Tag Archives: Burlington Northern Santa Fe (BNSF)

Rail Logjams Are Putting The Whole US Economic Recovery At Risk

Repost from Business Insider
[Editor: Significant quote: “Many experts blame an incomplete recovery from last winter’s freight backlogs, coupled with record crops and rising competition with crude oil tankers for track space amid an economic recovery.”  – RS] 

Rail Logjams Are Putting The Whole US Economic Recovery At Risk

Susan Taylor and Solarina Ho, Reuters, Aug. 15, 2014

TORONTO (Reuters) – More than eight months after an extreme winter began snarling North American rail traffic, a Reuters analysis of industry data shows delays lingering, raising the risk of a second winter of chaos on the rails.

Across the continent’s seven largest operators, trains ran almost 8 percent slower on average and sat idle at key terminals for nearly three hours longer in the second quarter than a year earlier, data from the main railroads, known as Class 1, show.

While Canada’s rail operators have nearly recovered, many U.S. operators lag far behind.

The concerns are sharpest in the U.S. Farm Belt, with lawmakers fearful that the biggest crops on record may be slow to reach markets or could even rot.

Rail logjams contributed to the economic slowdown early in the year, rippling across corporate America and affecting everything from car makers to ethanol producers.

Many experts blame an incomplete recovery from last winter’s freight backlogs, coupled with record crops and rising competition with crude oil tankers for track space amid an economic recovery.

“It’s like a sinking ship – you’re bailing out at one end, but it’s coming in the other end just as fast, if not faster,” said Citigroup Global Markets transportation analyst Christian Wetherbee.

Performance fell behind as loads grew: between April and June, U.S. rail carload volumes grew 5.4 percent and intermodal traffic, which include shipments partly by rail, rose 8 percent, Association of American Railroads (AAR) data shows.

At the same time, the industry is producing “tremendous” margins, profit and cash flow, with some companies setting records, said rail analyst Tony Hatch.

The largest operators plan to spend about 18 to 20 percent of annual revenue this year on new terminals, track, sidings and equipment to help boost capacity and efficiency, according to Thomson Reuters data. That is slightly higher than recent average annual spending.

Some shippers complain that spending hasn’t been sufficient to meet demand, especially in bad weather. Still, many investment projects are multi-year improvements that can’t quickly fix traffic jams.

“We’re criticized … because we haven’t put infrastructure in to handle the growth. But then when you try to put infrastructure in, the not-in-my-backyard lobby kicks in and says: We don’t want you here,” Canadian Pacific Railway Ltd Chief Executive Hunter Harrison said on a recent earnings conference call.

Over the four decades to 2000, the nation’s major track system shrank by about half, in terms of miles of rails, according to the U.S. Federal Highway Administration.

Although Berkshire Hathaway’s BNSF Railway Co is spending a record $5 billion this year, its performance lagged those of competitors last quarter.  BNSF trains traveled 11 percent slower than year-ago speeds, and stayed at terminals for 18 percent longer.

Fadi Chamoun, an analyst at BMO Capital Markets, said BNSF is unlikely to recover until mid- to late-2015 due to the amount of work it must do.

In recent years, BNSF accounted for some 50 percent of the entire rail industry’s volume growth, analysts said. The company says it handles up to 15 percent of U.S. intercity freight.

BNSF declined to respond to Reuters’ questions about its performance metrics. The Fort Worth, Texas-based railway has said it is working closely with shippers to clear backlogs and adding track, locomotives and crews.

The other four U.S. Class 1 railroads are CSX Corp, Kansas City Southern, Norfolk Southern Corp and Union Pacific Corp.

Kansas City Southern and Norfolk Southern did not respond to requests for comment. CSX said it was investing in strategic capacity additions and was adding train crews and locomotives to restore performance and support growth. Union Pacific CEO Jack Koraleski told Reuters that the railroad’s performance has been improving even as volumes have been increasing, adding that it has worked hard to address disruptions and customer issues.

Cowen & Co analyst Jason Seidl said winter exacerbated problems for the industry. “As they were trying to dig out, the volumes took off,” he said.

