Tag Archives: Bakken crude

Crude By Rail, Hazmat notification, Oil prices

Farm Bureau posts Wenatchee Washington opinion: No Oil Trains Here

Repost from The Farm Bureau’s FBACT Insider (The Unified National Voice of Agriculture)
[Editor: I was heartened to learn that the Farm Bureau has a progressive agenda on energy.  See http://www.fbactinsider.org/issues/energy.  – RS]

OPINION: Move along, no oil trains here

June 27, 2014 – The Wenatchee World

June 26–Peak oil? Not yet. Like it or not, the United States now is among the world’s leading oil producers, pumping around 9 million barrels a day and rising. That’s not far behind Saudi Arabia, and makes a lot of sheikdoms look puny. And like it or not, this compressed energy will be burned to turn the economic wheels of the world. To get from producer to customer, however, it has to go somewhere.

Just not here.

The information reluctantly released Tuesday shows that in the absence of pipelines the railways of the northern tier have become, not exactly pipelines on wheels, but getting closer. Information on oil shipments by rail was provided to states and emergency responders by order of the Department of Transportation earlier this month, with the expectation that it be kept confidential for security reasons. Then DOT ruled there really weren’t any security reasons, and so the train data hit the wires on Tuesday.

The report from BNSF detailed one week of shipments late in May of light crude from the Bakken field of North Dakota. It showed not what rail lines were used, but where trains traveled by county. These are loaded trains of at least 1 million gallons of crude, but often around 3 million gallons. Around 18 such trains a week enter Washington, mostly through Spokane, and apparently traveling south through the Tri-Cities and down the Columbia Gorge. Some then make their way north.

Spokane County saw 16 trains for the week; Lincoln, 17; Adams, Benton, Franklin, Skamania and Clark, 18; Pierce, 15; King, 11; Snohomish, 10; Skagit, 9; Whatcom, 5. Kittitas, Grant, Douglas and Chelan — 0.

So as expected, no heavy oil trains make the heights of Stevens Pass, although we have seen empties headed east.

The mounting news makes it look likely that we will see more and more tank cars passing through. Just this week is was announced that the Commerce Department had agreed to allow two Texas companies to export small amounts of lightly refined oil, possibly creating a tiny fracture in the 40-year-old ban on U.S. oil exports. The Obama administration and experts were quick to downplay this, saying it didn’t constitute an end to the embargo, which would require congressional approval. But it was a big enough crack in the door to raise Texas crude prices and drop oil stocks.

No one still alive can recall exactly why the United States forbid its oil to be exported, except that the people in government are always excessively paranoid about gasoline prices rising for reasons other than increased taxation. Also, at its peak the United States imported 60 percent of its oil needs. Now that’s down near 40 percent. The experts say a full-fledged end to the export embargo would raise crude prices at home, and make world markets less volatile. All that just increases the incentive to hunt, drill, frack and pump.

Exports are, almost always, good for a nation’s economy, and so oil transport will have a future on the West Coast. We will see. Remember that rail shipments of oil in Washington were zero as recently as 2011. The state estimates they hit 17 million barrels in 2013, and some say that could triple.

Remember, it will be burned. Some 25 years ago, the International Energy Agency estimated that fossil fuels provided 82 percent of the world’s energy consumption. After decades and billions invested in renewable energy, the IEA announced in February, that of all the world’s energy consumption, fossil fuels provide … 82 percent.

California Regulation, Crude By Rail, Hazmat notification, Rail routing, Train speed

KQED: Routes revealed for BNSF trains hauling volatile crude oil in California

Repost from KQED Science
[Editor: Of great interest for many in California, but lacking any comment on the Union Pacific rail line that transports freight to Benicia and over the Benicia Bridge to Contra Costa County and the East Bay.  Latest on the Union Pacific line as of 6/27/14: The Riverside Press Enterprise reports that “Union Pacific submitted a letter May 29 to the state office, saying the company was “compiling and reviewing the data.”  – RS]

Revealed: Routes for Trains Hauling Volatile Crude Oil in California

Molly Samuel, KQED Science | June 25, 2014
A BNSF train carrying crude oil passes through downtown Sacramento. (Courtesy of Jake Miille)
A BNSF train carrying crude oil passes through downtown Sacramento. (Jake Miille)

State officials have released routing information for trains carrying a volatile grade of crude oil through California.

The newly released information reveals that tank cars loaded with oil from the Bakken formation, a volatile crude that has a history of exploding, rumble through downtown Sacramento and through Stockton about once a week. Before they get there, they travel along the Feather River, a major tributary of the Sacramento and a key source of drinking water. They pass through rural Northern California counties — Modoc, Lassen, Placer, Plumas, Yuba and Butte — before reaching their destination in Contra Costa County.

