Judge Clayton Davis to postpone the trial against Phillips 66 on a lawsuit for spilling an estimated 1.7 million pounds of ethylene dichloride (EDC). Judge Clayton Davis continued the lawsuit until a three-year environmental impact study is done. DOTD officials have said when a new bridge is built, they must avoid hitting the underground plume of chemical contamination to avoid spreading it and estimates the state's damages from the spill are $235-million, including the increased cost of a bridge with spans long enough to bypass the spill. "DOTD would like to move forward with the case and get a trial date," said DOTD Attorney Patrick McIntire. "Phillips 66 believes the trial court's [original] ruling was well-reasoned and fair," said a spokesman for Phillips 66.[225]

October 6, 2012: Roxana School District Receives $10 million More in Property Tax Revenue from Reassessment of the Wood River Refinery

The Telegraph reported on October 6, 2012 that for the 2012 fiscal year, the Roxana School District received $10 million more in property tax revenue from the reassessment of the Wood River Refinery, operated by Phillips 66, with about $9.5 million of the increase attributable to the district's operating funds. The district still is working toward securing a long-term agreement with the refinery, said Superintendent Deb Kreutztrager.[226]

On March 31, 2012 the St. Louis Post-Dispatch reported that at issue is the completion of a $3.8 billion expansion at the Wood River Refinery in 2011. Phillips 66 sought to blunt an expected increase in its assessed valuation — on which property taxes are based — by claiming that the vast majority of its operation is dedicated to pollution control. A pollution control facility designation means significantly smaller assessment increases, which mean that school districts and other taxing bodies get smaller increases in revenue. Plaintiffs in the lawsuit include the village of Roxana and the school districts in Roxana, Wood River and East Alton. They say they were not initially aware of the move because the Pollution Control Board and Illinois EPA did not provide proper information and public access to meetings, in violation of the Open Meetings Act and Freedom of Information Act. As a result, the suit claims, the local governments have not been able to formally dispute what they say is an obviously suspect claim: that $3 billion of the project's $3.8 billion expansion was dedicated to pollution control rather than the business of refining fuel.[227]

The refinery and a larger group of affected taxing bodies negotiated an agreement in 2005 that established tax valuation through 2010. That agreement set the value at about $265 million — an increase of about $85 million — and provided for annual increases at a rate 1 percentage point below any increase of the Consumer Price Index. The refinery also agreed to supplemental payments of more than $3 million for previous tax years. In March 2012, the Madison County Board of Review set the 2011 assessed value at $402.2 million, reflecting a market value of $1.2 billion. It would affect taxes payable this year. That is up sharply from the 2010 valuation of $93.4 million, based on a market value of $280 million.[228][229]

The huge expansion increased the refinery's oil-processing capacity by about a third, to 356,000 barrels per day, and enabled it to process heavy crude from the oil sands of Alberta, Canada. The oil arrives via the 2,100-mile-long Keystone Pipeline, which opened last year. Melissa Erker, a spokeswoman for the refinery, would not comment on litigation specifics but said the pollution control exceptions are part of the state's tax code and "allow us to remain competitive relative to property taxes as compared to other refineries in the Midwest."[230]

September 19, 2012: Phillips Sues Yellowstone County over Property Taxes on Billing Refinery

Equities.com reported on September 19 that Phillips 66 has taken its property tax protest involving its Billings refinery to court in Yellowstone County filing a complaint that the Montana Department of Revenue illegally or improperly raised the refinery's market value for 2010, resulting in a tax bill that was $623,715 higher. Phillips asked Yellowstone District Judge Ingrid Gustafson to block its revised tax assessment, saying it will "suffer irreparable injury absent the issuance of a preliminary injunction." The complaint also said Montana is improperly trying to retroactively raise the refinery's tax assessment from 2003 through 2010 in order to collect more taxes. The refinery's market value in 2010 should be $379,718,534, said Phillips, not the department's retroactive change to $508,333,155. Revenue Department officials in Helena says they conducted a routine audit in July and found that Phillips 66 refinery property that had “either escaped assessment, been erroneously assessed or omitted from taxation” from 2003 to 2010, said department spokeswoman Mary Ann Dunwell. Revenue Department officials in Helena said that they are reviewing the complaint and plan to file a response by the end of next week.[231]

September 7, 2012: Maine Fuel Board Approves Permit for DCP Midstream's Searsport Megatank

The Free Press reported on September 7, 2012 that the Maine Fuel Board has issued a permit to DCP Midstream to build a 22.7 million gallon propane storage tank in Searsport, the final permitting hurdle at the state and federal levels. The next step is for the company to submit the complete site application, including all state and federal permits, to the Searsport planning board for review.[232]

July 14, 2012: Phillips Protests Property Tax for Billings Refinery

The Missoulian reported on July 14 that Phillips is one of seven refinery, utility and communications companies in Yellowstone County that is protesting their property tax bill for the 2011 tax year. When a company protests its tax bill, the money is placed in an escrow account, earning interest, until the argument is settled. Schools and other taxing entities who were counting on the funds can tap into these “frozen” taxes, but must repay some or all of the money with interest if the taxpayer wins the protest.[233]

June 26, 2012: Court Hearing held on I-10 Bridge contamination from Chemical Spill that Caused $235 million Damage twenty years ago

KPIC.TV reported on June 272, 2012 that there's been almost no progress on a new I-10 calcasieu river bridge because state highway officials say they need to avoid hitting the underground plume of chemical contamination from a chemical spill nearly twenty years ago for which Conoco Phillips and Sasol are responsible and the State Department of Transportation and Development estimates the state's damages from the spill are $235 million including the increased cost of a bridge with spans long enough to bypass the spill. They don't want to drive pilings through the plume for fear of spreading the contamination. The state has filed suit to get that added cost and the jury trial is set for October. "There's contamination in the ground and the groundwater where we need to build the bridge. It's going to cost extra to stay out of the contamination when the bridge is built and that's the damages that the state is requesting that be awarded in the lawsuit. The state would like to stay out of the contamination and span the contamination and that's what drives up the extra cost," says Attorney Patrick McIntire representing the state of Lousiana.[234]

Conoco Phillips and Sasol say it's uncertain what kind of bridge should be built--and that the trial on that part of damages should be delayed until an environmental impact study which will take at least three years. "We are a valued member of this community, and are committed to being a part of the solution for this project in a manner that is consistent with the on-going federal environmental review process. The resolution of the motion presented today will not delay this project in any way," says Phillips 66 in an official statement.[235]

June 1, 2012: Plan for DCP Midstream's Giant Propane Gas Tank in Maine Generates Opposition

The Maine Public Broadcasting Company reported on June 1, 2012 that DCP Midstream's plan to build a 137-foot high, 23-million gallon liquid propane gas tank next to the Mack Point industrial area has generated heated opposition in communities along the midcoast as selectmen on the island community of Islesboro added their names to the list of people raising concerns about the tank. "Concerns about the project on the mainland have fallen into several categories," writes Jay Field. "There are those who say the tank is simply an eyesore that dwarfs all other industrial facilities in the area and threatens the sense of place on the midcoast. Others dread the large increase in truck traffic on Route 1 that will come if the project moves forward. Still others worry about the safety hazards of storing so much highly-flammable, liquid petroleum gas in one place." Even if it's approved, the project is all but certain to be challenged in court by opponents for years to come.[236]

May 29, 2012: Illinois’ Attorney General Sues Owners of Wood River Refinery for Ground Water Pollution

Saint Louis Today reported on May 29, 2012 that Illinois’ Attorney General Lisa Madigan is suing the current and past owners of the Wood River Refinery in Roxana, Illinois claiming they're responsible for polluted groundwater around the refinery. The suit comes just months after the Village of Roxana filed a similar lawsuit alleging contamination from the plant. The lawsuit claims the companies have allowed oil, gasoline and other toxins to permeate the groundwater and spread beyond the plant’s property line. "These companies must be held accountable for the environmental and public health damage caused by this contamination,” said the attorney general in a statement. The refinery is jointly owned by Cenovus Energy and Phillips 66, which operates the plant. Melissa Erker, a Phillips 66 spokeswoman, said the company has been working with Shell and state environmental regulators to allow access for remediation of historical contamination. "It is our belief that we are named because of our direct relationship with the former owner," Erker said.[237][238][239]

May 26, 2012: Oklahoma Property Owners Fight DCP's Gas Pipeline

The Daily Oklahoman reported on June 18, 2012 that DCP Midstream has filed lawsuits in district court that seek eminent domain judgments against 14 property owners in Oklahoma County as landowners have rejected DCP offers to pay for a portion of their land and say they will fight to keep the company off their land. “It’s not a matter of money for most of us, it’s a matter of principle,” says Joe Freund, a retired physician who lives on 40 acres of forestland about a mile east of Arcadia who is concerned that clearing a 75-foot wide strip of forest that runs the length of his property would tarnish the aesthetics that attracted him to this plot in the first place. “They claim that it’s for the public good and perhaps it is, but they won’t even move their pipeline one inch to avoid taking down trees a hundred years old.” DCP Midstream says the pipeline would tie gathering and processing systems across central and western Oklahoma to their existing line and is part of $2 billion in capital investments currently under development by DCP. “It’s about de-bottlenecking for the producers and finally giving them an opportunity to get their product to market," says Roz Elliott, vice president at DCP Midstream, adding that DCP hopes to run 250 million cubic feet of liquid natural gas to coastal markets every day by the middle of 2013.[240]

The Stock Market and Investor Relations

Phillips 2013 Stock Performance. Phillips 66 (PSX) finished 2013 with its stock price at 77.34 up 24.24 points from its clsoing price of 53.10 on December 31, 2012 for an appreciation of 45.6% over its closing price for 2013.[241] Graphic: Hugh Pickens
Phillips 2012 Stock Performance. Phillips 66 (PSX) finished 2012 with its stock price at 53.10 up 19.36 points from its opening price of 33.74 on May 1, 2012 for an appreciation of 57.4% over its opening price for 2012.[242] Graphic: Hugh Pickens

Stock Market

Stock Performance

January 1, 2014: Phillips Stock Appreciates 45.6% in 2013

Phillips 66 (PSX) finished 2013 with its stock price at 77.34 up 24.24 points from its closing price of 53.10 on December 31, 2012 for an appreciation of 57.4% over its closing price for 2013.[243]

January 1, 2013: Phillips Stock Appreciates 53.10% in 2012

Phillips 66 (PSX) finished 2012 with its stock price at 53.10 up 19.36 points from its opening price of 33.74 on May 1, 2012 for an appreciation of 57.4% over its opening price for 2012.[244]

Dividends and Stock Repurchase

February 4, 2015: Phillips Declares Quarterly dividend of 50 Cents

Phillips 66 reported on February 4, 2015 that the board of directors of Phillips 66 has declared a quarterly dividend of 50 cents per share on Phillips 66 common stock. The dividend is payable on March 2, 2015, to shareholders of record as of the close of business on Feb. 17, 2015.[245]

October 1, 2014: Phillips Declares Quarterly dividend of 50 Cents

The Herald Online reported on October 1, 2014 that the board of directors of Phillips 66 declared a quarterly dividend of 50 cents per share on Phillips 66 common stock payable on Dec. 1, 2014 to shareholders of record as of the close of business on Nov. 14, 2014.[246]

July 10, 2014: Phillips Declares Quarterly dividend of 50 Cents

Watchlist News reported on July 10, 2014 that Phillips announced that investors of record on August 15th will be paid a dividend of 0.50 per share on September 2nd.[247]

May 7, 2014: Phillips Declares Quarterly Dividend of 50 Cents

Reuters reported on May 7, 2014 that Phillips declared a dividend of 50 cents payable on June 2 to common shareholders of record by May 19 raising its quarterly dividend by 28 percent.[248]

February 14, 2014: Garland Says Phillips Believes in Bulletproof Dividends

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips believes in bulletproof dividends. "We think that growing shareholder distributions is key to growing total shareholder return. We believe in bullet proof dividends. We believe in not only secure but growing dividends and competitive dividends. We nearly doubled the dividends since the spin."[249]

February 7, 2014: Phillips Declares Quarterly Dividend of 39 cents

Marketwatch reported on February 7, 2014 that the board of directors of Phillips has declared a quarterly dividend of 39 cents per share on Phillips 66 common stock payable on March 3, 2014, to shareholders of record at the close of business on Feb. 18, 2014.[250]

December 6, 2013: Phillips Announces New $2 Billion Share Repurchase Program

Businesswire reported on December 6, 2013 that Phillips' board of directors has approved a new $2 billion share repurchase program, consistent with the company's strategy to grow shareholder distributions. “Returning capital to our shareholders is fundamental to creating value and delivering superior total shareholder returns,” said Phillips 66 Chairman and CEO Greg Garland. “Our disciplined capital allocation process complements these distributions with capital spending and reinvestment in our higher-valued businesses.” The shares will be repurchased from time to time in the open market at the company's discretion, subject to market conditions and other factors, and in accordance with applicable regulatory requirements.[251]

October 2, 2013: Phillips Increases Quarterly Dividend to 39 cents

Seeking Alpha reported on October 2, 2013 that the board of directors of Phillips declared a quarterly dividend of 39 cents per share on Phillips 66 common stock, representing an increase of approximately 25 percent from the prior quarter. The dividend is payable on Dec. 2, 2013, to shareholders of record at the close of business on Nov. 14, 2013. "Our objective is to consistently increase shareholder distributions, while also capturing attractive opportunities to reinvest in our businesses and grow future returns," said Phillips 66 Chairman and CEO Greg Garland. Returning capital to our shareholders remains a priority for Phillips 66, and we are pleased to deliver another increase in our quarterly dividend."[252]

July 10, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

istockanalyst reported on July 10, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on September 3, 2013, to shareholders of record at the close of business on August 16, 2013.[253]

May 8, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

The Wall Street Journal reported on May 8, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on June 3, 2013, to shareholders of record at the close of business on May 20, 2013.[254]

February 11, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

Investors Business Daily reported on February 11, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on March 1, 2013, to shareholders of record at the close of business on Feb. 18, 2013.[255]

December 7, 2012: Phillips Increases Quarterly Dividend from 25 cents to 31.25 cents

Bloomberg reported on December 7, 2012 that Phillips has announced that the company is raising its quarterly dividend to 31.25 cents per share from 25 cents. The new dividend will be paid in the first quarter of 2013. Phillips 66 also said it approved the repurchase of another $1 billion in company stock. It approved the repurchase of $1 billion shares during the third quarter as well.[256]

October 3, 2012: Phillips Increases Quarterly Dividend from 20 cents to 25 cents

Businesswire reported on October 3, 2012 that Phillips has declared a quarterly dividend of 25 cents per share on Phillips 66 common stock, representing a 25 percent increase from the prior quarter. “This 25 percent increase reinforces our objective to provide competitive and growing dividends,” said Phillips 66 Chairman and CEO Greg Garland. “Allocating capital to dividends and repurchases while continuing to invest in the growth of our business is fundamental to our philosophy of delivering shareholder value.”[257]

July 12, 2012: Phillips 66 Initiates $0.20 Quarterly Dividend

Michael Aneiro reported on Barrons on July 11, 2012 that Phillips 66 announced a quarterly common stock dividend of 20 cents per share, payable Sept. 4 to stockholders as of July 23. “Phillips 66 has a clear strategy to improve returns and to deliver a strong, competitive dividend program to our investors,” said compay chairman and CEO Greg C. Garland. “We are convinced that returns, growth and distributions create value.”[258]

Stockholder's Meetings

May 8, 2013: Phillips Holds First Stockholder's Meeting in Houston

Greg Garland told Phillips stockholders at the first meeting that Phillips had executed the spin-off from ConocoPhillips flawlessly. "When you think about the Company, we had a strong operating performance. We ran well," said Garland. "We stood up the Company in a very favorable margin environment, so all those things came together for really strong year of financial performance for our Company. We delivered $5.4 billion of [adjusted] net income in 2012. Our return on capital employed was 22%. We're so proud of our employees and what they accomplished in standing up the Company, but also for their commitment and their dedication in creating and capturing value for our shareholders."[259]

Garland received questions from stockholders John Pajak who works at the Bayway Refinery and commended Phillips for its repsonse to Hurricane Sandy. Stockholder Jimmie Dunn commended Phillips on its first year performance and asked why Phillips bought back stock rather than increasing the dividends. Stockholder Governor Clements said he was very pleased with Phillips' performance. Stockholder Jim White said he was a suppler to Phillips and commended Phillips for the response post superstorm Sandy and for Phillips ongoing commitment to family values and safety. Stockholder Michael Mulvany, the business manager for a local steamfitters union headquartered out of North New Jersey, thanked Phillips for their commitment to safety. "My union's relationship with that refinery goes back 103 years when Mr. John D. Rockefeller opened up Standard Oil," said Mulvany. "We've been there when it was Exxon, Tosco, ConocoPhillips and now Phillips 66. And we're hoping to be there another 103 years with all you fellows, and your good team of leadership." Stockholder Caroline Hockley asked about Phillips controlled pipelines and Garland responded that Phillips has "a state-of-the-art controlled facility, one of the newest and, I think, best in the industry in Bartlesville, Oklahoma." Stockholder Jimmie Dunn asked how he could get a tide in ConocoPhillips "beautiful hot air balloon."[260]

April 17, 2013: Phillips Announces First Annual Stockholder's Meeting

The Herald Online reported on April 17, 2013 that will host its First Annual Meeting of Stockholders on Wednesday, May 8, 2013 at 9:00 a.m. CDT at the Marriott Houston Westchase at 2900 Briarpark Drive, Houston 77042. Stockholders must present an admission ticket or proof of ownership of Phillips 66 stock, as well as valid picture identification, to enter the meeting. Phillips also encourages company employees to attend the meeting.[261]

Earnings Conferences

2014 Q3: October 29, 2014: Phillips Earnings Beat Q3 Estimates on Higher Margins

Nasdaq reported on October 29, 2014 that Phillips posted adjusted third-quarter 2014 earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.69. Substantial improvement in the company's refining segment and higher marketing margins led to the outperformance.[262]

The Refining segment generated adjusted earnings of $558 million compared with a loss of $30 million in the prior-year quarter. Substantial improvement in refining margins drove the impressive results. During the quarter, the company's refining utilization was 94% and clean product yield was 84%.[263] Phillips said its realized refining margin was $10.89 a barrel and that a record 95 percent of its crude slate came from so-called advantaged U.S. crudes. "Our operations ran well during the third quarter, capturing strong margins in our refining and marketing businesses," said Garland.[264]

The Midstream segment generated adjusted quarterly earnings of $115 million compared with $147 million in the year-ago comparable quarter. The Chemicals segment generated adjusted earnings of $299 million compared with $262 million in the year-ago quarter. Earnings in the Marketing and Specialties (M&S) segment were $259 million, up from $255 million in the prior-year comparable quarter. Reduced production costs led to higher global margins which aided the results.[265]

2014 Q2: July 30, 2014: Phillips Falls Short with 10% Drop in Earnings

The Houston Business Journal reported on July 30, 2014 that Phillips fell short of estimates with a nearly 10 percent drop in second-quarter earnings from the same period in 2013 with $863 million in earnings compared to $958 million for the the second quarter of 2013. The company was boosted by its growth in the chemical sector, but its refining revenues dipped noticeably decreasing 14 percent to $390 million partly to weaker refining margins . "Chemicals earnings were driven by strong olefin and polyolefin chain margins," said Garland. "Refining benefited from higher utilization; however, our market capture rate declined."[266][267]

Garland did not elaborate on a recent fire in July at a Chevron Phillips Chemical Company LLC plant in Port Arthur that involved injuries, but he did say the facility should not be shut down for much longer. "There's no reason for that unit to be down for a prolonged period of time," he said.[268]

Phillips also reported growth in its midstream segment growing earnings from $90 million in the April-June quarter of 2013 to $108 million this year. But Jeff Dietert, an analyst with Simmons & Company International, said the results fell short of his projection that the midstream segment would report $150 million in second-quarter profit.[269]

2014 Q1: April 30, 2014: Phillips Meet Expectations with First-Quarter Earnings of $1.6 Billion

The Wall Street Journal reported on April 30, 2014 that Phillips announced first-quarter earnings of $1.6 billion and adjusted earnings of $866 million excluding $706 million primarily related to the realized gain on the Phillips Specialty Products Inc. (PSPI) exchange. This compares with fourth-quarter 2013 earnings of $826 million and adjusted earnings of $808 million. "We delivered a strong quarter, with solid performance and improved margins in our Midstream and Chemicals businesses," said Greg Garland, chairman and CEO of Phillips 66. "Our Refining results were impacted by planned downtime at several of our Gulf Coast and Central Corridor refineries and tightening crude spreads."[270]

Midstream recorded $188 million of earnings during the first quarter of 2014, $67 million higher than the prior quarter. The Chemicals segment reflecting Phillips's equity investment in Chevron Phillips Chemical Company LLC (CPChem) reported first-quarter 2014 Chemicals earnings of$316 million, an increase of $55 million from the prior quarter. Refining earnings were $306 million during the first quarter of 2014, compared with earnings of $418 million during the previous quarter. The decrease was primarily attributed to lower volumes due to planned turnaround and maintenance activities, as well as weaker realized refining margins. Despite higher worldwide market crack spreads, realized margins decreased mostly due to tightening crude spreads, lower clean product realizations and negative inventory impacts.[271]

2013 Year: January 29, 2014: Phillips 2013 Earnings Beat Expectations But Fall Short Of The Prior Year

The Houston Business Journal reported on January 29, 2014 that Phillips reported full-year 2013 earnings of $3.7 billion, or $6.02 per share, and adjusted earnings of $3.6 billion, or $5.89 per share. Analysts had expected full-year earnings of $5.64 per share. In 2012, Phillips 66 had earnings of $4.1 billion, or $6.48 per share, and adjusted earnings of $5.3 billion, or $8.38 per share.[272]

The Refining Business Segment TBD

The Chemical Business Segment TBD

The Midstream Business Segment TBD

2013 Q4: January 29, 2014: Phillips Q4 Earnings Beat Expectations But Fall Short Of The Prior Year

The Houston Business Journal reported on January 29, 2014 that Phillips fourth-quarter earnings beat analysts’ expectations with earnings of $826 million, or $1.37 per share, and adjusted earnings of $808 million, or $1.34 per share. Analysts polled by Thomson Reuters had estimated earnings of $1.10 per share. In the fourth quarter of 2012, Phillips 66 had earnings of $708 million, or $1.11 per share, and adjusted earnings of $1.3 billion, or $2.04 per share.[273]

The Refining Business Segment earnings were up 24 percent to $450 million, but that’s also down 53 percent from adjusted earnings of $960 million in the fourth quarter of 2012. Phillips attributed the drop to lower margins in all regions except the Gulf Coast. "Margins were negatively impacted by weaker worldwide market crack spreads; however, this was partially offset by improved market capture compared with the same period last year," the company said. Marketing and specialties earnings were also down 35 percent to $73 million, due to the sale of its U.K. power generation business and lower marketing margins attributable to rising product prices in the U.S.[274]

The Chemicial Business Segment generated adjusted earnings of $261 million compared with $246 million in the comparable quarter last year. Higher polyethylene margins, equity earnings and ethylene volumes led to the increase. This was partially offset by higher costs and lower benzene margins.[275]

The Midstream Business Segment generated adjusted earnings of $450 million compared with earnings of $960 million in the year-ago quarter. The dismal results can be traced to lower realized refining margins, owing to decline in the average worldwide market crack spread. During the quarter, Phillips 66's refining utilization was at 92% and clean product yield was 84%.[276]

Segmental earnings for Marketing and Specialities were $73 million, down from $113 million from the comparable quarter last year. The decrease was primarily due to the sale of the U.K. power generation business in Jul 2013, and lower marketing margins. This was partially offset by reduced costs and higher volumes.[277]

In the reported quarter, Phillips 66 generated $865 million of cash from operations. It also returned $876 million of capital to shareholders. Of this, $232 million was disbursed as dividends while $644 million was used to repurchase 9.9 million shares of common stock.[278]

2013 Q3: October 30, 2013:Phillips Profits are Down in Third Quarter Due to Refining Losses

Olivia Pulsinelli reported in the Houston Business Journal that Phillips' earnings for the third quarter were $535 million, or 87 cents per share, compared to $1.6 billion, or $2.51 per share, a year earlier. Analysts polled by Thomson Reuters had expected a profit of 94 cents per share. Although the company’s midstream, chemicals, and marketing and specialties businesses were up compared to last year, the refining business posted a $2 million loss. "We ran well during the quarter," said Garland. "Weaker refining margins had a significant impact on our earnings. Chemicals posted strong earnings as a result of solid utilization rates and good margins."[279]

2013 Q2: July 31, 2013: Phillips Earnings Disappoint with 19% Drop in Earnings for 2nd Quarter

FuelFix reported on July 131, 2013 that Phillips underperformed in the second quarter as its earnings dropped 19 percent because of higher costs for oil and outages that shut down key facilities. “We should have run better and our earnings results reflect this,” said Garland. Phillips 66′s adjusted earnings per share of about $1.50 was well below analyst expectations of about $1. 81 for that figure.[280]

Garland cited two reasons for the disappointing earnings. First, Phillips' extended downtime at its facilities, including a refinery and a chemical plant, contributed to $175 million in lost profit. One of the outages, an extended maintenance period at a chemical plant in Port Arthur, lasted for 91 days, the duration of an entire quarter of the year. Second, higher domestic oil prices pushed down profits as the gap between the price of West Texas Intermediate, a benchmark for domestic crude, and Brent, a measure of international oil prices, narrowed substantially during the second quarter. That trend is expected to continue through the remainder of the year, with Brent currently around $107 and WTI at about $105. U.S. refiners had previously enjoyed a huge advantage over their foreign competitors because WTI prices were as much as $20 lower than Brent prices , with some U.S. crudes priced far lower because there was limited access to foreign markets.[281]

2013 Q1: May 1, 2013: Phillips' Profit in 1st Quarter Doubles from Previous Year to $2.23 per Share

Bloomberg reported on May 1, 2013 that Phillips net income for the 1st quarter rose to $1.41 billion, or $2.23 a share, from $636 million, or $1, a year earlier as the margin between oil costs and fuel prices widened and its chemical business improved. Greg Garland has said he’s focused on chemicals, pipelines and natural gas processing to reduce the volatility that comes with refining earnings. “This company is a different animal because the growth opportunities are not on the refining side of the business,” said Fadel Gheit, an analyst at Oppenheimer & Co. Refining profits rose as the margin between the cost of West Texas Intermediate oil and the price at which refiners sell fuel rose 20 percent to an average of $32.689 a barrel in the January-to-March period, according to data compiled by Bloomberg.[282]

Phillips 66 has been working to increase its use of relatively cheap crude by building rail capacity at its plants and buying rail cars to help bring crude from shale formations not yet reached by pipelines and the company has been inching toward the goal of processing only discounted crudes extracted in North America, a target they expect the company to hit within the next few years. "Certainly its an aspiration, but it is concrete and achievable," said Tim Taylor, executive vice president for commercial, transportation, business development and marketing. Phillips 66 said it boosted the share of discounted crude produced in the U.S. and Canada that its refineries process to 68% of its feedstock, up from 60% last year and during the quarter, it processed 221,000 barrels per day of crude from the Eagle Ford, Bakken and Mississippi Lime formations, up 120,000 barrels per day over last year's first quarter.[283]

2012 Q4: January 31, 2013: Phillips 66 Adjusted Profit Beats 4th Quarter Estimates But Gross Profits Down 65% When Including Impairment Charge

Bloomberg reported on January 31, 2013 that Phillips beat fourth-quarter profit estimates by 37 cents more than the $1.69 average of 16 analysts' estimates compiled by Bloomberg. Adjusted earnings for the quarter were $1.31 billion or $2.06 per share, compared to adjusted earnings of $379 million or $0.60 per share in the same period last year. However these adjusted profit figures exclude a writedown of the value of the company's interest in a plant in Malaysia of $2.06 a share. If the writedown is included, then the company reported a 65 percent decline in profit for the fourth quarter from last year as an impairment charge more than offset higher refining and chemical margins.[284][285]

The company has rallied along with other U.S. refiners by boosting access to a growing supply of domestic crude that has become cheaper than overseas oil. U.S. refiners in some regions paid an average of $17.48 less for every barrel they processed compared to the global benchmark oil price, according to data compiled by Bloomberg. "They're taking advantage of the God-given gift of very wide crude discounts and cheap natural gas," Fadel Gheit, a New York-based analyst with Oppenheimer & Co., said in a telephone interview. "They are putting the money to good use, and it's reflected in the stock price."[286]

2012 Q3: October 31, 2012: Phillips 66 Beats Analyst Expectations with 3rd Quarter Profits of $1.6 billion or $2.51 per share

Reuters reported on October 31, 2012 that Phillips announced 3rd quarters profits of $1.6 billion or $2.51 per share, compared with $1 billion or $1.65 per share a year earlier. Analysts on average had expected a profit of $2.35 per share, according to Thomson Reuters I/B/E/S.[287]

Increased access to cheaper crude oil from the United States and Canada boosted Phillips 66's quarterly profits above analyst expectations with more than half of the company's refining capacity in the central corridor of the U.S. with access to cheaper crudes in North Dakota, Texas, Kansas and other states, executives told analysts during Phillips 66's third-quarter earnings conference call. "Our U.S. advantaged crudes increased from 52 percent last year to 61 percent to date in 2012," Chief Financial Officer Greg Maxwell said.[288]

October 10, 2012: Phillips 66 to Announce Third-Quarter Financial Results on October 31

Phillips announced on October 10, 2012 that the company will release its third-quarter financial results on October 31, 2012 and host a conference call to discuss the company’s third-quarter performance and provide an update on strategic initiatives.[289]

2012 Q2: August 1, 2012: Phillips announces Profits up 14% in Second-Quarter Earnings Call

Reuters reported on August 2, 2012 that Phillips 66 posted a 14 percent jump in second-quarter profit with a net income of $1.18 billion, or $1.86 per share, up from $1.04 billion, or $1.64 per share, a year earlier. Chief Financial Officer Greg Maxwell told analysts the company's capital expenditures for 2012 would range between $1 billion and $1.5 billion. Phillips 66 said it would retain its 247,000 barrel-per-day Alliance plant in Belle Chasse, Louisiana, because it expects increased access to cut-price light sweet crude to run there. Garland said Phillips 66 "really likes" its Midwest and Gulf Coast refineries, which have easier access to cheaper Canadian and inland U.S. crudes. "The East and West Coast refineries are challenged refineries, and we think there are opportunities to improve them," Garland told Reuters in a post-call interview. Phillips 66 plans to buy 2,000 railcars to move cheap crude from North Dakota's Bakken shale play to the Bayway plant and its 100,000 bpd plant in Ferndale, Washington. Bayway already runs 10,000 to 20,000 bpd of Bakken crude. Garland said the Bayway Refinery and Ferndale Refinery were "absolutely" more likely to stay in the company's portfolio if Phillips 66 can increase the amount of Bakken crude they run, backing out other more expensive crudes. Bayway can run up to 100,000 bpd of light crude, while Ferndale can run 50,000 and Phillips plans to rail Bakken crude to both plants. Phillips is working to run more shale crude from the Mississippi Lime play in Oklahoma and Kansas at its 198,400 bpd refinery in Ponca City, Oklahoma by trucking crude from the company's existing gathering systems. Garland says that the company is not planning potential acquisitions -- refineries or other assets -- at this time. "There's nothing really interesting to us at this time," says Garland.[290]

Plan to Get Advantaged Crudes to Every Refinery

Garland said that Phillips wants to move the shale crudes from 120,000 to ultimately 450,000 to 460,000 barrels a day. "We are trying to get those crudes to every refinery we can. But clearly to Ferndale on the West Coast to Bayway on the East Coast, we think Ferndale can probably run 50,000 barrels a day of Bakken crude. Wood River, we can run up to 90,000 to 120,000 barrels a day of shale type crudes there. Ponca about 60,000 barrels a day. Bayway, 100,000 barrels a day of shale type crudes that we can advantage, that we can move into Bayway. Smaller Rodeo we can get at 30,000 barrels a day and Sweeny about 40,000 barrels a day. And then Alliance, we are running today Eagle Ford crude and some Bakken crude in Alliance, but ultimately 50,000 to 90,000 barrels a day. So we have a plan to get advantaged crude into most of our refineries."[291]

June 28, 2012: Phillips 66 to Hold First Earnings Call on August 1

Phillips 66 issued a press release on June 28, 2012 announcing that Phillips will issue its second-quarter earnings report on August 1 and Greg Garland and Executive Vice President and Chief Financial Officer Greg G. Maxwell will host a webcast to discuss the company’s second-quarter performance and provide an update on how the company is delivering on its strategy.[292]

Investor Conferences

September 4, 2014: Phillips Presents at Barclay CEO Energy-Power Conference

Greg Garland made a presentation to analysts at the Barclay CEO Energy-Power Conference on September 3, 2014. "So here is our strategy, growth, returns, distributions. We have an unyielding commitment to operational excellence, which for us is personal safety, process safety, environmental excellence reliability, cost management and a commitment to have a high performing organization. So right people, at the right place, at the right time to execute the plan, and having people that know how to win and are committed to differentiating shareholder value. So that's kind of the strategy."[293]

"As we look at our refining business, it's run well, it's optimized, it's minimized capital investments. We won't invest in advantaged crude at the front end, exports on the backend, yield capture, energy efficiency, but really very disciplined capital investment in our refining business. Midstream business, aggressive growth and we'll go through that today as we move into the presentation. Chemicals, aggressive growth; selective growth in our marketing and specialties businesses. We're executing well. We've identified lot of growth opportunities in the company, we'll talk about today. A lot of them around midstream and logistics, ultimately destined for our master limited partnership. We've raised the dividend 28% in May and June. The board approved additional $2 billion share repurchase, so we're at $7 billion total authorization on share repurchases."[294]

May 21, 2014: Phillips 66 presents at UBS Global Oil & Gas Conference

TBD

April 10, 2014: Phillips Presents at Phillips 66 Analyst Meeting

Phillips reported that Greg Garland, Clayton Reasor, Tim Taylor, and Greg Maxwell presented at an Analyst Meeting on April 10, 2014. "Part of our vision is to double the enterprise value of our Company based upon its historical implied value, said Garland. "We were thoughtful, we are very purposeful in how we structured Phillips 66 from the very beginning and the assets that went into the Company. We believe that our four main business segments are more valuable together than they would be separated, and we do test that continually. We think that we access lower cost of capital. We think that, looking across the value chain, that we can optimize. We can direct capital to its highest and most best use. And then finally, we can grow quicker."[295]