ECONOMIC FALLOUT

In the United States, more than 40 percent of goods, valued at more than $550 billion, are shipped by railroad each year on some 140,000 miles of track. Canada’s 30,100 miles of track carry half of the country’s export goods.

Frozen transportation links contributed to a nearly 3 percent contraction in the U.S. economy during the first quarter, the New York Federal Reserve said last week.

Lawmakers and the $395 billion agricultural industry fear that trains may fail to clear last year’s record-breaking crops in the Midwestern U.S. Farm Belt, which could strand part of this summer’s grain harvest.

“We’re sounding the alarms right now,” North Dakota Senator Heidi Heitkamp told Reuters. “We believe the 2014 crop could be taken off the fields and there won’t be any place to store it, because of the lack of ability to move product by rail.”

BNSF and Canada’s CP Rail operate the main rail networks in North Dakota, where farmers vie for space with some 700,000 barrels per day of crude oil shipped by rail from the state’s Bakken Shale.

“You can’t see these massive increases in crude-by-rail and not appreciate that they are creating problems for moving agricultural products,” Heitkamp said.

Members of Congress, utility companies, the United States Department of Agriculture and others are asking the U.S. rail regulator, the Surface Transportation Board, for help.

“With remaining grain in storage due to the backlog, grain elevators in some locations, such as South Dakota and Minnesota, could run out of storage capacity during the upcoming harvest, requiring grain be stored on the ground and running the risk of spoiling. The projected size of the upcoming harvest creates a high potential for loss,” USDA Under Secretary Edward Avalos wrote to the regulator this month.

Utility Xcel Energy said coal deliveries to a key Midwest facility were behind schedule.

“When we run out of coal, the plant can’t produce electricity. We are right in the middle of summer when air-conditioning load creates our highest levels of electric demand,” Xcel Chief Executive Ben Fowke wrote in a letter to the STB at the end of July.

Since an April 10 hearing on rail service, the STB has issued several orders, primarily involving CP and BNSF. The most recent directive, issued in June, required the two railways to publicly file their plans to resolve their backlog on grain orders and provide a weekly update on grain car service. It declined to comment on complaints or its plans.

Earlier this month, the Canadian government ordered Canadian National Railway Co and CP to further boost regulated grain shipments, in an effort to prevent a repeat of last season’s backlog.

Recent University of Minnesota data showed that transportation bottlenecks cost the state’s soybean, corn and spring wheat farmers nearly $100 million between March and May.

United Parcel Service Inc, the world’s largest courier company, said that “very poor” railroad performance last quarter raised its costs. Even passenger service Amtrak has been affected, with some of the trains it runs on Class 1 tracks falling far behind schedule.

Canada’s biggest rails, CN and CP, operated their trains at speeds 4.7 percent and 3 percent slower in the second quarter than year-ago levels respectively, better than most U.S. rivals.

CN said its ability to avoid Chicago, a hub notorious for bottlenecks, helped its sector-leading recovery. In 2009, CN bought a rail network that encircles Chicago, the Elgin, Joliet and Eastern Railway Co.

CHICAGO BLUES

Chicago’s third-snowiest winter on record severely tangled traffic at a hub that handles one quarter of the nation’s freight-by-rail and has recently become a major conduit for Bakken crude.

Data from Union Pacific shows its trains idled in Chicago for an average 65 hours in February, around double the typical time for much of 2013.

Following a severe 1999 blizzard that paralyzed trains for days, government and railroads launched a $3.8 billion plan to improve the Chicago system.

That’s not a quick solution for the industry’s woes.

“It takes a long time for new lines and new terminals to get built, and additional locomotives to be delivered and additional crews to be trained,” said Steve Ditmeyer, an adjunct professor at Michigan State University’s Railway Management Program.

“There’s a time lag that the railroads cannot snap their finger and, all of a sudden, get out of the current problem.”