This is the first time that information about the trains’ routing in California and their frequency has been made public. About once a week, a Burlington Northern Santa Fe (BNSF) train enters the state from Oregon, headed for the Kinder Morgan rail yard in Richmond. Each train is carrying a million gallons or more of Bakken crude.

“The purpose of the information is really to give first responders better awareness of what’s coming through their counties,” says Kelly Huston, a deputy director at the Governor’s Office of Emergency Services.

The notifications (shown below) provided by BNSF to the state list the counties through which the trains pass, and the average number of trains per week. They’re retrospective, reporting what’s already happened, rather than looking ahead to what trains could be coming.

“Right now the information, because it’s not very specific, is being used as an awareness tool,” said Huston.

An emergency order issued by the federal Department of Transportation requires railroads to notify emergency responders about large shipments of Bakken crude. BNSF had asked the OES to sign a non-disclosure agreement, which state officials refused to do. After keeping the notifications secret from the public for a few weeks, the state decided to release them on Wednesday, following the lead of other states that had already done so.

“We think it is very important that those responsible for security and emergency planning have such information to ensure that proper planning and training are in place for public safety,” Roxanne Butler, a spokeswoman for BNSF, wrote in an email. “But we also continue to urge discretion in the wider distribution of specific details.”

The DOT issued the order after a series of fiery derailments involving Bakken crude in Alabama, North Dakota and Virginia, among other states. Last July, a train carrying oil from the Bakken exploded in a town in Quebec, killing 47 people.

MAP: State officials have confirmed that crude is traveling by rail in the counties shaded gray on the map, below. Also shown are rail lines owned by California’s two major railroads, BNSF and UP, which share some of the lines. Click on the rail lines or counties to see identifying information. Not all lines shown in the shaded areas carry Bakken crude. (Map produced by Lisa Pickoff-White)

California Crude-by-Rail Shipments by KQED News

“We want the rail companies to do everything they can to ensure public safety,” said Diane Bailey of the Natural Resources Defense Council. She says there are three things that would help assuage her concerns: safer rail cars, slower speed limits, and making sure the trains are always staffed.

Butler said the railroads themselves have also pushed to phase out the DOT-111 railcars that have been involved in the accidents. “The rail industry also implemented a number of additional safety operating practices several months ago to reduce the risk of moving crude by rail,” she wrote, “including lower speed limits and had addressed the train securement issue in August of 2013 as part of the Federal Railroad Administration’s emergency order.”

California lawmakers have introduced bills that would provide more money for oil spill response, and require more information from railroads about hazardous materials. The recently-passed California budget includes a fee on oil entering California by rail, which would help fund the state’s Office of Oil Spill Prevention and Response. It also provides more money to the California Public Utilities Commission for rail safety inspectors.

Transporting crude oil by rail is a burgeoning business, thanks to an oil boom in North Dakota. In 2013, more than 6 million barrels of crude oil came into California by rail. In 2008, there were none.

California Crude-by-Rail Weekly Tracking

Correction: An earlier version of this article incorrectly included Davis in the list of cities the trains pass through.

California Regulation, Crude By Rail, Federal Regulation (U.S.), Hazmat notification

CAL Energy Commission workshop: ‘wake up call’ on crude by rail

Repost from The Contra Costa Times
[Editor: Significant quote for Benicia and others along the Union Pacific rail line: “Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.”  – RS]

California trying to catch up to dangers of crude oil shipped on railroads

By Doug Oakley, Oakland Tribune, 06/25/2014

BERKELEY — California agencies have very little authority to regulate a massive increase in crude oil shipments by rail, and only now are they realizing the magnitude of the potentially explosive situation, according to state officials speaking Wednesday at a workshop sponsored by the California Energy Commission.

“It’s a wake up call when you look at the projections,” said commission Chair Robert Weisenmiller. “We have to plan for the worst case.”

Only in the last month, thanks to an order by the U.S. Department of Transportation, have railroads begun to disclose to the state Office of Emergency Services shipments of 1million gallons or more of highly flammable Bakken crude oil. Before that happened May 7, nobody knew anything about the shipments or where they were going, Weisenmiller said.

The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial
The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial Canadian tar sands crude through rail delivery. (Kristopher Skinner/Bay Area News Group)

Crude oil rail shipments have increased 506 percent in 2013 to 6.3 million barrels, according to a report by the state Interagency Rail Safety Working Group released June 10. That number could increase to 150 million barrels of oil in 2016, it said. Petroleum spills on railroads in California increased from 98 in 2010 to 182 in 2013, according to the Office of Emergency Services.