March 6, 2014: Phillips 66 presents at Bank of America Merrill Lynch 2014 Refining Conference

Phillips reported that Clayton Reasor and Greg Maxwell presented at Bank of America Merrill Lynch 2014 Refining Conference on March 6, 2014. "We’ve got two very good refineries on the West Coast – one in San Francisco, one in L.A. – about 230,000 barrels a day of total capacity, 110,000 barrels a day of coking capacity. They are positive cash flow, they are positive net income," said Reasor. "Capital requirements aren’t that significant. So those refineries are well positioned, but they’re generating single-digit returns and struggle as far as attracting capital. We’ve talked about how to improve performance in California, and for us, it’s around increasing the amount of advantaged crude, so how do we find ways of getting Canadian crude into California? We’re in the comment period right now at Santa Maria, a 30,000 or 35,000-barrel-a-day unit train rail unloading facility, and hopefully that will be permitted. We’re also looking at other things in California to improve the performances of those businesses. But for us, we believe California will struggle being competitive in the export market, given the costs there and the lack of advantaged crudes, and longer term, we look at California and wonder if it’s something that we need to continue to own in order to grow our chemicals industry business."[296]

February 12, 2014: Phillips presents at Credit Suisse Energy Summit

Phillips reported that Greg Garland Clayton Reasor presented at the Credit Suisse Energy Summit on February 12, 2014. Garland told security analysts that the Refining Business Segment is always is going to be a very volatile business for Phillips. "We don't see that changing in the future. I think small changes in operating rates in infrastructure are going to create dislocations. I think having a large system like we have, having a very sophisticated and large commercial organization like we have, we're going to be able to take advantage of those opportunities that come our way."[297]

August 29, 2013: Phillips presents at Barclays CEO Energy-Power Conference

Phillips reported that Greg Garland presented at Barclays CEO Energy-Power Conference on August 29, 2013. "It's going to be an energy century as you think about it; it's going to be a century of opportunity," said Garland. "We're very optimistic about the growth in U.S. manufacturing as people see $3.50 natural gas; they're looking at 8% unemployment. They see the investment that the industry is making in infrastructure and petrochemical facilities and etc. And we think at Phillips 66 we're extremely well-positioned to play our part in this changing American energy landscape and that we can be one of the premier companies in this space in terms of creating jobs, capturing value, providing energy and improving lives."[298]

May 21, 2013: Phillips Presents at UBS Global Oil & Gas Conference

Phillips reported that Greg Maxwell presented at the UBS Global Oil & Gas Conference on May 21, 2013. "We can run some lights in San Francisco. As far as working towards getting advantaged crudes into that, we're looking at options to take down via pipeline -- I mean via rail cars, and then also going over to the waterfront and barging down into those refineries," said Maxwell. "With regard to San Francisco and LA, land is expensive and short to come by. We have to do some permitting. And then also, bringing it in via tankers, we have to get some permitting as well. So all that's underway."[299]

May 15, 2013: Phillips Presents at the Citi Global Energy and Utilities Conference

Phillips reported that Tim Taylor and Greg Maxwell presented at the Citi Global Energy and Utilities Conference on May 15, 2013. "Rail for us is a relatively minor percentage of our total movement, and so we look at rail as a mobile pipeline," said Taylor at the conference. "And clearly today some of the northern plays are more oriented toward rail versus the access that you have by pipe in the southern part of the U.S. So I see rail as playing a role, but we still like pipelines. It’s more economical. But there is a lot of flexibility in rail, so I think rail continues to be a piece, but it’s not going to become the dominant mode or the primary focus."[300]

March 18, 2013: Phillips Presents at the Howard Weil 41st Annual Energy Conference

Phillips reported that they presented at the Howard Weil 41st Annual Energy Conference on March 18, 2013.[301]

February 28, 2013: Phillips to Present at Bank of America Merrill Lynch 2013 Refining Conference on March 7

The Fort Mills Times reports that Larry Ziemba, executive vice president, Refining, Project Development and Procurement of Phillips 66 will speak at the Bank of America Merrill Lynch 2013 Refining Conference in New York on Thursday, March 7 to discuss the company’s plans to enhance refining returns, as well as its overall strategy for growth and value creation.[302]

February 5, 2013: Taylor Tells Credit Suisse Energy Summit That Canadian Crude is Being Transported to California Refineries

Reuters reported on February 5, 201 that Tim Taylor, Phillips executive vice president for commercial, marketing, transportation and business development, told the Credit Suisse energy conference that Phillips has begun moving cut-price Canadian crude to its California refineries at Los Angeles and San Francisco via rail. "We're beginning to deliver Canadian crude to our California refineries by rail," said Taylor. Garland told Reuters on January 30, 2013 that Phillips was looking at coiled tube cars that are suited to bitumen in Canada's heavy oil deposits that must be heated in order to flow.[303]

January 22, 2013: Phillips 66 to Present at Credit Suisse Energy Summit on February 5, 2013

Daily Finance reported on January 22, 2013 that Tim Taylor, executive vice president, Commercial, Marketing, Transportation and Business Development of Phillips 66 will speak to investors and securities analysts at the Credit Suisse Energy Summit in Vail, Colo. on February 5, 2013 to discuss the company's strategy to enhance refining returns, grow midstream infrastructure and chemicals capacity, and increase distributions to shareholders.[304]

December 13, 2012: Phillips Announces 2013 Capital Program at Inaugural Analyst Meeting

Phillips reported on Decmeber 13, 2012 that they had hosted their inaugural Analyst Meeting in New York to discuss their capital program of $3.7 billion for 2013, a 6 percent increase over the $3.5 billion capital spend for 2012, and how it will to enhance returns, deliver profitable growth and increase distributions to shareholders.[305]

November 27, 2012: Greg Garland to Host Inaugural Analyst Meeting on December 13

Marketwatch reported on November 27, 2012 that Greg Garland and other executives at Phillip 66 will discuss the company's strategic objectives, including its plans to enhance returns, grow profitably and increase shareholder distributions at an Inaugural Analyst Meeting in New York on December 13, 2012.

November 13, 2012: Tim Taylor Presents at Bank of America Merrill Lynch 2012 Global Energy Conference

4-traders reported on November 5, 2013 that Tim G. Taylor, executive vice president, Commercial, Marketing, Transportation and Business Development of Phillips 66 spoke to investors and securities analysts at the Bank of America Merrill Lynch 2012 Global Energy Conference in Miami, Fla. on November 13, 2012 with an overview of the company and its strategic initiatives.[306]

September 5, 2012: Garland Speaks at Barclays CEO Energy-Power Conference

Phillips 66 reported that Phillips CEO Greg C. Garland spoke to investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 to discuss Phillips 66's business portfolio and provide an update on the company's strategic progress.[307]

August 22, 2012: Garland to Speak at Barclays CEO Energy-Power Conference on September 5

Marketwatch reported on August 22, 2012 that Phillips CEO Greg C. Garland will speak to investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 20120 to discuss Phillips 66's business portfolio and provide an update on the company's strategic progress.[308]

June 5, 2012: Garland Presents Phillips Strategy for Growth to the Citi Global Energy Conference

On June 5, 2012 Phillips CEO Greg Garland presented to the Citi Global Energy Conference and said Phillips has a clear strategy for growth and improving returns.[309]

Refining and Marketing Strategy

Garland said Phillips is kind of an average performer in terms of returns on Refining and Marketing with a 12% ROCE in this business, but the expectation is thatthis can be improved to a 15% ROCE business over the cycle. "The R&M business for us is a run well, optimized business. You won’t see us adding capacity. You will see us investing around the infrastructure to put more advantaged crude to the front end of the refineries and to be able to export."[310]

There is another way Phillips would like to improve returns in the refining business and that is by getting advantaged crude to the front end of the refineries. "Today we can process about 500,000 barrels a day of TI-related and about 100,000 barrels a day of shalerelated crudes. If you think about the mid-con, we think there’s about 2 million barrels a day of new light sweet crude coming on in the central part of the US. Then you’ve got another couple million barrels a day of the Canadian heavy that’s ultimately going to make its way down through the midcontinent and ultimately, we believe to the Gulf Coast. And so every dollar that we can capture across our system is worth about $500 million of net income to us." So Phillips is going to go around pipelines and is considering buying a couple thousand more rail cars to get Bakken crude either east and west. "We’re running about 100,000 barrels a day of these shales today and we think we can easily in the next year or two move another 120-150,000 barrels a day of incremental crude through rail. Plus as these pipeline solutions become more available and ready, we’ll capture those opportunities. But ultimately, we can process about 500,000 barrels a day of these shale-type crudes."[311]

Phillips also wants to increase yields in the refineries. "Every one percent clean product yield is worth somewhere between $100 to $150 million of net income. For every one percent diesel yield, we can increase, in today’s market is the capture of about $60 million in net income. In the first quarter we ran about 41% diesel, which is really the highest of the peer group if you look out there. And so we’re pretty comfortable that we can continue to tweak the operations in refineries and to eke out a couple more percentage points in clean product yields and continue to push our diesel yields up without significant investment at this point in time.[312]

When asked a question about rationalizing refining capacity by closing down plants Garland said it is difficult to shut refineries down. "Mostly because you think about the environmental liabilities that have accrued over the years. So it takes a lot of money to actually exit one of these facilities. And so that’s what you see people convert them to other uses, terminals, etcetera. So they tend to find another life in some shape or form to avoid the remediation that comes along with completely clearing, closing, shutting down and remediating the whole facility."[313]

Midstream Strategy

Garland said there are s large opportunities in terms of midstream investment in gas gathering and processing, NGL fractionation, and distribution and that Phillips has a a very aggressive investment profile in the midstream space. "We have about $7 billion of projects identified, underway in this space and so you think at the DCP JV level spending kind of $500 million a year, historical capex, we’re moving that up to about $2 billion a year," said Garland. "We also have our own embedded midstream business within Phillips 66. It’s primarily pipelines and ownership in fractionators at Conway, Borger, and Belvieu. Good business generates good returns for us in a growth area for us and we would consider growth in this area around fractionation, around LPG exports."[314]

Chemical Strategy

Garland says the NGLs that are coming on over the next 10 years are going to be feedstocks for the petrochemicals business and that the Joint Venture with Chevron is well positioned for that.[315]

June 5, 2012: Garland Presents to Investors at Citi Global Energy Conference

On May 29, 2012 Phillips 66 announced that CEO Greg Garland will speak to investors and securities analysts on June 5, 2012 at the 2012 Citi Global Energy Conference partipating n a roundtable discussion, providing a brief company overview and engaging in Q&A with investors.[316]

May 24, 2012: Clayton Reasor Presents to UBS Global Oil and Gas Conference

On May 17, 2012 Phillips 66 announced that Clayton Reasor, Phillips 66 senior vice president for Investor Relations, Strategy and Corporate Affairs, will speak to investors and securities analysts on May 24, 2012 at the UBS Global Oil and Gas Conference in Austin, Texas about Phillips 66's strategic priorities, including plans for growth and returns enhancement.[317]

Other Investor News

July 23, 2013: Phillips 66 Partners raises $377.8 million in IPO

Businessweek reported on July 23, 2013 that Phillips 66 Partners LP raised $377.8 million from its initial public offering of stock. 16.4 million shares sold at at $23 up from 15 million shares the partnership had expected to sell for $19 to $21 each. The banks managing the deal may buy another 2.5 million shares if there's demand for them and if they do, the public will own about 26 percent of Phillips 66 Partners. Phillips 66 will own the rest of it. The shares are expected to start trading on the New York Stock Exchange Tuesday under the "PSXP" ticker symbol.[318]

July 15, 2013: Phillips 66 Partners Plans $315 million IPO

Fox Business reported on July 15, 2013 that Phillips 66 Partners plans an initial public offering will likely total as much as $315 million that will include certain pipeline, terminal and storage systems—used for crude oil and refined petroleum product—in the Central and Gulf Coast regions. The IPO of approximately 15 million shares is expected to price in a range of $19 to $21 a share, according to a filing with the Securities and Exchange Commission.[319]

March 27, 2013: Phillips 66 Midstream Vehicle Registers for $300 million IPO

Reuters reported on March 27, 2013 that Phillips has registered for an initial public offering of units in a midstream partnership that would raise $300 million and will trade on the New York Stock Exchange under the "PSXP" ticker symbol. The IPO is expected to include the Clifton Ridge oil pipeline and storage system in Louisiana and refined product pipelines and storage in Texas and Illinois: Sweeny-Pasadena and Hartford Connector, respectively.[320]

July 3, 2012: Phillips Recommends Stockholders Reject TRC Mini-Tender Offer

CSP Net reported on July 3, 2012 that Phillips 66 Co. has recommended that shareholders not tender their shares in response to an unsolicited mini-tender offer that TRC Capital Corp. TRC is offering to purchase up to three million shares, or less than 0.48% of Phillips 66's outstanding common stock at an offer price of $31.30 per share represents a 4.78% discount to the Phillips 66 closing share price on June 25, 2012, the day prior to the commencement of TRC's mini-tender offer. "Phillips 66 strongly recommends investors obtain current market quotes for their shares of common stock and consult with their financial advisors with respect to TRC's offer," the company said. "The company does not endorse and is not associated with TRC's unsolicited mini-tender offer."[321]

June 7, 2012: Garland says Phillips Deserves a Higher P/E

On June 7, 2012 Barrons reported that Greg Garland said that Phillips is a lot more than just an oil refiner and deserves a higher price/earnings multiple than the paltry P/E ratio that refiners now garner. "We don't want the Street to just give us a refining multiple," Garland said in an interview in New York. Philips shares, at around 32, trade for less than seven times projected-2012 profits of $4.90 a share and yield 2.5% based on the company's targeted quarterly dividend of 20 cents that is set to begin in the third quarter. Garland says that Phillips has gotten about 60% of its profits on average over the past three years from higher-return businesses, principally chemicals and so-called midstream assets, including pipelines and processing facilities that handle natural-gas liquids. The chemical and midstream operations generate 20%-plus returns on capital and offer significant reinvestment opportunities.[322]

May 2, 2012: Phillips Rings Wall Street's Opening Bell

On May 2, 2012, executives and employees from Phillips 66 celebrated the company's first week of regular trading on the New York Stock Exchange by ringing the opening bell. Chairman and Chief Executive Officer Greg C. Garland led the delegation, which included employees from its Houston Headquarters and Bayway Refinery in Linden, N.J.[323]

April 23, 2012: Phillips to Join S&P 500

It was announced on April 23, 2010 that Phillips 66 will join the the S&P 500.[324]

April 17, 2012: Howard Thill says Phillips Will Have Increased Flexibility

On April 17, 2012 Howard Thill, Marathon Oil’s vice president of investor relations and public affairs, spoke about the ConocPhillips split at Oklahoma State University’s energy conference in Oklahoma City. “It’s about enhanced flexibility — the ability to focus on an individual asset or set of assets,” Thill said. “When you have a very large conglomerate, it’s very difficult to be able to generate enough information at a low enough level to give investors that transparency into the business,” Thill said. “Independent refiners and independent exploration and production companies disclose much more information about their companies than a major integrated because from a major integrated standpoint, the scale is so large that it just doesn’t make a difference in that respect.”[325]

April 4, 2012: ConocoPhillips Board of Directors Votes to Create Two New Companies

On April 4, 2012 ConocoPhillips' board of directors announced that two new companies will be separated through the distribution of shares of Phillips 66 to holders of ConocoPhillips common stock. This distribution is expected to occur after market close on April 30, 2012. ConocoPhillips shareholders will receive one share of Phillips 66 common stock for every two shares of ConocoPhillips common stock held at the close of business on the record date of April 16, 2012.[326]

Operational Excellence

OSHA recordable rates are standard industrial safety performance measures that represent health and safety incidents per 200,000 work hours, a unit of measure chosen by the agency because it approximates the annual work of 100 employees. Lost-time incidents are those injuries or occupational illnesses that result in time away from work.[327]

Greg Garland told financial analysts on April 9, 2012 that operational excellence would be a focus at Phillips 66 and part of his strategy to grow the company. "We'll always focus on operational excellence. We'll focus on building a great organization to execute our plans."[328][329][330]

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that Phillips 66 has a long legacy of being good operators and of operational excellence. "I have a real passion for this. It's the foundation that provides the opportunity to create sustainable value growth. I'm proud of our progress here. We have more work to do."[331]

In mid 2012, Phillips 66 rolled out its five-point strategy to its employees and Tim Taylor and other senior leaders of the company have hosted dozens of town-hall meetings to convey the strategy to workers across all levels of the organization. "Taylor approaches each town-hall gathering in three steps," wrote Morey Stettner in Investor's Business Daily on June 21, 2013. "If it's held at a refinery, he begins by huddling with the site managers to review operating metrics such as safety performance. He applies 'operational excellence' principles that encourage continuous improvement. Second, he visits control rooms to get an overview of the operation. Chatting with employees, he learns about different aspects of their job and the challenges they face. Finally, he hosts town halls. Between 100 and 200 employees usually attend. After Taylor's opening remarks, he engages in a lively Q&A." Taylor and other top executives at Phillips 66 use cross-functional teams to generate ideas. For example, an internal group of 10 to 15 crude oil buyers, logistics experts, refinery technicians, salespeople and others proposed that the company use railcars to transport oil. Thanks to the team's analysis, the company announced in June 2012 that it would buy up to 2,000 railroad tank cars to ship oil from inland shale fields to coastal refineries. One year later, the use of rail is already proving a winner in helping Phillips 66 boost results. "We were an early mover in rail and I'm proud (our team) came up with that," Taylor said. "Without them, we would not have made progress as rapidly as we have."[332]

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Operational Excellence is job one for Phillips. "We have to get this done right. We believe that we protect and enhance shareholder value when we do this well. When we send every employee home safely every day without getting hurt, when we operate the processes in control, when we operate them reliably, when we reduce our environmental footprint and we manage our costs well, we create value for the owners of our Company."[333]

Components of Operational Excellence

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that operational excellence is holistic in our view and includes personal safety, process safety, environmental excellence, reliability, and cost management. "It's all those elements wrapped together."[334]

Personal Safety, Process Safety, and Environment

Reliability

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that reliability has improved over the past couple of years. "We operate above industry average rates."[335]

Cost Management

Greg Garland told investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 that part of Phillips' heritage is stringent, prudent, detailed cost management. "We have all grown up in commodity businesses. We understand the importance of cost, cost structure, and managing those costs every day."[336]

August 1, 2012: Plan to Reduce Controllable Cost by 5% with Optimize 66 Program

Phillips was asked by Paul Sankey of Deutsche Bank during their second-quarters earnings report on August 1, 2012 about the $4 billion of controllable costs and if Phillips had set a target for a 5% reduction in controllable costs for around $200 million of savings. "Yes. Controllable cost, we put a number out there $200 million. We think it is a good number," said Garland. "I frankly think we will do better than that. We tend to always exceed. We have got a program we call Optimize 66 that we are working across this budgeting process, which we are in the middle of now. And people are looking at all avenues to improve efficiency and reduce costs. And, frankly, [the boys] have come up with some great ideas from their early work that I have seen. So I think that the $200 million is a good number for a target."[337]

Safety and Environment

Employee Deaths and Injuries at Borger Refinery: Phillips had three employee injuries in the Hydrofluric Acid Unit in March 2014 at Borger Refinery, an employee fatality in May 2012, and 2 dead workers and 11 injured in October 1979 as a result of what OSHA called "willful and serious safety violations." Borger Refinery Photo by: Philip Klein All Rights Reserved. Photo used with permission of the photographer

Phillips Recent Safety and Environmental Issues

July 19, 2016: Phillips Reduces FCCU Feed after Compressor Trip at Sweeny Refinery

Phillips operators reported that a compressor at its Sweeny, Texas refinery tripped offline at 12:51 a.m. CDT Tuesday due to a false high level in the steam knock out drum, which resulted in emissions from the coker flare and Unit 3 fluid catalytic cracking unit (FCCU), according to a filing with state regulators. [338]

July 18, 2016: FCCU Running at Reduced Rates Due to Cooling Issues at Phillips 66’s Wood River Refinery

Phillips reduced rates on a 48,000 b/d fluid catalytic cracking unit (FCCU) at its Wood River refinery on Monday due to cooling issues, according to a source familiar with the plant’s operations. The source described the production cuts as “modest,” but did not give a specific figure. The refinery has a second FCCU, which has a capacity of 42,000 b/d and is unaffected, the source said. [339]

July 14, 2016: A Catastrophic Oil Train Derailment in Oregon Raises Fears of Phillips 66's Rail Spur Proposal on California's Central Coast

The Los Angeles Times reported on July 14, 2016 in a major story by Robin Abcarian titled "A catastrophic oil train derailment in Oregon raises fears on Central Coast" that Alene Burns, mayor of Mosier, Oregon, spoke to activists in San Luis Obispo about hat happened when a mile-long train loaded with crude oil derailed in Mosier in June 16, 2016.

Sixteen of 96 cars toppled from the tracks. Four exploded. The area, a windsurfing mecca known for its constant high winds, was spared more explosions only because the air was unusually still that day. “If it had been a normal, windy day,” Burns said, “the explosions would have had a domino effect.” Still, a monstrous plume of black smoke could be seen for miles. About 200 yards away, 225 schoolchildren were evacuated and began their summer vacation a week early. Their school was quickly converted to an incident command center. Twenty-three miles of I-84, which runs along the southern edge of the Columbia River, was closed, blocking access to Mosier. “Guess who couldn’t help us?” Burns said. “The first responders. They were stuck in gridlock traffic.” The Mosier fire burned for 15 hours. No one was hurt, but the town’s sewage treatment plant was inundated with 10,000 of the 42,000 gallons of spilled Bakken crude oil — a volatile, highly flammable mix. For days, toilets didn’t flush and showers didn’t work.

According to Abcarian, supervisors in counties up and down the state have officially opposed Phillips 66's Rail Spur Project to the Santa Maria Refinery. So have at least 22 city councils, from Berkeley to Los Angeles. The crude oil boom in places like North Dakota has lead to a significant increase in the number of such trains, along with a significant increase in derailments. Most people don’t want potentially explosive cargo barreling through their community. "As long as we depend so heavily on oil, we will have these battles. It makes economic sense for oil companies like Phillips to fight on," writes Abcarian. "But I take what Mayor Burns said to heart. Oil trains will derail. They are disasters waiting to happen. San Luis Obispo County supervisors are in a unique position to help protect every Californian who lives within a mile of Union Pacific’s tracks, often called “the blast zone.”"[340]

July 12, 2016: Phillips Reports Process Upset at Santa Maria Upgrading Facility

Phillips reported a process upset that caused a 23 minute flaring event at its Santa Maria upgrading facility in Arroyo Grande, California, according to a filing with the California Emergency Management Agency. Phillips 66 said the facility returned to normal operations. [341]

July 9, 2016: Activists Rally Against Phillips 66's Santa Maria Rail Spur Proposal

Phillips 66 Santa Maria Refiney project protest in San Luis Obispo, July 11, 2015. More than 150 activists gathered for a rally at Mitchell Park in downtown San Luis Obispo to protest a proposed Phillips 66 rail spur that would add five tracks and allow crude oil to be hauled to their Santa Maria Refinery. The rally commemorated the three-year anniversary of a derailment near Lac-Mégantic, Quebec where a stopped train hauling 72 crude oil tank cars rolled downhill and derailed near the center of town. Forty-seven people were killed in ensuing explosions and fires. Flickr Creative Commons "Phillips 66 Santa Maria Refiney project protest, July 11, 2015" Photo: Stand.Earth Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0)

The San Luis Obispo Tribune reported on July 9, 2016 that more than 150 activists gathered for a rally at Mitchell Park in downtown San Luis Obispo to protest a proposed Phillips 66 rail spur that would add five tracks and allow crude oil to be hauled to their Santa Maria Refinery. The rally commemorated the three-year anniversary of a derailment near Lac-Mégantic, Quebec where a stopped train hauling 72 crude oil tank cars rolled downhill and derailed near the center of town. Forty-seven people were killed in ensuing explosions and fires.

Mayor Arlene Burns of Mosier, Oregon, spoke at the rally about a fiery oil train derailment near her town in June and urged San Luis Obispo County residents to stop the spur project. Attendees then marched to the nearby Amtrak station, many waving yellow “Stop Oil Trains Now” signs. The June 3 incident in the Columbia River Gorge near Mosier was caused by broken track bolts that derailed a train hauling more than 90 tank cars of crude oil. Some of the cars leaked oil and caught on fire, prompting Mosier, a tiny town of about 430, to evacuate its schools and many residents. “Trains derail,” said Burns. “It’s not a matter of if, it’s a matter of when.”[342]

July 8, 2016: Opponents of Phillips 66 Santa Maria Rail Spur to Stage Protest Rally in San Luis Obispo

The Santa Maria Times reported on July 8, 2016 that opponents of Phillips 66's plan to bring oil trains to Santa Maria Refinery will gather for a "Stop the Oil Trains Rally" on July 9, 2016 at Mitchell Park in downtown San Luis Obispo. Guest speakers at the rally will include Arlene Burns, mayor of Mosier, Oregon, who will talk about her experiences being a part of a blast zone after a Union Pacific Railroad train, towing cars filled with crude oil, derailed and exploded near her community early last month, according to organizers. Fourteen cars were involved in the June 4 Columbia River Gorge accident, causing the evacuation of schools in Mosier and the shutdown of Interstate 84 between Hood River and The Dalles. Organizers plan to lead a peaceful march at 1:15 p.m. from the park to the nearby Amtrak station, where additional speakers will address the crowd.[343]

July 5, 2016: Phillips Reports FCCU Work at Sweeny Refinery

Phillips reported work on the fluid catalytic cracking unit (FCCU) at its Sweeny, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. [344]

June 29, 2016: Boilermaker Sues Phillips 66 for Negligence at Wood River Refinery

The Madison Record reported on June 29, 2016 that James Mason filed a lawsuit June 22 in Madison County Circuit Court against Phillips 66 Company, ConocoPhillips WRB Partner LLC, Phillips 66 WRB Partners Holdings, Cenovus Energy US LLC and WRB Refining LLC, doing business as Conoco Phillips Wood River Refinery, alleging negligence in failing to provide a safe place to work. According to the complaint, on June 23, 2014, while in the course of working as a boilermaker at Conoco Phillips Wood River Refinery, Mason touched a wooden pole on which certain electrical equipment existed, causing him to be electrocuted and suffer serious injuries. The plaintiff alleges the defendants failed to keep the area in safe and proper condition to prevent electric shock, failed to repair electric equipment near the wooden pole and failed to ground the wooden pole to prevent shock.[345]

June 28, 2016: Phillips Shuts, Restarts RTO at Sweeny Refinery

Phillips reported it shut and restarted a regenerative thermal oxidizer (RTO) on June 28. [346]

June 28, 2016: Phillips Reports Process Upset at Rodeo Refinery

Phillips reported flaring from a process upset at its Rodeo, California refinery on June 28, according to a filing with the California Emergency Management Agency. [347]

June 27, 2016: Phillips to Restart Crude Unit at Wood River Refinery within 48 Hours

Phillips plans on restarting a 64,000b/d crude unit at its Wood River, Illinois refinery within the next 48 hours after it was unexpectedly shut down on Monday morning, according to a source familiar with the plant’s operations. [348]

June 21, 2016: Phillips Reports Emissions from Coker Flare at Sweeny Refinery

Phillips reported emissions from the coker flare at its Sweeny, Texas refinery on June 21, according to a filing with the Texas Commission on Environmental Quality.[349]

June 16, 2016: Phillips Reports Emissions at Borger Refinery

Phillips on Thursday said normal operations resumed at its Borger, Texas refinery after an alkylation unit snag on June 15. The company also reported emissions on Wednesday, according to a filing with the Texas Commission on Environment Quality. [350]

June 14, 2016: Phillips Reports Wet Gas Compressor Restart at Borger Refinery

Phillips restarted the wet gas compressor and reported emissions at its Borger, Texas, refinery on Tuesday, according to a filing with the Texas Commission on Environment Quality.[351]

June 12, 2016: Phillips Reports Shutdown in Coker Unit at Wilmington Refinery

Phillips reported a shutdown in a coker unit at its Wilmington, California refinery due to an interruption in the electrical utility, according to a filing with the California Emergency Management Agency. Repairs were in progress and the flaring has been stopped, the filing added. The refinery has two linked facilities about five miles apart in Carson and Wilmington. [352]

June 10, 2016: Phillips 66 to Help Fund $746 Million Superfund Cleanup of Portland Harbor

Environmental Leader reported on June 10, 2016 that the EPA will ask more than 150 companies and other groups to foot the $746 million bill to clean up the Portland Harbor Superfund Site. Of the 150 potentially responsible parties identified by the EPA, 10 have already agreed to help with the cleanup process including Phillips 66. The 10 companies, which call themselves the Lower Willamette Group, include Arkema, Bayer CropScience, BNSF Railway Company, Chevron, Phillips 66, Union Pacific Railway and the city of Portland. The Lower Willamette Group (LWG) is composed of the ten parties who signed agreements with EPA to conduct the remedial investigation and feasibility study of the Site and four other parties who have contributed financially to the project. Lower Willamette Group spokesperson Barbara Smith told Oregon Public Broadcasting that the group is happy to see a cleanup plan for the river.

The pollution at the superfund site stems from a variety of industries, including shipbuilding, wood treatment and lumber milling, storage of bulk fuels and manufactured gas production, chemical manufacturing and storage, municipal sewer overflows and industrial storm water. The EPA says that hazardous substances found at the site include polychlorinated biphenyls (PCBs), polycyclic aromatic hydrocarbons (PAHs), dioxins/furans, pesticides and heavy metals, which can harm people and the environment. At the end of this first seven years, the EPA says health risks from the site’s pollution will drop as much as 100 times below the current levels.[353]

June 3, 2016: Phillips Says Operations at Sweeny Refinery Unaffected by Tank Fires

Phillips said fires in four tanks had no impact on operations at its Sweeny, Texas, refinery on Friday. The fires burned for about three and half hours on Friday morning before being extinguished by refinery personnel. No injuries were reported due to the blazes. [354]

June 3, 2016: Western States Petroleum Association Sues State of California Over Emission Standards at Rodeo Refinery

Courthouse News Service reported on June 3, 2016 that the Western States Petroleum Association, or WSPA, sued the Bay Area Air Quality Management District in Contra Costa Superior Court, claiming the agency acted arbitrarily when it installed new rules aimed at curtailing emissions at five Bay Area refineries by 20 percent. The refineries include Chevron in Richmond, Tesoro outside of Convord, Phillips 66 in Rodeo, Valero in Benicia and Shell in Martinez. WSPA — along with Valero Refining, Tesoro Refining & Marketing and Phillips 66 — say the district did not perform the necessary environmental review, known as a CEQA analysis, when it implemented the new rules. It further asserts the mandate unfairly targets the oil and gas industry as the emissions reduction was not implemented in any other industry. The plaintiffs want the court to order the Bay Area Air Quality Management District to set aside the rules aimed at curtailing emissions at the five locations, as well as an injunction that prohibits the agencies from implementing certain provisions in the future. WSPA says the five refineries that comprise the Contra Costa-Solano refinery belt — the largest in California — account for less than three percent of air pollutants in the area.[355]

June 3, 2016: Small Fire at Phillips 66's Sweeny Refinery

The facts reported on June 3, 2016 that a piece of processing equipment used for maintenance near a storage tank caught fire at Phillip 66's Sweeny Refinery about 4:45 a.m. “It was contained and extinguished by our internal emergency response team,” spokeswoman Regina Slaydon said. “As a precaution, the company gates were temporarily closed to traffic.” There were no injuries and the equipment was the only thing damaged. Employees were able to entinguish the fire themselves.[356]

June 1, 2016: Proposed Carbon Cap Plan Would Affect Phillips 66's Ferndale Refinery

The Bellingham Herald reported on June 1, 2016 that Washington state regulators have unveiled an updated plan to limit greenhouse gas emissions from large polluters, the latest attempt by Gov. Jay Inslee to push ahead with a binding cap on carbon emissions after struggling to win approval from legislators. The rule would initially apply to facilities that release at least 100,000 metric tons of carbon a year including Phillips 66's Ferndale Refinery. Under the proposed rule, expected to be finalized in late summer, large emitters would be required to reduce carbon emissions by about 5 percent every three years, and show they achieved an average reduction of 1.7 percent per year.

Kris Johnson, president of the Association of Washington Business, said his group is still concerned about the potential economic damage from this new regulation. “Placing a cap on carbon emissions that targets Washington’s best employers sends the wrong signal to businesses of all sizes, both those that are here already and those hoping to relocate here, by driving up energy costs for employers and families at a time when we are already beginning to see signs of an economic slowdown,” he said in a statement.

