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Reuters, 1/26/16

County planners want to squash Phillips 66's proposal to transport heavy crude by rail to one of its California refineries, saying it is too risky to public health and the environment.
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Unlike other proposals that aim to receive both light inland U.S. and Canadian heavy crude via rail, the Phillips project would handle just heavy crude at its Santa Maria refinery in Arroyo Grande, California.

That plant is built to process heavy oil produced in California. Once initially processed, it moves via pipeline more than 200 miles north to the company's refinery in Rodeo near San Francisco to turn into fuels. The two plants' combined capacity is 120,200 barrels per day.

Phillips proposed the rail project because California oil output is shrinking and the company wanted another source of crude.

Quote:

Forbes
Deal Flow And Synergy - Why Warren Buffett Likes Phillips 66, Sept. 1, 2015

Why would Warren Buffett invest $4.5 billion in Phillips 66 instead of any of the other half dozen well-managed American refining companies?

It’s probably not an investment based on past performance alone. Phillips has done well in recent years, with shares more than doubling since 2012. But that performance has trailed the likes of refiners Tesoro and Valero. Rather it’s more likely that Buffett — through Berkshire’s BNSF and Lubrizol divisions — is interested in taking part in the evolution of what Phillips is trying to become.

In 2012 CEO Greg Garland spun Phillips out of oil giant ConocoPhillips with the objective of focusing investment on Phillips midstream assets — that is, the pipelines, rail terminals and processing plants that move oil and gas from the field to Phillips refineries.

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