All posts by Roger Straw

Editor, owner, publisher of The Benicia Independent

Oil industry sues U.S. over train safety rules

Repost from The Fresno Bee

Oil industry sues government over train safety rules

By Curtis Tate, McClatchy Washington Bureau, May 12, 2015

The oil industry went to court Monday over the Obama administration’s new oil train safety rules, challenging the timeline for refitting tens of thousands of tank cars and the requirement for enhanced braking systems on the cars.

In its petition for review, filed Monday in the U.S. Court of Appeals for the District of Columbia Circuit, the American Petroleum Institute called the provisions, unveiled May 1 by the U.S. Department of Transportation, “arbitrary, capricious, (and) an abuse of discretion.”

The industry group asked the court to set aside the provisions. It did not challenge the department’s new standard for newly constructed tank cars carrying crude oil, ethanol and other flammable liquids.

The lawsuit names Transportation Secretary Anthony Foxx, Attorney General Loretta Lynch and Tim Butters, acting chief of the Pipeline and Hazardous Materials Safety Administration, the agency tasked with enforcing the rules.

In public statements and filings, the oil industry hinted that it would take legal action against the department’s new rules. It had said that the department’s proposed timeline for retrofitting the large fleet of DOT-111 tank cars wasn’t realistic. It also said that the benefits of installing electronic brakes on the tank cars didn’t justify the cost.

The rail industry’s principal trade group, the Association of American Railroads, also opposed the braking requirement, though it was more supportive of the retrofit timeline.

When asked about a potential legal challenge to its rules, Foxx said he expected that the courts would uphold the department’s power to regulate rail transportation.

“We believe strongly that our rule will stand up,” Foxx said on May 1.

This post has been updated to correct the federal court the suit was filed in.

Major oil train risk: bridge infrastructure – who will be the next Quebec?

Repost from FOX6Now, Milwaukee WI

“This needs to be fixed:” FOX6 finds a new “risk on the rails,” could Milwaukee be the next Quebec?

By Brad Hicks, May 12, 2015, 10:00pm


MILWAUKEE (WITI) — Last year, the FOX6 Investigators were the first to expose a new risk on the rails — a steady stream of long oil trains trekking across the state from North Dakota. The crude oil they carry from what’s called “The Bakken” is highly explosive. Since then, there has been growing public concern about these so-called “bomb trains” in Wisconsin. Now, there’s a new concern, in a neighborhood in Milwaukee.

When the mile-long oil trains lumber by Milwaukee’s Fifth Ward lofts, the cars come roller-coaster close to a renovated building. A sliver of light between brick and steel.

Fifth Ward railroad

From his fifth floor window, Brian Chiu has a front row seat.

“It’s so loud,” Chiu said.

But it’s not the noise that concerns him. The fear is five floors down.

Fracking technology has opened an oil spigot in North Dakota.

“It’s increased the amount of traffic on the railroads exponentially,” Wisconsin Railroad Commissioner Jeff Plale said.

The railroad traffic has increased by several thousand percent.

Bakken crude oil has a very high vapor pressure, meaning it can easily explode. And the tank cars carrying it?

“(They) were not designed to haul crude. A lot of them were designed to haul corn syrup,” Plale said.

When these trains have derailed, the cracker-thin tank cars have ruptured, with disastrous results. By far the worst incident occurred in Lac Megantic, Quebec. Forty-seven people were killed in the fireball.

Quebec train derailment

Three times this year, trains carrying crude have derailed in the United States. Last week in North Dakota, the sky turned gray with smoke.

In March, a train derailed across the border in Galena, Illinois. The wreckage burned for four days.

A week before that, a train derailed in West Virginia. Hundreds had to evacuate.

The train that derailed in North Dakota was headed toward Wisconsin. Two trains before that had just been here.

“We’re kind of at the epicenter of where this stuff is coming,” Plale said.

That brings us back to Brian Chiu and his Fifth Ward home — and those oil trains just feet from the Fifth Ward lofts, going over the S. 1st Street bridge.

FOX6 first photographed the concern in February — but it wasn’t until the snow and ice melted that we saw the full extent. “I beams” that support the bridge have rusted away at the base to wafer-thin strips of steel. In some spots, entire sections are just gone.

hicks5

Chris Raebel, an engineer at Milwaukee School of Engineering (MSOE) agreed to take a look at what the FOX6 Investigators found.

“My focus is on steel design — just like the bridge,” Raebel said.

Unlike most railroad bridges, which have elevated foundations, the piers on this century-old span reach right to the road — where every winter, salt eats away at the steel.