But some critics said the proposed rule doesn’t require enough emissions reductions and disregards current science. “We are extremely disappointed,” said Andrea Rodgers, an attorney representing young activists who sued the state to adopt new rules to limit carbon emissions based on the best-available science.[357]

May 31, 2016: Phillips Does on Due-up Work on FCCU at Borger Refinery

Nasdaq reported on May 31, 2016 that Phillips 66's Borger Refinery is undergoing two weeks of maintenance on equipment related to its gasoline-making uniy. "Unit 40 FCCU [fluid catalytic cracking unit] is scheduled to clean half of the blower surface condenser," it said in a filing with the Texas Commission on Environmental Quality. "Unit 40 FCCU will reduce charge to minimize the possibility of process upset." The FCCU isn't scheduled to shut down during the work, which is due to end June 13, but that it may lead to plant emissions.[358]

May 30, 2016: Phillips Reports Unplanned Flaring, Breakdown at Wilmington Refinery

Phillips reported unplanned flaring due to a breakdown at its Wilmington, California refinery, according to a filing with the South Coast Air Quality Management District. [359]

May 26, 2016: Phillips Reports Equipment Problems at Sweeny Refinery

Nasdaq reported on May 26, 2016 that Phillips 66 reported problems with equipment and emissions at its Sweeny refinery in Texas. "The wastewater plant regenerative thermal oxidizer (RTO) went into standby mode, and the bioreactor tank, Tank 69, vented," it said. "This RTO standby mode is a continuation of operational issues resulting from the May 21, 2016 power failure." Phillips said the emissions began May 24, 2016 and ended May 25, 2016.[360]

May 26, 2016: Phillips Reports Flaring, Process Unit Upset at Wood River Refinery

Phillips reported flaring due to process unit upset at its Wood River, Illinois refinery on May 26, according to a filing with the Illinois Emergency Management Agency.[361]

May 25, 2016: Phillips Reports Emissions at Sweeny Refinery

Phillips reported emissions from a wastewater treatment plant at its Sweeny, Texas refinery on May 25, according to a filing with the Texas Commission on Environmental Quality.[362]

May 22, 2016: Phillips Reports Power Failure Shuts Multiple Units at Sweeny Refinery

Phillips reported multiple units were shut after a third party power outage at its Sweeny, Texas refinery over the weekend, according to a filing with the Texas Commission on Environmental Quality. Work was ongoing to restore the process units to steady rates after power was restored at the refinery, the filing said. A fluid catalytic cracking unit, a gas oil hydrotreater, and two crude units were listed among sources of emissions. [363]

May 19, 2016: Phillips Reports Emissions at Borger, Texas Refinery

Phillips reported emissions from the unit 82 amine treater at its Borger, Texas refinery on May 19, according to a filing with the Texas Commission on Environment Quality.[364]

May 18, 2016: Opponents Vow to Stay in Fight Against Phillips 66 Santa Maria Rail Project

Chris McGuinness wrote in the New Times on May 18, 2016 that feelings ran high at the meeting of the SLO County Planning Commission when commission members moved forward with plans to approve a modified version of the proposed Phillips 66 rail spur project, with members of the audience booing commissioners who expressed their support of the project, and cheering those who did not. Heidi Harmon, a local activist and opponent of the project, said that the commissioners' actions at the meeting may have been disheartening but would also serve to further galvanize those who oppose it. "I think they were disappointed and disgusted, but not discouraged," Harmon said. "I think they were trying to thread the needle," said Laurance Shinderman, a member of the Mesa Refinery Watch Group, an organization that opposes the project. "They bought into Phillips' shell game. ... We were disappointed." Whatever the commission's final decision is, it can still be appealed to the SLO County Board of Supervisors, the California Coastal Commission, and eventually the court system. The project will come back before the Planning Commission Sept. 22, and will include reopening public comment.[365]

May 16, 2016: SLO County Planning Commission Agrees to Move Forward with Phillips 66 Santa Maria Refinery Rail Project

KSBY reported on May 16, 2016 that the San Luis Obispo County Planning Commission agreed to move forward with a proposal to extend a rail spur at the Phillips 66 Santa Maria Refinery. There was a consensus by straw vote to approve the project in the future but no formal vote was put on the record. Many people have expressed concerns over the safety risks associated with the project, which is expected to result in three oil trains traveling into the refinery each week. The commissioners suggested some conditions for the project that will be later formalized. Another Planning Commission meeting is scheduled for September 22, when the commissioners will open up those conditions for public comment. Even if the Planning Commission does give final approval to the project, it still would have to go through the County Board of Supervisors for an appeals process and then the Coastal Commission.[366]

May 6, 2016: Phillips Issue Force Majeure on Canadian Crude to Wood River Refinery Due to Alberta Wildfire

BP, Suncor Energy, and Phillips on Friday warned they will not be able to deliver on some contracts for Canadian crude, a further sign that output cuts due to wildfires are curbing supplies from the Alberta oil sands region. BP Plc said it had alerted customers to a force majeure event at one of its suppliers, which means several grades of Canadian crude oil will not be as readily available to its customers through the rest of May. BP produces oil in Canada via a partnership with Husky Energy Inc. Suncor Energy said it had issued various force majeure notifications to customers, service providers, and other third party contractors that will be affected by reduced operations in the region. Phillips issued notice of force majeure on Canadian crude deliveries due to interruptions in third-party oil production in Canada’s oil sands. A person familiar with BP’s U.S. refining operations said supplies to its 405,000 b/d Whiting, Indiana; 225,000 b/d Cherry Point, Washington; and 135,000 b/d Toledo, Ohio refineries have not been affected. The U.S. imports about 3.5 million b/d of Canadian crude oil. Record U.S. inventories and plentiful supplies in storage in Western Canada will offset some of the shutdown. According to Genscape, total inventories in Alberta were 26.5 million barrels at the end of April, equivalent to less than a month of output currently offline.[367]

May 5, 2016: Phillips Reports Leak from Hydrocracker at Rodeo Refinery

Phillips reported a small hydrogen leak from a hydrocracker at its Rodeo, California refinery, according to a filing with Contra Costa Health Services. [368]

May 3, 2016: Rancher Files Lawsuit Against Phillips 66 for Pollution from Pipeline from Santa Maria Refinery

Cal Coast News reported on May 3, 2016 that Rob Rossi, an owner of the more than 14,000 acre Santa Margarita Ranch, filed a lawsuit against ConocoPhillips and Phillips 66 on Friday for allegedly operating a pipeline that has contaminated a portion of his ranch. The pipeline extends 78 miles from Phillips 66's Santa Maria refinery to a junction pipe station in the San Joaquin Valley. In the years since the pipeline was constructed, the defendants removed or replaced the pipeline twice. During one of the maintenance projects, hydrocarbons were discovered to have leaked into the soil, according to the lawsuit. The Central Coast Regional Water Quality Control Board then opened an investigation that led to the discovery of oil related contaminants in the soil and groundwater in areas adjacent to the pipeline. The contaminates discovered showed that the leaks were not only historical but current, as some of the chemicals found were not added to oil until 2000, according to the lawsuit. In his lawsuit, Rossi is seeking that the defendants stop any continuing pipeline leaks, clean up any contamination from its pipeline on the property, reimburse Rossi for expenses related to the leaks, indemnify Rossi, pay damages for injury to the property, pay civil penalties for contaminating drinking water and pay Rossi’s legal costs. “Defendants’ petroleum hydrocarbon contamination on the headquarters property, in addition to posing a continuing threat to human health and the environment, has impeded and, until abated, will continue to impede Rossi’s ability to freely and beneficially use, enjoy and develop his property,” the lawsuit says.[369]

April 27, 2016: Phillips Idles Part of Wood River Refinery

Reuters reported on April 27, 2016 that Phillips 66 has unexpectedly shut down a 64,000 barrel-per-day crude unit and associated vacuum distillation unit and a coker at Wood River Refinery after heavy storms knocked out power to the western portion of the plant on April 26, 2016, according to a source familiar with the plant's operations. It is still unclear when the units will be restarted, the source said.[370]

April 27, 2016: Winds Tear Off Part of Roof at Phillips 66 Research Center Campus in Bartlesville

KJRH reported on April 27, 2016 that powerful wind gusts in Bartlesville tore off part of the roof at a building on the Phillips 66 Research Center campus off Highway 60 west of Bartlesville. A spokeswoman said no one was injured there, and the damage did not affect any business operations.[371]

April 27, 2016: Phillips Shuts Crude Units, Coker after Storms Partially Knock Out Power at Wood River Refinery

Phillips shut down a 64,000 b/d crude unit, an associated vacuum distillation unit, and a coking unit at its Wood River, Illinois refinery on Tuesday after heavy storms knocked out power to the western portion of the plant, a source familiar with the plant’s operations said. The source added that it was unclear when the units would be restarted. [372]

April 26, 2016: Phillips Shuts CDU at Wood River, Illinois Refinery Due to Power Outage

Phillips shut down a 64,000 b/d crude distillation unit (CDU), a vacuum distillation unit, and a coker unit in the western portion of its Wood River, Illinois, refinery on Tuesday due to a power outage, according to a source familiar with the plant’s operations. It was unclear when the units would be restarted, the source said. [373]

April 25, 2016: Phillips Reports Emissions at Rodeo Refinery

Phillips reported emissions and a release of sulfur dioxide at its Rodeo, California refinery, according to a filing with the California Emergency Management Agency.[374]

April 22, 2016: Phillips 66 says Planned Work is Underway at Sweeny Refinery after an April 22 Power Malfunction

Reuters reported on April 27, 2016 that Phillips 66 says planned work is underway at its 247,000 bpd Sweeny, Texas refinery after an April 22 power malfunction.[375]

April 22, 2016: Phillips Reports Power Malfunction at Sweeny Refinery

Phillips reported that a power malfunction led to the shutdown of various process units on Friday at its Sweeny, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality. The units were restarted and the event ended on Saturday morning. The filing listed a sulfur recovery unit, a coker flare, and a flare gas recovery unit as sources of emissions due to the incident. [376]

April 21, 2016: Commercial Operations Begin on Bayou Bridge Pipeline from Texas to Lake Charles Refinery

Bayou Bridge Pipeline, LLC, a joint venture between Phillips Partners L.P., Energy Transfer Partners, L.P., and Sunoco Logistics Partners L.P., announced on Thursday the first leg of its Bayou Bridge crude oil pipeline commenced commercial operations from Nederland, Texas, to Lake Charles, Louisiana, where the company has agreed to connect to Phillips Partners’ Clifton Ridge terminal and Citgo’s 427,800 b/d Lake Charles refinery. In addition, Bayou Bridge completed a successful binding open season to expand the system with a 24-inch extension segment from Lake Charles to St. James, Louisiana oil hub with connections to Plains Marketing, L.P.’s and NuStar Energy L.P.’s crude oil terminals. The second segment remains on schedule to start up in the second half of 2017.[377]

April 16, 2016: Phillips Reports Emissions Due to Equipment Failure at Alliance Refinery

Phillips on Saturday reported a release of carbon monoxide into the atmosphere from a bypass valve due to equipment failure at its Alliance refinery in Belle Chasse, Louisiana, according to a filing with the National Response Center.[378]

April 14, 2016: Phillips Reports Emissions at Borger Refinery

Operators reported that sulfur dioxide emissions from the “GOHDS HC flare” at the refinery on Thursday afternoon continued for more than 2 hours, according to a filing with state regulators. Operators investigated the cause of the incident and restarted the equipment. In another filing, operators reported emissions from the Unit 40 Fluid Catalytic Cracking Unit began early Friday morning and continued for almost an hour. Operators were investigating the cause of that incident, as well. [379]

April 13, 2016: Phillips Reports Flare Gas Recovery System Offline at Ferndale Refinery

Phillips reported the flare gas recovery system tripped offline at its Ferndale, Washington refinery, according to a filing with the Northwest Clean Air Agency. The company also reported sulfur dioxide emissions at the refinery. [380]

April 12, 2016: Phillips Reports Unit Startup Upset at Wood River Refinery

Phillips on Tuesday reported a “unit startup upset” at its Wood River refinery, according to a filing with state regulators. The refinery is returning to normal operations following the restart of TransCanada’s Keystone crude oil pipeline on Sunday. Since April 4, rates at the refinery were reduced and two units were shut due to supply issues stemming from the Keystone pipeline closure on April 2. [381]

April 10, 2016: Phillips Returning Wood River Refinery to Normal Operations after Keystone Pipeline Restarts

Phillips said its Wood River refinery in Illinois was in the process of returning to normal operations on Monday following the restart of TransCanada’s Keystone crude oil pipeline on Sunday. Since April 4, rates at the refinery were reduced and two units were shut due to supply issues stemming from the Keystone pipeline closure on April 2. [382]

April 5, 2016: Phillips 66’s Wood River Refinery Shuts Crude Unit, Coker

Running at Minimum Rates Following TransCanada Keystone Pipeline Closure – Sources Phillips on Tuesday shut a 64,000 b/d heavy, sour crude distillation unit (CDU) and 16,000 b/d coker unit at its Wood River, Illinois refinery due to the sudden closure of the 591,000 b/d Keystone crude oil pipeline, according to a source familiar with operations. On April 4, sources indicated the refinery had cut processing rates to minimal levels as a result of the outage. Phillips said it was still meeting product supply commitments to its customers in the region. TransCanada, which shut the pipeline on April 2 to investigate and remediate a spill of about 187 gallons near its Freeman pump station in Hutchinson County, South Dakota, anticipates the earliest restart date on Friday, April 8. [383]

April 2, 2016: Phillips Reports Emissions at Borger Refinery

Phillips reported emissions from the unit 40 fluid catalytic cracking unit stack exceeded 35 percent opacity at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality.[384]

April 2, 2016: Phillips Reports Emissions Due to Compressor Upset at Lake Charles Refinery

Phillips reported a release of sulfur dioxide due to a wet gas compressor upset at its Lake Charles, Louisiana refinery on April 2, according to a filing with the National Response Center. [385]

April 1, 2016: Phillips Reveals Upgrade Plans for Billings Refinery

Phillips said it was planning upgrades at its Billings Refinery including a $300 million upgrade project to run 100 percent heavy crudes as well as crude oil with high acid content was slated for completion by 2017. [386]

April 1, 2016: Phillips Reveals Upgrade Plans for Wood River Refinery

Phillips said it was planning upgrades at its 336,000 b/d Wood Rover, Illinois refinery and its 59,000 b/d Billings, Montana refinery in order to process additional heavy Canadian crude. The company will invest $200 million to modernize a fluid catalytic cracking plant at the Wood River site, but did not disclose a timeline for the work. Other activities at the Wood River site include expanding the refinery’s ultra-low sulfur diesel output and increasing capacity to process an additional 18,000 b/d of diluted heavy crude, which are slated to start-up in the third quarter of 2016. In Billings, a $300 million upgrade project to run 100 percent heavy crudes as well as crude oil with high acid content was slated for completion by 2017. [387]

March 29, 2016: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reported emissions from the fluid catalytic cracking unit (FCCU) stack exceeded 35 percent opacity at its Borger, Texas refinery.[388]

March 15, 2016: Phillips Reports Unit Upset at Wood River Refinery

Phillips reported a unit upset at Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[389]

March 14, 2016: Phillips Reports Compressor Shutdown at Rodeo Refinery

Phillips reported a compressor shutdown and excessive flaring at its Rodeo, California refinery on Monday.[390]

March 12, 2016: Phillips Reports HCU Malfunction, Flaring at Rodeo Refinery

Phillips reported a hydrocracker unit (HCU) malfunctioned, which resulted in flaring at its Rodeo, California refinery, according to a filing with the California Emergency Management Agency. The company said the refinery continued operating.[391]

March 11, 2016: Public Comment Closes on Phillips 66's Santa Maria Rail Project

KSBY reported on March 11, 2016 that more than 120 people, both proponents and opponents, took the podium for the final day of comment on Phillips 66's Santa Maria Rail Project. The first three days of public hearings drew more than 400 people from all around the state. "It's been a long day, it has been a long four weeks," said San Luis Obispo Planning Commissioner Don Campbell. "We are happy to begin deliberations now. We have a lot of information to go through."

In the previous hearings, hundreds of people spoke out, stating how the risk of a derailment would be catastrophic. Supporters of the proposal pointed to the company's safety record as well as the jobs that would be created from the extension. Commissioners will be reviewing comments received from the public and federal laws on the proposed project. They will also be meeting with the county's attorneys regarding local laws and other legal obligations if they decide to approve the project. "It's going to take us some time to digest what we've heard from the public and to review all the components before we can make a decision on the project," said Campbell.[392]

March 11, 2016: Phillips Reports Upset at Ferndale Refinery

Phillips reported a flare gas recovery system upset and excess sulfur dioxide emissions at its Ferndale, Washington refinery, according to a filing with the Northwest Clean Air Agency. The company also said there was no planned maintenance currently underway at the refinery.[393]

March 9, 2016: Phillips Shuts FCCU after Failed Restart at Bayway Refinery

Phillips shut its 150,000 b/d fluid catalytic cracker unit (FCCU) on Wednesday morning after an attempt to restart the unit failed, according to a source familiar with the plant’s operations. The FCCU experienced an issue with a valve and was initially forced to shut down overnight, the source said. The source was not aware of the new timetable to restart the unit. Earlier Wednesday, the company advised the community that flaring may occur as the FCCU restarts, according to a taped recording on the refinery’s community hotline.[394]

March 8, 2016: Phillips Reports Flaring, Compressor Issue at Wood River Refinery

Phillips reported flaring due to a compressor issue at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[395]

March 4, 2016: Phillips Reports Emission, Repairs at Borger Refinery

Nasdaq reported on March 4, 2016 that Phillips will begin a month-long emissions event related to maintenance repairs at its Borger refinery. "The line going to Unit 34's SRU [sulfur recovery unit] incinerator is partially plugged with sulfur," it said in a filing to the Texas Commission on Environmental Quality. It said sections of that line will be heated in an effort to melt out the sulfur, and that "there may be visible emissions during the heating of the line." Phillips said, however, that the Unit 34 SRU isn't scheduled to go down. It said the emissions event was scheduled to begin Friday morning and last until April 4.[396]

March 3, 2016: Phillips Reports Process Unit Upset at Wood River Refinery

Phillips 66 reported a process unit was stabilized after an upset at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency[397]

March 1, 2016: Phillips Reports Emissions at Sweeny Refinery

Phillips reported emissions from a catalytic reformer and sulfur dioxide emissions from a coker flare, according to a filing with the Texas Commission on Environmental Quality.[398]

February 25, 2016: Phillips Reports Emissions at Rodeo Refinery

Phillips reported emissions at its Rodeo, California refinery, according to a filing with the California Emergency Management Agency[399]

February 25, 2016: Comments Are Evenly Split at Second Hearing for Phillips 66's Santa Maria Rail Project

The San Luis Obispo Tribune reported on February 25, 2016 that the first two days of the hearing on Phillips 66's Santa Maria Rail Project held on February 4 and 5 drew hundreds of people to San Luis Obispo, with many urging county planning commissioners to reject the rail spur extension project but the second hearing of the San Luis Obispo County Planning Commission, held on February 25, 2016 heard from more than 20 people with comments evenly split between opponents and supporters.

Several of the supporters who work at the refinery stressed Phillips' commitment to safety and track record of “being a good neighbor.” “It is the safest company that I’ve ever worked for,” said Jerry Harshbarger, who works in purchasing. “We still have a strong demand for fossil fuels and stopping this project will not stop that demand.” Another San Luis Obispo resident said the products of gas and oil could be seen throughout the room, and urged: “We as a community should work toward how to do this.” “You drive a car and go up to the pump,” Laura Mordaunt said. “A truck is there filled with gas that is way more volatile. Your vehicle parked in your garage is far more dangerous than this process and yet you continue to drive.” For some who spoke Thursday, it is their jobs and the jobs of their loved ones on the line. “The refinery is really concerned about their ability to stay operational. That affects 200 families, We are concerned with that,” explained Vince Herrera, a Santa Maria resident who works as a Process Control Engineer at the Santa Maria Refinery. In recent hearings, Phillips 66 said if the rail project is denied, the company will deliver the oil anyway, using 100 trucks per week. Company officials say three trains per week would be safer and less disruptive.

Opponents, meanwhile, say that commissioners should not take into account the company’s safety record or personal relationships. “Their plan is an irreversible disaster,” Nipomo resident Nora Lee said. “The effects will be felt instantly with poisonous air pollution.”

The hearing is expected to be continued to March 11, where the commission could ask questions, deliberate and even make a decision — or continue the process once again to a future date.[400][401]

February 24, 2016: Phillips Reports No Impact to Operations from Brief, Weather-Related Power Outages at Wood River Refinery

Phillips said there was no impact to operations from brief, weather-related power outages in non-process areas of its Wood River, Illinois Refinery on Wednesday. Energy Intelligence Service Genscape had previously reported that the refinery had shut down a 64,000 b/d crude unit, a 30,000 b/d vacuum distillation unit, and a 16,000 b/d coker unit. The St. Louis region experienced heavy wet snow overnight, leading to power outages, including in the vicinity of the refinery, according to an outage map on Ameren’s website. The energy provider Ameren would not disclose whether the refinery experienced a power outage. The units are in the western portion of the refinery, adjacent to a neighborhood that experienced power outages, according to a source familiar with the plant’s operations. The refinery is supplied partially by crude out of Cushing, Oklahoma. The company did not clarify if the unit shutdowns were associated with the power outages.[402]

February 18, 2016: Phillips Reports Release at Wood River Refinery

Phillips reported a release occurred at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[403]

February 16, 2016: Phillips 66 Investigates Noise and Flaring at Rodeo Refinery

The Contra Costa Times reported on February 16, 2016 that a hydrogen plant unit's startup led to a burst of noise that was audible in some homes near Phillips 66's Rodeo Refinery. "There was overpressuring, and the start-up created a boom sound, and flaring did occur," said spokesman Paul Adler. The unit, which was being started up for the first time, was immediately shut down so workers could investigate. On social media, residents in Rodeo and Hercules took note of the loud burst. "We believe that there is no more noise occurring, but it probably was loud," Adler said. "We've got superintendents monitoring, and I can understand why the community is wondering what is going on."[404]

February 16, 2016: Phillips Says Hydrogen Plant Next to Rodeo Refinery, Experienced Flaring

Phillips on Wednesday said a hydrogen plant operated by Air Liquide, located adjacent to its Rodeo refinery in California experienced flaring on Tuesday. The hydrogen plant unit, which provides the Rodeo refinery with hydrogen, was shut to investigate the cause of the flaring, Contra Costa Times said on Tuesday. [405]

February 14, 2016: Phillips Reports Unplanned Unit Shutdown at Rodeo Refinery

Phillips reported flaring due to an unplanned unit shutdown at its Rodeo, California refinery on Sunday, according to a filing with the Contra Costa Health Service Department. Refinery operations were continuing and no evacuations or injuries were reported, it added.[406]

February 12, 2016: Phillips Reports Flaring at Rodeo Refinery Releasing Over 500 pounds of Sulfur Dioxide

Nasdaq reported on February 12, 2016 that Phillips 66 reported flaring and equipment malfunction on February 12, 2016 at its refinery in Rodeo, Calif. "RQ [reportable quantity] is exceeding greater than 500 pounds of sulfur dioxide being released at the refinery due to an equipment malfunction," according to a statement on the website of the California Emergency Management Agency.[407]

February 9, 2016: Phillips Reports Compressor Trip at Wood River Refinery

Phillips reported the flow gas recovery compressor tripped on low suction at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[408]

February 4, 2016: Hundreds Condemn Phillips Santa Maria Rail Project in Public Hearings

Hundreds Condemn Phillips 66's Santa Maria Rail Project in Public Hearings. Hundreds of local residents and others from around California attended a public hearing to urge the San Luis Obispo County Planning Commission to reject Phillips 66 Co.’s request to receive crude oil by rail at its Santa Maria Refinery. For several hours, planning commissioners heard appeals from 83 people — a combination of residents from San Luis Obispo County, and northern and southern California, as well as elected officials — all urging they reject a proposal to build a 1.3-mile spur with five parallel tracks from the main rail line to the Nipomo Mesa refinery, an unloading facility at the refinery and on-site pipelines. Photo: San Luis Obispo Tribune

The San Luis Obispo Tribune reported on February 4, 2016 that hundreds of local residents and others from around California attended a public hearing to urge the San Luis Obispo County Planning Commission to reject Phillips 66 Co.’s request to receive crude oil by rail at its Santa Maria Refinery. For several hours, planning commissioners heard appeals from 83 people — a combination of residents from San Luis Obispo County, and northern and southern California, as well as elected officials — all urging they reject a proposal to build a 1.3-mile spur with five parallel tracks from the main rail line to the Nipomo Mesa refinery, an unloading facility at the refinery and on-site pipelines. About 390 people had grabbed speaker comment slips as of Thursday afternoon, including those who spoke that day. Public comment will continue Friday and possibly to a future date, depending on how many of the speakers turn out. None of the 83 public speakers on Thursday spoke in favor of the Phillips 66 proposal. San Luis Obispo Mayor Jan Marx was among the elected officials or their representatives who urged denial of the project. “Whether it’s five or three trains, our city would be placed at unique risk to this project,” she said.

At lunch, about 600 people from around the state rallied across the street from the hearing to protest the project. Some supporters were seen too, with green “Protect Jobs” signs, but they were far outnumbered by opponents with “Stop Oil Trains Now” posters and signs proclaiming, “We Risk, They Benefit” and “Invest in Solar.”

Representatives from Phillips 66 urged the commissioners to approve an alternate plan to allow three trains a week instead of five. “The three-train-per-week project is now our proposed project,” said Jocelyn Thompson of Alston & Bird LLP. It “eliminates all of the Class 1 impacts with respect to onsite activities,” she added, referring to the highest level of negative impacts to air quality and biological resources referenced in the project’s final Environmental Impact Report. The county staff report states that three trains a week — or 150 a year — would reduce the significant toxic air emissions to no longer be considered a “Class 1 significant impact.” However, the county’s planning staff said other significant impacts still would harm the environment even with three trains per week rather than five: construction of the facilities would still disturb environmentally sensitive habitat, and emissions of diesel particulate matter would still remain a “Class 1” impact.

Thompson added that if the project is denied, crude oil will still come into California by rail and eventually reach the refinery, albeit by a different route: Oil would arrive in the Central Valley by train and then be trucked about 110 miles through San Luis Obispo County to Santa Maria, where it would be pumped into a pipeline and sent to the refinery. “It’s impermissible for you to say that you’re going to deny the project because there’s a train on the tracks,” she said. “The train will come to the San Joaquin Valley and you will be dealing with trucks.”

When asked during a break if layoffs could happen if the project is denied, Phillips 66 spokesman Dennis Nuss said, “We’re going to wait and see what is going to happen with the process.”[409]

February 2, 2016: Phillips to Modernize FCCU at Bayway Refinery

Phillips said on Tuesday it was planning to modernize the fluid catalytic cracking unit (FCCU) at its Bayway refinery in Linden, New Jersey. The project would include replacing the existing older reactor with modern technology that will increase gasoline and diesel yield by about 4,000 b/d, a company spokesman said. The company further clarified, that the overall unit capacity of the FCCU would remain unchanged at 145,000 b/d.[410]

February 1, 2016: Phillips Reports Emissions at Rodeo Refinery

Phillips reported emissions at its Rodeo, California refinery, according to a filing with the California Emergency Management Agency.[411]

February 1, 2016: Phillips Reports Flaring at Rodeo Refinery

Phillips reported flaring at its Rodeo, California refinery, according to a filing with the California Emergency Management Agency[412]

January 27, 2016: Phillips Reports Unit Upset, Flaring at Rodeo Refinery

Phillips on January 27 reported a unit upset, release of benzene from an exchanger, and flaring at its Rodeo, California refinery.[413]

January 27, 2016: Planning Commission Approves Phillips 66’s Oil Pipeline Replacement Plan to Santa Maria Refinery

The Santa Barbara County Planning Commission on Wednesday approved Philips 66’s plans for the replacement of a 70-year-old crude oil pipeline in the Santa Maria Valley, California. The 1.2-mile pipeline carries crude from Line 300 that originates from offshore Platform Irene and the Lompoc area. The modernizations include an automatic shutdown system that can isolate the line in case of an emergency. The existing line will be purged, cleaned and abandoned in place, the report said, but it will continue to be utilized while the new line is being put into place to avoid an interruption of service.[414]

January 25, 2016: Phillips Reports Excess Emissions at Ponca City Refinery

Phillips on January 25 reported excess carbon monoxide from the crude topping unit feed heater, according to a filing with the Oklahoma Department of Environmental Quality.[415]

January 25, 2016: Phillips Reports Flaring at Rodeo Refinery Releasing 500 pounds of Sulfur Dioxide

Nasdaq reported on January 25, 2016 that Phillips 66 reported flaring of gases at Rodeo Refinery while conducting schedule shutdown procedures, which caused a flare releasing more than 500 pounds of sulfur dioxide. The filing said the flaring happened Friday, adding "there should be no environmental impacts from the release."[416]

January 25, 2016: San Luis Obispo County Department of Planning Recommends Denial of Phillips 66 Rail Project at Santa Maria Refinery

KSBY reported on January 25, 2016 that the San Luis Obispo County Department of Planning and Building is recommending to planning commissioners that they deny a proposal by Phillips 66 to bring in crude oil to its Santa Maria Refinery by rail. According to the staff report the project would be detrimental to health, safety and welfare of the public, it includes significant and unavoidable environmental impacts including a cancer risk to nearby residents, and it has no benefits that outweigh the risk to the environment.[417]

Significant local, regional, and statewide concern has been expressed throughout the various phases of the Project including land use incompatibilities, toxic air emissions adjacent to the project site and adjacent to the UPRR mainline; risk of derailment, spill, and explosion in areas adjacent to the mainline; threat of impact to agricultural, biological, cultural, and water resources due to spill, fire, and explosion along the mainline; and, inadequate fire and emergency response services along UPRR mainline throughout the state in the event of a spill, fire or explosion. The Final Environmental Impact Report (FEIR) concluded that the Project, for components only on the project site, would result in two significant and unavoidable impacts (Class I impacts) stemming from diesel particulate matter emissions and toxic air emissions generated by increased locomotive activity at the Santa Maria Refinery site.[418]

January 24, 2016: Borger Refinery to Produce Above Average Emissions Over the Next Month

Nasdaq reported on January 24, 2016 that Phillips 66's Borger Refinery will emit above-average emissions starting January 24, 2016 due to scheduled maintenance. "Unit 40 FCCU (Fluid Catalytic Cracking Unit) Electrostatic Precipitator (ESP) is scheduled for maintenance," the refinery said in a filing with the Texas Commission on Environmental Quality. "The FCCU is not scheduled to go down. During maintenance there may be high opacity and particulates released from the stack." Excess emissions could occur over the next month until February 24, 2016.[419]

January 22, 2016: Phillips Reports Flaring Due to Shutdown at Rodeo Refinery

Phillips reported its refinery was conducting shutdown procedures which caused a flare releasing more than 500 pounds of sulfur dioxide[420]

January 17, 2016: Phillips Reports Upset at Rodeo Refinery

Phillips reported a plant upset and emissions at its Rodeo, California refinery on January 17.[421]

January 17, 2016: Phillips Reports Emissions at Rodeo Refinery

Phillips reported emissions from a diesel hydrotreater unit at its Rodeo, California, refinery on Sunday, according to a filing with the California Emergency Management Agency.[422]

January 14, 2016: Phillips 66 Fined $324,000 for Citations for Fire and Hazardous Chemical Safety at Ferndale Refinery Dating from 2014

The Bellingham Herald reported on January 14, 2015 that Phillips 66 was hit with a $324,000 fine by the state for several workplace violations revolving around fire and hazardous chemical safety at Ferndale Refinery. The refinery received the fine for violations that took place in 2014 and were not corrected, according to a news release from the Washington State Department of Labor & Industries.The 2014 citations are under appeal, but state law requires employers to correct hazards even if the violations are under appeal, according to L&I. The refinery was cited for three violations, each carrying a $108,000 fine. Two involve the refinery’s firefighting and fire suppression systems. According to the state agency, Phillips 66 did not inspect or follow recognized and generally accepted engineering practices for the firefighting water tank or the buried firefighting water distribution piping. The company also failed to address the potential loss of firefighting water, according to the report.

The third violation involved not consulting industry material before writing a policy about chemical piping. Following the company’s policies potentially allowed workers to be potentially exposed to hydrogen sulfide, a poisonous gas, and explosive flammable hydrocarbon vapors at much higher concentrations than considered safe. Employers in high-hazard chemical industries are expected to make sure that their internal policies and guidelines reflect current good engineering practices across those industries and that they meet local regulations, which may be stricter than national regulations.