In California, crude goes by rail to the cities of Richmond, Sacramento, Bakersfield, Carson, Long Beach and Vernon, according to the energy commission.

The only thing state and local governments can do to try and prevent a catastrophic disaster is to enforce federal rules and prepare local first responders, officials said. The regulatory effort falls on the California Public Utilities Commission President Michael Peevey.

“I’m not enthusiastic about having tens of thousands of tank cars running around California because accidents are inevitable,” Peevey said at the workshop. “There’s been a huge increase in volume and we have to step up our awareness and activities, in cooperation with the federal government, but the feds have the ultimate responsibility.”

The commission recently added seven rail safety inspectors who look at rail cars, railroad lines, bridges and shipping requirements, bringing the total to 59 inspectors statewide, which Peevey said was adequate for this year.

Peevey dismissed criticism that the PUC has been too easy on industry it is supposed to regulate, and assured the public it is up to the task.

“We’ve been pretty darn tough,” he said.

Weisenmiller said the state first needs to identify the areas most at risk for crashes and make sure the tracks are maintained. He acknowledged there is no way to prevent shipments from coming into the state, but the state can “get its act together and reach out to communities near rail lines and provide first responders with information and technical expertise,” so they can respond to an accident.

As the state tries to catch up and wrap its collective mind around the increased shipments, oil companies are attempting to add projects that would bring in more oil by rail.

Valero Refining Co. is planning on 100 cars per day to its Benicia facility by the first quarter of 2015; West Pac Energy is planning 70 cars per day to a facility in Pittsburg; Phillips 66 is planning a crude-by-rail project in Santa Maria that could bring shipments through the Bay Area; Alon USA is planning 200 cars a day in Bakersfield and Plains All American is planning for 200 cars a day in Bakersfield, according to the Oil by Rail Safety in California report.

Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.

But Burlington Northern Santa Fe Railway is bringing in nine full train loads of Bakken per month into California, said spokeswoman LaDonna DiCamillo. She did not know how many tank cars each train has or what the actual volume is.

Lawson Stark said that even though railroads are now required to report shipments of the highly flammable Bakken crude oil to the Office of Emergency Services, the information most likely will not be available to the public. A spokesman for the office did not immediately return phone calls.

Crude By Rail, DOT-111, Emergency Readiness & Response, Federal Regulation (U.S.), Hazmat notification, Local Regulation, Massive increase in crude-by-rail, Positive Train Control, Rail inspection, Rail routing, Risk Assessment, State regulation, Train speed

Law professor: 9 ways that STATES can help regulate railroad safety and transportation

Repost from LegalPlanet.org
[Editor:  Federal preemption under the Commerce Clause is NOT the last and only word on regulating crude oil trains.  Here are some suggestions for State regulation by Professor Jayni Foley Hein, executive director of UC Berkeley School of Law’s Center for Law, Energy & the Environment.  – RS]

Oil By Rail: Nine Things California Can Do to Increase Safety

While FRA Considers New Federal Regulations, States Can Ramp Up Prevention and Emergency Response
By Jayni Hein, June 24, 2014

At a joint Senate and Assembly hearing last week on oil by rail safety in California, some lawmakers expressed frustration at slow federal action, and asked what California can do to increase public safety. My testimony focused on federal preemption issues, defining areas where the state can regulate, and those where it is preempted by the Commerce Clause, Federal Railroad Safety Act (FRSA), or ICC Termination Act, or all three.

While the Department of Transportation (DOT) and Federal Railroad Administration (FRA) have primary authority over railroad safety and transportation, the California Public Utilities Commission (CPUC) shares authority with the federal government to enforce federal rail safety requirements and conduct inspections. And even with strong federal preemption provisions, there are actions that California and other states can take right now to increase public safety in light of the enormous growth of oil by rail.

Here are nine things the state can do:

1. Prioritize track and rail car inspection.

California has more than 5,000 miles of mainline railroad track. Inspection of track and rail cars is vital, as derailments are the most common type of train accident in the United States. A national analysis of freight train derailments from 2001 to 2010 on the Class I freight railroads’ mainline track found that broken track rails or track welds were the leading cause of derailments. Broken rail car wheels and track obstructions are also common causes of derailments. (Liu, et. al. 2012).

Governor Brown’s new budget includes funding to hire seven additional rail safety inspectors for the CPUC, paid for by rail industry assessments. The state should ensure that it has enough CPUC inspectors to accommodate the projected rise in oil by rail traffic each year. If seven new inspectors are needed right now; we will likely need many more by 2016, when oil by rail shipments are projected to increase as much as 25-fold, to 150 million barrels per year.