“That’s hit the base of the bridge and that`s corroding the metal,” Raebel said.

hicks6

In the past, some of the rusted piers supporting the bridge have been reinforced, but several columns have been corroded right through.

“At some point this needs to be fixed. This is not acceptable,” Raebel said.

FOX6 News received similar comments from other structural and civil engineers who saw the photos, but they didn’t want to be identified because they may do business with the railroads. They said things like:

“The level of rust and deterioration is a serious structural problem. They should be contacted immediately.”

And: “I would definitely report these conditions to the owner of this bridge without further delay.”

Canadian Pacific Railroad should already be aware. Canadian Pacific owns the bridge and is required to inspect it each year. In a written reply to a FOX6 request for those records, the company said it “meets or exceeds all federal requirements,” and that the bridge was last inspected in the winter. Canadian Pacific wouldn’t tell us exactly when that was — and whether there was snow on the ground. Canadian Pacific refused to show FOX6 News any of the inspection reports.

FOX6 asked them again earlier this months at a Common Council meeting in Milwaukee.

“We`ve given you a statement on that and we won`t have anything to add,” a Canadian Pacific representative said.

Canadian Pacific had been invited to Milwaukee to answer questions about the oil trains. Canadian Pacific’s brash brush off didn’t sit well with some Common Council members.

“You don`t give that image to the community that your facilities are safe. You don`t give us that confidence,” Milwaukee Alderman Terry Witkowski said.

Ken Wood knows what these inspections entail.

“I’m a structural engineer. My main focus is bridges. I`ve been working with bridges for 20 years — bridge design, bridge inspection, bridge rehabilitation,” Wood said. “You`re going to be looking for fatigue cracks, and the other thing you`d look for is corrosion, certainly, on a bridge — because corrosion is basically taking away the cross section.”

hicks8

If you look at the base of the “I beams” on the bridge in the Fifth Ward, you’ll see layers and layers of flaking — in some places, more than an inch thick. That doesn’t happen quickly.

“It`s been some time, that`s for sure,” Wood said. “What happens during corrosion is the steel expands, sometimes seven to eight times what it is, so you can see that actually happening in the base here,” Wood said.

FOX6’s Brad Hicks: “How do you even inspect this with that much flaking on there without removing the flaking?”

“They would have to remove flaking to see what`s underneath and take some measurements with calipers to find out how much area they perceive is left,” Raebel said.

So that’s what the FOX6 Investigators did.

The beam is nine-tenths of an inch thick, but at the base, only four-tenths of an inch is left. The column is just over an inch thick. Corrosion has eaten it down to less than half that.

FOX6’s Brad Hicks: “The kind of thinning we`re seeing here, does that impact the load capacity of a bridge like this?”

“Yes,” Raebel said. “They have a certain amount of steel they need to resist the load from above.”

And that load is greater than ever.

Engines alone weigh three times what they did when the bridge was built in 1914. And a one-mile train weighs more than 25 million pounds.

“Now a two-mile long train is relatively common,” Plale said.

And with trains like that moving over the bridge daily — metal fatigue adds up.

“Is the bridge really built, with all that rust and all that corrosion, to support that kind of weight?” Chiu wonders.

Officials in the state of Wisconsin had the same question. In 2006, a study was commissioned on the impact heavier trains have on state-owned railroad bridges. That study concluded “many within the railroad industry are concerned that the aging bridge infrastructure will no longer be able to withstand the increased loadings.”

One bridge engineer who examined FOX6’s pictures said the problem may not be that bad, because in theory, you could cut a vertical pier in two horizontally, and it would still hold up the bridge. But that’s assuming you still have inch-thick “I beams” — not corroded columns.

The concern here isn’t that the bridge will completely collapse — but that if a column gives way and the load shifts and the train tips — with the Fifth Ward lofts just feet away, could Milwaukee become another Quebec?

“I would encourage the owner of the bridge to seriously look at this and consider repairs. And it seems like it should be done soon,” Raebel said.

To their credit, the railroads, including Canadian Pacific, have been at the forefront — pushing the federal government for stricter tank car standards. The railroads don’t actually own the tank cars — the oil companies and third-party leasers do.

Eleven days ago, the federal government announced new cars need to be thicker, and the old ones need to be retrofitted within five years.

The federal government is the only entity that can demand the railroad turn over its inspection reports on the bridge. For two months, FOX6 News repeatedly asked the Federal Railroad Administration if it has any of Canadian Pacific’s inspection audits for the S. 1st Street bridge. The agency hasn’t responded.