(With additional reporting by Joshua Schneyer and Jonathan Leff in New York, and Sagarika Jaisinghani in Bangalore; editing by Joshua Schneyer and Peter Henderson)

Farmers Union Calls Ability to Deliver Grain Shipments by Rail at Harvest ‘Substantially Inadequate’

Repost from National Farmers Union
[Editor: This media alert does not name the massive expansion of crude by rail shipments in the upper Midwest as the cause for lack of rail cars for shipping farm commodities, but there is little doubt this is the problem.  – RS]

August 6, 2014
Contact: David Thews, 202-554-1600,  dthews@nfudc.org
NFU Calls Ability to Deliver Grain Shipments by Rail at Harvest ‘Substantially Inadequate’
Warns Surface Transportation Board Farmers May Be Forced to Dump Grain

WASHINGTON (August 6, 2014) – National Farmers Union (NFU) President Roger Johnson warned the Surface Transportation Board (STB) that BNSF Railway (BNSF) and Canadian Pacific (CP)’s ability to deliver grain and ethanol at harvest are “substantially inadequate” and are resulting in farmers piling grain on the ground because of lack of transportation options.

“We are especially concerned regarding wheat, since harvest has already started and grain remains in the bin from last year’s harvest,” noted Johnson in a letter today to the STB chairman and vice chairman.  “While BNSF claims that the total number of late shipments of wheat has declined nationwide, 95.42 percent of all past due cars are concentrated in Montana, North Dakota, South Dakota and Minnesota. BNSF has promised to improve their performance, but we are still subject to delays and Average Train Speed at year-long lows,” the letter notes.

“Grain shipments in North Dakota are critical,” said Johnson.   BNSF reported in its latest weekly update that there have been 2,399 delayed rail cars with an average delay of 23.6 days. CP reported 22,457 open requests with an average of 11.71 weeks.   The letter cites anecdotal evidence from four different grain elevators indicating that their oldest orders are from early March and shuttle orders are up to 2,000 cars behind. “These numbers are staggering and simply unacceptable,” he said.

Johnson notes that in South Dakota, NFU members are hearing about significant delays directly from local grain elevators across the state. At one particular elevator that handles 15 million bushels of grain per year, 3 million of those bushels will not move before this year’s harvest.  “Due to the backlog, farmers are now dumping wheat on the ground because the elevators will not take on the increased liability,” he said.

Johnson also voiced his concern about the ethanol industry, which relies heavily on rail for transportation.  “While the June 20 decision rightfully addressed grain shipments, we encourage STB to consider shipments of ethanol as a priority as well,” he said.  “Failure to bring ethanol to market will hurt consumers because of higher gasoline prices, and will work against our efforts to offset imports of foreign oil.”

A full copy of the letter is here.

National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.

-30-

Crude by rail causing delays for rail shipments of other goods

Repost from The Wall Street Journal
[Editor: We missed this significant article from last March.  Also on the delays of farming shipments, see the Reuters report of April 15, 2014: Farmers: Oil trains may delay fertilizer shipments.  – R]

Surge in Rail Shipments of Oil Sidetracks Other Industries

Pileups at BNSF Railway Is Causing Delays for Shippers of Goods Ranging From Coal to Sugar
By Betsy Morris, Jacob Bunge and John W. Miller, March 13, 2014
A train carrying crude oil heads west through the small town of Shelby, Mont., in November. A major snarl in railroad traffic is ricocheting through the supply chains of businesses across the U.S. AP

A major snarl in railroad traffic is ricocheting through the supply chains of businesses across the U.S., causing delays and losses for shippers of goods ranging from coal to sugar.

Many of the problems stem from pileups at BNSF Railway Co. in a critical northern stretch of the country where it is shipping crude oil from North Dakota’s booming Bakken Shale region. The railroad, one of the biggest in North America, was already taxed by the heavy demand for oil transport. But its difficulties multiplied when it ran out of locomotives and crew, as a bitter winter forced it to use smaller trains.