Phillips 66 Ferndale Refinery spokesman Jeff Callender said company officials were disappointed by the announcement from the agency and believe there is a misunderstanding related to the citations. They plan to continue to work cooperatively with the agency through the appeals process. “The safety of the community, the environment and our people are of the utmost importance to our company and these priorities guide our efforts in everything we do,” said Callender.[423][424]

January 13, 2016: Phillips Reports Sour Gas Recovery Machine Trip at Wood River Refinery

Phillips reported a sour gas recovery machine trip at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[425]

January 9, 2016: Phillips Reports Emissions at Sweeny Refinery

Phillips reported emissions due to a loss of the wet gas compressor at its Sweeny, Texas, refinery on Saturday, according to a filing with the Texas Commission on Environmental Quality. The refinery was working to safely restart the compressor, the filing added[426]

January 11, 2016: Phillips Reports Multiple Unit Upset at Wood River Refinery

Phillips reported multiple unit upsets due to cold weather at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency.[427]

January 6, 2015: Ferndale Refinery to Reduce Emissions 5 percent Annually Under New State Rules

The Bellingham Herald reported on January 6, 2015 that Wahington state’s largest industrial emitters would be required to reduce carbon emissions by 5 percent every three years, under a proposed rule from the Department of Ecology. Phillips 66's Ferndale likely would be included in the first wave of facilities required to meet the reductions under the rule, as would Puget Sound Energy’s generating stations at Ferndale and Sumas. The proposed rule’s starting thresholds are based on average emissions from 2012 to 2015. “It’s important that we act now to protect our water supplies, infrastructure and economy for future generations,” said Ecology Director Maia Bellon. The agency has scheduled four public hearings. It expects to finalize a rule by summer.[428]

December 28, 2015: Phillips Reports Emissions at Ponca City Refinery

Phillips reported excess carbon monoxide from the fluid catalytic cracking unit regenerator on December 28 and excess carbon monoxide from a reactor preheater on December 30 at its Ponca City, Oklahoma refinery.[429]

December 28, 2015: Phillips Reports Excess Carbon Monoxide at Ponca Refinery

On December 28, Phillips Corp reported excess carbon monoxide emissions and unit upsets due to power blips during a winter storm at its Ponca City, Oklahoma refinery, according to a filing with the Oklahoma Department of Environmental Quality that was made public on Wednesday. [430]

December 21, 2015: Emergency Responders Extinguish Fire at Ferndale Refinery

Reuters reported on December 21, 23015 that a fire occurred at Phillips 66's refinery in Ferndale, Washington. "Emergency responders from Phillips 66 immediately extinguished the fire. There were no injuries and the incident is under investigation," a spokesperson for Phillips 66 said. The company did not say whether the fire had impacted operations, or which units were impacted by the fire.[431]

December 18, 2015: Fire Reported at Phillips 66’s Ferndale Refinery

A fire was reported on Friday night at Phillips 66’s refinery in Ferndale, Washington. Emergency responders from Phillips immediately extinguished the fire and the incident was under investigation. The company did not say whether the fire had impacted operations, or which units were impacted by the fire.[432]

December 12, 2015: Phillips 66 Reports Cooling Tower Leak at Wood River Refinery

Phillips 66 reported a chemical leak developed on an injection to one of the cooling water towers on December 12, according to a filing with the National Response Center.[433]

December 2, 2015: Phillips Plans to Restart FCCU at Wood River Refinery by Weekend

Phillips plans to restart a 45,000 b/d fluid catalytic cracker unit (FCCU) at its Wood River, Illinois refinery by this weekend, according to a person familiar with the plant’s operations. The FCCU was shut mid-November for about 21 days of work.[434]

November 27, 2015: Phillips Reports Emissions at Borger Refinery

Phillips reported sulfur dioxide emissions at its Borger, Texas refinery, November 27, according to a filing with the Texas Commission on Environmental Quality[435]

November 26, 2015: Phillips Reports Process Upset at Wood River Refinery

Phillips reported a process upset that led to flaring at its Wood River, Illinois refinery on Thursday, according to a filing with the Illinois Emergency Management Agency.[436]

November 23, 2015: Phillips Reports Waste Water Treatment Unit Malfunction at Sweeny Refinery

Phillips reported the waste water treatment unit malfunctioned at its Sweeny, Texas refinery.[437]

November 22, 2015: Phillips Reports Compressor Malfunction at Sweeny Refinery

Phillips reported the regenerative thermal oxidizer released benzene to the air due to mechanical issues with a compressor on November 22. [438]

November 21, 2015: Phillips Reports FCCU Flaring at Borger Refinery

Phillips reported flaring from the fluid catalytic cracking unit (FCCU) at its Borger, Texas refinery on Saturday, according to a filing with the Texas Commission on Environmental Quality. The equipment was restarted to stop the event, according to the filing.[439]

November 20, 2015: Phillips Shuts CDU, VDU, Coker Unit at Wood River Refinery Due to Power Loss

Phillips shut a 64,000 b/d crude distillation unit (CDU), a 30,000 b/d vacuum distillation unit (VDU), and a 16,000 b/d coker unit at its refinery in Wood River, Illinois, due to a power outage, according to a person familiar with the plant’s operations. The power outage was limited to the west side of the refinery, the source said. There was no immediate timetable for a restart, but the source said it would probably not take long. The refinery gets a portion of its crude supply via pipeline from Cushing, Oklahoma.[440]

November 19, 2015: Phillips Reports Unit Upset at Wood River Refinery

Phillips reported a unit upset at its Wood River, Illinois refinery, according to a filing with the Illinois Emergency Management Agency[441]

November 18, 2015: Phillips Reports Emissions at Sweeny Refinery

Phillips reported emissions from flare 29 at its Sweeny, Texas, refinery.[442]

November 16, 2015: Phillips Reports Flaring at Wilmington Refinery

Phillips reported flaring at its Wilmington, California refinery, according to a filing with the California Emergency Management Agency.[443]

November 16, 2015: Phillips Shuts FCCU at Wood River Refinery

Phillips shut a 45,000 b/d fluid catalytic cracker unit (FCCU) at its Wood River, Illinois refinery for up to 21 days of work, according to a source. The decision to shut down the unit was made in recent days, according to the source[444]

November 11, 2015: Phillips Reports Flaring at Wilmington Refinery

Phillips reported unplanned flaring at the Carson facility of its Wilmington, CA refinery Wednesday afternoon, according to a filing with the South Coast Air Quality Management District. The refinery has two linked facilities about 5 miles apart in Carson and Wilmington. The former processes crude oil while the latter upgrades the products. [445]

November 17, 2015: Safway Awarded OSHA VPP Star Status at Phillips 66 Alliance Refinery

Virtual-Strategy Magazine reported on November 17, 2015 that the Safway Services team at the Phillips 66 Alliance Refinery in Belle Chasse, La., has been recognized by the Occupational Safety and Health Administration (OSHA) and approved for participation in the Star Voluntary Protection Program (VPP). This premiere recognition program is reserved for employers and employees who demonstrate exemplary achievement in the prevention and control of occupational safety and health hazards and a commitment to continuous improvement of their safety and health management systems. “Achieving this prestigious safety recognition reflects Safway’s commitment to safety,” said Paul Amedee, vice president of Environmental Health and Safety (EHS) for Safway Group. “Receiving VPP certification requires a collaborative effort between our client, Phillips 66, and Safway – on every level – from field management to the executive team. I would like to thank everyone at the Phillips 66 Alliance Refinery for helping us reach this important safety milestone.”[446]

November 6, 2015: Phillips Reports Flaring Event at Wilmington Refinery

Phillips reported a flaring event at its Wilmington, California refinery, according to a filing with the California Emergency Management Agency. The refinery has two linked facilities about five miles apart in Carson and Wilmington. The former processes crude oil while the latter upgrades the products.[447]

November 4, 2015: Phillips Reports Process Unit Upset at Wood River Refinery

Phillips reported a process unit upset at its Wood River, Illinois refinery, according to the Illinois Emergency Management Agency[448]

November 3, 2015: Phillips Says Rodeo Refinery Returning to Normal Operations

Phillips said its Rodeo, California refinery was in the process of returning to normal operations after it experienced operational issues.[449]

November 1, 2015: Phillips Reports Emissions at Westlake Refinery

Phillips reported hydrogen was released from a flare stack at its Westlake, Louisiana refinery due to a compressor that was shut.[450]

October 31, 2015: Phillips Experiences Flaring, Unit Upset at Wood River Refinery

Phillips on Sunday experienced flaring while switching a coker drum at its Wood River, Illinois refinery, a source familiar with plant operations said on Monday. There was no impact to operations, the source added. Additionally, the refinery had reported a unit upset on Saturday, according to a filing with Illinois Emergency Management Agency over the weekend. [451]

October 30, 2015: Phillips Reports Emissions at Wilmington Refinery

Phillips reported a flaring event at its Wilmington, California, refinery. The company said the refinery continues to operate[452]

October 30, 2015: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reports emissions from the fluid catalytic cracking unit (FCCU) at its Borger, Texas refinery. The equipment was restarted to stop the event.[453]

October 30, 2015: Phillips Reports Unplanned Flaring at Wilmington Refinery

Phillips reported unplanned flaring at its Los Angeles-area refinery in Wilmington, California, according to a filing with state pollution regulators.[454]

October 28, 2015: Phillips Reports Small Hydrocarbon Leak Contained at Rodeo Refinery

Phillips on Wednesday reported a small hydrocarbon leak was contained at its Rodeo, California refinery[455]

October 27, 2015: Phillips Reports Startup, Excess Emissions at Ponca Refinery

Phillips reported an unspecified unit startup and carbon monoxide from the fluid catalytic cracking unit regenerator at its Ponca City, Oklahoma refinery[456]

October 26, 2015: Phillips Says Lake Charles Refinery Returning to Normal Operations after Power Dip

Phillips on Tuesday said power was restored at its Lake Charles, Louisiana refinery after a brief power loss on Monday. [457]

October 23, 2015: LA Times Reports that Nipomo Retirees are Taking on Phillips 66

The Los Angeles Times reported on October 23, 2015 that retirees in Nipomo are pooling their resources to fight Phillips plans to build a railroad terminal that would accommodate 260 crude oil-carrying trains a year at Phillips' Santa Maria Refinery.

I imagine these folks are kind of a nightmare for Phillips 66. Ranging in age from 61 to 73, they are highly educated professionals with backgrounds in science, engineering, economics, air pollution and hospital administration, and they are, mostly, retired. Which means they have time. Time for research. Time to make PowerPoint presentations. Time to lobby mayors and city councils and school boards all over San Luis Obispo County, and the rest of the state. Time to appear at club meetings. Time to write newsletters. Time to compile lists of oil train derailments. Time to comb through the 2012 Phillips 66 annual report that described how employing a new "crude-by-rail strategy" would bring cheaper (or "cost-advantaged") oil to its refineries, boosting profits. "We became concerned because we are within shouting distance of their proposed terminal," said Martin Akel, 67, who owns a marketing consulting firm. "We saw a problem that affected health, safety and our very way of life."

"The San Luis Obispo Planning Commission is to take up the matter early next year. After that, the proposal goes to the county Board of Supervisors," writes Robin Abcarian. "No one knows how they will vote. But I'm putting my money on the retirees."[458]

October 21, 2015: Laurence Shinderman Writes: "It's about more than oil

Laurence Shinderman had an op-ed in the Santa Maria Sun on October 21, 2015 opposing Phillips plans to bring oil trains to the Santa Maria Refinery.

A train terminal off-loading tar sands five times a week is not a risk we need to take. With 11 Class 1 impacts that cannot be mitigated both within the refinery and along the mainline as identified in the re-circulated DEIR (draft environmental impact report)—that relate to air quality and environmental and public health and safety—this project should be stopped in its tracks. Phillips has circulated 11 reasons for the project to move forward, none of which stand up to the light of day and public scrutiny.

"To use the specious argument that we already have risk and hazardous products coming down the track does not mean that we should add more risk," concludes Shinderman.[459]

October 21, 2015: Phillips Considers Adding Hydrocracker at Lake Charles Refinery

Phillips is considering adding a hydrocracker to produce ultra-low sulfur diesel (ULSD) at its Lake Charles, Louisiana refinery, the plant manager said on Tuesday. The refinery currently does not have the capability to produce ULSD. The refinery is also laying the foundation for a new fuels hydrotreater to enable it to meet Tier III gasoline standards. Additionally, the refinery plans to replace four coker drums in 2017.[460]

October 20, 2015: Operations Return to Normal at Phillips 66’s Bayway Refinery

Operations at Phillips 66’s Bayway refinery in Linden, New Jersey were at normal planned levels Tuesday after a failure at a transformer led to a power outage on Monday, according to sources.[461]

October 16, 2015: Phillips Reports Pipeline Release in Kern County, California

Phillips reported a crude gathering line was struck causing a release at Lost Hills in Kern County, California. The company said a containment hole was dug and lined with plastic to contain the release.[462]

October 14, 2015: Phillips Reports Start-Up, Emissions at Ponca City Refinery

Phillips reports a start-up at its Ponca City, Oklahoma refinery on October 14. The company also reports excess carbon monoxide emissions from an unspecified unit feed heater.[463]

October 14, 2015: Phillips Warns of Above-Average Emissions at Borger Refinery for Next Nine Days

Nasdaq reported on October 14, 2015 that Phillips 66 has warned of above-average gas emissions during the next nine days at Borger Refinery as the plant undergoes seasonal maintenance. "A side of the Unit 40 Electrostatic Precipitator Cabinets (ESP) will be taken off line for maintenance," Phillips said in a filing posted Wednesday on the website of the Texas Commission on Environmental Quality. "During maintenance there may be offline rapping. During the work there may be periods of high opacity and high particulate emissions. The Unit 40 FCCU is not scheduled to go down."[464]

October 14, 2015: Phillips Reports ESP Work at Borger Refinery

Phillips reported a side of the unit 40 electrostatic precipitator cabinets (ESP) will be taken offline for maintenance at its Borger, Texas refinery. The company added that the unit 40 fluid catalytic cracking unit was not scheduled to go down.[465]

October 12, 2015: Phillips Plans Upgrades at Bayway Refinery

Phillips announced modernization plans of the fluid catalytic cracking unit (FCCU) at its Bayway, New Jersey refinery, and an upgrade of the vacuum tower at its Billings, Montana refinery. In addition, the company said storage capacity was being added at its Beaumont terminal in Texas and it was investing in the Bayou Bridge pipeline project to move crude from Texas to Louisiana markets.[466]

October 12, 2015: Phillips Plans Upgrades at Billings Refinery

Phillips announced an upgrade of the vacuum tower at its Billings, Montana refinery. In addition, the company said storage capacity was being added at its Beaumont terminal in Texas and it was investing in the Bayou Bridge pipeline project to move crude from Texas to Louisiana markets.[467]

October 9, 2015: Al Fonzi Writes: "Fear campaign against Phillips 66 oil rail extension"

Al Fonzi has a letter to the editor in the San Luis Obispo Tribune on October 9, 2015 that there's a cynical campaign to terrorize the public with the specter of exploding rail tank cars carrying innocuous crude oil to the Santa Maria Refinery.

I say innocuous because trains carrying crude oil have been transiting the county for decades, from the oil fields of San Ardo in southern Monterey County to refining facilities in Los Angeles. It’s happening now. It’s been happening several times a week for 20 years, and nobody notices. It’s the same type of crude that Phillips 66 wants to bring in — high-sulfur crude similar to local crude oil for which the Santa Maria Refinery was specially designed.

We’re told there’s insufficient emergency response or hazmat capability. Not true. The county has a Hazardous Materials Team, most recently employed in Atascadero two weeks ago. Fire departments have combined resources to support a multi-agency response and routinely incorporate mutual aid for any incident, even routine structure fires. Phillips 66 and the railroads conduct joint training with fire departments, with Phillips 66 funding training for local responders at national training sites. Some local fire personnel are scheduled for such training in November.

"Numerous city and county government bodies have passed resolutions asking that SLO County not approve the Phillips 66 project in the hopes that will halt the 'bomb trains'," writes Fonzi. "Sadly, the resolutions passed by so many provide not safety, but a false sense of security."[468]

October 6, 2015: Milpitas City Council Opposes Plan to Run Crude Oil Trains Through City

The Daily Democrat News reported on October 6, 2015 that the Milpitas City Council voted unanimously Sept. 15 to adopt a resolution opposing the transport of crude oil by trains along the Union Pacific Railroad lines through Milpitas to an unloading facility in San Luis Obispo County near Phillips 66's Santa Maria refinery. Specific to the City of Milpitas, Union Pacific rail lines run north and south through the city -- through heavily populated residential and commercial zones. "We're a suburban, urbanized community," said Milpitas City Manager Tom Williams. "It's really a safety issue." William said other area cities actively opposed to this plan include Fremont, Union City, Hayward and Oakland. Williams noted a copy of the Milpitas council's resolution will be sent to Union Pacific Railroad as well as other entities in protest to these crude oil trains.[469]

October 6, 2015: Phillips Reports Start-Up at Ferndale Refinery

Phillips reported an unspecified startup on October 6 at its 101,000 b/d Ferndale, Washington refinery.[470]

October 3, 2015: Phillips Reports Unplanned Flaring at Carson Refinery

Phillips Reports Unplanned Flaring at Carson Refinery[471]

October 3, 2015: Phillips Reports Unit Shutdown at Rodeo Refinery

Phillips Reports Unit Shutdown at Rodeo Refinery [472]

October 2, 2015: Phillips 66 Prepares for Hurriance Joaquin at Bayway Refinery

Reuters reported on October 2, 2015 that Phillips 66 is preparing for a big test at Bayway Refinery of whether they learned lessons from Hurricane Sandy as Hurricane Joaquin, a category 4 storm, could land early next week in the Mid-Atlantic region. Phillips 66 elevated power substations and hardened storm doors at a saltwater pump station after Hurricane Sandy forced the company to shut its 238,000 barrel-per-day refinery in Linden, New Jersey for weeks due to electrical issues, Dennis Nuss, a company spokesperson, said on Thursday. Not all the plant’s substations have been elevated, according to a source familiar with the plant’s operations. However, the substations most vulnerable to flooding have been raised, the source said. The company has already secured critical emergency equipment and resources for quicker post-storm mobilization. This includes temporary office space, housing, food, fuel and generators, Nuss said. “The safety of our employees and their families remains our highest priority," Nuss said.[473]

Bayway Refinery Was Shut Down for Almost a Month in 2012 After Hurricane Sandy

Houston Business Journal reported on October 30, 2012 that Phillips 66 has reported a power outage at its Bayway refinery. The plant had been shut down as a precaution, but the outage could slow the recovery at the plant. Phillips 66 said there was "some flooding in low-lying areas" of the refinery. Utility PSE&G said power was likely to be restored no sooner than in 24 to 48 hours. The flooding at Bayway, which had been seen by experts as the refinery most vulnerable to Sandy's record 13-foot (4-meter) storm surge and subsequent power outages, is a potential second nightmare for Phillips 66, which had struggled to restore its Alliance, Louisiana, refinery after Hurricane Isaac in August. That storm pushed more than 2 feet of floodwater into the plant.[474][475]

Phillips 66 reported on November 19, 2012 that the Bayway Refinery is expected to resume normal operations by the end of November. Work to repair or replace damaged equipment, primarily electrical equipment impacted by saltwater during the storm surge from Hurricane Sandy, is progressing. The refinery’s processing units are in good condition. The Bayway polypropylene plant will follow the same restart schedule as the refinery.[476]

October 1, 2015: Trespasser Reported at Phillips 66’s Wood River Refinery, Output Unaffected

Phillips reported an intruder at its Wood River refinery in Illinois to local law enforcement late Wednesday afternoon, but said operations were not affected. A person riding a bicycle was seen entering the premises of the refinery. The refinery asked local law enforcement to assist with a grid search of its facility, a company spokesman said on Thursday.[477]

October 1, 2015: Phillips Reports Flaring at Wilmington Refinery

Phillips Reports Flaring at Wilmington Refinery [478]

September 30, 2015: Phillips Reports Process Upset Involving Furnace at Sweeny Refinery

Phillips Reports Process Upset Involving Furnace at Sweeny Refinery [479]

Fox Business reported on November 27, 2012 that Bayway Refinery has resumed normal operations following extensive repair and replacement of equipment impacted by salt water during Hurricane Sandy.[480]

September 30, 2015: Marcus Beal Writes "Phillips 66 is a Good Neighbor and Progress is Inevitable"

Marcus Beal said in a letter to the editor of New Times published on September 30, 2015 that Santa Maria Refinery has been a good neighbor for 60 years. "Refineries intentionally purchase large plots of land to provide a buffer between them and the surrounding community. This adds annual taxation cost but aids them from impacting the surrounding community. This is part of the philosophy of being a good neighbor," writes Beal. "They give back to the community and are a major source of tax revenue for the Central Coast and the state of California. They provide permanent employment for approximately 200 local residents, and during maintenance periods provide employment for an additional 300 temporary employees."[481]

September 30, 2015: Oil Leak in Nipomo from Pipeline to Santa Maria Refinery

KSBY reported on September 30, 2015 that Phillips 66 is working to cleanup oil from a pipeline that was hit by equipment used by third-party workers doing farming on land in Nipomo at a site off Vista del Rio. Phillips 66 says oil was released and the pipeline was shut down immediately, but no injuries were reported to people or wildlife and there was no threat to anyone in the area. They also say the release was contained and no oil got into any waterways. The amount released is not known and the pipeline is expected to be up and running on October 1, 2015.[482]

September 27, 2015: Tom Fulks Writes "Local officials Should Have the Courage to Comment on Phillips 66 Rail Project

Former reporter and political campaighn consultant Tom Fulks has an op-ed in the San Luis Obispo Tribune on September 27, 2015 that ssome local officials don’t have the political courage to carry out the job they were elected to do and not only do they refuse to take a position on the Phillips 66 Rail Project, currently under review by the county, they haven’t sufficiently explained their silence. There are 11 elected political bodies along the rail writes Fulks: San Miguel Community Services District, Templeton CSD, Santa Margarita Advisory Council, the city councils of Paso Robles, Atascadero, San Luis Obispo, Pismo Beach, Grover Beach and Arroyo Grande, and the Oceano and Nipomo CSDs. Other than Pismo, Grover and SLO, none has taken an official position. The Paso Robles council took no position but did offer a tepid note to the feds urging better rail safety.

Their silence on issues such as local rail safety, emergency preparedness and the risks accrued by those in or near the “blast zone” of an exploding oil train tanker is unconscionable. This entire project is politically predicated on the willingness of most SLO county residents to risk their health, safety and peace of mind so Phillips 66 alone can profit. The company’s fluffery about new jobs – exactly 12 – oil price uncertainty and other self-serving doublespeak is cover code for why we should willfully accept all the risk while Phillips reaps all the benefit.

"It’s in the “Elective Politics 101” course syllabus: 'Don’t let people die if you can help it.'" concludes Fulks. "That shouldn’t take extraordinary courage – it’s their job, after all. Yet, most other elected local folk up and down the track remain peculiarly silent, apparently unwilling to do their jobs."[483]

September 25, 2015: Phillips Reports Process Upset, Flaring at Wood River Refinery

Phillips Reports Process Upset, Flaring at Wood River Refinery[484]

September 25, 2015: Phillips 66 Expects to Restart NGL Fractionator in Sweeny Refinery

Phillips 66 expects to start its 100,000 b/d natural gas liquids (NGL) fractionator in Sweeny, Texas by September 25, bringing online a key component of its planned liquids export terminal in nearby Freeport. The company on Wednesday filed an initial tariff for liquids shipments on pipelines in the Sweeny-Freeport area, which will deliver product including propane and butane from the fractionator to storage caverns along the Gulf coast. Delivery points include the major storage and fractionation hub at Mont Belvieu, Texas and Phillip 66’s Freeport, Texas marine terminal which is expected to start exporting NGLs in 2016. The Freeport terminal will offer an additional outlet for the oversupplied domestic NGL market, with capacity to export 4.4 million barrels of propane and butane per month.[485]

September 24, 2015: Phillips 66 Co-Hosts Teacher's Workshop on Energy in Santa Maria

The Lompoc Record reported on September 24, 2015 that Phillips 66 Co. and the National Energy Education Development (NEED) Project hosted an energy education workshop to educate teachers in everything from energy transformation to the fractional distillation of oil. "Mainly, we are giving them the fundamental concepts to teach their children about energy," said Barry Scott, state program director of NEED. "Energy isn't traditionally taught, so we are filling in that gap. We want them to leave today saying, 'We've learned a lot and we can teach this." Mary Spruill, executive director of the NEED Project, and Lewis Marquez, a special education teacher in Bakersfield and a returning NEED workshop attendee, agreed with Scott, noting the training to be essential to education. "Phillips 66’s significant investment in energy education addresses the need for high-quality energy curriculum and training for today’s teachers and students," Spruill said. "Supporting NEED’s STEM (Science, Technology, Engineering and Math) and workforce development programming engages students and teachers in a deeper understanding of energy."[486]

September 23, 2015: Grover Beach to Send Letters of Concern over Phillip 66 Oil Trains

The New Times reported on September 23, 2015 that the Grover Beach City Council voted unanimously to draft a letter to the federal government addressing concerns over the issue of the Phillips 66 rail spur project and transporting crude oil by rail, which lies at the heart of the rail extension project. At the meeting, Grover Beach City Manager Robert Perrault said that while the construction and operation of the rail spur project would not have a significant impact on the city, a derailment would have a “potentially significant” impact. Both the city’s fire and police chiefs have also voiced their concerns about the city’s readiness in the event of a derailment. Police Chief John Peters said the city’s first responders had little training in scenarios involving railroad derailments. “In order to beef up preparedness, we need additional funding to equip and train officers and dispatchers regarding their duties during such emergencies,” Peters wrote in an email to Perrault. “Currently we do not have a budget for either training or equipment.”[487]

September 22, 2015: Reverend Caroline Hall Writes: Phillips 66 and the Pope

Reverend Caroline Hall, rector of St. Benedict’s Episcopal Church in Los Osos, wrote in the Santa Maria Sun on September 22, 2015 that in the encyclical published in June, Laudato Si, the Pope calls for transparency in local planning and an approach that takes fully into account the environmental and social implications of any project. The thrust of his message is that we cannot continue to allow those who are rich and/or powerful to create projects that benefit them but not the rest of the planet.

Most oil trains reach their destinations safely without incident. But there is that small number that doesn’t. And this is where the Pope steps in, arguing that “if objective information suggests that serious and irreversible damage may result, a project should be halted or modified, even in the absence of indisputable proof.” Objective information in this situation suggests that the kind of oil that will be transported through San Luis Obispo County is highly flammable and that there is a possibility of an accident causing serious and irreversible damage. Objective information suggests that the very extraction of this oil is in itself damaging to the environment. Objective information also suggests that continuing to mine and burn fossil fuels is causing huge “serious and irreversible” changes to our climate.

It seems that the short-term objective of bringing the Nipomo refinery up to full operating capacity is in the interests of its owners and employees but at the long-term expense of the wider community and of the planet we depend on. Would it not be prudent to find alternative industry that can provide livelihoods for the employees affected and allow the refinery to become a relic of the past addiction to oil?[488]

September 15, 2015: Pismo Beach Mayor Opposes Phillips 66 Oil Train Project

The San Luis Obispo Tribune reported on September 15, 2015 that Pismo Beach Mayor Shelly Higginbotham will join the list of individuals and agencies opposing the Phillips 66 Co. rail spur project, after the City Council considered its official stance on the project. The council initially considered sending a letter of concern to the county Planning Commission, rather than one officially opposing the project. At the urging of Councilwoman Sheila Blake and several members of the community, Higginbotham said she would revise the draft letter to one opposing the rail spur, and would make it from herself, rather than from the city of Pismo Beach.[489]

September 14, 2015: Phillips Reports Process Unit Upset at Wood River Refinery

Phillips reported an unspecified process unit upset at its Wood River, Illinois refinery on Monday, according to a filing with the Illinois Emergency Management Agency. [490]

September 11, 2015: Sulfur Recovery Unit Upset Leads to Flaring at Phillips 66’s Borger Refinery

Chevron Phillips on Friday reported an upset at the Phillips refinery Unit 34 had resulted in off-specification material being sent to the Chevron Phillips Borger Chemical Plant. Unit 34 is a sulfur recovery unit. Once aware of the refinery unit upset, operators at the chemical plant shut-in the refinery feed and attempted to process the off-spec hydrogen sulfide to minimize the subsequent flaring event. [491]

September 10, 2015: Phillips Delays Restart of FCCU at Wood River Refinery

Phillips has delayed the restart of a 42,000 b/d fluid catalytic cracking unit (FCCU) at its Wood River, Illinois, refinery until Monday, about four days later than initially expected, according to a person familiar with the plant’s operations. The FCCU was shut on Tuesday after a leak was discovered. The unit was initially expected to restart within 48 hours but was delayed due to technical problems, the source said on Thursday. [492]

September 9, 2015: Phillips Resumes Hauling North Dakota Bakken Crude by Rail to BayWay Refinery

Phillips has mobilized some crude oil railcars that were parked earlier this year when cheap imports eroded the profitability of moving domestic crude by rail, the president said. The company has pulled some railcars out of storage to haul Bakken crude to its New Jersey and Washington state refineries, company president Tim Taylor told Reuters. The company declined to say how many cars it took out of circulation or how many are back, but the move provides context to how quickly rail movements can be mobilized or halted depending on price discounts between inland and imported crude oil. [493]

September 9, 2015: Phillips Resumes Hauling North Dakota Bakken Crude by Rail to Ferndale Refinery

Phillips has mobilized some crude oil railcars that were parked earlier this year when cheap imports eroded the profitability of moving domestic crude by rail, the president said. The company has pulled some railcars out of storage to haul Bakken crude to its New Jersey and Washington state refineries, company president Tim Taylor told Reuters. The company declined to say how many cars it took out of circulation or how many are back, but the move provides context to how quickly rail movements can be mobilized or halted depending on price discounts between inland and imported crude oil. [494]

September 9, 2015: Contra Costa County Officials Say Warning System Worked 'As Designed' in August 2 Rodeo Refinery Fire

The San Jose Mercury News reported on September 9, 2015 that Contra Costa County officials appeared at a town hall meeting on September 7, 2015 and told the 50-strong audience at the Crockett Community Center that according to Randy Sawyer, the county's chief environmental health officer, the "system worked as designed for that level" of emergency. Two Phillips 66 communications officials were in attendance, but largely deferred to county officials.

But many in the audience were not buying official reassurances, complaining that residents, especially those with disabilities and people with asthma and other respiratory issues, should have been notified by phone or other means, and that officials were downplaying the seriousness of the incident. "Relying on Twitter and Facebook is useless. Going to a webpage is time-consuming," Crockett resident Margaret Faria said moments after the meeting concluded shortly before 9 p.m. "Receiving a phone call, text or email is the only way to inform the public. With the fire at Phillips 66, there was no notification. It appeared on their webpage later. By then, anyone with respiratory issues that is not aware (of the incident) would be at risk without knowing. The system should not rely on social media. We have many older citizens that do not use it."[495]

September 8, 2015: San Luis Obispo County League of Women Voters Opposes Phillips 66 Oil Train Project

KCBX reported on September 8, 2015 that the non-partisan San Luis Obispo County League of Women Voters has taken a stand against the proposed Phillips 66 oil train project. The League says it shares the deep concerns of many in the community regarding safety issues surrounding this plan.[496]

September 6, 2015: San Luis Obispo Tribune Editorializes that Routing Oil Trains Through Densely Populated California Towns is a Bad Idea

San Luis Obispo Tribune published an editorial on September 6, 2015 opposing the Phillips Santa Maria Oil Terminal and sying that routing oil trains through densely populated California communities – whether it’s San Jose or San Luis Obispo -- is a bad idea and that they cannot in good conscience support the Phillips 66 rail spur project. "This is not an over-reaction by tree-hugging, left-leaning, anti-business environmentalists. It’s an effort to keep families and communities out of harm’s way – a reasonable response, we believe, given what’s been happening in the oil industry," says the editorial. "We support the Santa Maria refinery and we hope it can remain in business for many years to come. But when it was built in the early 1930s, its mission was to process oil from the surrounding communities. Allowing it to morph into a receiving site for oil trains that originate from far away and pass through communities with millions of people is haphazard planning that defies logic."[497]

September 5, 2015: Lompoc Record Editorializes in Support of Phillips Santa Maria Rail Terminal

The Lompoc Record published an editorial on September 5, 2015 supporting the Phillips Santa Maria Rail Terminal. According to the newspaper, the vote of the Santa Barbara Board of Supervisors to send a letter to its counterpart board in San Luis Obispo County, urging denial of an application by Phillips 66 to expand a rail spur to transport oil to its refinery on the Nipomo Mesa elevates the not-in-my-backyard concept to a new level. "We have been following the opposition to the local oil industry for many years, and we have to admire the opponents’ willingness to stay the course. They have a cause, and they will pursue it until the last oil rig and refinery are gone from the Central Coast," writes the editorial board noting that the Phillips 66 Santa Maria Refinery has been operated on the Nipomo Mesa for more than a half-century, without a major incident to compromise the local environment. "But that will not happen, as long as we use gasoline to fuel our vehicles, and oil to fire plants that produce electric power. Alternatives to a petroleum-based society are available, but we have yet to make the commitment necessary to wean ourselves from a long-standing dependence on oil."[498]

September 4, 2015: Phillips Reports Emissions at Belle Chasse Refinery

Phillips Reports Emissions at Belle Chasse Refinery on September 4, 2015.[499]

September 3, 2015: Phillips Completing Temporary Replacement for Collapsed Cooling Tower at Wood River Refinery

Reuters reported on September 3, 2015 that Phillips plan to have a temporary coolng tower in place by September 3, 2015 which will allow them to run its Fluid Catalytic Crackers (FCC) at normal rates, according to a source ramiliar with operations at the refinery. A cooling tower collapsed on August 25 forcing one of the FCCs to be shut down and the other to be run at reduced rates.[500]

September 2, 2015: Watch Group Urges Pismo Beach City Council to Oppose Oil Trains

The New Times reported on September 2, 2015 that Gary McKible of the Mesa Refinery Watch Group gave a short presentation to cPismo Beach ouncilmembers urging the council to oppose the Phillips Rail project, which would add a rail terminal and tracks to an existing rail spur at the Santa Maria Refinery in Nipomo, enabling Phillips 66 to transport crude oil there by train. The presentation was followed by a lengthy public comment, with about 20 individuals speaking on the rail spur issue. One of those, Marcus Beal, said he was in favor of the project. “Of course there’s a hazard, there’s always a hazard, but crude oil isn’t the most hazardous thing coming down the rail line,” Beal, a local Phillips 66 employee, said. He said there were far more hazardous materials than crude oil being transported by train and mentioned propane and butane as examples. “P 66 isn’t transporting the product,” Beal said. “The concern should be concentrated on the transportation industry, not Phillips 66.”[501]

September 2, 2015: Milpitas Post Editorial Protests Phillips Plan to Run Crude Oil Trains Through South Bay

The Milpitas Post editorialized on September 2, 2015 that Milpitas officials need to quickly get up to speed on the dangers we face with the proposal to send up to five mile-long crude oil trains every week through the center of the community and the city council needs to wake up to the reality of the dangers of this plan. "Milpitas needs to join with protesters, which now include our county supervisors and the neighboring cities of Fremont, San Jose, Oakland, Berkeley, San Leandro and more than 40 other entities. If San Luis Obispo authorities won't block this project, then attention might have to focus on Congress," says the newspaper. "What is needed at a minimum is a moratorium on shipping these kinds of trains through built-up areas at least until all of the obsolete cars can be replaced with safer models." According to the Milpitas Post another sensible alternative is to find a rail routing that bypasses urban areas. "Phillips 66, as a responsible company, should think seriously about withdrawing the plan."[502]

September 1, 2015: Phillips to Restart FCCU at Bayway Refinery

Phillips reported it was going to restart the fluidized catalytic cracker unit (FCCU) at its Linden, New Jersey refinery, according to a filing with the National Response Center according to a report from Reuters on September 1, 2015.[503]

August 31, 2015: Community Meets to Discuss Complains Over Lack of Community Notifaction After August 2 Fire at Rodeo Refinery

The Contra Costa Times reported on August 31, 2015 that there will be a public meeting on September 8, 2015 in Crockett, California to discuss complaints over a lack of community notification after the fire at Rodeo Refinery on August 2, 2015. Margaret Faria of the Crockett Improvement Association, which is organizing the community meeting, said she is not aware of any communication from the refinery during the incident or that its warning siren ever sounded. "I haven't found a single person who got a phone call or heard the siren go off," Faria added. Tony Semenza of the Community Awareness Emergency Response group will attend the meeting, the improvement association said in a news release, and representatives of Phillips 66 have been invited as well.[504]

August 31, 2015: FCC Units Running at Reduced Rates Until Collapsed Cooling Tower Replaced

Reuters reported on Augusut 31, 2015 that Phillips 66 is running both its gaoline-making FCC units at reduced rates at the Wood River Refinery following collapse of a colling tower on August 25, 2015, according to sources familiar with operations at the refinery. The FCC units will continue to run at reduced rates until Phiilps finds a temporary replacement for the collapsed water tower.[505]

August 30, 2015: Phillips Reports Flaring at Wilmington Refinery

Phillips reported flaring at Wilmington Refinery according to a report from Reuters on August 30, 2015.[506]

August 29, 2015: Phillips Reports Upset, SRU Emissions at Ferndale Refinery

Phillips Reports Upset, SRU Emissions at Ferndale Refinery [507]

August 28, 2015: Santa Clara County Board of Supervisors Opposes Phillips Santa Maria Rail Project

The Merucry News reported on August 28, 2015 that the Santa Clara County Board of Supervisors ounanimously adopted a resolution on August 24, 2015 opposing the Phillips 66 Co. Rail Spur Extension and Crude Oil Unloading Facility Project in San Luis Obispo County. "This would set a dangerous precedent for other oil companies to follow suit, and it poses an unacceptable risk to our community," said Supervisor Cindy Chavez. "That is why today, the Santa Clara County Board of Supervisors joins over 40 other public agencies and elected officials throughout the state in expressing its strong opposition to the rail spur project."