Local municipalities like Milwaukee are pretty powerless when it comes to regulating the railroads.

On Tuesday, May 12th, the Milwaukee Common Council approved a resolution urging federal regulators to immediately inspect all tracks, bridges and crossings on which Bakken crude oil is carried — but at the end of the day, that’s simply a request.

hicks7

 

US taxpayers subsidizing world’s biggest fossil fuel companies

Repost from The Guardian

US taxpayers subsidising world’s biggest fossil fuel companies

Shell, ExxonMobil and Marathon Petroleum got subsidises granted by politicians who received significant campaign contributions from the fossil fuel industry, Guardian investigation reveals
By Damian Carrington and Harry Davies, 12 May 2015 07.00 EDT
Marathon Petroleum refinery in Canton, Ohio, got a job subsidy scheme worth $78m when it started in 2011. Photograph: PR

The world’s biggest and most profitable fossil fuel companies are receiving huge and rising subsidies from US taxpayers, a practice slammed as absurd by a presidential candidate given the threat of climate change.

A Guardian investigation of three specific projects, run by Shell, ExxonMobil and Marathon Petroleum, has revealed that the subsidises were all granted by politicians who received significant campaign contributions from the fossil fuel industry.

The Guardian has found that:

  • A proposed Shell petrochemical refinery in Pennsylvania is in line for $1.6bn (£1bn) in state subsidy, according to a deal struck in 2012 when the company made an annual profit of $26.8bn.
  • ExxonMobil’s upgrades to its Baton Rouge refinery in Louisiana are benefitting from $119m of state subsidy, with the support starting in 2011, when the company made a $41bn profit.
  • A jobs subsidy scheme worth $78m to Marathon Petroleum in Ohio began in 2011, when the company made $2.4bn in profit.

“At a time when scientists tell us we need to reduce carbon pollution to prevent catastrophic climate change, it is absurd to provide massive taxpayer subsidies that pad fossil-fuel companies’ already enormous profits,” said senator Bernie Sanders, who announced on 30 April he is running for president.

Sanders, with representative Keith Ellison, recently proposed an End Polluter Welfare Act, which they say would cut $135bn of US subsidies for fossil fuel companies over the next decade. “Between 2010 and 2014, the oil, coal, gas, utility, and natural resource extraction industries spent $1.8bn on lobbying, much of it in defence of these giveaways,” according to Sanders and Ellison.

In April, the president of the World Bank called for the subsidies to be scrapped immediately as poorer nations were feeling “the boot of climate change on their neck”. Globally in 2013, the most recent figures available,the coal, oil and gas industries benefited from subsidies of $550bn, four times those given to renewable energy.

“Subsidies to fossil fuel companies are completely inappropriate in this day and age,” said Stephen Kretzmann, executive director of Oil Change International, an NGO that analyses the costs of fossil fuels. OCI found in 2014 that US taxpayers were subsidising fossil fuel exploration and production alone by $21bn a year. In 2009, President Barack Obama called on the G20 to eliminate fossil fuel subsidies but since then US federal subsidies have risen by 45%.

“Climate science is clear that the vast majority of existing reserves will have to stay in the ground,” Kretzmann said. “Yet our government spends many tens of billions of our tax dollars – every year – making it more profitable for the fossil fuel industry to produce more.”

Tax credits, defined as a subsidy by the World Trade Organisation, are a key route of support for the fossil fuel industry. Using the subsidy tracker tool created by the Good Jobs First group, the Guardian examined some of the biggest subsidies for specific projects.

Shell’s proposed $4bn plant in Pennsylvania is set to benefit from tax credits of $66m a year for 25 years. Shell has bought the site and has 10 supply contracts in place lasting up to 20 years, including from fracking companies extracting shale gas in the Marcellus shale field. The deal was struck by the then Republican governor, Tom Corbett, who received over $1m in campaign donations from the oil and gas industry. According to Guardian analysis of data compiled by Common Cause Pennsylvania, Shell have spent $1.2m on lobbying in Pennsylvania since 2011.

A Shell spokesman said: “Shell supports and endorses incentive programmes provided by state and local authorities that improve the business climate for capital investment, economic expansion and job growth. Shell would not have access to these incentive programmes without the support and approval from the representative state and local jurisdictions.”