That has caused a ripple effect across the country as shipments have been delayed. Deliveries of empty grain cars to farmers and grain elevators in the Midwest and Great Plains are running about two to three weeks late, the railroad says. The chief of a major sugar producer said he likes to load 50 railcars a day this time of year, but BNSF sometimes brings more than 50 and sometimes 30.

An executive close to big utility companies says coal-fired power plant inventories are running much lower than the usual 30 days. “The railroads tell us they aren’t serving power plants until their inventories are in single-digit days,” he said.

BNSF isn’t the only railroad with capacity problems, but its woes have been aggravated by a big grain harvest and its surging crude business.

The railroad knew it was in trouble when winter hit. “We found ourselves behind the curve,” said Bob Lease, vice president, service design and performance, for BNSF. “Now, we are finding we can’t fill all of the demand” as quickly as usual.

The backlogs could wind up costing shippers hundreds of millions of dollars, says Steve Sharp, president of Consumers United for Rail Equity, a group representing agriculture companies, manufacturers and utilities. His group has been pushing for tougher railroad regulation.

Andrew Walmsley, director of congressional relations for the American Farm Bureau Federation, a trade group for farmers, worries that continued capacity problems could hurt U.S. competitiveness in the world arena. “Our reliability as a trading partner comes into question anytime we can’t provide the most cost-competitive price in a predictable and timely manner,” he said.

BNSF is scrambling. The railroad is leasing and buying locomotives by the hundreds and hiring new crews. In mid-February it began building new track on top of frozen snow-covered ground along its main oil-patch route. It normally wouldn’t have attempted such a project until spring.

Mr. Lease says traffic should become more “normalized” by April 1, but he concedes that the railroad’s challenges will extend through 2014. “It takes a while to unravel,” he said.

BNSF, a unit of Warren Buffett’s  Berkshire Hathaway Inc.,  BRKB +1.19%     invented the business of carrying crude oil by rail when it launched its first long oil train, essentially a rolling pipeline, in 2009. The business has sharply exceeded its expectations. Shipments of crude by rail from North Dakota rocketed to a peak of 800,000 barrels a day last October from fewer than 100,000 barrels a day in 2010.

The surge has contributed to a tangle with potentially widespread impact. Larry Stranghoener, chief financial officer of fertilizer maker  Mosaic Co.  MOS +0.73%     , says that transport problems, including the crunch in railroad capacity, could spell “a slower season.”

“The primary preoccupation of our sales force, our supply chain and our customers frankly is getting product to them in time for the spring season,” he told the Minneapolis-area company’s investors Wednesday. Any delays transporting Mosaic’s fertilizer to dealers could cause them to defer additional orders, he said.

Some shippers, eager to move their products, have opted to use trucks. Trucking rates compare with rail costs within a 500-mile radius, but beyond that companies can wind up paying four to five times as much on a per-ton basis, says one shipping official.

At Black Gold Farms, based in Grand Forks, N.D., Chief Executive Gregg Halverson says his company has had to pay more to hire trucks to transport its potatoes, which it sells to chip makers.

“There’s more demand for truck transportation, and that hits us between the eyes,” Mr. Halverson said. “It’s not only the actual availability of the trucks, but trucking firms having trouble getting drivers, because of demand from the oil patch.” He declined to estimate how much more he is paying for trucks.

American Crystal Sugar Co., which says it supplies about 15% of the nation’s sugar, had to slow production at three of its five plants for 11 days in mid-February because it was running out of storage space while waiting for trains to ship its sugar to food companies. That has disrupted the Moorhead, Minn.-based cooperative’s just-in-time delivery system, said David Berg, its chief executive. “The railroad just threw that into complete chaos,” he said.

He said delays in outbound shipments of sugar have interfered with the production schedules of American Crystal’s customers, many of them major food manufacturers.

While he said he wasn’t aware of any food companies that have had to halt production, “They’ve been running on fumes for weeks,” he said. “We’ve been humping trucks all over the U.S. to keep people in supply.” American Crystal supplies  General Mills Inc.,  GIS +1.27%      Kraft Foods Group Inc.,  KRFT +1.30%     Nestlé SA, Mars Inc. and  Kellogg Co.  K +1.09%     , among others.