"Our region is not lacking in access to crude oil, and there are already safer methods of transport already in use," said Supervisor Ken Yeager. "Moving such a volatile product by train through heavily populated areas is just too risky. Our public safety is more important than corporate profits."[508]

August 28, 2015: Santa Barbara County Board of Supervisors Considers Urging Planning Commission to Deny Application for Phillips Santa Maria Rail Project

The Lompco Record reported on August 28, 2015 that the Santa Barbara County Board of Supervisors will consider staff's recommendation to send a letter to the San Luis Obispo County Planning Commission, urging members to deny the Phillips 66 Co.'s application for the rail spur extension project. According to a staff report, approval of the project would present health risks to Santa Barbara County residents and the environment, as it would result in five additional oil trains per week traveling through the county's coastal rail line. The report also says that the risks of transporting crude oils include explosion, derailment, air pollution, toxic emissions, fires and spills. So far 20,000 public comments have been made on the Environmental Impact Report for the project, and 40 of those comments have come from cities and local governmental entities. Many local governments such as Ventura County, the cities of Moorpark, Oxnard, Carpinteria, Santa Barbara, Goleta and San Luis Obispo have formally voted to oppose the project.

However, 5th District Supervisor Steve Lavagnino said that he wasn't sure it was the board's responsibility to tell another county what to do. "We have enough things on our plate that we have jurisdiction over without going to other counties," Lavagnino said. "I don't think I've ever seen another county send us a letter telling us how to vote."[509]

August 28, 2015: Phillips Reports FCCU Regenerator Malfunction at Ponca City Refinery

Phillips Reports FCCU Regenerator Malfunction at Ponca City Refinery [510]

August 28, 2015: Phillips Shuts Down 150,000 bpd Fluid Catalytic Cracker at Bayway Refinery After Leak

Genscape reported on August 28, 2015 that Phillips unexpectedly shut down a 150,000 bpd Fluid Catalytic Cracker at Bayway Refinery due to a leak accordinng to someone familiar with operations at the refinery. Genscape reported that operations at Bayway Refinery remained normal at 953 am on August 28, 2015 but a source said this was because the unit was coming down at the time and flaring would occur shortly. Officials at Bayway Refinery are still assessing the problem and a restart time is currently unavailable. Phillips did not immediately respond to a request for comment.[511]

August 28, 2015: Gasoline Unit Restarted after Cooling Tower Collapse at Wood River Refinery

The St. Louis Post-Dispatch reported on August 28, 2015 that a 42,000 bpd fluid catalytic cracking unit was restarted on August 28, 2015 after the collapse of a cooling tower at Phillips 66’s Wood River refinery put the unit our of service on August 24, 2015. The restart of a gasoline-making unit was underway on the morning of August 28, 2015 after previous attempts to bring the unit online were unsuccessful because of technical glitches said a source familiar with plant operations. The other FCCU unit remained at reduced rates, the source added.[512]

August 28, 2015: Phillips Shuts FCCU Due to Leak at Bayway Refinery

Phillips unexpectedly shut down a 150,000 b/d fluid catalytic cracker unit (FCCU) at its Bayway refinery in New Jersey on Friday, the second gasoline-making unit on the East Coast to experience an unexpected outage at a time of high demand at U.S. gas pumps. PBF Energy Inc was forced to shut a 65,000 b/d catalytic cracker a week ago at its 182,000 b/d Delaware City, Delaware, refinery for up to a month due to a compressor fire. Together, the two units account for roughly 40 percent of the overall catalytic cracking capacity on the East Coast, according to the U.S. Energy Information Administration (EIA). The FCCU at Bayway was shut down on Friday morning after workers discovered a leak, the source said, adding that it was not known how long the outage would last. U.S. production of finished gasoline fell nearly 500,000 b/d last week after hitting a record high 10.3 million b/d the week before, according to the EIA data, reflecting impacts from a series of refinery outages according to report from Reuters on August 28, 2015.[513]

August 26, 2015: Cooling Tower Collapses at Wood River Refinery Shutting Down 42,000 bpd FCCU

The St. Louis Post-Dispatch reported on August 25, 2015 that a cooling tower at Phillips 66’s Wood River refinery collapsed on August 24, 2015, forcing the plant to shut a 42,000 bpd fluid catalytic cracking unit, or FCCU and run a second one at reduced rates, said a source familiar with plant operations. Workers at the refinery may try to restart the FCCU, within the next 48 hours, the source said. The refinery has two such units with capacity of 42,000 and 48,000 bpd, according to IIR Energy data on Eikon. It was not clear which unit was affected. “The Wood River Refinery had an operational upset resulting from a loss of cooling from an upset cooling water tower,” said Phillips 66 spokeswoman Melissa Erker in an emailed statement. “There were no injuries to employees or offsite impacts," adding that the company was “working to resupply cooling water to the impacted units using redundant cooling water supply from other towers.”[514]

August 25, 2015: Santa Clara County Board of Supervisors Opposes Phillips 66's Santa Maria Rail Expansion

CBS San Fransisco reported on August 25, 2015 that the Santa Clara County Board of Supervisors unanimously approved a resolution on August 25, 2015 against Phillip 66's Santa Maria Rail Expansion Project that would bring trains carrying oil through the county. The proposed route would reach Milpitas and downtown San Jose, then run parallel with U.S. Highway 101 through Gilroy and Morgan Hill, according to Supervisor Cindy Chavez. Supervisor Ken Yeager said the project is “very unsafe” for an urban area like Santa Clara County, which has nearly 2 million residents. Chavez said one of the affected communities would be San Jose’s Japantown, which received a commendation celebrating their 125th anniversary during Tuesday’s board meeting. The county joins 40 other public agencies and elected officials across the state in opposing the project, according to Chavez.[515]

August 21, 2015: Phillips Reports Valve Leak on Process Unit at Sweeny Refinery

Phillips reported a pinhole leak on a process unit valve at its Sweeny, Texas refinery, according to a filing with the National Response Center and reported by Reuters on August 24, 2015.[516]

August 18, 2015: Phillips Shuts Hydrocracker at Wood River Refinery

Phillips shut a 38,000 b/d hydrocracker at its Wood River refinery in Illinois on Tuesday due to a compressor trip, a source familiar with refinery operations said Wednesday. The company reported that an unidentified unit tripped offline Tuesday, according to a filing with Illinois Emergency Management Agency. The Ozark pipeline, which carries crude oil to the refinery from Cushing, Oklahoma, briefly saw decreased flows on Tuesday, according to energy industry intelligence service Genscape as reported by Reuters on August 19, 2015.[517]

August 17, 2015: Phillips Reports Relief Valve Leak at Borger Refinery

Phillips reported a relief valve leak at Borger Refinery according to a report from Reuters on August 17, 2015.[518]

August 17, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on August 17, 2015.[519]

August 11, 2015: Laurance Shinderman and Tom Ryan write: Phillips' Rail Spur Impacts Outweigh any Benefits

Laurance Shinderman and Tom Ryan wrote an op-ed in the Cal Coast News on August 11, 2015 that what is called a benign rail spur at Phillips 66's Santa Maria Refinery is in fact a huge rail yard containing five long railroad tracks fanning out to accommodate and off load 80 tanker/ mile long crude oil trains that would be coming into the refinery five days a week that create eleven class one impacts that could not be mitigated, including five directly related to air pollution. According to Shinderman and Ryan, Phillips Is minimizing the enormous scope of what they intend to bring to SLO County. "Each arriving tanker would hold 27,000 gallons of volatile tar sands crude. That comes to 562,000,000 gallons … more than one-half billion gallons per year that can literally obliterate a city should there be a derailment and explosion. Tar-sands would be coming down the tracks…it’s not the same crude that P66 now refines. Its from the Alberta tar sands region. It’s highly volatile and as dangerous as Bakken," write Shinderman and Ryan. "This is a project that benefits the singular interests of one large multinational company, Phillips 66, the sixth largest company on the Fortune 500, while putting at risk the health, safety and financial well being of thousands of residents along the UPRR mainline. What are more important, higher profits for Phillips 66 shareholders, or the health and safety of you and your family? Make your voices heard."[520]

August 11, 2015: Phillips to Keep Powerformer Shut for ‘Couple Weeks’ at Bayway Refinery

Phillips will keep a powerformer shut at its Bayway refinery in Linden, New Jersey as it fixes a leak that was discovered on Friday, according to a person who is familiar with the plant’s operations. The powerformer unit was shut on Friday after the leak was discovered. The unit is expected to be shut for a couple weeks while the leak is fixed. There is no impact to other units at the refinery, the source said according to a report from Reuters on August 11, 2015.[521]

August 11, 2015: Phillips Says Normal Operations Resumed at Borger Refinery

Phillips said normal operations have resumed at Borger Refinery according to a report from Reuters on August 11, 2015.[522]

August 11, 2015: Phillips Fixes Compressor at Wood River Refinery

Phillips resolved a problem with a compressor at its refinery in Wood River, Illinois and the facility was running normally, according to a person familiar with the refinery’s operations. Workers were preparing to shut a 120,000 b/d crude unit for up to five weeks in early September according to a report from Reuters on August 11, 2015.[523]

August 7, 2015: Phillips Shuts Powerformer at Bayway Refinery

According to a source, Phillips shut a powerformer unit Friday at its Bayway refinery in Linden, New Jersey, according to a source familiar with the plant’s operations. The 28,000 b/d unit was shut after a leak was discovered and officials were assessing damage, the source said according to a report from Reuters on August 7, 2015.[524]

August 5, 2015: Charles Varni Writes 'Civil Rights in the Blast Zone'

Charles Varni, the South SLO County coordinator for the Stop Phillips 66 Project, wrote in op-ed in the Santa Maria Sun on August 5, 2015 that the US Department of Transportation has formally designated a “blast and evacuation zone” of 1 mile running parallel to the train tracks leading to the Phillips 66 oil train terminal at the Santa Maria Refinery in case of an oil train derailment (six so far this year in the U.S. with five of them exploding). According to Varnia 30 percent of the population of SLO County and 40-plus public and private schools are in this blast zone and in some communities it is much more (Paso Robles, 45 percent; San Luis Obispo, 71 percent; Grover Beach, 78 percent; Oceano, 88 percent). "There’s no significant benefit to us; just a lot of huge risks and, for sure, negative health consequences (not to mention huge economic and environmental risks)," writes Varni. "This is a civil and human rights issue—the right to know that something of this magnitude and impact is planned for your neighborhood should not be the responsibility of citizen volunteers. This is a fundamental responsibility of government—to inform us of significant risks to life and property so we can be part of the decision-making process if we so choose."[525]

August 3, 2015: Phillips Reports Process Upset at Borger, Texas Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on August 3, 2015.[526]

August 2, 2015: Fire Extinguished at Rodeo Refinery

A small fire on August 2, 2015 at Phillips Rodeo Refinery spurred the county health department to issue a public health advisory for the towns of Rodeo and Crockett. Photo: Contra Costa Times. Courtesy of Jason Sutton

The Contra Costa Times reported on August 2, 2015 that a small fire on August 2, 2015 at Phillips Rodeo Refinery spurred the county health department to issue a public health advisory for the towns of Rodeo and Crockett. The Contra Costa County incident warning system issued an alert just before 3:15 p.m. that staff concerned with hazardous materials were responding to a report of a fire at the refinery. County officials advise people with respiratory sensitivities to avoid the area or stay inside and rinse any irritated area with water but added that most people should not be affected. No injuries were reported, and the fire's cause is under investigation.[527]

August 2, 2015: Phillips Identifies Coker Unit as Source of Fire at Rodeo Refinery

Phillips has identied a coker unit as the source of a fire at Rodeo Refinery according to a report from Reuters on August 11, 2015.[528]

July 31, 2015: Phillips Restarting Units at Lake Charles Refinery after Power Loss

Phillips said its Lake Charles refinery in Westlake, Louisiana, experienced multiple unspecified unit upsets due to a partial power loss on Friday afternoon. The company said power was in the process of being restored and the affected units brought back on line. Industry intelligence firm Genscape earlier reported the shutdown of a crude distillation unit, the smallest of the three at the plant, and a vacuum distillation unit at the refinery according to reports from Reuters on July 31, 2015.[529]

July 29, 2015: Santa Barbara City Council Votes Against Phillips Oil Train

The Santa Barbara Independent reported on July 29, 2015 that the Santa Barbara City Council voted 5-2 to write a letter urging that San Luis Obispo reject an application by Phillips 66 to expand the railroad spur at its Santa Maria Refinery. "Critics of the proposed oil train packed the council chambers, recounting the horrors that happened in North Dakota, West Virginia, and Quebec, when similarly laden trains jumped the tracks there," wrote Nick Welsh. "Displaying a map showing the “blast zone” along both sides of the railroad tracks, speaker after speaker itemized the defining structures and urban landmarks that could be affected: 16 schools, one fire station, Chase Palm Park, Stearns Wharf, City Hall, and the Funk Zone." Opposing the anti-oil train letter were councilmembers Frank Hotchkiss and Dale Francisco. “I wish you didn’t have the great fear that you do,” said Hotchkiss to those assembled, “but you do.” Santa Barbara joins a list of 40 cities and other governmental entities along the coast in opposing the oil train rail spur.[530]

July 27, 2015: Phillips Resumes Normal Operations at Alliance Refinery After Unscheduled Outage

Phillips said it resumed normal operations at its Alliance refinery in Belle Chase, Louisiana after a brief, unscheduled outage impacted several units on July 23. The company began restarting the units Friday according to a report from Reuters on July 27, 2015.[531]

July 24, 2015: Ferndale Refinery Gets New 199-foot-tall Safety Flare System

The Bellingham Herald reported on July 24, 2015 that Phillips 66 recently completed construction of a 199-foot-tall safety flare system that will improve energy efficiency as well as lessen the impact on the environment. “While the elevated flare will be more visible during the occasional flaring event, the public can be assured the new system will be safer, more efficient and better for the environment,” said Jeff Callender, communications manager at Phillips 66. The old system uses a ground-level safety flare system that’s been around in some form for decades. The new system uses steam to promote combustion efficiency, minimizing the smoke during a flare operation. The new system will reduce the number of natural gas pilot lights from 60 to four, reducing energy output. “This new system burns everything efficiently, and that’s a good thing,” said Katie Skipper of the Northwest Clean Air Agency. “It is definitely an upgrade.”[532]

July 23, 2015: Phillips Restarting Units at Alliance Refinery after Brief Outage

Phillips on Friday said it was in the process of restarting units impacted by a brief, unscheduled outage that, on Thursday, shut parts of its Alliance refinery in Belle Chase, Louisiana. The company said the cause of the outage was being investigated by the local utility provider according to reports from Reuters on July 24, 2015.[533]

July 17, 2015: Phillips Reports Upset at Ponca City Refinery

Phillips reported an upset at Ponca City Refinery on July 17, 2015 according to a report from Reuters on July 22, 2015.[534]

July 17, 2015: Phillips Says Borger Refinery Running at Reduced Rates

Phillips says unscheduled maintenance at the Borger, Texas refinery was causing fuel production from the refinery to be less than normal during ordinary operations according to a report from Reuters on July 20, 2015.[535]

July 17, 2015: Phillips Shuts Hydrotreater Due to Leak at Bayway Refinery

According to a source, Phillips shut a 58,000 b/d hydrotreater associated with its fluid catalytic cracker Friday at its Linden, New Jersey refinery after a leak was discovered, according to a source familiar with the plant’s operations. The leak was first discovered Thursday but the unit was not shut down until Friday, the source said according to a report from Reuters on July 17, 2015.[536]

July 16, 2015: Phillips Reports Unscheduled Maintenance at Borger Refinery

Phillips reported unscheduled maintenance at Borger Refinery and that the refinery was running at less than normal production according to a report from Reuters on July 17, 2015.[537]

July 15, 2015: Phillips Reports Unplanned Flaring at Wilmington Refinery

Phillips reported unplanned flaring at Wilmington Refinery according to a report from Reuters on July 15, 2015.[538]

July 15, 2015: PHMSA Issues Mandatory Shutdown, Repair of Plains All American Capwood Pipeline to Wood River Refinery Following Leak

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a corrective action order late on July 14 to Plains All American Pipeline (PAA) related to the Pocahontas pumping station leak, which is one of several such stations along the Capwood Pipeline and 20-inch diameter Patoka to Wood River, Illinois line. Both lines are currently out of service, the order states. The order requires the operator to investigate the incident, make repairs and report back to PHMSA before resuming operations at the line, which feeds Phillips 66’s 336,000 b/d Wood River, Illinois refinery. Sources say the refinery’s operations have been unaffected by the incident, as it can receive crude supplies via a variety of other means, including other pipelines. PAA on Tuesday said there is no estimated timeline for restart.[539]

July 15, 2015: Residents Near Old Oak Park Road in San Luis Obispo County Raise Concerns over New Phillips Pipeline

Residents along a road in unincorporated San Luis Obispo County are concerned about the construction of an underground oil pipeline as they have watched as construction and digging equipment was staged for the project along the road but are probably too late to stop it. The project is a planned 5.6-mile oil pipeline that will run from the Freeport-McMoran oil operation in Price Canyon to an existing pipeline in Arroyo Grande, which connects to the Santa Maria oil refinery on the Nipomo Mesa. The pipeline will allow Phillips 66 to transport between 1,500 and 10,000 barrels of oil per day at a pressure of 700 to 1,480 pounds per square inch to the refinery, resulting in potentially 18 fewer trips per day for oil tanker trucks along SLO County roads.[540] Photo: Maria Skelley

Chris McGuiness wrote in the New Times on July 15, 2015 that residents along a road in unincorporated San Luis Obispo County are concerned about the construction of an underground oil pipeline as they have watched as construction and digging equipment was staged for the project along the road but are probably too late to stop it. The project is a planned 5.6-mile oil pipeline that will run from the Freeport-McMoran oil operation in Price Canyon to an existing pipeline in Arroyo Grande, which connects to the Santa Maria oil refinery on the Nipomo Mesa. The pipeline will allow Phillips 66 to transport between 1,500 and 10,000 barrels of oil per day at a pressure of 700 to 1,480 pounds per square inch to the refinery, resulting in potentially 18 fewer trips per day for oil tanker trucks along SLO County roads.

The fact that nearly 4 miles of that pipeline would run down the sections of Old Oak Park Road came as a shock to Diane Mead. “At first we thought maybe they were putting in a bike lane,” Mead, who bought property in the area in 2013, said. “Then we starting seeing the trucks come and the pipe come in. We were all very surprised.” Mead said several residents on the street were worried about the pipeline, particularly in the wake of a 100,000-gallon oil spill in Santa Barbara County in May, which was caused by a ruptured pipeline. “It’s definitely on people’s minds here,” said Bruce Actis, who’s lived on Old Oak Park Road since 1979. “We are all on wells for our water out here, so if there is a spill and it contaminates our groundwater, I don’t know what we are going to do.”

Actis and other concerned residents who contacted New Times claim they weren’t informed about the project and didn’t have an opportunity to tell the county about their concerns. According to information from the SLO County Planning and Building Department, a minor use permit for the project was approved at a county planning hearing Nov. 7, 2014. The project didn’t go before the county’s full planning commission, but was approved by a single hearing officer as part of a consent agenda. Robert Fitzroy, an environmental resource specialist and the project’s manager for the county, said the process was standard for projects requiring a minor use permit. He also said that the county informed all residents living within 300 feet of the proposed pipeline prior to the meeting by mail and with a notice in a local daily newspaper, as per the county’s ordinances. Fitzroy said anyone could have called for a project hearing prior to its approval and also could have appealed the approval to the county Board of Supervisors within a 14-day window after the approval. At least six individuals who lived on the road contacted New Times and said they did not recall getting a notice about the project from the county. Roger Bunch, and Old Oak Road resident since 1971, said he didn’t remember receiving any notice and would have liked a chance to ask questions about the project. “I just feel like they did this real quietly,” he said. “I think we would have just liked to ask a few questions about it. But it would have probably passed anyway.”[541]

July 14, 2015: Phillips Reports Exchanger Shut after Leak at Rodeo Refinery

Phillips on Tuesday shut down the exchanger on a unit after a hydrogen sulfide spill at its Rodeo, California refinery, according to a filing with Contra Costa County Health Services.[542]

July 13, 2015: Whatcom County Environmentalists want to Monitor Phillips and BP Oil Trains into Ferndale Refinery and Cherry Point Refinery

Samantha Wohlfeil reported in the Bellingham Herald on July 13, 2015 that Whatcom County environmentalists want to step in as watchdogs and keep tabs on the trains rolling through their backyards to Phillips Fernade Refinery and BP's Cherry Point Refinery. RE Sources for Sustainable Communities staff members have asked people who are interested in environmental activism if they own property near the tracks, and if they’d be willing to host a camera there to document train movements. All the details of the project are not hammered out yet, but the basic premise is to gather proof of oil trains coming and going through Whatcom County and double check it against reports required at the state and federal level, said Matt Petryni, clean energy program manager at RE Sources.

Through a new state law, facilities that receive crude oil by train — e.g. BP Cherry Point and Phillips 66 Ferndale refineries — need to give the state Department of Ecology advance notice before oil is transferred there. Those facilities already were required to give that notice for marine transfers. BP Cherry Point is permitted to receive an average of one train loaded with crude oil per day, and Phillips 66 can get one every other day. Currently, some people on Twitter use the hashtag #WAoiltrainwatch to document when they see an oil train rolling through various parts of the state, but many haven’t included photos, and days can pass between tweets. “It’s not a solid record in the way we would want it,” Petryni said. “We want to know if (the refineries) are exceeding their limit. I don’t think they are, but it would be an added watchdog means of enforcement of their limits.”[543]

July 11, 2015: Protest Letters Come in from 40 Public Agencies or Elected Officials Opposing Phillips Santa Maria Oil Railroad Project

Cynthia Lambert reported in the San Luis Obispo Tribune on July 11, 2015 that more than 40 public agencies or elected officials in California — cities, school districts, teachers unions and three state senators — have penned letters or passed resolutions against Phillips 66 Co.’s plan to upgrade its refinery so it can receive train car crude oil deliveries. The county received thousands of comments on draft environmental reports for the project before the comment period ended Nov. 24. Since then, the county has received dozens more letters and emails. Local opponents, led by the grassroots Mesa Refinery Watch Group, have organized protest rallies, attended numerous council meetings and sent a steady flow of updates about rail accidents to elected officials statewide. “We keep the pot simmering,” said Nipomo resident Laurance Shinderman, a member of the group’s steering committee.

When asked why many local communities near Santa Maria haven’t taken a position while agencies elsewhere in the state have done so, Shinderman offered a theory: “This is the home-court advantage of Phillips 66. Guys belong to Rotary clubs and associations and spread the money around and have tight relationships.”[544]

July 11, 2015: Dozens Rally in San Luis Obispo to Oppose Phillips Santa Maria Oil Railroad Project

Amanda Starrantino reported at KSBY on July 11, 2015 that dozens of people gathered in San Luis Obispo to rally against the Phillips 66 Rail Project. "We have a unique power to stop this not just for ourselves but for thousands and millions of people across the United States these trains are coming from Alberta, Canada,” says Charles Varni, a local resident who opposes the project.[545]

July 11, 2015: Phillips Reports Emissions, FCCU Start-up at Borger Refinery

Phillips reported emissions due to startup of fluid catalytic cracking units (FCCU) 29 and 40 at its Borger, Texas, refinery, on Saturday, according to a filing with the Texas Commission on Environmental Quality. The filing said the units were scheduled to start up in the next couple of days according to a report from Reuters on July 12, 2015.[546]

July 10, 2015: Ventura Groups Plan Protest Against Phillips Santa Maria Oil Railroad Project

The Ventura County Star reported on July 10, 2015 that local activist groups are planning a protest in Ventura on July 11 against construction of a rail spur that would lead to more oil trains traveling through the county to Phillips Santa Maria Refinery. The demonstration is set to start at 5 p.m. Saturday, with protesters meeting at California and Santa Clara streets before marching to the Amtrak station on Harbor Boulevard.[547]

July 10, 2015: Phillips Assessing Operations Impact on Woods River Refinery after PAA’s Capwood Pipeline Shuts Flow After Booster Station Leak

Phillips said it was assessing the impact on operations at its Wood River refinery as a result of Plains All American’s (PAA’s) 277,000 b/d Capwood pipeline shutdown. Phillips said at this time it did not anticipate any impacts at the refinery. The Capwood pipeline runs from Patoka, Illinois, to Wood River, Illinois according to a report from Reuters on July 13, 2015.[548]

July 7, 2015: July 11 Rally Planned in San Jose to Prevent Oil Trains Going to Phillips Santa Maria Refinery

Leeta-Rose Ballester reported in the San Jose Mercury News on July 7, 2015 that a group of South Bay residents will hold a rally on July 11 at 3 pm at Diridon Station to "rail against a project that could send oil-laden trains from the Phillips 66 refinery in Santa Maria rumbling through San Jose neighborhoods." "There is a plan to have oil trains coursing through San Jose--almost one a day," said Steve Eittreim, a member of the environmental group 350 Silicon Valley. "We're hoping if Phillips becomes aware that there is more opposition that they'll just drop it. They're trying to make the rails safer but I don't trust it. Accidents happen." The Phillips 66 proposal calls for as many as five oil trains a week traveling the lines, carrying approximately 2.2 million gallons of crude oil a year, according to a recirculated draft environmental impact report for the project. "Daily mile-long crude oil trains carrying toxic tar sands oil would pass within blocks of neighborhood schools, spewing chemicals over recreation areas where children play," said Kathy Pimentel. "If a train derailed crossing the Los Gatos Creek, a spill could permanently contaminate a waterway that scores of volunteers have worked so hard to clean up."[549]

July 6, 2015: Phillips Resumes Full Operations at Wood River Refinery after Power Loss July 1

According to a source, Phillips 66’s Wood River, Illinois refinery resumed full operations Monday following a brief outage caused by a loss of power, according to a source familiar with the plant’s operations. The plant lost power in at least one unit Wednesday, the company said last week, resulting in reduced capacity of about 60,000 b/d. Energy industry intelligence service Genscape reported Sunday that the 64,000 b/d crude unit and a 30,000 b/d vacuum distillation unit were restarted. On Monday morning, Genscape reported that a 16,000 b/d coker had also restarted according to a report from Reuters on July 6, 2015.[550]

July 3, 2015: Phillips Reports Startup, FCCU Emissions at Ponca City Refinery

Phillips reported the startup and FCCU emissions at Ponca City refinery according to reports from Reuters on July 8, 2015.[551]

July 1, 2015: Phillips Reports Wood River Refinery Continues to Operate after Power Loss

Phillips reported that Wood River Refinery continued to operate after a power loss. The refinery reported the loss of power was due to outside electrical problems according to a report from Reuters on July 2, 2015 .[552]

July 1, 2015: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reported FCCU Emissions at Borger Refinery according to a report from Reuters on July 1, 2015.[553]

June 26, 2015: Native American Environmental Activists Make 12 Mile Healing Walk to Rodeo Refinery

Rucha Chitnis reported at TruthOut on June 20, 2015 that Native American environmental activists made a 12 mile "Healing Walk" to Phillips 66's Rodeo Refinery to draw increased attention to the high rates of asthma, cancer and environmental racism experienced by neighbors of the five large oil refineries in the northeast San Francisco Bay area. "I have lived in Richmond in the shadow of the Chevron refinery for many decades now, raising my children in this refinery town," said Alison Ehara-Brown, one of the organizers of the Refinery Corridor Healing Walks. "When our children have high asthma rates, when our family members are getting cancer and collapsed lungs at an early age … then we know that we are living in a culture that needs healing."

There are four healing walks organized this year by Native American environmental advocates; these walks traverse refineries lining the East Bay, crude-by-rail tracks, neighborhoods, bridges and the bay. The third healing walk, organized June 20 began from Benicia and ended in the city of Rodeo, which is home to a Phillips 66 refinery, the first major oil refinery in the Bay Area. The Board of Supervisors approved an expansion of the refinery, alarming environmental advocates. The refinery sits on an earthquake liquefaction zone, and local residents are worried that the expansion plans could exacerbate air pollution and public safety. "Why should any community be a sacrifice zone for the fossil fuel industry? Would those making these types of decisions allow their families to live in these sacrifice zones? If not, then no one should live in them," concluded Opal Plant. The final healing walk for 2015 is on Sunday, July 19, from Rodeo's Conoco Phillips 66 Refinery to Richmond, which is home to Chevron Refinery.[554]

June 24, 2015: Phillips Reports Unplanned Flaring at Wilmington Refinery

Phillips reported unplanned flaring at Wilmington Refinery according to a report from Reuters on June 24, 2015.[555]

June 19, 2015: Phillips Reports Process Upset and Release of Hydrogen Sulfide at Borger Refinery

Phillips reported a release of hydrogen sulfide from a stack due to a process upset on June 19, 2015 according to a report from Reuters on June 22, 2015.[556]

June 19, 2015: Phillips Reports Process Problems at Borger Refinery

Phillips reported process problems at Borger Refinery according to a report from Reuters on June 19, 2015.[557]

June 19, 2015: California Nurses and Teachers Oppose Phillip 66 Oil Train Project

IndyBay reported on June 19, 2015 that the 120,000-member California Federation of Teachers voted to oppose the Phillips 66 oil train project. “Educators are very concerned about dangerous oil trains running past California schools. Hundreds of California schools are located near current and future oil train routes,” said CTA President Dean E. Vogel. “Educators and parents can help stop these Phillips 66 oil trains by encouraging local officials in San Luis Obispo County to put student and community safety first and not issue Phillips 66 a permit for their oil train project.” The 85,000-member California Nurses Association is pleased to join forces with the teaching profession in California on this important health and safety issue. “Nurses are thrilled to know that teachers also are strongly opposed to the Phillips 66 oil train project. The Phillip 66 oil trains present significant and unacceptable risks to the health and safety of our communities throughout California and beyond, due to toxic emissions and the potential for a catastrophic derailment, spill, explosion and fire,” stated Amber Wiehl, RN at Sierra Vista Regional Medical Center in San Luis Obispo.[558]

June 18, 2015: Phillips Reports Process Upset, Equipment Restart at Borger Refinery

Phillips reported a process upset and an equipment restart at Borger Refinery according to a report from Reuters on June 18, 2015.[559]

June 13, 2015: Phillips Reports Outage at Borger Refinery Due to Storm

Phillips reported an outage at Borger Refinery due to a storm according to a report from Reuters on June 15, 2015.[560]

June 10, 2015: Goleta City Council Votes To Send Letter About Santa Maria Oil Rail Concerns

KEYT reported on June 10, 2015 that the Goleta City Council voted to send a letter to San Luis Obispo supervisors sharing community concerns about the proposed Phillips 66 Santa Maria Refinery Rail Project. The council heard from residents concerned about health, safety and the environment before voting. Three council members voted to send the letter, one voted no and another abstained.[561]

June 9, 2015: Lucia Mar Teachers Union to Urge Denial of Santa Maria Rail Project

The San Luis Obispo Tribune reported on June 9, 2015 that the Lucia Mar Unified Teachers Association has voted to urge San Luis Obispo County planners to deny a proposed rail project at a Nipomo Mesa refinery. “As educators and advocates for the students of south San Luis Obispo County, we are particularly concerned with the risks this project would pose to Lucia Mar schools and student populations along the rail line,” said Donna Kandel, president of the teacher’s association, wrote to planning commissioners. “Seven Lucia Mar schools — Lopez High School, Mesa and Judkins Middle Schools, and Fairgrove, Grover Beach, Grover Heights, and Oceano Elementary Schools — along with 22 other schools in San Luis Obispo County, are within a mile of the ‘blast zone’ and could suffer catastrophic consequences in the event of a derailment."[562]

June 8, 2015: Phillips Reports Unit Upset at Wood River Refinery

Phillips reported a unit upset at Wood River Refinery according to a report from Reuters on June 8, 2015.[563]

June 4, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on June 4, 2015.[564]

June 4, 2015: Phillips Says Its Crude Oil Pipeline Near Santa Maria Refinery

Phillips said a crude oil pipeline that supplies its 120,000 b/d Santa Maria refinery in Arroyo Grande, California, was fixed after a small leak and restarted on Thursday. The company shut the line after about a barrel of crude leaked on Tuesday. The cause of the leak was under investigation, Phillips said.[565]

June 3, 2015: Phillips Reports Small Pipeline Leak in California Near Santa Maria Refinery

Phillips reported an underground pipeline near Santa Maria, California leaked less than a barrel of crude oil before it was shut down on Tuesday. The company said cleanup and repair crews were working around the clock. The pipeline runs crude from oil fields in the Orcutt area to the company’s 44,000 b/d refinery in Arroyo Grande.[566]

June 3, 2015: Residents of San Luis Obispo Protest Cuesta College Letters Supporting Phillips 66 Santa Maria Rail Project

The San Luis Obispo Tribune reported on June 3, 2015 that several community members called on the college board of Cuesta College to rescind letters of support written on offical college stationary by President Gil Stork and Athletic Director Robert Mariucci in support of a Phillips 66's proposal to move crude oil by rail to the Santa Maria Refinery. In their letters, Stork and Mariucci both note longtime support from Phillips 66 for college programs, including financial support of the women's basketball tournament for many years.