ExxonMobil’s Baton Rouge refinery is the second-largest in the US. Since 2011, it has been benefitting from exemptions from industrial taxes, worth $118.9m over 10 years, according to the Good Jobs First database. The Republican governor of Louisiana, Bobby Jindal has expressed his pride in attracting investment from ExxonMobil. In state election campaigns between 2003 and 2013, he received 231 contributions from oil and gas companies and executives totalling $1,019,777, according to a list compiled by environmental groups.

A spokesman for ExxonMobil said: “ExxonMobil will not respond to Guardian inquiries because of its lack of objectivity on climate change reporting demonstrated by its campaign against companies that provide energy necessary for modern life, including newspapers.”

The Guardian is running a campaign asking the world’s biggest health charities, the Bill and Melinda Gates Foundation and the Wellcome Trust, to sell their fossil fuel investments on the basis that it is misguided to invest in companies dedicated to finding more oil, gas and coal when current reserves are already several times greater than can be safely burned. Many philanthropic organisations have already divested from fossil fuels, including the Rockefeller Brothers Fund whose wealth derives from Standard Oil, which went on to become ExxonMobil.

In Ohio, Marathon Petroleum is benefitting from a 15-year tax credit for retaining 1,650 jobs and a 10-year tax credit for creating 100 new jobs. The subsidy is worth $78.5m, according to the Good Jobs First database. “I think Marathon always wanted to be here,” Republican governor John Kasich said in 2011. “All we’re doing is helping them.” In 2011, Kasich was named as the top recipient of oil and gas donations in Ohio, having received $213, 519. The same year Kasich appointed Marathon Petroleum’s CEO to the board of Jobs Ohio, a semi-private group “in charge of the economic growth in the state of Ohio”.

A spokesman for Marathon Petroleum said: “The tax credit recognises the enormous contribution we make to the Ohio economy through the taxes we pay and the well-paying jobs we maintain. We have more than doubled the 100 new jobs we committed to create.” The spokesman said the company paid billions of dollars in income and other taxes every year across the US.

“Big oil, gas, and coal have huge influence on politicians and governments and they get that influence the old fashioned way – they buy it,” said Kretzmann. “Through campaign finance, lobbying, advertising and superpac spending, the industry has many ways to influence candidates and government officials seeking re-election.”

He said fossil fuel subsidies were endemic in the US: “Every single well, pipeline, refinery, coal and gas plant in the country is heavily subsidised. Big Fossil’s lobbyists have done their jobs well for the last century.”

Ben Schreiber, at Friends of the Earth US, said. “There is a vibrant discussion about the best way to keep fossil fuels in the ground – from carbon taxation to divestment – but ending state and federal corporate welfare for polluters is one of the easiest places to start.”

Schreiber also defended subsidies for renewable energy: “Fossil fuels are a mature technology while renewable energy is nascent and still developing. It makes sense to subsidise technologies that are going to help solve climate change, but not to do the same for those that are causing the problem.”

Obama Administration Approves Shell’s Arctic Drilling Plans

Press Release from Sierra Club

Obama Administration Approves Shell’s Arctic Drilling Plans

Monday, May 11, 2015
Contact:  Virginia Cramer, 804-519-8449, virginia.cramer@sierraclub.org

WASHINGTON, DC– The Obama administration granted approval today for Shell Oil to move ahead with plans to drill in the Arctic’s Chukchi Sea.  The decision comes against a backdrop of growing opposition in Seattle and across the country to Arctic drilling, and just as the U.S. assumes leadership of the Arctic Council.

In response Michael Brune, Executive Director of the Sierra Club issued the following statement.

“We are deeply disappointed that just days after the United States took over chairmanship of the Arctic Council, an international body dedicated to protecting the Arctic environment, the Obama Administration decided to allow Shell to move forward with its dirty and dangerous plan to drill in our Arctic waters. This is exactly the wrong message to send to the world.

“Shell’s poor track record in the Arctic does not inspire confidence in its ability to drill safely in the unique and harsh environment of  America’s Arctic Ocean. In fact, an analysis by the Obama administration itself  predicts a 75% chance of a major oil spill if Shell is allowed to drill in America’s Arctic Ocean.

“Both science and common sense is crystal clear in telling us that undeveloped dirty fuels, especially those in the Arctic, must remain in the ground if we are to avoid the worst consequences of climate disruption. Downplaying the threats drilling poses to our climate, communities, and environment — as Shell continues to do — does not in reality make the threats any less serious. The Obama administration must say no to drilling in America’s Arctic Ocean, cancel these leases, and remove future leasing from the five-year offshore drilling plan.”

###

Campaign Name:
Our Wild America