Mr. Berg and Perry Cerminara, director of global sweetener and energy-risk management at  Hershey Co.  HSY +0.07%     , called the problems caused by BNSF “serious” in a March 4 letter to regulators and stressed the “urgent” need to fix them. Mr. Cerminara wrote on behalf of the Sweetener Users Association, representing food manufacturers.

A spokesman for BNSF said it is working with customers individually to address their most critical issues and plans record spending on expansion this year.

Utilities are hoping railroads can improve their capacity before the busy summer season. “We try to build up inventories to around 40 days, so we’re counting on spring,” said one official at a coal-fired power plant. But, he added, “We’re not counting on a magic bullet.”

—Tony C. Dreibus, Annie Gasparro, Chester Dawson, David George-Cosh and Laura Stevens contributed to this article.

Sacramento oil train fire risks mounting, first responder scenarios, “Did Benicia downplay risks?”

Repost from The Modesto Bee
[Editor: Significant quote: “Valero Refining Co. is pushing to run other daily crude oil trains starting next year on another rail line in Sacramento, next to the passenger platforms at the downtown Sacramento, West Sacramento and Davis Amtrak stations….Unlike a flood or wildland fire, there would be no early warning for evacuations.  ‘The first thing you will hear are crunches,’ said state Fire and Rescue Chief Kim Zagaris. ‘Then explosions. The 911 lines will light up like no one’s businesses.’”  – RS]

Chances of a crude oil train fire are low but mounting in Sacramento

By Tony Bizjak, August 9, 2014

In the middle of the night a year ago, a runaway train laden with crude oil derailed in a Canadian town, igniting a firestorm that killed 47 people, some of them asleep in bed, vaporized buildings for blocks, and awakened rail cities like Sacramento across the continent to a new fear: Could that happen here?

Although trains have long ferried hazardous materials, including crude oil and other potentially lethal products such as chlorine and ammonia, the amount of flammable crude oil now shipped by rail is unprecedented, and growing fast.

A string of recent derailments and explosions, some requiring evacuations, have prompted federal transportation officials to call for new safety measures, including stronger tanker cars and slower speeds for trains carrying a particularly volatile form of crude oil from the suddenly booming Bakken fields of North Dakota.

Bakken crude trains have been rolling through Canada and the Eastern United States for several years. In California, the crude oil by rail trend is just starting. Oil companies here are planning to receive up to 23 percent of their oil via rail shipments by 2016. Two years ago, only one-third of 1 percent of oil arrived at California refineries on trains.

As rail traffic has increased, the number of crude oil spills involving railroads in California has risen as well. California registered four rail-related crude spills or leaks between 2010 and 2012, according to the state database on hazardous-materials spills. The number jumped last year to 17. Twenty-six have been reported in the first half of this year.

The state saw 139 freight train derailments last year, up from 62 in 2010.

The vast majority of those incidents were considered minor. Most happened in railyards. One derailment caused a fire as a result of an alcohol spill. But Kelly Huston, deputy director of the state Office of Emergency Services, said cities, states and fire officials must make plans with the understanding that a bad incident could be just around the corner.

“It’s a simple matter of odds,” he said. “With more of these trains coming across, it is more likely there is going to be an incident. The magnitude – a small spill or a catastrophic event – is the uncertainty.”

What are those odds in the Sacramento region, which serves as a major rail crossroads and stop-over site?

Interviews and a review of state rail data suggest the likelihood is low but mounting.

Sacramento has experienced no spills in recent years, but fire officials are concerned. A Bakken train now traverses Sacramento to the Bay Area a few times a month. Another oil train regularly pulls into McClellan Business Park, where the oil is transferred to tanker trucks to the Bay Area. Next year, two more crude oil trains are expected to roll through Sacramento daily on their way to the Bay Area, possibly carrying Bakken. More could follow.

‘911 lines will light up’

Canadian officials are expected next week to announce the results of their investigation into what went wrong that July night in Lac-Megantic, a town of 6,000 just north of the Maine border. The Lac-Megantic train was pulling 72 oil tank cars, 63 of which derailed.