Project opponents argued that Stork and Mariucci should not have penned their support on college letterhead. Several people asked the Cuesta College Board of Trustees to oppose the project. "We urge the board to do the right thing and repudiate this letter and lend its name to the towns that have said no to this dangerous project," Nipomo resident Laurance Shinderman said. Stork told the board that he erred in using official letterhead but did not intend to retract the letter unless directed by the board to do so. "It is my opinion," Stork said. "Just because I don't have the same persuasion as the speakers here tonight doesn't make it wrong."[567]

June 3, 2015: Phillips 66 Cleans Up Oil Spill Near Santa Maria

KETY reported on June 3, 2015 that an underground pipeline in front of the Santa Barbara County Sheriff's Department Foster Road Station on California Boulevard belonging to Phillips 66 leaked what is estimated to be less than a barrel of crude oil, or about 40 gallons, leaked from the broken pipe before it was shutdown. "It was identified by a passerby who notified us", says Phillips 66 spokesperson Janet Grothe, "our control room immediately shut down the feed to the pipeline." Cleanup and repair crews have since been working around the clock. Phillips has not yet revealed how old the pipeline is or when it was last inspected for corrosion. Phillips 66 has had few major spills to speak of since it began operating in the area some 60 years ago. "We have a highly sophisticated control center and we’re able to control our pipelines remotely", Grothe says, "we take great pride in operating our facilities to high standards, we continuously test and monitor the pipelines and ensure that they are safe to operate."[568]

June 2, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger refinery according to a report from Reuters on June 2, 2015.[569]

May 31, 2015: Phillips Reports Emissions at Lake Charles Refinery

Phillips reported emissions at Lake Charles Refinery according to a report from Reuters on June 1, 2015.[570]

May 29, 2015: Phillips Reports Equipment Issues at Wood River Refinery

Phillips reported its Wood River refinery in Roxana, Illinois, faced equipment issues on Friday, according to a filing with the Illinois Emergency Management Agency. The incident led to sulfur dioxide emissions, the filing said. The company had last week said that planned work was underway at the refinery.[571]

May 27, 2015: Storms Damage Gasoline Tank at Sweeny Refinery

Nasdaq reported on May 27, 2015 that the roof of a tank at one of its product terminals at Sweeny refinery was damaged Wednesday by heavy storms that have been lashing Texas in recent days. "The gasoline is being drawn down to minimum level and all liquids pumped-off the tank roof," Phillips 66 said in a filing to the Texas Commission on Environmental Quality. The tank had an external floating roof, which floated on the surface of the gasoline.[572]

May 27, 2015: Phillips Reports Boiler Shutdown at Ferndale Refinery

Phillips reported a boiler shutdown at Ferndale Refinery according to a report from Reuters on June 2, 2015.[573]

May 19, 2015: No Injuries After Flare at Rodeo Refinery

The Contra Costa Times reported on May 19, 2015 that no one was injured when a processing unit at the Phillips 66 refinery in Rodeo flared late on May 18, 2015, producing a bright flare in Contra Costa County. The refinery remained operational Tuesday, and Phillips 66 officials said they would conduct an investigation to determine what caused the flare. As of mid-Tuesday morning, the flare was still going as the refinery continued to burn off excess material, officials said, but it was less visible in daylight. After the flare, Contra Costa County issued a Level 1 community warning for the incident, the lowest possible alert level. While oil company officials say flaring is a normal part of refinery operations and happens less frequently than it did decades ago, large flares continue to draw attention.[574]

May 19, 2015: Phillips Says Santa Maria Refinery Running at Reduced Rates Due to Plains All American Pipeline Spill

Phillips said its Santa Maria, California refinery was operating at reduced rates because of a pipeline supply disruption from the Plains All American Pipeline crude oil spill in Santa Barbara County on May 19. Plains All American Pipeline said it does not expect to restart the pipeline in June. Phillips on Friday said it has returned to service a separate crude oil pipeline that supplies its Santa Maria refinery after a small leak on Tuesday. The Santa Maria refinery does initial processing of heavy crude, and then ships liquids via pipeline to the company’s 120,200 b/d Rodeeo, California refinery for further processing into finished products.[575]

May 19, 2015: Phillips Says Rodeo Refinery Continues to Operate after Malfunction

May 18 Phillips said its Rodeo, California refinery was operating following an unspecified process interruption late on May 18, 2015. The company said an investigation will be conducted to determine the exact cause according to a report from Reuters on May 19, 2015.[576]

May 18, 2015: Phillips Reports Unplanned Unit Shutdown at Rodeo Refinery

Phillips reported an unplanned shutdown at Rodeo Refinery according to a report from Reuters on May 21, 2015.[577]

May 18, 2015: Phillips Continues Restarting Lake Charles Refinery after Brief Power Loss

Phillips continued restarting the Lake Charles Refinery after a brief power loss according to a report from Reuters on May 18, 2015.[578]

May 15, 2015: Phillips Reports Emissions, Flaring at Lake Charles Refinery

Phillips reported emissions and falring at Lake Charles Refinery according to a report from Reuters on May 19, 2015.[579]

May 15, 2015: Phillips Brings Units Back Online after Power Loss at Lake Charles Refinery

Phillips brought units back online after a power loss at Lake Charles Refinery according to a report from Reuters on May 15, 2015.[580]

May 14, 2015: Nurses, Parents, and Teachers to Rally in Opposition to Phillips Oil Train

Indybay reported on May 14, 2015 that registered nurses will join with parents and students for three days of events opposing the Phillips 66 Oil Train Project, which starts this Thursday by urging the Templeton School Board to oppose the controversial Phillips 66 proposal to add five additional rail shipments a week of dirty tar sands crude oil through the center of San Luis Obispo County to Phillips’ Santa Maria refinery. “It is only by chance that an oil train derailment has not yet occurred in the heart of a major city, causing a major inferno, or on the bank of a river, spreading thousands of gallons of tar sands crude oil through a watershed, doing permanent damage,” said Andrew Christie, Director of the local chapter of the Sierra Club. Adding five trains per week if the Phillips 66 project is approved, substantially increases the risk of a catastrophic oil train accident for those hospitals, schools and homes in the one-mile “blast zone” on either side of the tracks. Rail accidents involving tar sands crude have become increasingly common in the U.S. and Canada.[581]

May 12, 2015: Phillips Reports Unit Upset at Wood River Refinery

Phillips reported an upset at Wood River Refinery according to a report from Reuters on May 12, 2015.[582]

May 11, 2015: Phillips Reports Flaring Due to Loss of Pump at Wood River Refinery

Phillips reported flaring due to the loss of a pump at Wood River Refinery according to a report from Reuters on May 11, 2015.[583]

May 11, 2015: Phillips Says Restart of Alliance Refinery Completed

Phillips 66 reported that the restart of the Alliance Refinery was complete after the power outage that occurred on May 8. after Power Outage May 8 according to a report from Reuters on May 11, 2015.[584]

May 8, 2015: California Fines Phillips and ConocoPhillips $11.5 Milion for Waste Violations

The San Fransisco Chronicle reported on May 8, 2015 that Phillips 66 and ConocoPhillips have agreed to pay the fine as part of a settlement of the violations, according to the final judgment filed Thursday in Alameda County Superior Court. The companies were accused of allowing 560 of their service stations in 34 counties to improperly operate and maintain underground gasoline storage tanks, endangering nearby water supplies. The violators included the 150 stations in the Bay Area, including 16 in San Francisco, authorities said. “This settlement holds Phillips 66 and ConocoPhillips accountable for this dangerous negligence and will ensure future compliance with environmental laws,” said Attorney General Kamala Harris. The complaint, filed in January of 2013, claims that the two affiliates failed to properly train employees and have not adequately maintained leak detection devices, tested secondary containment systems, conducted monthly inspections or maintained operational alarm systems since 2006.[585]

May 8, 2015: Phillips 66’s Alliance Refinery Shut after Power Outage

Phillips 66’s Alliance refinery in Belle Chasse, Louisiana, had another unscheduled shutdown overnight due to a power outage, but the event only lasted for approximately 20 minutes, the company said on Friday. There were no injuries reported and data indicated no impact offsite, the company said. On Friday morning, there were no power outages in the area reported by power provider Entergy Corp. The plant has now experienced two unplanned shutdowns due to power outages since April 27 according to a report from Reuters on May 8, 2015.[586]

May 1, 2015: Phillips Reports Flare Gas Recovery Compressor Shut at Wood River Refinery

Phillips 66 reported on May 1, 2015 that a Flare Gas Recovery Compressor was shut down at Wood River Refinery according to a Reuters report on May 1, 2015.[587]

April 30, 2015: Phillips Says Alliance Refinery Still in Process of Restarting

Phillips said on April 30, 2015 that it was still in the process of restarting Alliance Refinery after a brief power upset on April 27, 2015. A previous attempt was made to restart on April 28, 2015.[588]

April 28, 2015: Phillips Restarting Its Alliance Refinery after Brief Power Loss

Phillips said it was in the process of restarting its Alliance, Louisiana, refinery on Tuesday following a brief loss of power during strong thunderstorms on Monday according to Reuters on April 28, 2015.[589]

April 27, 2015: Small Fire at Alliance Refinery

WDSU reported on April 27, 2015 that there had been a small fire at Alliance Refinery due to power outages. No one was injured in the fire.[590]

April 27, 2015: Phillips Restarts SRU Incinerator at Borger Refinery

Phillips restarted the sulfur recovery unit (SRU) incinerator after it tripped on low burner pressure at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality on April 27, 2015.[591]

April 26, 2015: Phillips Reports Unknown Chemical Release, Process Upset at Borger Refinery

Phillips 66 reported an unknown chemcial release at Borger Refinery as reported on Reuters on April 27, 2015.[592]

April 26, 2015: Phillips Reports Units Online after Power Outage at Sweeny Refinery

Phillips reported the restart of multiple units at its Sweeny, Texas, refinery after they were shut Saturday due to a power outage caused by a severe thunderstorm in the area, according to a filing with the Texas Commission on Environmental Quality. The filing added that charge was also reduced to certain units before they were brought back online. The filing listed a sulfur recovery unit, crude units, fluid catalytic cracking regenerator, and a hydrotreater as sources of emissions due to the to the incident reported by Reuters on April 26, 2015.[593]

April 25, 2015: Phillips' Upgrades Almost Completed on Pipelines from Billing Refinery under the East Gallatin River

The Bozeman Daily Chronicle reported on April 25, 2015 that Phillips 66 has almost completed upgrades to crossings under the East Gallatin River which were begun after a 2011 rupture on an ExxonMobil pipeline spilled an estimated 42,000 gallons of oil into the Yellowstone River near Billings. The upgrades involve replacing shallow, trenched crossings dug into the bottom the river with deeper crossings drilled beneath rivers at a depth of 30 to 40 feet which reduces the likelihood that erosion during high-flow periods will wash away the material covering pipes and make them vulnerable to damage. The pipeline carries motor fuels produced by Phillips 66’s Billings refinery to western Montana and eastern Washington, said Phillips 66 spokesman Rich Johnson. The safety administration classifies its contents as a “non-highly volatile liquid” product. Phillips said that it has spent about $90 million on river crossing projects in the Rockies since 2011, including 17 drilled crossings in Montana between 2011 and 2014.[594]

April 22, 2015: San Jose Residents in Gear Up for Campaign Against Santa Maria Refinery Expansion 200 Miles Away

The San Jose Mercury News reported on April 22, 2015 that local residents in San Jose are gearing up for a campaign against a Phillips 66 proposal to expand its existing oil refinery in Santa Maria by extending railroad lines connected to the refinery allow for delivery of crude oil from Canada. The oil would be transported along the Union Pacific Railroad, which runs directly through San Jose and is on the same line that goes through Diridon Station. Union Pacific's proximity to highly populated areas and creek ways is among the main concerns for San Jose City Council members, residents and activists in groups such as 350 Silicon Valley, a local organization focused on environmental issues. The project would result in as many as five oil trains per week traveling the lines, with a 250 annual train maximum, carrying approximately 2.2 million gallons of crude oil, according to the recirculated draft environmental impact report. Oil spills are not all that Pimentel and other members of 350 Silicon Valley are worried about, said Kathy Pimentel. "Most alarming of all is that thousands of residents would find themselves living within the one-mile blast zone," Pimentel said. "If a train derailed and exploded in this area, countless lives would be lost, much property damaged and it would take weeks for the fires to burn out."

Ash Kalra, District 2 councilman, said that though the Santa Maria refinery expansion is not an issue for San Jose leaders to decide, it is a project that affects San Jose residents. He and fellow council members penned a letter expressing concerns to San Luis Obispo County officials in January. "In the thousands of miles that [the train] passes through, the Bay Area is the most populated center," he said. "We've seen major explosions in rural areas; imagine what would happen in a large city."[595]

April 22, 2015: Sierra Club Writes - Did Phillips 66 Have Weak Safety Standards in Wood River Refinery Oil Spill?

Christine Favilla wrote a letter to the editor of the Madison-St. Clair Record on April 22, 2015 on behalf of the Piasa Palisades Group of the Sierra Club that she was shocked to hear news stations report that the river is safe at this time after Phillips 66's ruptured pipeline spilled 30,000 gallons of diesel fuel into the Cahokia Canal on Apri 18, 2015.

The Cahokia Canal empties into the Mississippi, a source of our drinking water for St. Louis. The Cahokia Canal was already under review for excess dissolved oxygen, total nitrogen, sedimentation/siltation, major habitat alterations, and total phosphorus. Add diesel to that list. We understand that the Phillips 66 personnel, Coast Guard, and oil spill response organizations are assessing the shoreline and recovery efforts. The question we hope they are addressing is: did the pipeline have weak safety standards for this project, including using thinner steel for the pipe, using pipe from China, or were they pumping at higher volumes than industry standards? We’ve let oil companies call the shots for too long, and now we’re cleaning up their messes locally. Time after time, these companies have shown their inadequacy at preventing spills, and incompetency at spill response and clean-up. Oil is toxic for most fish and marine species. According to the National Academy of Sciences, cleanup methods can only remove a small fraction of oil spilled in marine waters.[596]

April 20, 2015: River Reopened After Cost Guard Secures Phillips 66 Pipeline Rupture

Oil Online reported on April 20, 2015 that the US Coast Guard has re-opened the Mississippi River from MM 160 to MM 195 on April 18, 2015 after an underground pipeline rupture was secured after about 30,000 gallons of diesel fuel spilled into the river when an underground pipeline at a Phillips 66-operated terminal ruptured. The section of the river was closed after watchstanders were notified of a diesel fuel spill in the Cahokia Canal in the upper Mississippi River around 9:15 A.M. on April 17, 2015. “The Unified Command has done a great job to ensure the safety of our personnel, local communities and the environment, and to open the river to boating traffic as soon as it was safely possible, said Capt. Martin Malloy of Coast Guard Sector Upper Mississippi River. “We will continue to work with the stakeholders to successfully resolve the incident.”[597]

April 19, 2015: Phillips Reports SRU Emissions at Ferndale Refinery

Phillips reported SRU Emissions at Ferndale Refinery on April 22, 2015 .[598]

April 17, 2015: Phillips 66 says 25,000 Gallons of Diesel Leaked near Wood River Refinery

The St. Louis Post-Dispatch reported on April 17, 2015 that Phillips 66 estimates about 25,000 gallons of diesel fuel leaked on April 17, 2015 into the Cahokia Canal, a waterway that drains into the Mississippi River prompting the Coast Guard to close a 35-mile section of the river. Phillips 66 discovered a leak in a pipeline that runs from its storage terminal to a barge loading dock at about 8:45 a.m.. The pipeline was shut off immediately and by 10 a.m. the company confirmed the leak had stopped. The barge loading dock is offline while the company continues to investigate the cause of the leak. Illinois Environmental Protection Agency spokeswoman Kim Biggs in an email her agency, the U.S. EPA and the U.S. Coast Guard were all on site responding to the spill.[599]

April 15, 2015: DCP Midstream Cleans Up Small Oil Spill in West Odessa

Bakken.com reported on April 15, 2015 that crews with DCP Midstream and the Ector County Environmental Office are assessing an oil spill that took place April 14, 2015 in West Odessa. According to Scott McMeans, supervisor at DCP Midstream, the low-pressure pipeline was a natural gas line that leaked due to corrosion causing oil to flow out. McMeans said that sometimes when oil producers have an upset at their tank batteries they can carry oil through the natural gas line, which was the case with the line that leaked Tuesday afternoon. “It is unintentional by both parties but it happens from time to time,” McMeans said. McMeans also said that clean up would take about 48 hours and about two barrels of oil were released until the line was shut off.[600]

April 14, 2015: Phillips Reports Storm-Related Slowdown at Alliance Refinery

Phillips 66’s Alliance refinery in Belle Chasse, Louisiana, was operating on Wednesday after a storm moved through the area, a spokesman said. Refining industry publication Energy News Today (ENT) said Tuesday afternoon that the refinery had a storm-related slowdown in operations, including halted production of a 102,000 b/d catalytic cracker that was in standby mode. ENT also said the refinery would try to resume planned rates through Friday.[601]

April 14, 2015: Arroyo Grande Residents Oppose Phillips 66 Rail Project at Meeting

The San Luis Obispo Tribune reported on April 14, 2015 that in a meeting on April 14, 2015 with representatives of Phillips 66 Co., Union Pacific Railroad and the Mesa Refinery Watch Group, Arroyo Grande residents spoke out strongly against a proposed Phillips 66 Co. rail project that would bring up to 250 trains carrying crude oil through the county a year. All of the eight speakers during public comment on the Phillips 66 presentation spoke out against the proposed rail project, citing the same concerns over public health and fear of an explosive derailment. "As a citizen of Arroyo Grande and San Luis Obispo County, I am really sick and tired of profits meaning more than people," Kay Gore said at the presentation given during an Arroyo Grande City Council meeting. "Is it worth the property at risk, the lives at risk down the line? Stand up and say, 'we don't want this spur; we don't want these trains.' Stand up for the citizens."

Representatives of Phillips 66 say oil production in California is dropping and additional sources of crude oil is needed. The new project would allow the company to serve growing demand as well as add local jobs, they said. Project manager Jim Anderson also said the tank cars would not be transporting Bakken oil, which has drawn criticism because of its involvement in several rail explosions in the past year. It would instead be transporting a heavier and less volatile form of crude oil, he said. Phillips 66 will hold two more presentations on the project at meetings in South County in the next month. The next is scheduled for April 20 at the Grover Beach City Council meeting; followed by one at the Pismo Beach City Council meeting May 5.[602]

April 11, 2015: Phillips Reports Compressor Trip at Sweeny Refinery

Phillips reported a unit 3 wet gas compressor trip at its Sweeny, Texas refinery, according to a filing with the National Response Center on April 13, 2015.[603]

April 10, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported the process unit did not shutdown and control equipment was restarted at its Borger, Texas refinery, ac.cording to a filing with the Texas Commission on Environmental Quality on April 10, 2015[604]

April 7, 2015: Op-ed in San Fransisco Chronicle Says Phillips Refinery Plan Threatens Rodeo Resident's Safety

An op-ed in the San Fransisco Chronicle by Janet Pygeorge and Laurel Impett on April 7, 2015 asserts that the fracking boom in North Dakota and increased recovery of tar sands oil in Canada have prompted dramatic growth in transport of crude oil by rail throughout the United States from regions that pipelines don’t serve. Bay Area refineries and oil and gas companies already are planning for increased rail traffic and expanded operations. These plans are understandably alarming residents because of the potential for oil-train explosions. The Contra Costa County Board of Supervisors, however, does not share this alarm.[605]

April 4, 2015: Phillips 66 Restarts Alliance Refinery after Shutdown Due to Power Loss

Phillips was in the process of restarting its Alliance, Louisiana refinery on Monday after it was shut on Saturday due to power loss. The refinery also reported a release of materials due to the power loss, according to a filing with the National Response Center.[606]

April 1, 2015: Citizens in Guadalupe Worry Phillips Oil Trains Could Explode

The Santa Maria Sun reported on April 1, 2015 that residents of Guadalupe who worried that their town could become the scene of an oil tanker explosion voiced their concerns during a March 24 Guadalupe City Council meeting. On the table was whether or not the City Council would endorse a letter from 3rd District Santa Barbara County Supervisor Doreen Farr, who opposes the project. All sides—including representatives from Phillips 66, who encouraged the council to not take action on the letter in light of a yet-to-be completed environmental impact report; and the Mesa Refinery Watch Group, which opposes the project—made their cases before a packed house of politicians, residents, and journalists. The letter was secondary to the discussion, though. The real question that was debated: Is it safe to allow railcars of crude oil to pass through Guadalupe?

Citing more than 60 years of safe rail operations, Phillips spokesman Jim Anderson said the extension is necessary for the refinery to maintain its present rate of crude oil processing. With Central Coast oil production in decline and a strong demand for fuel—only one of the many products refined from crude—in California, Anderson said the spur is needed. “The only way to fill up and complete that 44,000-barrel-a-day rate is, rather than propose a marine terminal or a truck terminal with thousands of trucks on the highway, we felt that a rail terminal, which is sitting right next to the mainline railroad tracks, would be the best alternative,” Anderson said, adding that the trains would be similar to the ones that have rolled through Guadalupe in the last 10 years, but would be slightly longer. Anderson noted that his company is presently working with the governor’s office to place a fee on each barrel of oil that’s loaded and unloaded. The money collected would go into a state-level emergency services fund and provide money for increasing the capability of emergency response.

Laurance Shinderman spoke on behalf of the Mesa Refinery Watch Group, which formed to identify the negative impacts of the rail project and noted the explosive potential of crude’s flashpoint—the temperature at which vapor forms and can ignite. “The lower the flashpoint of the crude, the greater the risk,” Shinderman said, emphasizing that oil being shipped has a lower flashpoint. “I’m not a chemistry engineer, but I’ve done enough reading on this.” He went on to cite several instances of tanker cars exploding or catching on fire, including the 2013 Lac-Megantic rail disaster in Quebec where multiple tankers carrying Bakken formation crude oil derailed and exploded, killing 47 people and destroying more than 30 buildings in a town roughly the size of Guadalupe.

The fate of the spur is still up in the air. At the end of the debate that Tuesday night, the city eventually voted 4-1 to not to take any action on endorsing Farr’s letter. Councilmember Ariston Julian dissented. Before the vote, Julian made a motion to endorse the letter, but it wasn’t seconded.[607]

March 31, 2015: Phillips 66 to Present at Public Forum on Controversial Santa Maria Oil Train Project

KCBX reported on March 31, 2015 that representatives from Phillips 66, as well as the Oil Refinery Watch Group are expected to present their arguments for and against the Santa Mariarail project at a public discussion on April 2, 2015 in Grover Beach organized by Karen Bright with the South County Democratic Club of San Luis Obispo Count. "We had put it out to our members—various things and items, subject matter that they'd like to have presentations on throughout the year—and this was the one that rose to the top," said Bright. "I think because it's so current and there are so many differences of opinion, so we just wanted to get the facts from both sides."[608]

March 27, 2015: Residents Push for more Information on Crude by Rail to Rodeo Refinery

Marin News reported on March 27, 2015 that residents of Rodeo, Crockett and Martinez say they want assurances that state and federal agencies are doing everything they can to keep them safe with plans advancing for crude oil by rail to the Phillips 66 refinery in Rodeo. If plans are approved, an estimated five cars a week, each hauling 80 train cars, would travel between an unloading facility in Santa Maria and along the Amtrak Capitol Corridor before arriving at the refinery in Rodeo. "The oil companies are getting all the benefits and the communities who live near them are taking all the risk," said Nancy Rieser, who lives in Crockett and is a member of Crockett-Rodeo United to Defend the Environment, a community organization. Her group is pushing the railroad industry to release its risk-assessment information, required for insurance purposes, to better understand what kind of plans companies have in an event of an emergency and whether their insurance policies would cover a large incident. Railroad companies have so far declined to release the information. "You need to have hospitals at the ready, you need to have first responders, so if you keep it a secret, it's as if the plan didn't exist," she said. "You can't be coy with the communities."

"No human activity is completely risk-free," said Bernard Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University, adding that railroad companies are already shifting to new cars -- outfitted with heat shields, thicker tank material and pressure-relief devices and that the spill rate for trains transporting crude was roughly four times higher than accidents involving pipelines. "Communities are resistant to crude by rail and they are against pipelines, but they also want to go to the pump and be able to fill up their car."[609]

March 25, 2015: Phillips Reports Breakdown, Emissions at Wilmington Refinery

Phillips 66 reported a breakdown and emissions at Wilmington Refinery on March 25, 2015.[610]

March 25, 2015: Phillips Reports Equipment Back to Normal after Process Upset at Wood River Refinery

Phillips 66 reported equipment is back to normal after a process upset at Wood River Refinery on March 25, 2015.[611]

March 23, 2015: Phillips Reports FCCU Regenerator Upset Ponca City Refinery

Phillips 66 reported an FCCU regenerator Upset at Ponca City Refinery on March 23, 2015.[612]

March 21, 2015: Phillips Reports SRU Upset, Hydrogen Sulfide Flaring at Borger Refinery

Phillips 66 reported an SRU upset and Hydrogen Sulfide flaring at Borger Refinery on March 21, 2015.[613]

March 17, 2015: Recent Lawsuits Signal a Litigious Future for Santa Maria and Rodeo Refineries

Rhys Heyden writes in the Santa Maria Sun that three recent lawsuits filed in Contra Costa County against the Propane Recovery Project at Rodeo Refinery highlighted an important similarity between the two Philips 66 refineries. Namely, that Phillips operates a refinery in each county, and a proprietary pipeline links the two and that legal action has a direct connection to SLO County and the Santa Maria Refinery in Nipomo. “Folks who are watching the Santa Maria Refinery and its rail spur extension project should also keep a close eye on Rodeo,” said Roger Lin, an attorney representing environmental group Communities for a Better Environment (CBE) in one of the three suits. “We’ve always held the position that the two refineries are really just one whole.”

"In an oversimplified sense, Lin’s opinion is the nexus of the trio of lawsuits," writes Heyden. "Phillips 66 insists that a “propane recovery project” at the Rodeo Refinery and the rail spur project at the Santa Maria Refinery are discrete entities, and their opponents insist that the two projects are inextricable." “The county improperly ‘piecemealed’ its review of the [propane recovery] project from other related projects … designed to accommodate the switch from California crudes to out-of-state imports,” argues the SAFER suit. “People in SLO County, just like those in Contra Costa County, have the right to have all these impacts evaluated in one place,” said Marc Joseph, an attorney representing SAFER California. “It’s truly baffling that the powers that be refuse to analyze this project as a whole.”

“We’ve been saying all along that the fastest way to a conclusion is for Phillips 66 to just admit that these two projects are linked,” Lin said. “If Phillips 66 wants to shortcut this legal process and just tell the truth, we welcome that.” As for how Phillips 66—the prime mover of this entire situation—thinks legal action in Contra Costa County could affect its SLO County proposal, it’s anyone’s guess. In response to that exact question, Phillips spokesman Dennis Nuss simply answered, “We remain committed to the proposed Santa Maria rail project.”[614]

March 15, 2015: Phillips Reports Unplanned Flaring, Breakdown Wilmington Refinery

Phillips reported unplanned flaring due to a breakdown at its Los Angeles-area refinery in Wilmington, California, according to a filing with the South Coast Air Quality Management District.[615]

March 14, 2015: Phillips Reports FCCU Shut at Sweeny Refinery

Phillips reported the shutdown of the fluid catalytic cracking unit (FCCU) at its Sweeny, Texas, refinery on Saturday, according to a filing with the state pollution regulator.[616]

March 12, 2015: Phillips Reports Equipment Failure at Wood River Refinery

Phillips 66 reported an equipment failure at Wood River Refinery on March 12, 2015.[617]

March 11, 2015: Phillips Reports FCCU Regenerator Start-Up at Ponca City Refinery

Phillips 66 reported an FCCU Regenerator start-up at Ponca City Refinery on March 11, 2015.[618]

March 9, 2015: Phillips Reports Minor Pipeway Leak at Rodeo Refinery

Phillips 66 reported a minor pipeline leak at Rodeo Refinery on March 9, 2015.[619]

March 7, 2015: Phillips Reports Unit Upset at Wood River Refinery

Phillips reported a unit upset at its Wood River refinery in Roxana, Illinois, on Saturday, according to a filing with the Illinois Emergency Management Agency. The filing did not specify the unit involved or say if there had been any impact on production.[620]

March 6, 2014: Phillips 66 Project Faces Additional Lawsuits Over Rodeo Refinery Propane and Butane Recovery Project

The San Jose Mercury News reported on March 6, 2015 that on March 4, 2015 Communities for a Better Environment sued the county and Phillips 66, contending the propane and butane recovery project at a Rodeo refinery is part of a grander plan to process heavy, dirty tar sands crude that would come to California by rail. On March 5, 2015 Rodeo Citizens Association filed suit in Contra Costa Superior Court, Martinez against Contra Costa County and the Phillips 66 Co., contending Phillips wants to transport heavy and dirty tar sands crude by rail from outside the state to a sister refinery in San Luis Obispo County and pipe the semi-refined oil to Rodeo. On March 5, 2015 Safe Fuel Energy Resources of California, a group representing workers at the Rodeo refinery, sued the county and Phillips 66 in Superior Court, Martinez, according to an announcement by the firm Public Good PR LLC. "Following two years of careful analysis by the Contra Costa County board (of Supervisors) and its expert staff, claims that this project is a crude by rail project were dismissed," said Phillips 66 spokesman Paul Adler.[621]

March 4, 2015: Rodeo Refinery Propane and Butane Recovery Project Subject to Legal Challenge

The Fort Bragg Advocate-News reported on March 4, 2015 that the environmental group "Communities for a Better Environment" has sued Contra Costa County over its approval of a propane and butane recovery project at a Rodeo refinery, contending it is a piece of a grander plan to process heavy, dirty tar sands crude that would come to California by rail. CBE has said that the refinery, with the acquiescence of authorities, seeks to "piecemeal" what the environmental group describes as "a tar sands refining project that could worsen pollution, climate, and refinery and rail explosion hazards." The EIR, CBE contends, "hid the project from the public and failed to mitigate its significant environmental impacts." Phillips 66 spokesman Paul Adler said Wednesday the company would be issuing a statement in response to the filing. Officials at County Counsel Sharon Anderson's office could not immediately be reached for comment.

Along with the Rodeo project's EIR, the Board of Supervisors on Feb. 3 rejected two appeals of a November 2013 county Planning Commission-approved use permit for the project. The appellants were CBE and the law firm of Shute, Mihaly and Weinberger on behalf of the Rodeo Citizens Association. The board vote was 4-1, with Supervisor John Gioia voting no.[622]

March 3, 2015: Phillips Reports Flaring, Unit Upset at Wood River Refinery

Phillips 66 reported flaring and a unit upset at Wood River Refinery on March 3, 2015.[623]

February 27, 2015: Phillips 66 Billings Pipeline Division Takes Proactive Measures to Improve Safety at Pipeline near Mystic Park

Kulr8 News reported on February 27, 2015 that Phillips 66 is getting ready to replace a pipe near Mystic Park and bury it deeper below the Yellowstone River and will proactively replacing the crossing with a directionally-drilled crossing using a machine to drill horizontally more than 40 feet below the Yellowstone River in the bedrock and they'll pull the pipe through. "We kicked up that program,” says Mike Miller, the Billings division pipeline manager at Phillips 66. “We've always had a program but we got very aggressive. That's where we said we're going to look at every crossing up here and do a detailed assessment on it and if there's any concerns we're going to proactively get on it." Miller says these crossings didn't pose any imminent concerns. But it's important to do this because rivers can meander or get deeper. If a pipeline gets exposed, it's at risk. "Part of being a responsible company is being a good neighbor and protecting people and the environment. And it's just one of our core values. And this is a big program. It's one of many elements of our pipeline safety program."[624]

February 25, 2015: Union of Concerned Scientists Sends Letter to Phillips 66 about Risks to Bayway Refinery and Other Coastal Refineries

The Union of Concerned Scientists sent a letter to Phillips 66 on February 25, 2015 expressing concern about the lack of public disclosure of physical risks due to climate change at Phillips 66’s coastal refineries. "As you are aware, Superstorm Sandy caused a 7,770 gallon oil spill at the Bayway refinery in 2012. The refinery was shut down for several weeks due to flood damage, and incurred significant maintenance and repair expenses," says the leter. "Risk of such events in the future is likely to grow. Diminished refining utilization rates, downtime or closure of facilities due to direct damage, danger to employees, releases of environmental contamination, disruption in supply chains and distribution centers, and/ or power supply due to storm surge or sea level rise could have a material impact on production and related cash flows."[625]

February 24, 2015: Phillips Restarts Crude Unit at IBayway Refinery After Previous Attempts Met With Problems

Phillips restarted the crude unit after unexpected delays at its Bayway refinery in Linden, New Jersey, a person familiar with the facility's operations said on Tuesday. The restart of the crude unit was expected to begin on Monday, but previous attempts to restart the unit met with problems, including frozen lines. The company planned on shutting down the unit for about a week of planned maintenance on February 4.[626]

February 23, 2015: Phillips Delays Crude Unit Restart Due to Cold Weather at Bayway Refinery

Phillips experienced delays due in part to the winter freeze on Friday in restarting a crude unit at its Bayway refinery in Linden, New Jersey. The unit had been shut for around a week of planned maintenance on February 4. The company plans on restarting the unit today, a source said Monday.[627]

February 23, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips 66 reported a process upset at Borger Refinery on February 23, 2015.[628]

February 21, 2015: Phillips Plans to Restart FCCU at Ponca City Refinery After Unit Overheated

Phillips shut the fluid catalytic cracking unit (FCCU) at its Ponca City, Oklahoma refinery this week after the unit overheated, according to a person familiar with the plant’s operations. The refinery plans to restart the unit Saturday, the person said. Phillips previously said planned maintenance was underway at the plant.[629]

February 21, 2015: Mesa Refinery Watch Group Says "Just Say No to Crude by Rail" to Phillips Santa Maria Oil Train Project

The Mesa Refinery Watch Group wrote an op-ed in the Cal Coast News on February 21, 2015 opposing Phillips “crude-by-rail strategy” on California and San Luis Obispo County and listing the local cities, counties, and ditricts that have already officially communicated their opposition:

  • Alameda County
  • Berkeley
  • Berkeley Rent Stabilization Board
  • Camarillo
  • Davis
  • Moorpark
  • Oakland
  • Oxnard
  • Richmond
  • Simi Valley
  • San Jose
  • San Leandro Unified School District
  • San Luis Obispo City
  • Ventura County
  • Ventura Unified School District

"Therefore — this is not a “NIMBY” issue," write the group. "Phillips’ plan endangers scores of cities and towns, and millions of citizens as their trains carry tar sands all the way from Canada to SLO County."[630]

February 18, 2015: San Luis Obispo City Council Opposes Phillips Santa Maria Oil Train Project

The Paso Roble Daily News reported on February 18, 2015 that the San Luis Obispo City Council decided on February 17, 2015 to oppose the Santa Maria Phillips 66 rail spur project, which could bring mile-long oil trains carrying 2.5 million gallons of crude nearly every day through San Luis Obispo. The council directed city staff to write a letter to the county opposing the Phillips 66 project. In voting to oppose the Santa Maria Phillips 66 rail spur, San Luis Obispo joins cities and counties all along the rail route that have passed resolutions and sent letters against the project, including San Jose, Davis, Berkeley, Oakland, Moorpark, Oxnard, Camarillo, Alameda County, and Ventura County. More than 22,000 people from across California have also voiced opposition to the project. “We’re seeing massive opposition to this project from citizens all along the rail route — and with good reason,” said Valerie Love with the Center for Biological Diversity. “No one in their right mind would invite these dangerous bomb trains into their community.”[631]

February 18, 2015: Phillips Reports Compressor Upset at Wood River Refinery

Phillips 66 reported a compressor upset at Wood River Refinery on February 18, 2015.[632]

February 14, 2015: Phillips Reports Flaring at Rodeo, California Refinery

Phillips 66 reported flaring at Rodeo Refinery on February 14, 2015.[633]

February 14, 2015: Phillips Reports Unit Upset at Rodeo Refinery

Phillips reported a unit upset led to flaring at its Rodeo refinery in northern California on Saturday, according to a filing with Contra Costa Health Services. The filing did not specify the unit involved or say if there had been any impact on production.[634]

February 12, 2015: Phillips Reports Emissions from Aeration Tank at Sweeny Refinery

Phillip 66 reported emissions from an Aeration Tank at Sweeny Refinery on February 12, 2015.[635]

February 5, 2015: Phillips Reports Unit Upset at Rodeo Refinery

Phillips reported a substance was released to flare due to unit upset at its Rodeo, California refinery, according to the California Emergency Management Agency.[636]

February 4, 2015: Workers at Santa Maria Refinery Concerned About Fatigue Policy, Show Solidarity with Union Strikers

The New Times reports that since January 28, 2015 a rotating group of members the United Steelworkers (USW) Local 534 chapter have been picketing at the gates of the Phillips 66 Santa Maria Refinery in Nipomo to show solidarity with the work stoppage involving roughly 3,800 workers at nine refineries that started on February 1, 2015. “We are just picketing and not on strike yet, but it’s important for us to express ourselves and show solidarity with the USW,” said Juan Zepeda, the financial secretary/treasurer of the local USW chapter and a sulfur plant operator at the Santa Maria Refinery. “The picketing shows [Phillips 66] that they haven’t torn us apart yet.” “At this time, there hasn’t yet been a decision to expand the work stoppage,” said Nashville-based USW spokeswoman Lynne Hancock. “More refineries could soon join the strike if necessary, but that decision would be made at the national level.”