2. Obtain robust data on rail routing, rail car contents, and accident causes.

California agencies need more information from FRA and the railroads on routes, frequency, and rail car contents, as well as data on train derailments, their causes, and risk factors specific to crude by rail transit. The state should obtain this data from FRA – a recommendation echoed in the June 10, 2014 California Inter-Agency Working Group Report. The CPUC needs both national data and California-specific data in order to do its job.

3. Conduct an analysis of the risks that crude by rail poses to the state, including identification of high-risk areas of track, and propose specific measures to increase safety.

The legislature should consider requiring an annual report from the CPUC on the specific risks that crude by rail poses to the state, and measures that it can take to increase safety. Voluntary agreements with the railroads may also be an important outgrowth of this state-specific analysis that can inform where and how to direct limited state resources. As previewed above, this state analysis should be guided by the most recent data available from FRA and the railroads.

The legislature could also consider requiring information sharing among the relevant state agencies, including CPUC, Office of Emergency Services (OES), Office of Spill Prevention and Response (OSPR), California Environmental Protection Agency, and more.

4. Require state oil spill contingency plans for trains transporting oil into the state.

SB 1319 (Pavley) would require state oil spill contingency plans for trains transporting oil into the state. Such a state-mandated plan would provide an opportunity to secure better emergency response protection for the environment and public safety.

5. Get access to daily information on oil shipments into California, and ensure that state and local emergency personnel can access this information immediately in the event of an accident.

A recent DOT Emergency Order requires that each railroad operating trains containing more than 1 million gallons of Bakken crude oil, or approximately 35 tank cars, to provide states with weekly notice that includes estimated volumes of Bakken oil  transported per week and routing information.

The state should also have immediate access to real-time shipment information, assuming the technology exists to enable this. The state should also ensure that local emergency response personnel are well trained to deal with any crude by rail accident, and can readily identify the contents of any shipment. Training and information sharing with local emergency response personnel can be paid for by the industry, using a fee or assessment like the 6.5 cent/barrel fee on all oil imports recently approved by the state.

6. Advocate for more stringent federal safety regulations.

Legislative pronouncements, as well as the CPUC’s robust participation in the Rail Safety Advisory Committee (RSAC) are needed to secure better federal standards.

California joins others states such as New York in advocating for more stringent rail car design standards (phasing out DOT-111 cars, for example), mandatory placards on rail cars identifying Bakken crude oil,  expediting Positive Train Control, and requiring electronically-controlled pneumatic brakes on all crude oil trains. The state can also advocate for further federal analysis of possible routing changes, to avoid sensitive population and habitat areas.

7. Monitor compliance with new voluntary measures that the railroads agreed to implement this year.

As part of a February 2014 agreement with DOT, the Class I railroads will perform one additional internal-rail inspection each year than required by the FRA on routes over which trains carry 20 or more tank cars of crude oil, and will conduct at least two track geometry inspections over these routes. The  railroads also agreed to use end-of-train braking systems on all oil trains, and lower train speed in federally-designated “high-threat-urban-areas.”

The CPUC should monitor the railroads’ compliance with these voluntary measures. At the same time, CPUC and the state should advocate for making these voluntary measures mandatory, by issuing new or revised FRA regulations.

8. Consider issuing guidance to local permitting agencies on requirements for offloading facilities and oil refinery expansion.

There are currently at least five crude-by-rail refinery projects being pursued in California: one in Pittsburg, one in Benicia, two in Bakersfield, and one in Wilmington. There is a patchwork of local permitting agencies responsible for land use, air, water, and other local safety and environmental issues that may be relevant to offloading sites and refineries.

Local government and permitting agencies can deny land use and other permits for refineries and offloading facilities if they find safety risks or improper environmental mitigation under statutes like the California Environmental Quality Act (CEQA). But, local agency personnel may have varying levels of expertise in oil and rail issues and may apply permitting criteria inconsistently. As such, the state, through the Office or Planning and Research (OPR), should consider issuing guidance to local permitting agencies on necessary permits and requirements for offloading facility or refinery expansion.

9. Provide guidance on CEQA review and the public comment and participation process, especially relevant to environmental justice communities that may be located near offloading sites or refineries.

While rail accidents can happen anywhere, communities near offloading sites and refineries are especially vulnerable to oil by rail transport risks. The state can provide information and guidance to these communities on opportunities for engagement, comment and participation.

In addition, the state can encourage railroads, industry and refineries to work directly with potentially affected communities to disclose as much information as possible about shipments, safety measures, and how community members can participate in the process to make their communities safer.