BNSF Railway won’t say how many oil tank cars its trains are pulling through Sacramento each month, but such trains typically haul 100 oil cars. Those trains come through the Feather River Canyon. They run alongside north Sacramento neighborhoods, past the Blue Diamond plant, the Spaghetti Factory restaurant in midtown, several light-rail stops, Sacramento City College and Luther Burbank High School, and exit toward Stockton after crossing Meadowview Road at street level.

Valero Refining Co. is pushing to run other daily crude oil trains starting next year on another rail line in Sacramento, next to the passenger platforms at the downtown Sacramento, West Sacramento and Davis Amtrak stations.

Unlike a flood or wildland fire, there would be no early warning for evacuations.

“The first thing you will hear are crunches,” said state Fire and Rescue Chief Kim Zagaris. “Then explosions. The 911 lines will light up like no one’s businesses.”

Fire chiefs say they have pondered the possibility of a Lac-Megantic incident, and concluded that while their firefighters are well-trained, a big crude oil fire with dozens of tanker cars strewn across streets would be something new, and a major challenge. They describe a possible scenario:

The first-responders could find buildings on fire next to the tracks, forcing them to set a fire line away from the derailment, sacrificing the nearest structures. Police would go door to door within a half-mile or perhaps a mile, ordering evacuations. City, county and state officials would staff a command center, miles from the fire. Hospitals would be put on alert. Gyms could become evacuation centers.

Oil from ruptured tank cars could flow into sewers, creating a possibility that firefighters dread, and that some veteran firefighters remember well. In 1991, a tanker truck overturned on Fair Oaks Boulevard in Carmichael, spewing gasoline into the sewer system. It caught fire and blew manhole covers a dozen feet in the air as flames shot out of the ground. Houses caught on fire. Three hundred people were evacuated, but no one was seriously injured.

Two years ago, a small fire in a single propane rail tank car prompted the evacuation of nearly 5,000 homes in the city of Lincoln in Placer County. Oil and gas fire experts were flown in from Texas. They pumped water into the tank to repressurize it as the propane slowly burned. More than 100 firefighters from agencies around the region were positioned a mile away, ready to roll in case the tank car exploded. It took 40 hours for the fire to burn out. Fire officials said they felt lucky.

Crews at a train derailment fire scene may try to pull unexploded tank cars that haven’t derailed away from the fire, or pour water on them to keep them from rupturing. But if firefighters hear a pinging sound from a tanker, or if they notice a tanker starting to discolor, the federal emergency guidebook they carry in their trucks tells them bluntly: “Withdraw immediately.”

Fire officials say they might not have enough foam stored locally to douse a major oil fire. They would put out the call across the north state, including to airports, for foam, West Sacramento Fire Chief Rick Martinez said. “Figure out a way to get that stuff here, in real time, get it here, anyway you can.”

Did Benicia downplay risk?

In Lac-Megantic, evacuated residents stood on the hills to watch the conflagration below. Reports say it took more than 12 hours to put down the fire. A year later, the town is rebuilding, but large swaths of downtown remain empty, the soil polluted by oil. News reports on the one-year anniversary included stories of survivors who suffer post-traumatic stress disorder. Canadian transportation officials will arrive next week to announce their findings on the incident. The mayor, meanwhile, is pushing for a railroad bypass.

A few weeks ago, on the one-year anniversary of the Canadian disaster, protesters hit the streets in Sacramento and cities across the continent, carrying photos of fireballs and posters saying “Stop the Bomb Trains!”

Railroad officials counter by saying the dangers of crude oil fires are limited, and that they have been working for years to make rail transport safer. According to the Association of American Railroads, 99.9977 percent of the hundreds of hazardous-material rail shipments daily arrive at their destination without mishap. Several rail experts noted the Lac-Megantic event is something unlikely to be replicated: The train was parked on a hill over town. It had suffered a minor fire earlier in the night that might have damaged the brakes. No one was on the train when it started to roll.