Outside the Santa Maria Refinery, Zepeda said 10 to 15 workers have been picketing every day for about a week, adding that—other than showing solidarity—the local USW chapter’s biggest issue is installing a new “fatigue policy” to give overworked employees some relief. “I can work anywhere from 110 to 148 hours in a two-week period, and that’s typical—it’s almost impossible for refinery workers to have family time,” Zepeda said. “You can only squeeze a nickel so hard before it starts to hurt the other side. “It’s also a ticking time bomb, it’s a refinery where a lot can go up in flames,” he added. “You’ve got to have people that are alert and have their wits about them—you can’t live with some zombie at the controls.”

“Once national bargaining is completed, Phillips 66 will be negotiating a new bargaining contract with the local USW unions that represent each of our refineries covered by expiring contracts,” says Phillips 66 spokesman Dennis Nuss. “We are committed to reaching a new agreement that is good for our employees and protects the future of some of the best jobs in American industry. “We are hopeful that we can achieve this goal without any interruption to our operations,” he added. “In addition to competitive wages and benefits, we expect the next contract to support our local efforts to improve safety and productivity.”[637]

February 3, 2015: County Supervisors Approve Rodeo Refinery Propane and Butane Recovery Project

The San Jose Mercury News reported on February 3, 2015 that in a 4 - 1 decision the Contra Costa Board of Supervisors has approved Phillip 66's propane and butane recovery project at the Rodeo Refinery after more than a year of wrangling over the project's scope, its impacts on health and the environment, and safety concerns. The project "will help ensure the long-term viability of the Rodeo refinery and the many jobs it provides," said Phillips spokesman Paul Adler after the vote. "Protecting our people, our environment and our communities guides everything we do," added Adler, who previously worked for the county as a district representative for Supervisor Federal Glover. But opponents, including the environmental advocacy group Communities for a Better Environment, vowed to continue the fight. "This is an example of environmental injustice," said Roger Lin, attorney for CBE, adding that "procedural and substantive errors" accompanied the board's decision.[638]

January 31, 2015: Rodeo Refinery Propane and Butane Recovery Project Faces Stiff Opposition at Contra Costa County Hearing

The Contra Costa Times reported on January 31, 2015 that the propane and butane recovery project at a Rodeo petroleum refinery faces stiff opposition from some local residents as well as regional and national environmental groups as the Contra Costa County Board of Supervisors prepares to hold a hearing on February 3, 2015. The Phillips 66 Propane Recovery Project calls for installing new equipment to recover and sell propane and butane instead of burning the gases at the Rodeo refinery or flaring off excesses. Phillips 66 has said the project would reduce sulfur dioxide emissions by removing sulfur compounds from refinery fuel gas, and reduce other pollutants and greenhouses gases, but environmentalists and the Bay Area Air Quality Management District have questioned those claims. The hearing will include two appeals of the November 2013 approval by the county Planning Commission of a land use permit for the project, as well as consideration of a recirculated Environmental Impact Report. Opponents have said the Rodeo project should be considered as one together with a proposed rail spur at another Phillips 66 Santa Maria refinery in San Luis Obispo County while Phillips has countered that the two projects are independent of each other.[639]

January 25, 2015: Phillips Reports Flaring at Rodeo Refinery

Phillips reported a flaring event at its Rodeo, California refinery led to sulfur dioxide emissions on Sunday, according to a filing with the California Emergency Management Agency.[640]

January 24, 2015: Phillips Reports Process Pipe Leak at Wood River Refinery

Phillips reported a process piping leak led to a release of ammonia at its Wood River refinery in Roxana, Illinois early on Saturday, according to a filing with the Illinois Emergency Management Agency. The company stopped the release and was working on a clean-up plan, the filing said.[641]

January 23, 2015: Phillips Reports Process Upset at Wood River Refinery

Phillips reported a Process Upset at Wood River Refinery on January 23, 2015.[642]

January 23, 2015: Phillips Reports Flaring at Los Angeles Refinery

Phillips 66 reported flaring at Los Angeles Refinery on January 23, 2015.[643]

January 22, 2015: Phillips Reports Process Upset at Wood River Refinery

Phillips reported a Process Upset at Wood River Refinery.[644]

January 22, 2015: Phillips 66 Reports Process Upset at Borger Refinery

Phillips 66 reported a process upset at Borger Refinery on January 22, 2015.[645]

January 16, 2015: Phillips Reports Process Upset at Wood River Refinery

Phillips reported a process upset at its Wood River refinery in Roxana, Illinois, according to a filing with the Illinois Emergency Management Agency.[646]

January 15, 2015: San Jose City Council Votes Unanimously to Oppose Plans For Phillips 66 Crude Oil Transport

NBC Bay Area News reported on January 15, 2015 that the San Jose City Council voted unanimously to oppose Phillips 66's plans for crude oil to be transported through San Jose and urged the San Luis Obispo Planning Commission to reject the expansion proposal. "It's coming right through our cities within a hundred feet of homes in my council district," said City Councilman Ash Kalra. "Going through farmlands in my council district as well, and going through downtown." The issue was discussed at Tuesday's council meeting and a debate lasted lasted late into the afternoon, with some council members saying it is the federal government's job, not the city's, to make the call. "We should also be asking 'Is enough being done to make us safe?'" Councilman Johnny Khamis said. "But not outright oppose it."[647]

January 12, 2015: Phillips Reports Flaring at Wilmington Refinery

Phillips reported a flaring event due to unknown reasons at its Wilmington, California refinery, according to a filing with the California Emergency Management Agency.[648]

January 12, 2015: Carolyn Norr Writes: "Say no to toxic oil trains for the future of our children"

Carolyn Norr wrote an op-ed in the Contra Costa Times on January 12, 2015 that said that Phillips 66 proposes an expansion of its facility 250 miles south of here, that would bring a mile-long toxic train every day past our homes and schools. "I invite the San Luis Obispo Board of Supervisors, my City Council, and everyone who cares about the safety and future of families in California, to join me in doing everything in our power to stop this plan. No to the expansion of Phillips 66, no to oil trains in our communities."

Orley Troxel replied in the comments that "I wish I knew if Carolyn Norr drove a vehicle? I bet "Yes". I wish I knew if Carolyn Norr heated and cooled her house, with energy from fossil fuels? I bet "Yes". I wish I knew whether Carolyn Norr used plactic wrap in her kitchen, wore clothes made with man-made fabrics, wore clothes with "organic" fibers that were cultivated with machinery that burned fossil fuels."[649]

January 1, 2015: Phillips Reports Power Failure at Wilmington Refinery

Phillips reported a power failure at its Los Angeles area refinery in Wilmington, California, on Thursday,according to a filing with the California Emergency Management Agency. The event led to the release of sulfur dioxide vapors, the filing said.[650]

December 31, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips Reports Process Upset at Borger Refinery [651]

December 31, 2014: The Pros and Cons of a Controversial Phillips 66 Oil-by-Rail Project at the Santa Maria Refinery

Rhys Heyden wrote in the New Times on December 31, 2014 that Phillips 66's Santa Maria Refinery would like to transport much of its crude oil into San Luis Obispo County via train, while opponents would prefer such plans to be driven out of the county on a rail. "Many stakeholders adamantly support the project, while many locals virulently oppose the proposed rail spur that would allow this transportation method to materialize," writes Heyden. "There are plenty of lawyers involved and lots of money tied up in each side of the issue, and the project itself reaches far beyond the borders of SLO County."

Seeking to understand why many people support the project, New Times reached out to Phillips 66 to get their point of view. Though New Times requested a tour of the refinery and access to speak with a variety of Phillips 66 employees, the company—working with SLO-based PR firm Barnett Cox & Associates—declined to provide either, instead offering a presentation and interview with two company spokespeople. Essentially, Phillips argues that oil production in Santa Barbara County (the refinery’s predominant current source of oil at about 65 to 80 percent of total sourcing) is in decline. Anticipating further falloff, the company wants to diversify how it receives oil and where it receives it from.

Project adversaries disagreed with what they see as “specious” arguments from Phillips 66. They feel that the company has not been a good neighbor and is pursuing the crude-by-rail strategy primarily to enhance profits, not because any refinery jobs or the local oil supply are truly at risk. “There are just no grounds on which to support this project,” says Sierra Club leader Andrew Christie. “The impacts are understated, the EIR has been deficient from the start, and there are still 11 ‘significant and unavoidable’ impacts in a defective EIR.” All of these impacts are essentially due to the potential for high levels of toxic emissions from the oil trains or the mushrooming consequences of a possible crude oil spill and/or derailment.

Unsurprisingly for a project of this magnitude, many politicos polled by New Times said they saw the rail spur project likely being appealed by one side or the other—from the Planning Commission, to the Board of Supervisors, to the California Coastal Commission (the refinery is in the coastal zone)—and then likely being settled in court in a years-long struggle.“Ultimately, it comes down to this: Is what they’re proposing appropriate for the community, or are the impacts just too great?,” said District 3 Supervisor Adam Hill. “It will be interesting to see how that question is answered.”[652]

December 23, 2014: Phillips Reports Emissions at Wood River Refinery

Phillips reported Emissions at Wood River Refinery on December 23, 2014.[653]

December 19, 2014: FCCU to Remain Online During Work at Borger Refinery

Phillips reported the electrostatic precipitator within the unit 40 fluid catalytic cracking unit (FCCU) was scheduled for replacement and the FCCU was not scheduled for shutdown during repairs, according to a filing with the Texas Commission on Environmental Quality. Phillips reports the ending date for the maintenance activity as January 16, 2015.[654]

December 17, 2014: Air Board Approves Plan to Cut Pollution at Bay Area Refineries Including Rodeo Refinery and Santa Maria Refinery

The San Jose Mercury News reported on December 17, 2014 that the regional air pollution regulators have approved a far-reaching blueprint to cut Bay Area oil refinery emissions by 20 percent. More rigorous monitoring of refinery emissions will be required. To assure continued clean air improvements, refiners will be required periodically to assess their pollution and ways to reduce it. "This strategy will ensure that refineries are taking the strongest steps to cut emissions and minimize their impacts on neighboring residents and the region as a whole," said Jack Broadbent, the air district's executive officer.[655]

December 12, 2014: Moonpark City Councilman Doesn't Agree With Letter of Opposition to Santa Maria Oil Trains

Art Van Kraft reported in the Moonpark Acorn on December 12, 2014 that Moonpark City Councilman Keith Millhouse says he doesn’t agree with a report from the Moonpark community development department, which concludes that trains carrying crude oil to Phillips Santa Maria Refinery would be a potential threat to residents and recommends a letter of opposition be submitted to the San Luis Obispo County Planning Commission. “I don’t know why staff decided that an opposition letter would be the appropriate response,” said Millhouse, who said he can’t see the risk in allowing the freight train to pass through the city, one of several along the 213-mile route. “They come up with a highly implausible scenario and suggested action based upon that. I don’t think that is responsible.” Millhouse pointed out that Phillips 66 wouldn’t be the first oil company to transport crude through town on a regular basis. Millhouse said the report doesn’t put the risk in proper context and creates unnecessary fear. “That (threat) is not a realistic problem,” Millhouse said. “They are creating hysteria about what might happen and we need a more rational discussion of this.”[656]

December 12, 2014: Berkeley Rent Board to Discuss Effects of Phillips Plan to Bring Oil by Rail Through East Bay Cities

Tom Lochner reported in the Contra Costa Times on December 12 , 2014 that the Berkeley Rent Stabilization Board will discuss crude oil transport by rail through East Bay communities at their next meeting. A draft resolution opposes a proposal by Phillips 66 to bring crude oil from outside the state to its Santa Maria refinery in San Luis Obispo County. The purpose of the resolution is to pre-empt "the possible destruction of affordable housing in Berkeley from an explosive and destructive derailment ... as the trains pass through Berkeley." "If the crude-by-rail project is approved, these dangerous 'bomb trains' will roll through many California communities each day, including northern and western shorelines of Alameda and Contra Costa Counties," the draft resolution reads. "This project will put many communities at risk of accidents and spills, threatening our air, water, health and Berkeley's rent-controlled housing stock."

Phillips 66 has said it is pleased that issues brought forth by the community are addressed in a revised Draft Environmental Impact Report that will be the subject of a public hearing in San Luis Obispo. "We understand that there may be opposition to the project, and we look forward to San Luis Obispo County providing responses to new issues that are raised and addressing them in compliance with (the California Environmental Quality Act)."[657]

December 9, 2014: Environmentalists Concerned About Canadian Oil Sands Crude Deliveries to Santa Maria and Rodeo Refineries

Tom Lochner reported in the Okaland Tribune on December 9, 2014 that environmentalists are concerned about deliveries of Canadian Oil Sands Crude to the Santa Maria Refinery. Sleuthing through the reports of the Santa Maria project and a liquefied petroleum gas project at another Phillips 66 refinery in Rodeo, the group concluded that the propane and butane to be recovered at the Bay Area facility would come from tar sands oil and a diluting agent used to prepare it for transport -- first, as diluted bitumen coming by rail to Santa Maria, then, semi-refined, by pipeline to Rodeo. The October 2014 DEIR specifically rules out delivery of Bakken to the Santa Maria Refinery, although it does not say exactly where the oil would come from.

Tar sands oil is "even worse than Bakken," contends CBE senior scientist Greg Karras. In diluted bitumen form, it is just as volatile, he said, and processing it consumes greater quantities of fossil fuels and produces more greenhouse gases and air pollutants. The heavy tar sands oil also contains more copper, vanadium, nickel, lead, sulfur and nitrogen than other crudes. The comments call tar sands oil among "the dirtiest, most carbon-intensive fuels on the planet." The high sulfur content, moreover, makes the oil corrosive. Sulfur corrosion, the comments note, was a factor in an August 2012 fire at the Chevron refinery in Richmond that sickened thousands. Diluted bitumen also is a powerful water pollutant, Karras said, particularly difficult to clean up because it is so heavy that it settles at the bottom of waterways.[658]

December 3, 2014: County Receives 11,000 Letters Opposing Santa Maria Rail Spur Project

The New Times reported on December 3, 2014 that the San Luis Obispo County Planning and Building Department’ was surprised to have received 11,000 messages and letters opposing Phillips 66's rail spur project that would bring crude oil by rail to the Phillips 66 Santa Maria Refinery. “It said we had 10,600 unread messages,” said Murray Wilson. “That’s in addition to the 50 to 100 hard copies of letters we received, so it’s going to take a while to sort through all of this.” Wilson said that his department is currently organizing and forwarding all of the public comments to the EIR consultants, who will subsequently respond to the communication and put together the final EIR for the project. “We’re scheduled to have the final EIR published by the middle of January, and I hope we can stay on that target,” Wilson said. “It’s a matter of making sure we respond to all the letters appropriately.” According to Wilson, the vast majority of communication received—he estimated 98 or 99 percent—was comprised of about five different types of individually signed form letters from various environmental activist groups.[659]

December 3, 2014: Deadline for Comments to Environmental Report on Proposed Propane and Butane Recovery Project at Rodeo Refinery

The Contra Costa Times reported on December 3, 2014 that December 5, 2014 is the deadline for comments to an environmental report on a proposed propane and butane recovery project at the Phillips 66 petroleum refinery. The project calls for installing new equipment to recover and sell propane and butane instead of burning the gases at the refinery or flaring off excesses. While Phillips 66 has said the project would reduce emissions of sulfur dioxide by removing sulfur compounds from refinery fuel gas, and reduce other pollutants and greenhouses gases, environmentalists and the Bay Area Air Quality Management District questioned those claims. The project suffered a string of setbacks after breezing through early stages of the approval process, beginning with the endorsement of the Rodeo Municipal Advisory Council in 2013, followed by county Planning Commission approval of a land use permit later that year. Two environmental groups appealed the Planning Commission's approval, characterizing the original draft environmental impact report as inadequate and incomplete. The air district, meanwhile, said the project's emissions and possible health effects should be considered cumulatively with other petroleum industry-related projects in the East Bay and North Bay.[660]

November 26, 2014: San Jose City Councilman Urges Rejection of Phillips 66 Company Rail Spur Extension Project

The Santa Cruz Sentinel News reported on November 26, 2014 that San Jose City councilman Ash Kalra has announced his opposition to the Phillips 66 Company Rail Spur Extension Project would bring as many as 250 unit trains a year with 80 tank cars plus locomotives and supporting cars to a new crude oil unloading facility in Santa Maria from the north or from the south along tracks owned by the Union Pacific Railroad. "This will allow mile-long oil trains carrying millions of gallons of explosive, toxic crude oil in unsafe tank cars to travel through California every day," reads a news release from San Jose City Councilman Ash Kalra. "These trains will travel through the Bay Area passing neighborhoods in San Jose, including Kalra's District 2 in south San Jose. This proposed plan threatens the residents and families along the rail routes and also threatens the environment and local water supplies." Kalra continues by urging San Luis Obispo County to reject the project, saying, "The safety of our community members, our health, and our environment, should not be taken lightly."[661]

November 25, 2014: CDU Restarted, VDU and Coker Remain Shut at Phillips Wood River, Refinery

Genscape reported the 64,000 b/d crude distillation unit (CDU) was restarted and the 30,000 b/d vacuum distillation unit (VDU) and 16,000 b/d coker remained shut following an upset on November 22. Significantly decreased furnace stack activity at all three units was observed beginning the morning of November 22. The company reported flaring due to an unspecified equipment failure in a filing with the IEMA.[662]

November 24, 2014: Update: Phillips Says Unit Remains Shut at Westlake Refinery

Phillips said on Monday a unit remained shut following a fire on Sunday morning at its Lake Charles refinery in Westlake, Louisiana. Refinery operations have continued uninterrupted and there were no injuries due to the fire, which was put out by the plant’s in-house emergency response team, the company said. An investigation was underway into the incident, it added. The company reported a gasoline release due to a fire at the refinery, according to a filing with the U.S. National Response Center.[663]

November 23, 2014: Phillips Reports Gasoline Release Due to a Fire at Westlake Refinery

Phillips reported a release of gasoline into the atmosphere due to a fire which was extinguished, according to a filing with the National Response Center. The incident, which occurred on November 23, was under investigation.[664]

November 23, 2014: Fire Extinguished at Lake Charles Refinery

KPLC reported on November 23, 2014 that a fire broke out in one of the units at the Phillips 66 Lake Charles Manufacturing Complex at 6 am on November 23, 2014. "The plant's in-house emergency response team was immediately called to the scene and extinguished the blaze," said Carol Collins, Public Relations Director for Phillips 66,. "There were no injuries and no impact to the community. As required, the refinery notified all appropriate local and state agencies." Westlake Police told KPLC the fire was out by 7:50 a.m. and a few roads near the refinery were blocked off and the fire was quickly put out. Collins said the cause of the fire is under investigation.[665]

November 22, 2014: Phillips Reports Equipment Failure at Wood River Refinery

Phillips reported an unspecified equipment failure on Saturday at its Wood River refinery in Roxana, Illinois, according to a filing with the Illinois Emergency Management Agency.[666]

November 18, 2014: Op-ed Says that Santa Maria Refinery Rail Expansion Could Imperil Downtown San Jose

Richard Nevle and Deborah Levoy wrote in an op-ed in the San Jose Mercury News on November 18, 2014 that trains rolling through Northern California communities on their way to Phillips' Santa Maria refinery may soon carry massive charges of highly toxic tar sands crude that could bring nightmarish catastrophes to the heart of San Jose's downtown neighborhoods. "The mile-long trains transport millions of gallons of volatile oil in unsafe tank cars that are prone to derailing and exploding. California's railways weren't built to transport this noxious oil," write the authors. "If you think oil spills can't happen in San Jose, consider that more rail-transported oil spilled in 2013 than in the four prior decades. Or ask relatives of the 47 people who were incinerated when an oil train exploded in Quebec in July 2013."

"Oil companies including ConocoPhillips, of which Phillips 66 is a subsidiary, have contributed huge sums of money to forestall meaningful legislative action on the climate, actively working against the public interest in order to line their own pockets. The proposed facility expansion in Santa Maria is motivated by more of the same amoral self-interest that willfully places public health, land, water and climate at risk. We can't hope for oil companies to behave ethically. That would be perilous. We simply have to fight them every step of the way."[667]

November 18, 2014: Phillips Donates $250,000 to Upgrade Storm Warning Systems Around Wood River Refinery

KSDK reported on November 28, 2014 that Phillips 66 Wood River Refinery is donaring $250,000 to three local communities to upgrade their storm warning systems by installing new sirens. Phillips has also put money aside for educational programming, including severe weather preparedness programs that will be taught in schools and at municipal fire departments and will fund a National Weather Service spotters training course.[668] Wood River Fire Chief Steve Alexander says much of the credit for this agreement goes to Phillips 66.[669]

November 15, 2014: Phillips Reports Emissions from Bayway Refinery

Phillips Reports Emissions from Bayway Refinery [670]

November 14, 2014: Phillips Reports FCCU Startup at Borger Refinery

Phillips Reports FCCU Startup at Borger Refinery [671]

November 14, 2014: Sacramento Area Council of Governments Calls for Stronger Safety Controls on a Phillips Santa Maria Rail Proposal

The Sacramento Bee reported on November 14, 2014 that board members of the Sacramento Area Council of Governments, regional officials are asking San Luis Obispo County to require the Phillips 66 to notify local fire officials before any crude oil train comes through the area, limit the parking of crude-oil-laden trains in the urban area, provide funding for training on fighting oil fires, and require trains and tracks to have modern safety features. SACOG officials said they are not taking a stance against rail shipments of crude oil in general. “Our intent is not to prohibit any types of shipments, our intent is to ensure that where they are shipped that we impose the most reasonably feasible safety measures for our communities,” the agency’s attorney Kirk Trost said during a board briefing this week.

The Sacramento group, in its letter, also joined a growing national chorus of cities and states demanding that particularly flammable crude oil from the Bakken region of North Dakota be stripped of its more volatile elements before being loaded on trains. In an email to The Sacramento Bee, Phillips 66 spokesman Dennis Nuss said Phillips does not plan to ship Bakken oil to its Santa Maria Refinery. “Phillips 66 is working to ensure the long-term viability of the Santa Maria Refinery and the many jobs it provides,” he wrote. “Our plans for this project reflect our company’s commitment to operational excellence and safety while enhancing the competitiveness of the facility.”[672]

November 13, 2014: "Safety is the Humber Refinery’s Number One Priority"

The Grimsby Telegraph reported on November 13, 2014 that that contractors voted to go back to work today, following days of walkouts amid safety concerns. "This morning, contractors have returned to work," said spokeswoman Nina Stobart. "Phillips 66 will engage in open and honest dialogue to address any concerns outstanding and will work to reach a satisfactory conclusion. Safety is the Humber Refinery’s number one priority."[673]

Despite the vote for 'yes', one disgruntled worker said: "They've asked for a show of hands and the group is clearly split; they're not going to do anything until someone is killed." Contract workers initially walked out on Monday after claiming that refinery bosses had reneged on an agreement to meet them in person following a gas leak at the site last Wednesday, which left two people requiring hospital treatment. “The employer has climbed down a bit but Phillips 66 do not want us in the meetings with contractors as they seem to be anti-Union but they are creating a recipe for disaster," Shaune Clarkson, regional organiser for GMB.[674]

November 13, 2014: Workers Return to Work at Humber Refinery After Wildcat Strike Over Safety Issues

BBC and Harrogate reported on November 13, 2014 that striking workers have returned to work at Phillips 66's Humber Refinery after three days of industrial action claiming safety concerns following a gas leak last week in which two people were taken to the hospital. Engineering construction employees at the Humber Refinery decided at a mass meeting to return to work after spending three days on strike. The GMB union, which said it was aware of a health and safety issue on the site, said a meeting was being held between shop stewards and managers to finalise details of a return to work. Phillips said it would hold meetings with staff and the managers of contract companies and would "engage in open and honest dialogue to address any concerns outstanding and will work to reach a satisfactory conclusion". "Safety is the Humber Refinery's number one priority," it added.[675][676]

November 12, 2014: Humber Refinery Workers Walk Out for Third Day Over Safety Issues

BBC reported on November 12, 2014 that 450 contract employees have stopped working at the Humber Refinery in South Killingholme for the thirdday claiming concerns over "safety issues". GMB union officer Shaune Clarkson said his members wanted "reassurance" from management that the plant was safe. A spokeswoman for Phillips 66 said: "This morning, despite the repeated offers by the refinery management to meet face to face with each company and their staff, the contractors voted to stay off work for a third day in unofficial action." The company said the refinery was "not being impacted by this action".[677]

The GMB union national officer Phil Whitehurst said: "Following a major stoppage of work we have been advised that there is a major health and safety issue on the site. GMB has been refused access to the site in order to resolve what has been described to us as a major hazard. We urge the company to allow the union on to the site to try to resolve the issue as quickly as possible for the safety of workers and the public."[678]

November 12, 2014: Group Meets to Voice Oppostion to Crude Oil Deliveries by Rail to Santa Maria Refinery

The San Luis Obispo Tribune reported on November 12, 2014 that more than 200 people met in Nipomo to voice opposition to a plan by Phillips 66 to install tracks so it can deliver crude oil to its Santa Maria refinery by rail. One by one, group members took turns detailing significant and potentially disastrous impacts that they believe the proposal could have on San Luis Obispo County. “Approving this project would change the very fabric of our county,” Martin Akel said. “My friends, protect yourself. Take action and take it now.” No county planning officials or Phillips 66 representatives spoke during the presentations.

According to Cynthia Lambert writing in the Tribune, judging by the large crowd and enthusiastic response for the speakers, many attendees agreed with concerns about possible air quality, noise and odor impacts, as well as the potential for rail accidents that could cause oil spills, fires or explosions — not just in Nipomo, but anywhere along the Union Pacific mainline. “How can anyone be in favor of this?” said Janet Pelkey, who came to the meeting with her husband, Jim, to learn more about the project.[679]

November 12, 2014: Phillips Reports Flaring Due to Upset Conditions Wood River Refinery

Phillips Reports Flaring Due to Upset Conditions Wood River Refinery [680]

November 11, 2014: Hundreds of Humber Refinery Workers Walk Out for Second Day Over Safety Issues

BBC reported on November 11, 2014 that hundreds of contract workers have downed tools for a second day at Phillips 66's Humber Refinery over "safety concerns" after two workers were injured by a steam leak on October 30, 2014. Phillips employs 1,000 contractors and 750 staff. Mechanical engineers, scaffolders, welders and pipe-fitters are among the workers who have walked out. GMB union officer Shaune Clarkson said his members wanted a meeting with management to discuss safety at the plant. "The most important thing when you walk through those gates in the morning is you get home safely to your families at night," said Clarkson. "All we want, and all the men want, is a reassurance that is going to happen." A company spokeswoman said Philips 66 had been holding an "ongoing dialogue with contractor management over the last week to discuss their issues, many of which relate to onsite communications".[681]

November 10, 2014: 450 Contract Employees Walk Out at Humber Refinery Over Safety Concerns

BBC reported on November 10, 2014 that 450 contract workers walked out at Phillips 66's Humber Refinery on November 10, 2014. The "unofficial" action is over communication issues at the site. However the GMB union says it's over safety concerns after a gas leak at the site last week in which two men were injured. Phillips 66 confirmed there had been "a small gas release on a unit during some routine maintenance work at the Humber Refinery" last Wednesday. "All we want is a reassurance that the site is safe [and] some safety issues addressed. Unfortunately, the employer has failed to do that and because of that then men have reacted," said GMB union officer Shaune Clarkson. "This is the straw that's broke the camel's back." A company spokeswoman said: "We can confirm that earlier today, at approximately midday, a number of contract workers left site in unofficial action. "We have been in ongoing dialogue with contractor management over the last week to discuss their issues, many of which relate to onsite communications, and will continue to work with them to reach a satisfactory conclusion."[682]

November 8, 2014: Phillips Reports FCCU Shut at Borger Refinery

Phillips reported the shutdown of the fluid catalytic cracking unit 40 (FCCU) starting Saturday at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. The unit was expected to be started up on November 20, the filing said. The heavy oil catalytic cracking unit 40 has a capacity of 30,000 b/d.[683]

November 5, 2014: Phillips Set to Overhaul FCCU at Bayway Refinery in 2016 to Increase Diesel Production 25 Percent

Phillips plans to overhaul the 150,000 b/d fluid catalytic cracking unit (FCCU) at its refinery in Linden, New Jersey, in 2016, as part of a broader goal to increase diesel production by as much as 25 percent. The overhaul will include construction of a new reactor for the FCCU and is expected to begin in the third quarter 2016.[684]

November 1, 2014: Phillips Reports Flaring at Santa Maria Refinery

Phillips filed a report with the California Emergency Management Agency, indicating flaring due to a process upset at its Santa Maria refinery in Arroyo Grande, California, on Saturday. The report stated that the refinery was being brought “back under control” after the incident.[685]

October 30, 2014: Two Workers Injured at Humber Refinery

BBC reported on October 30, 2014 that two workers were injured by a steam leak at the Humber Refinery at 09:30 GMT. Phillips said the pair had been taken to Pinderfields Hospital in Wakefield by air ambulance. The company has given no more information on the employees' injuries and said it was offering support and assistance to their families.[686]

October 30, 2014: Phillips 66 Reports Flaring at Wilmington Refinery

Phillips 66 reported flaring at its Wilmington, California refinery, according to a filing with the California Emergency Management Agency. The Phillips 66 refinery has two linked facilities about 5 miles apart in Carson and Wilmington.[687]

October 29, 2014: Laurance Shinderman Says Phillips 66 Rail Spur Project is Wrong for San Luis Obispo County

Laurance Shinderman of the Mesa Refinery Watch Group wrote an op-ed piece in the Cal Coast News on October 29, 2014 that says that Phillips' plan to build a rail spur and a crude oil railcar unloading facility for the Santa Maria Refinery could result in effects that impair adjacent agricultural uses along the UPRR mainline in the event of a derailment and or spill, including the generation of contaminated air emissions, soil and water contamination and increased risk of fire which have the potential to adversely affect adjacent agricultural areas. "Under the new proposal, the Phillips facility will undertake an entirely new method of doing business," writes Shinderman . "In effect, they’re turning over the tables on our citizens, and starting all over again … with a potential disastrous impact on those who live in the county. The fact that Phillips has been a “good neighbor” and taxpayer, has nothing to do with granting them the right to introduce a completely new, different and dangerous way to conduct their operations."[688]

"This project is a heads Phillips wins and tails SLO loses," concludes Shinderman, "because if there were a disaster; who would compensate businesses for their economic loss, or compensate farmers for their land that could be potentially made useless due to the fall out of toxic soot and ash. Are the health, safety and the vitality of San Luis Obispo county worth granting Phillips the go ahead with this project so that they could garner a few extra dollars/barrel from “advantaged” crude? We think not."[689]

October 25, 2014: Phillips Reports Process Unit Upset at Wood RiverRefinery

Phillips reported a process unit upset at its Wood River refinery in Illinois on Saturday, according to a filing with the Illinois Emergency Management Agency. The incident led to sulfur dioxide emissions, the filing said.[690]

