What is the V-Tex Logistics Pipeline and Terminal Project?

V-Tex Logistics Pipeline and Terminal Project has two segments. First, Valero is partnering with Magellan Midstream Partners to jointly build a 135-mile pipeline originating in Houston and terminating in Hearne, Texas. Then, Valero will build two new terminals; one in Hearne and one near Taylor, Texas, on Chandler Road, connected by a 70-mile pipeline. Construction for both segments began mid-2018 with completion targeted for mid-2019. This project will greatly expand fuel supply, including gasoline and diesel, providing an average of 60,000 barrels per day of new and reliable fuel for the fast-growing Central Texas population.

How did Valero choose the Hearne to Williamson County pipeline route?

At the beginning of the route selection process, we took into consideration available data regarding geography, existing pipelines, county and city boundaries, utility corridors, watersheds, cultural and environmentally sensitive areas, and other relevant information.

The pipeline route is being developed to minimize the collective impact on the environment, cultural concerns and landowners during construction, and reduce potential incidents during operation. We are identifying the route and installation methods in an effort to minimize the risk of impact on sensitive areas, preferentially following the route of existing pipelines or other utilities where possible.

What are the details of the Hearne terminal?

The terminal will be located just north of Bryan/College Station in the city of Hearne, and will include approximately 450,000 barrels of storage for transportation fuel.

What are the details of the Taylor terminal?

The terminal will be located on Chandler Road, just west of CR 366 near Taylor, and will include a truck-loading rack and approximately 500,000 barrels of storage for transportation fuel.

Who will build the Taylor and Hearne terminals?

Valero will serve as construction manager and operator of the terminals and pipeline.

When will the terminal be built?

Construction is expected to begin in mid-2018 and be completed by mid-2019.

Are these refineries?

No, these are fuel distribution terminals. Terminals serve as either a staging area for fuel to be further transported via pipeline or as the last point in the fuel distribution system prior to the fuel being delivered to gas stations. 

What will the Taylor terminal look like?

Below are renders of the Taylor terminalValero will also work with the City of Taylor to address any aesthetic concerns. 

V-Tex Rendering
V-Tex Terminal Rendering

How are fuel terminals regulated?

The terminal will be regulated by both the Texas Commission on Environmental Quality (TCEQ) and the United States Department of Transportation (USDOT). Federal safety inspectors monitor compliance with USDOT rules.

How are fuel terminals maintained?

All Valero facilities are routinely monitored, inspected and maintained. The Taylor and Hearne terminals will have an “integrity management program” that regularly determines the condition of the tanks and other assets at each terminal. Tanks are periodically taken out of service for a full cleaning and inspection, and Valero maintains “good housekeeping” rules that maintain the image of its facilities.

What standards will be used in the design and construction of the terminals?

Tanks are constructed to federal codes and national standards for the size, environment and product to be stored.

What happens if a spill occurs at the fuel terminal?

Although a major release at a fuel terminal is unlikely, Valero personnel are trained and prepared to respond. The terminal will have on-site personnel during working hours, will be monitored 24-hours a day from a state-of-the-art control center in San Antonio, and will have multiple on-site systems in place to promptly initiate remote shutdown and isolation if needed. Should a tank experience a release, primary and secondary containment measures are in place, including dikes surrounding the tank. So, in the unlikely event of a release, fuel would be contained on Valero’s property, promptly recovered and the area cleaned.

Why build a terminal in the Taylor area?

Currently the Austin area is served by a single refinery via a single pipeline from Corpus Christi, Texas. The Valero terminal and pipeline will provide a new and reliable fuel supply to the Austin area.

Will you expand the terminals?

The initial design is sized for anticipated business growth in the next several years, so Valero does not anticipate any physical expansions in the near term.

What are the benefits to the Taylor and Hearne communities?

Valero will voluntarily make payments to the City of Taylor in lieu of taxes on Valero’s terminal property equal to the amount of ad valorem taxes as determined by the Williamson County Appraisal District.

Since the Hearne terminal is located in the City of Hearne, Valero will pay any city fees along with ad valorem taxes as determined by the Robertson County Appraisal District.

Valero plans to partner with the communities where our terminals are located. We will make appropriate educational and/or charitable or civic contributions as well as consider other investments in the communities.

Finally, construction of the pipeline and terminal involves a significant number of personnel and will take 12 to 15 months, and provides potential economic benefits for local businesses, such as restaurants, local stores and lodging operators.

Are pipelines safe?

According to National Transportation Safety Board statistics, pipelines are the safest, and most reliable and efficient means of transporting large quantities of natural gas, crude oil and refined petroleum products.

What will the pipeline carry?

The pipeline will carry gasoline and diesel from Hearne to the Central Texas marketplace. 

How will Valero monitor the pipeline and the terminals after construction is completed?

The pipeline and terminal will be remotely monitored 24 hours a day, seven days a week from a centralized control center. These employees, known as “controllers,” have the authority to shut down the pipeline systems at any time they believe it is warranted, but they can only re-start the pipeline once the issue has been resolved and proper authorization has been received. The pipeline will be monitored with regular aerial and ground surveillance as well.

What is a right-of-way?

Whether above or below ground, pipelines are constructed along a strip of land known as right-of-way (ROW). The ROW may contain other pipelines or utilities, vary in width, and will cross public and private property. The ROW should be free of permanent structures or trees and be identified with a marker sign.

What do right-of-way marker signs look like?

Pipeline markers are generally yellow, black or red and can be found along ROW. They may be near roads, railroads, bikeways, buildings and waterways. Pipeline markers will give key information about the pipeline located there, such as the name of the pipeline operators, a telephone number, the product transported and the pipeline’s location. Pipeline markers are a guide and should not be used to determine the precise location of the underground line. There may be more than one pipeline in a ROW.

Who responds to any emergency situations along the pipeline route?

Valero will work closely with emergency responders and fire departments in counties and cities along the route including Robertson, Milam and Williamson counties.

How does Valero interact with city and county emergency services?

Valero will sponsor a V-Tex Logistics Pipeline First Responder Grant Program. First responders in direct proximity to the V-Tex Logistics Pipeline in Robertson, Milam and Williamson counties will have an opportunity to apply for grants for training and emergency response equipment. Priority will be given to grants that prepare or equip first responders to respond to a pipeline or terminal incident. Grant program applications will be available in the first quarter of 2018.

Who is Valero Energy?

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day and 14 ethanol plants with a combined production capacity of 1.73 billion gallons per year. The petroleum refineries are located in the United States, Canada and the United Kingdom, and the ethanol plants are located in the Mid-Continent region of the U.S. Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names. Please visit www.valero.com for more information.

Is Valero associated with Venezuela?

No, Valero is based in San Antonio, Texas, and is not associated with Venezuela. CITGO Petroleum is owned by Petroleos de Venezuela, S.A. (PdVSA), which is Venezuela’s state-owned oil company.

Is Valero a good company to have in our community?

Valero is a Fortune 50 company based in San Antonio, Texas, and has been the top independent refinery on Fortune’s magazine’s World Most Admired Companies list. Valero was also named for the fifth consecutive time to the Civic 50, a listing of America’s most community minded companies by Points of Light, and the top company in the energy sector highlighting the community giving and employee volunteerism.

Valero community engagement highlights include:

  • 150,000 volunteer hours logged by Valero employees in 2018
  • $55 million raised for worthy charities in 2018
  • In 2018, supported United Way with more than $14.6 million pledged by employees and the company
  • $12 million generated for children’s charities by the Valero Texas Open and Benefit for Children in 2018