The author of “Train Wreck: The Forensics of Rail Disasters,” a book about lethal train crashes, suggests people should worry more about the vehicle sitting in their driveway.

“Society understands and accepts the risk of driving a car, and that is far more hazardous than a train falling on you,” said George Bibel, a University of North Dakota professor.

Sacramento City Councilman Steve Cohn doesn’t think Sacramentans who live near the tracks should live in dread, but said he understands the unease. “People are right to be concerned and want to know what the facts are. We’d be foolhardy not to take it seriously.”

Benicia recently completed its analysis of the spill risk from two planned 50-car daily oil trains between Roseville and Benicia, and came up with a controversial conclusion. It determined that an oil spill could be expected to happen once ever 111 years. Based on that analysis, Benicia concluded the project does not pose a significant hazard in cities along the rail line.

The report’s author, Christopher Barkan of the University of Illinois, an expert on hazardous rail transport, formerly worked for the railroads’ national advocacy group and does research supported by the organization. He said his analysis was not affected by that affiliation. He declined further comment.

Steve Hampton, an economist with the state Office of Spill Prevention and Response, said the Benicia report gives a false air of certainty about something that has far too many unknowns. “This is so new, anyone who says they know exactly what the rate is, they don’t.”

He noted the analysis failed to look at risks the project poses on the rail route east of Roseville, where trains will pass through areas designated by the state as “high-hazard” for derailments.

Jeff Mount, a natural resource management expert at Public Policy Institute of California, said a one-in-111-year spill event for the Valero trains refers to long-range averages. It doesn’t preclude a spill from happening at any time. If several oil trains come through Sacramento, as expected, the spill risks increase, Mount said.

Safety costs vs. benefits

So how do local officials prepare? And how much do you spend to safeguard against an event with an arguably low likelihood of occurrence but potentially huge consequences?

Similar assessments already have been done of flood and earthquake risks. California requires urban levees to be sufficient to handle one-in-200-year storms, prompting billions of dollars in spending for construction and ongoing maintenance. Officials have spent tens of billions of dollars on seismic upgrades to bridges and overpasses in Northern California to guard against earthquakes like the 1989 Loma Prieta event, which has a 67 percent chance of recurrence in the next 30 years, according to federal estimates.

Risk experts say floods and earthquakes are considerably more likely to cause widespread damage than an oil spill and fire, even one as major as in Lac-Megantic. Bibel, the North Dakota professor, said risks can never be brought to zero. At some point, safety costs outweigh benefits.

On the federal level, transportation officials have proposed requiring railroad companies to replace the current fleet of tanker cars with sturdier versions that have more safety measures. The government also is proposing lower speed limits for trains carrying Bakken crude, and new safety technology on trains, such as more advanced operating systems. There is a push to force mining companies to install more sophisticated equipment at well heads to reduce the volatility of Bakken before it is placed into rail cars.

In California, spill-prevention officials have launched discussions with railroads, oil companies and emergency officials to determine what a “reasonable worst case spill” into a waterway might look like, and how to plan for it. As a starting point, those officials last month suggested a reasonable worst case could be 20 tank cars of crude oil spilling from one train.

Regional leaders in Sacramento have called on Benicia to redo its analysis of the risk posed by crude oil trains traveling to the Valero refinery, and to assess the impact of an explosive derailment.

But even within the region, views are mixed on how much risk management is appropriate. Yolo County Supervisor Duane Chamberlain runs a farm and uses diesel fuel daily. He said he cringes when government regulations drive up prices. “How much can you protect everybody and everything?” he asked. “We shouldn’t make it harder for oil companies to do business in our state.”

In the Feather River Canyon, where in recent years boulders have punctured and derailed trains, Plumas County Supervisor Kevin Goss said a derailment could be catastrophic for the river, which helps feed faucets in Sacramento. He said he has taken calls from worried residents and has gone out to see the milelong oil trains that have begun snaking along the mountainside.

“I couldn’t believe how many oil cars were on this one train,” he said.