October 20, 2014: Chemical Leak Contained at Phillips 66’s Bayway Refinery

Police, firefighters, and a hazmat team responded to a chemical leak at the Infineum plant inside Phillip 66’s Bayway refinery complex in Linden, New Jersey around 8 a.m. EDT Monday on a report of a chemical cloud, Linden authorities said. A 25 percent concentration of ethylaluminum dichloride in a hydrocarbon oil was releasedbut contained within one hour, according to Infineum. Plant employees were ordered to shelter in place until about 9:50 a.m. EDT, as a precautionary measure. No injuries were reported and refinery operations were uninterrupted. Crews that were dispatched to monitor the fenceline and surrounding areas did not detect any odor or hydrocarbon concentrations.[691]

October 20, 2014: Chemical Leak Contained at Phillips 66’s Bayway Refinery

Police, firefighters, and a hazmat team responded to a chemical leak at the Infineum plant inside Phillip 66’s Bayway refinery complex in Linden, New Jersey around 8 a.m. EDT Monday on a report of a chemical cloud, Linden authorities said. A 25 percent concentration of ethylaluminum dichloride in a hydrocarbon oil was releasedbut contained within one hour, according to Infineum. Plant employees were ordered to shelter in place until about 9:50 a.m. EDT, as a precautionary measure. No injuries were reported and refinery operations were uninterrupted. Crews that were dispatched to monitor the fenceline and surrounding areas did not detect any odor or hydrocarbon concentrations.[692]

October 20, 2014: Chemical Leak of Ethylaluminum Dichloride Contained at Bayway Refinery

CBS reported on October 20, 2014 that police, firefighters and a hazmat team responded to the Infineum plant inside the Bayway Refinery Complex around 8:30 a.m. on October 20, 2014 and contained a chemical leak. In a statement on the company’s website, the plant said a 25 percent concentration of ethylaluminum dichloride in a hydrocarbon oil was released and plant employees were ordered to shelter in place. Police said the leak did not pose a threat to the surrounding area. Authorities sent a message to neighbors letting them know to close their doors and windows. “No injuries have been reported, and there is no health or safety impact either at the site or within the community,” said Infineum USA Spokesperson Lissette Gonzalez. “Crews that were dispatched to monitor the fenceline and surrounding areas did not detect any odor or hydrocarbon concentrations.” Ethylaluminum dichloride is a clear, yellow liquid that turns into fumes when it hits the air. It is used as a catalyst to make other chemicals like fuel additives and the chemical can irritate the nose, eyes, skin and throat and is highly flammable and reactive. There is no word on what caused the leak.[693]

October 20, 2014: Ferndale Refinery Is One of the Top Polluters in Whatcom County

The Bellingham Herald reported on October 20, 2014 that Whatcom County's oil refineries were some of the biggest polluters in Washington state last year, according to the latest data from the U.S. Environmental Protection Agency. The Phillips 66 refinery in Ferndale released more than 769,000 tons of carbon dioxide making it the third largest polluter in the County after TransAlta's Centralia Plant (7.5 million metric tons of pollutants) which is scheduled to completely shut down by 2025 under a state law passed in 2011 and British Petroleum's Cherry Point Refinery. A Washington state law requires facilities that emit more than 10,000 metric tons of greenhouse gases per year to report their pollution to the state Department of Ecology. Those sources have reported their 2012 emissions to the Department of Ecology. Reports for 2013 emissions are due later this month.[694][695]

October 16, 2014: Phillips Reports Wet Gas Compressor Failure after Power Blip at Wood River Refinery

Phillips reported a wet gas compressor failure on October 16, 2014 after a power blip at the Wood River Refinery.[696]

October 16, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality.[697]

October 15, 2014: Air Quality Officials Want Refineries near San Francisco To Cut Emissions By 20 Percent

The Contra Costa Times reported on October 15, 2014 that Bay Area air quality officials want the five Bay Area refineries to cut oil refinery emissions by 20 percent. The refineries include Valero Energy Corp’s 132,000 b/d Benicia, Chevron Corp’s 245,271 b/d Richmond, Tesoro Corp’s 166,000 b/d Martinez, Royal Dutch Shell Plc’s 156,400 b/d Martinez, and Phillips 66’s 120,200 b/d Rodeo. By a 15-0 vote (with seven members absent), the air board gave its staff marching orders to come up with an emission reduction plan, and approved two related actions. By next spring or earlier, the board said it will consider a new rule to more rigorously determine current baseline emissions for refineries, and then track changes over time. Also by spring, the board said it will consider a rule barring refineries from increasing emissions as a result of equipment changes or modernizations. "This is a way to improve the lives of communities around refineries," said Marilyn Bardet of Benicians for a Healthy and Safe Community.[698]

Guy Bjerke, Bay Area manager of the Western States Petroleum Association, said the district is wrong to consider any reduction target before it has completed its new inventory of emissions at the five refineries. "The reductions must be based on sound science, not on speculation," Bjerke said. Industry lawyers also said the district has no evidence that a 20 percent cut would improve public health.[699]

October 14, 2014: Bomb Scare at Alliance Refinery Was Only a PVC Pipe

The Times-Picayune reported on October 14, 2014 that a bomb scare at a Alliance Refinery on October 14, 2014 brought an FBI bomb expert to the scene, who quickly determined the suspicious object was simply a PVC pipe with putty and duct tape on the end used as a marker by a sub-contractor. The three-inch long PVC pipe, later found to contain a two-inch in diameter ball bearing, "is commonly used by a refinery subcontractor as a marker while taking X-rays," according to the Plaquemines Sheriff's Office. A sheriff's office spokesman said the refinery did not need to be evacuated and production was not affected.[700]

October 10, 2014: New Study Assesses Risk of Oil Spill at Santa Maria Refinery if Proposed Rail Project is Approved

The San Luis Obispo Tribune reported on October 10, 2014 that a new study has assessed three rail routes to Phillips 66's Santa Maria Refinery and found the project could significantly impact public safety if a crude oil spill results in a fire or explosion near a populated area. An analysis estimated the average incident rate of a release of 100 gallons or more of oil from a train traveling between the Phillips 66 refinery and rail yards in Roseville or Colton would be once every 46 years to 76 years, depending on the route. The probability of an oil release anywhere along the entire rail line in California would be greater — estimated at once every 19 years to 31 years. But explosions are considered unlikely with a 100-gallon spill. “While the exact route the trains would take to get to these two rail yards is speculative, all of the routes within and outside of California would traverse populated areas that could be impacted in the event of a release that resulted in a fire or explosion,” the report states.[701]

The report also found that trains would be traveling about 3 miles per hour on the Phillips 66 property, so it’s unlikely they could be hit hard enough to result in a spill. The hazard impacts at the refinery were found to be less than significant, according to the draft report. No crude oil or refined product would be transported out of the refinery by rail. Also, no Bakken crude will be delivered to the refinery as part of the project — a response to concerns that light crude oil from the Bakken region in North Dakota may be more volatile than other crudes. The risk would also be substantially lowered by using the safest tank car design available, which could reduce the probability of an oil spill by about 74 percent, according to the report.[702]

October 9, 2014: Phillips Reports Pipeline Leak at Wood River Refinery

Phillips reported a diesel spill on October 9, 2014 from a pipeline leak at its Wood River, Illinois, refinery, according to the Illinois Emergency Management Agency.[703]

September 30, 2014: Some Residents Oppose Phillips Bringing More Oil Trains to Santa Maria Refinery

KSBY reported on September 30, 2014 that Phillips wants to add 44,000 feet of track on the property near the Santa Maria Refinery and begin bringing in up to five trains with 80 railcars per train to transport crude oil. Phillips hosted an open house on September 30, 2014 about the project so locals could ask questions and share their concerns about the proposal. A spokesperson for the Phillips 66 Refinery says the proposed rail project is solely on their property, and claims it would not be an issue for people who live nearby. "The entire project will be on Phillips 66 property here at the refinery," says James Anderson, Superintendent of the Santa Maria Refinery. "The project does not increase any intake and throughput of the refinery and it would be a way for us to obtain crude oil from additional sources throughout the United States."[704]

People who live near the refinery say they are still concerned. "They are not going to be doing anything to reduce the harm that they are going to create for the people here who will be breathing this," says Marty Akel, Nipomo resident and member of the Mesa Refinery Watch Group. "We have a rail terminal with all the noise pollution of diesel trains, coupling and uncoupling all the time, the air pollution, the light pollution, they will be destroying the atmosphere over here." Akel lives in the Trilogy estates at Monarch Dunes. He and his neighbors say they are outraged at the proposed project at the Santa Maria Refinery, that if approved, would be viewable from their backyard. "I wouldn't want to live in their backyard, and I do live here. It is just not a good thing." says Amy Hedges. "The ocean is out there, Trilogy is right here, you can see how close it is. It is going to be a tremendous burden for everyone up in the Mesa."[705]

September 25, 2014: Garland Places Ethics and Safety at the Top of His List

The Daily Cougar reported on September 25, 2014 that Garland spoke to students on September 23, 2014 at the Bauer College of Business about the importance of ethical responsibility in the business world and the place of responsible, socially conscious decisions in modern commercial enterprise as part of the school’s ongoing “Distinguished Leaders Program." “You’ve got to have high standards if you’re going to be ethical. It has to start at the very top,” Garland said. “(I) fundamentally disagree with people who say that energy companies can’t be good corporate citizens … I think that good ethics makes for good business.” Garland stressed that aside from being the responsible and morally correct decision, good ethical business and environmental safety is also profitable long-term. “We have people who invest literally billions of dollars in our company, and I want them to know they’re investing in safety,” Garland said. “One major accident can absolutely devastate shareholder value.” Garland also offered some words of encouragement to UH students entering the energy industry. “Your education is actually just the launching pad for a lifetime and career of learning in this industry,” Garland said. “And if you’re at the top of your class, I want to talk to you after the show.”[706]

September 24, 2014: Phillips Reports Unit Upset During Startup at Borger Refinery

Phillips reported unit 45 experienced a process upset during startup and emissions from a gas oil hydrodesulphurizer flare at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality.[707]

September 14, 2014: Are the Cities Near the Ferndale Refinery Prepared for an Oil Train Derailment?

Samantha Wohlfeil provided an in-depth report in the Bellingham Herland on September 14, 2014 on how prepared the cities near the Ferndale Refinery are for an oil train derailment. "If a train hauling more than 100 cars of highly volatile crude oil were to derail in Bellingham, would the city be prepared?" writes Wohlfeil. "What if it instead left the tracks near Ferndale, or rural Custer, or along Chuckanut Drive, where an accident only feet from the water might be nearly impossible for first responders to reach from land?" According to Kent Catlin, deputy director of the Whatcom County Sheriff’s Office Division of Emergency Management, the question is complex and may not have a simple answer. “Any event like this will overwhelm any jurisdiction and exhaust its resources,” said Catlin. “All of us operate at a bare bones of what we need because it doesn’t make sense to have more staff than needed.”[708]

When faced with an event like a derailment, first responders have to decide whether to fight or surround the problem, depending on available resources and the size and intensity of any fire or spill, said Roger Christensen, Bellingham’s interim emergency manager and recently retired fire chief. “If you’re faced with an event you can’t do anything about, you have to decide how to protect what’s around it,” Christensen said. With millions of gallons of potential combustible material on each train, if a fiery accident were to occur, even the most prepared communities might just have to sit back and watch it burn because most fire departments carry small amounts of firefighting foam that can be used to contain fuel and keep vapors from getting into the air. “Even with a lot of foam you may not be able to put that fire out,” says Patrick Brady, BNSF director of Hazardous Materials Special Operations. “Plus, it’s better to consume the oil in that fire rather than put it out and now it’ll get into the river, or in a populated area like Seattle it’ll get into the storm drains.”[709]

September 4, 2014: Phillips Reports Unit Shutdown at Ponca City Refinery

Phillips reported a unit shutdown led to carbon monoxide emissions on September 4, according to a filing with the Oklahoma Department of Environmental Quality.[710]

September 1, 2014: One Year After Cleanup, DCP Midstream Oil Spill Still Causes Concern

Phil Cross reported at Fox25 on September 1, 2014 that more than a year after an oil spill from an abandoned pipeline owned by DCP Midstream, the landowners say they are still fighting to get it cleaned up. Records indicate DCP hired a company to perform the clean-up of the creek and the OCC document says the state ordered work to be completed by July 15, 2013. The people who own the land just downstream from the spill say that cleanup effort failed. “It should be nice clean water to water the cattle and fertilize the hay and the blackberries in the area,” says Spencer city councilwoman Tonni Canaday who told Fox 25 the town was not notified oil was spilled in Spencer Creek. “I couldn't, in good conscious, put cattle on here right now.”[711]

The issue, the landowners say, is that any slight movement in the water stirs up a glossy sheen. They claim it is residual oil left from the initial spill. Records from the OCC indicated the pipeline spilled about a barrel of oil, but the company only recovered half a barrel of material. The landowners invited Fox 25 to visit the creek this summer, more than a year after the spill and eight months after the final cleanup was deemed complete. On our visit the landowner stirred the creek and a glossy sheen appeared on the water. A soil sample dug from the bottom of the creek revealed a strong odor of oil and was greasy to the touch. “There is absolutely a problem,” Canaday says, “And to each of those people that we've had come out and say it's not that big of a problem; we haven't seen anybody take a drink or take a bottle of water out of there themselves.” The corporation commission says DCP has been willing to do anything they've been asked and that company has voluntarily helped with the cleanup and containment of other pipeline spills they were not responsible for in the past.[712]

August 24, 2014: Rodeo Refinery Unaffected by August 24 Earthquake

The five crude oil refineries in the San Francisco Bay area said their operations were unaffected by Sunday morning’s 6.0 magnitude earthquake. The refineries include Valero Energy Corp’s 132,000 b/d Benicia, Chevron Corp’s 245,271 b/d Richmond, Tesoro Corp’s 166,000 b/d Martinez, Royal Dutch Shell Plc’s 156,400 b/d Martinez, and Phillips 66’s 120,200 b/d Rodeo.[713]

August 21, 2014: Four Injured in DCP Midstream Pipeline Fire

NewOK reported on August 21, 2014 that fourworkers were injured in Garvin County in a fire while a crew was performing maintenance on a natural gas pipeline operated by DCP Midstream, a 50 percent joint venture between Phillips and Spectra Energy. The natural gas line fire was quickly extinguished and the workers were taken to the hospital in Lindsay, where they were treated and released. DCP reported the incident to the proper regulatory authorities and will investigate further on its own to determine what happened.[714]

August 20, 2014: Phillips Report Flaring at Wilmington Refinery

Phillips reported a flaring event at its refinery in Wilmington, California, caused the release of chemical substance, according to a filing with the California Emergency Management Agency. The refinery has two linked facilities about five miles apart in Carson and Wilmington. The former processes crude oil while the latter upgrades the products.[715]

August 17, 2014: Phillips Reports Process Snag at Ferndale Refinery

Phillips reported a utility steam interruption and excess opacity in the FCC flue gas scrubber stack on August 17 and sulfur recovery unit (SRU) emissions on August 15, according to a filing with the Northwest Clean Air Agency.[716]

August 10, 2014: Phillips Reports FCCU Shut at Borger Refinery

Phillips reported its unit 29 fluid catalytic cracking unit (FCCU) was shut to repair process piping at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. The work began on Sunday and was expected to end on August 25.[717]

August 5, 2014: Phillips 66’s Borger Refinery Returns to Normal Rates

Phillips returned the 62,000 b/d crude unit at its Borger, Texas refinery to normal rates on Tuesday after heater issues a week earlier, according to an IIR Energy report. The 30,000 b/d fluid catalytic cracking unit (FCCU), which was also operating at reduced rates during the repairs, returned to run at normal rates, IIR added. All units at the plant were operational as of late afternoon on Tuesday, IIR said. A spokesman for the company said planned maintenance work was underway at the refinery, but declined to provide details regarding specific units involved and the duration of the work.[718]

August 1, 2014: Phillips Reports Small Leak Contained at Rodeo Refinery

Phillips reported a small valve leak that was contained on August 1 at its Rodeo, California refinery, according to a filing with Contra Costa Health Services.[719]

July 30, 2014: Chevron Phillips Chemical Plant in Port Arthur Remains Closed After Fire

The Houston Chronicle reported on July 30, 2014 that during the second quarter conference call, company officials at Phillips said that the Chevron Phillips Chemical plant in Port Arthur remains closed after a fire injured several workers on July 7 and that it's too early to know when it might reopen. Garland did not elaborate on a recent fire in July at a Chevron Phillips Chemical Company LLC plant in Port Arthur that involved injuries, but he did say the facility should not be shut down for much longer. "There's no reason for that unit to be down for a prolonged period of time," said Garland.[720]

July 25, 2014: Phillips 66 Reports Equipment Failure at Wood River Refinery

Phillips 66 reported an unspecified equipment failure on Friday at its Wood River refinery in Illinois, according to a filing with state pollution regulators. The filing did not mention if the event hurt regular refinery operations or affected production.[721]

July 16, 2014: Phillips Cuts Unit Rates Due to Power Blip at Sweeny Refinery

Phillips reported power to both flare gas recovery compressors was lost due an electrical failure causing the flare gas recovery system to shutdown. Power was quickly restored, and a safe and controlled restart of the flare gas recovery compressors was conducted. Units were operated at reduced rates during the outage in order to reduce the amount of flaring. [722]

July 16, 2014: Phillips 66 Restarts Santa Maria Refinery after Power Outage

Phillips 66 said power loss at its Santa Maria, California, refinery was only temporary and was quickly restored. [723]

July 8, 2014: Investigation Begins into Fire at Port Arthur Chemical Plant that Injured Two Workers

Mary Meaux reported at The Port Arthur News on July 8, 2014 that an investigation into the cause of the fire at Chevron Phillips Chemical Company that injured two workers is underway less than 24 hours after the incident. “A team of experts from other Chevron Phillips Chemical facilities has been assembled and has begun the investigation to determine the root cause of the incident,” according to a press release from David Hastings, public affairs manager at Chevron Phillips. The localized fire occurred at the Port Arthur facility at about 8 pm on July 7. The chemical company’s fire response team handled the fire while Port Arthur Fire Department remained on standby with equipment and manpower should it be needed, said Port Arthur Police Maj. John Owens. “The fire chief (Larry Richard) and I went in and were part of their emergency operations center to assist them in decision making and operations should they need outside assistance and to ensure the public and community that we had someone inside the EOC to look at it from the community’s side,” Owens said.[724]

Independent air monitoring throughout the night to ensure the community was safe. “The continuous monitoring picked up zero readings,” said Owens. “We do this any time there is an incident. It is protocol for the fire department’s hazardous response team to perform independent monitoring.”[725]

July 8, 2014: Representative Hahn Sends Letter to State Fire Marshal about Phillips Violations After Wilmington Oil Spill

Zamná Ávila reported at Random Length News on July 8, 2014 that Representative Janice Hahn sent a letter to California Fire Marshal Tonya Hoover with regards to the Phillips 66 violations in a recent oil spill requesting an update on the office’s progress in citing Phillips 66 for federal law violations. “The 1,200 gallon oil spill in Wilmington placed the health of hundreds in danger due to a failure to follow federal law regarding pipeline safety,” Hahn wrote. “The families of Wilmington remain uncompensated for the destruction of their property, and the federal government is unable to act until your office cites the company for wrongdoing.” Hahn expressed her disappointment that Phillips 66 had not yet been cited.[726]

July 8, 2014: Phillips Applies for Permits for Six Injection Wells Near Brazoria, Texas

Friends of the River reported on July 5, 2014 that Phillips has applied to the Railroad Commission of Texas for a permit to dispose of produced salt water, brine or other oil and gas waste by well injection into a porous formation not productive of oil or gas on on the San Bernard River near Brazoria, Texas. A group of 31 people attended a meeting on July 8, concerning the proposed action of of six disposal wells being drilled during the upcoming year at the Phillips 66 Clemens Field on the San Bernard River. In answer to the question of what was going to be injected into the wells, only the salt water, brine, produced from “washing” an underground salt cavern will be injected in the disposal wells. Oil and gas waste will not be injected into the wells. The water used in this process is to come from a Phillips 66 pipeline of recycled effluent water and not pumped out of the San Bernard. In Texas, disposal wells are regulated by the Railroad Commission.[727][728]

July 7, 2014: Two Workers Injured in Fire at Port Arthur Chemical Plant

Plastics News reported on July 15, 2014 that two workers were injured in a fire in a ethylene/propylene unit at the at a Chevron Phillips Chemical Plant in Port Arthur. No cause for the fire was given in a July 9 statement from Chevron Phillips. The statement added that the injured workers remained hospitalized.[729] “We regret very deeply that this event has occurred. Our thoughts and prayers are with the injured and their families. We ask for your patience as we manage the response to the incident,” said Margie Conway, plant manager for Chevron Phillips Chemical. “We will communicate additional information when it can be confirmed.”[730]

The Port Arthur plant has almost 1.8 billion pounds of annual ethylene capacity and 1.1 billion pounds of annual propylene capacity. Chevron Phillips has declared force majeure production limits on that material after the fire. Phillips Chevron officials said that reviews are underway to determine when the unaffected areas of the plant can be restarted, and that no timetable has been set for restart of the area affected by the incident.[731]

July 14, 2014: Phillips Reports Loss of Steam at Carson Refinery

Phillips reported its Carson, California, refinery experienced loss of steam resulting in flaring. The refinery has two linked facilities about five miles apart in Carson and Wilmington, California. Reuters, 11:54 July 14, 2014 [732]

July 7, 2014: Phillips Reports Process Upset at Carson Refinery

Phillips reported RP states high sulfur in fuel gas resulted in excess of RQ for SOC (500 LBS in a 24-hour period), according to a filing with the California Emergency Management Agency. [733]

July 4, 2014: Phillips 66 Reports FCCU Normal after Feed Cut at Sweeny Refinery

Phillips 66 reported a fluid catalytic cracking unit (FCCU) at its Sweeny refinery in Texas was brought back to normal operations after feed was stopped due to a pump malfunction, a filing with the Texas Commission on Environmental Quality showed. Feed was stopped to FCCU 3 due to the loss of a feed pump motor at an adjacent process unit, the filing said, adding that the feed rate was resumed following repairs on the pump. [734]

July 4, 2014: Phillips to Shut Most Units for Repair at Borger Refinery Over July 4 Weekend

Phillips said it would shut most of the production units at its refinery in Borger, Texas, over the July Fourth weekend to start a month of repairs following a power outage early this week, said sources familiar with operations at the refinery. The company had already been planning to shut the refinery’s 25,000 b/d delayed coking unit over the weekend for a three-week overhaul, sources told Reuters. Trade sources have said the refinery was planning a multi-unit overhaul this month to correct operational problems created by the power outage. [735]

July 1, 2014: Phillips Continues Working to Restart Santa Maria Refinery

Phillips said it was still working to restart its Santa Maria, California refinery following a power outage on July 16.[736]

June 27, 2014: Phillips Reports Hydrogen Plant Shutdown at Rodeo Refinery

Phillips reported the hydrogen plant went down on June 27 at its Rodeo, California, refinery, according to a filing with Contra Costa County Health Services. [737]

June 12, 2014: Fire Crew Extinguishes Blaze in Crude Unit at Billings Refinery

The Billings Gazette reported on June 12, 2014 that a fire broke out at the large crude unit at the Billings Refinery at about 1:45 that was extinguished in about 15 minutes by on-site personnel. According to Phillips spokesman Travis Sloane, no one was injured in the fire and employees have been dispatched off-site while air quality is measured There does not appear to be any environmental harm as a result of the fire.[738]

June 11, 2014: Phillips Shuts CRU, VDU at Billings Refinery Due to Crude Unit Fire

A fire in the crude unit at Phillips 66’s refinery in Billings, Montana, on Wednesday forced the company to shut two major units for an indefinite period of time. The 38,000 b/d catalytic reforming unit (CRU) and 35,000 b/d vacuum distillation unit (VDU) were shut down on Wednesday afternoon, according to research company Genscape. Late Wednesday Phillips said it had a fire in the large crude unit, which had been extinguished onsite by emergency response personnel. It provided no estimate on the duration of the closure. [739]

June 6, 2014: Phillips Reports FCCU Emissions at Sweeny Refinery

Phillips reported an air blower turbine shutdown was causing emissions from its coker and fluid catalytic cracking unit (FCCU) at its Sweeny refinery in Texas on Friday, according to a filing with state pollution regulators. Energy intelligence firm Genscape had reported a brief flaring was observed at the refinery on Thursday. [740]

June 4, 2014: County Supervisors Order More Environmental Study for Rodeo Refinery Expansion

Jean Tepperman reported at the East Bay Express on June 4, 2014 that Contra Costa residents and environmentalists fighting pollution from oil refineries scored two wins at the board of supervisors as county supervisors voted to send a proposal by Phillips 66 for a new project at its Rodeo refinery back for another round of environmental review. The previous environmental impact report (EIR) of the Phillips 66 proposal — to construct new storage tanks for propane and butane — was “flawed,” explained Catherine Kutsuris, director of the Department of Conservation and Development. Many comments from community residents, as well as a letter from the Bay Area Air Quality Management District, pointed out that the original EIR failed to address the “cumulative impacts” of the Phillips 66 proposal together with other local oil industry projects.[741]

According to Tepperman, refinery workers packed the chamber and spoke in support of the Phillips 66 project, while members of local groups such as Crockett Rodeo United to Defend the Environment (CRUDE), along with representatives of environmental organizations, supported the recommendation to revise and re-circulate the EIR. At the invitation of Supervisor Federal Glover, Larry Silva, manager of health and safety at the Phillips 66 plant, described the environmental benefits of the project, including lowering sulfur dioxide emissions and the potential for flaring. He said other projects have not had to do a cumulative health impact and asked for fair treatment.[742]

June 3, 2014: Rodeo Refinery Propane Recovery Project Delayed Again Over Environmental Impact

Rick Jones reported on the Martinez News-Gazette on June 3, 2014 that Contra Costa County officials want to recirculate the environmental impact report (EIR) for the Phillips 66 Rodeo refinery propane and butane recovery project that calls for the installation of new equipment to recover and sell propane and butane instead of burning it as fuel at the refinery or flaring off excesses. The project would reduce emissions of several pollutants, including sulfur dioxide, the refinery has said. Appeals, by Communities for a Better Environment and the Rodeo Citizens Association, contend the report understates potential impacts of the project and warn that Phillips plans to process more and dirtier crude oil. Phillips has described those contentions as incorrect and speculative.[743]

June 1, 2014: Phillips Says Operations Normal at Santa Maria Refinery After Steam Power Plant Shutdown

Phillips on Sunday said its Santa Maria refinery in Arroyo Grande, California, resumed normal operations late Friday following the shutdown of the site’s steam power plant. The shutdown occurred due to a process upset, the company said. The company reported an unspecified process upset at the refinery on Friday, according to a filing with state pollution regulators. [744]

June 1, 2014: Phillips Reports Unit Upset at Rodeo Refinery

Phillips reported a unit upset led to flaring at its Rodeo refinery in northern California on June 1, according to a filing with Contra Costa Health Services.[745]

May 26, 2014: Phillips Reports Ammonia Release at Wilmington Refinery

Phillips reported release of anhydrous ammonia at its Los Angeles-area refinery in Wilmington, California, on Monday, according to a filing with state pollution regulators. The filing did not specify whether the event had an impact on production.[746]

May 22, 2014: Update: Phillips 66 Resumes Operations at Santa Maria Refinery

Phillips 66 said Thursday that operations at its Santa Maria refinery in Arroyo Grande, California, resumed following an unplanned shutdown due to a power outage May 20. [747]

May 21, 2014: Update: Phillips Working to Restart Santa Maria Refinery

Phillips said it was working to restart its Santa Maria refinery in Arroyo Grande, California, Wednesday, following an unplanned shutdown caused by a power outage May 20. [748]

May 20, 2014: Thirty-Eight Organizations Join Forces To Oppose Proposed Oil Pipeline to Bayway Refinery

The New Jersey Star-Ledger reported on May 20, 2014 that a coalition of 38 organizations from New York and New Jersey has called on Governors Chris Christie and Andrew Cuomo to oppose the proposed 150-mile oil pipeline between Albany, NY and Phillips' Bayway Refinery in Linden, NJ. “Putting the Pilgrim Pipeline through one of the most densely populated areas in the country is an accident waiting to happen, given how volatile Bakken shale oil is,” said Jeff Tittel, director of New Jersey’s Sierra Club chapter and the leader of the teleconference. “Even worse is having this pipeline pass through major water supply rivers” in northern New Jersey’s Highlands region, Tittel added. “This is playing Russian roulette with a fully loaded gun.”[749]

George Bochis, vice president of development for Pilgrim, said the company is “disappointed that these groups are opposing the project without meeting with us. We would be happy to meet to provide additional information. “We are surprised that these groups prefer the status quo when this project could provide a safer, more environmentally friendly and efficient means to transport these products."[750]

May 13, 2014: Phillips Reports Several Minor Units Shut at Rodeo Refinery

Phillips reported several minor unspecified units were shut due to a brief power disruption at its Rodeo refinery in northern California, according to a filing with state pollution regulators. The filing did not mention whether the shutdowns affected production or regular operations at the refinery. There were no offsite consequences and the refinery has stabilized, the filing added. [751]

May 8, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset led to emissions at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality on Thursday. The filing with did not specify which refinery units were involved in the incident. [752]

May 4, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. The incident on Sunday led to emissions from the unit 40 fluid catalytic cracking unit, the filing said. [753]

May 1, 2014: Phillips Reports Flaring at Santa Maria Refinery

Phillips said its Santa Maria refinery experienced a process upset at the site’s steam power plant, resulting in an unscheduled shutdown of the unit. As a result, fuel gas was directed to the refinery’s flare, resulting in visible flaring.[754]

April 27, 2014: Phillips Reports Feed, Equipment Issues at Wood River Refinery

Phillips reported feed and equipment issues at its joint-venture Wood River, Illinois refinery, according to a filing with state pollution regulators. The incident on Sunday led to flaring and the release was continuing, the filing made public on Monday said. [755]

April 25, 2014: Phillips Promises Not to Bring Bakken Crude to Santa Maria Refinery

Cynthia Lambert reported in the San Luis Obispo Tribune that Phillips 66 officials said this week that they would not accept any light crude oil from the Bakken region as part of a proposed rail project at the Santa Maria refinery. In a past interview, company officials said rail shipments to the refinery might include a small amount of oil from the Bakken field in North Dakota or Canada — a plan that raised alarm, as there’s concern that Bakken oil might be more volatile than other crudes. “We told the county to put it right in the project description that we will not receive Bakken crude,” said Jim Anderson, project manager for the rail spur proposal.[756]

Some opponents said that their concerns remain despite any promises about the type of crude oil coming by rail into the county. “Regardless of the type of oil, the trains coming through here are a bad idea,” said Martin Akel. Members of the Mesa Refinery Watch group say Phillips 66’s proposal would dramatically transform its business model locally by creating a new, high-intensity operation with 250 more oil-hauling trains traveling through the county and significantly increasing the potential for accidents. “The bottom line — their claim of running out of crude to deliver by pipeline and the threat of lost jobs is a red herring,” the group wrote in a draft position paper. “The company simply wants to change the types of crude they refine in Nipomo, because they’re far more profitable.”[757]

April 18, 2014: Phillips Reports Small Gasoline Leak at Rodeo Refinery

Phillips reported a gasoline leak from a pipeline at its Rodeo, California, refinery, according to a filing with Contra Costa Health Services. About 2–3 barrels of gasoline were released within the refinery and the leak was contained, the filing said. [758]

April 16, 2014: Health and Safety Specialists at Santa Maria Refinery Claim They Were Punished for Unionizing

Colin Rigley reported at the New Times on April 16, 2014 that health and safety specialists at Phillips' Santa Maria Refinery allege Phillips officials warned them in January, 2012 that if they joined the United Steelworkers Union they would lose hours, be stripped of managerial powers, and as many as three of them could lose their jobs. “The insinuation here was that, ‘We may not need all of you,’” one of the specialists said in a written statement submitted to the labor board.[759]

When the newly unionized group went to the bargaining table in December, 2012, the specialists say in a complaint filed with the National Labor Relations Board that Phillips management carried out its threats. Phillips' proposed contract on December 10, 2012 allegedly included the threatened reductions of hours and responsibilities. The refinery’s health and safety specialists serve as organizers of the plant’s emergency response crew. Though none of the health and safety specialists was fired, three of them were transferred from their primary roles into regular plant operations, according to the complaint. The union is seeking to recover lost wages for the health and safety specialists, and to have their original job functions restored. Those lost wages totaled as much as $17,000 per year for some employees. In its complaint, the union further alleges that Phillips 66 bargained in bad faith when it imposed the 2012 contract.[760]

Phillips 66, in its responses to the union’s complaint, said the company reduced the five health and safety specialists to two as part of regular staffing changes, and the job functions were distributed across other personnel. “There is no value more important in our company than ensuring the safety of everyone who works at our sites as well as the safety of our neighboring communities,” Phillips spokesman Dennis Nuss said in a written statement to New Times. “In 2012, Phillips 66 redistributed certain safety-related functions and responsibilities among personnel at the Santa Maria Refinery, and there were no staff reductions. These changes have helped maintain and improve the refinery’s high standards for safety performance.”[761]

In addition to the reduced contract for health and safety specialists, the union alleges that the company violated federal labor laws when it implemented “news media guidelines” in October 2012. Those guidelines instructed employees not to speak to news media and, “It is against company policy for anyone but an authorized company spokespersons [sic] to speak to the news media.” The company defends its policy as a routine business practice that violated no labor laws.[762]

April 16, 2014: Candidates for County Supervisor Spar Over Plan to Move Crude Oil to Santa Maria Refinery by Rail

David Sneed reported in The Tribune on April 16, 2014 that the three candidates running for District 4 County Supervisor faced off in a forum at Nipomo High School, sparring – sometimes testily – over a variety of issues including the proposed rail spur at the Phillips 66 refinery to deliver crude oil from new sources. Real estate broker Mike Byrd took the firmest stance, saying he does not like the idea of oil being imported into the county in rail cars because it poses too many safety issues. “I have a problem with the idea that this is going to be allowed,” Byrd said, adding that a way should be found to pipe the oil into the refinery. Appointed incumbent Caren Ray said it is unethical of Byrd to take a hard-nosed position on the matter before it comes before the Board of Supervisors and said she is working to make sure that the environmental impacts and other issues associated w