Tag Archives: Federal Regulation (U.S.)

USA Today: Rail deliveries of U.S. oil continue to surge

Repost from USA Today
[Editor: Nothing new here, but good that mainstream publications are taking notice.  – RS]

Rail deliveries of U.S. oil continue to surge

Wendy Koch, August 28, 2014
oil trains
(Photo: Connor Lake AP)

Amid a boom in U.S. oil production, the amount of crude oil and refined petroleum products moved by rail continues to climb.

There were 459,550 carloads of oil and petroleum products transported during the first seven months of this year, up 9% from the same period in 2013, according to the Association of American Railroads.

More than half of these carloads carried oil, moving 759,000 barrels of crude per day and accounting for 8% of U.S. oil production.

The surge in oil trains began in mid-2011. At that time, weekly carloads of oil and petroleum products averaged about 7,000. In July, they reached nearly 16,000, according to the AAR.

“The increase in oil volumes transported by rail reflects rising U.S. crude oil production, which reached an estimated 8.5 million barrels per day in June for the first time since July 1986,” the U.S. Energy Information Administration reported Thursday.

The use of horizontal drilling and hydraulic fracturing or fracking has made it possible to extract huge amounts of oil from underground shale deposits. The Bakken Shale, mostly in North Dakota, accounts for much of the growth in U.S. oil production. One of every eight U.S.-produced barrels comes from North Dakota, now the second-largest oil producing state.

Between 60% and 70% of the state’s oil was moved by rail to refineries during the first half of 2014, according to the North Dakota Pipeline Authority.

Spurred by this surge in oil-carrying trains and several recent tragic accidents, the Obama administration proposed stricter rules last month for tank cars that transport flammable fuels.

The Department of Transportation proposal will require the phaseout, within two years, of tens of thousands of tank cars unless they are retrofitted to meet new safety standards. It will also require speed limits, better braking and testing of volatile liquids, including oil. It will require that cars constructed after October 2015 have thicker steel.

The DOT proposed rule, which will take months to finalize after a 60-day comment period, applies to shipments with at least 20 rail cars carrying flammable fuels, including ethanol.

In May, an oil-carrying freight train derailed in Lynchburg, Va., spilling 30,000 gallons of oil into the James River. Last year in Lac-Megantic, Quebec, an oil train exploded and killed 47 people.

 

Albany County enlists top legal firm for oil train fight

Repost from Capital Playbook, Albany, NY
[Editor: Significant quote: “The county has placed Mintz Levin on retainer….  The firm will help with a potential legal battle with Global Partners, which has threatened to sue after the county placed a moratorium on expanding crude-handling facilities at the Port of Albany.”  (emphasis added) – RS]

Albany County enlists top legal firm for oil train fight

By Scott Waldman  |  Aug. 22, 2014
albany-county-enlists-top-legal-firm-oil-train-fight
First responders are familiarized with tank cars on the CSX Safety Train next to the Hudson River in the Port of Albany. (AP Photo/Mike Groll)

ALBANY—Albany County has hired a high-powered Boston environmental law firm to help with its battle against a Fortune 500 company that’s bringing in millions of gallons of crude oil every day.

The county has placed Mintz Levin on retainer, county attorney Tom Marcelle said. The firm will help with a potential legal battle with Global Partners, which has threatened to sue after the county placed a moratorium on expanding crude-handling facilities at the Port of Albany. Marcelle said Albany County has subpeona power and Mintz Levin could be used to enforce the county’s right to question top Global officials if they withhold information the county is seeking.

“The county executive wanted to ensure the people of Albany County had the best to represent their health and safety,” he said.

The county will probably spend up to $100,000 with the firm, Marcelle said.

The firm, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, can also help the county submit comments to the federal Department of Transportation over its proposed new regulations for oil trains. Those federal regulations call for a phasing out of rail cars that transport a certain type of crude. Those cars are more likely to rupture and leak if they derail.

County officials are not happy with the federal proposal because it would still allow those older cars to transport the type of heavy crude Global Partners wants to bring to Albany. That crude from the oil sands of western Canada, also known as tar sands, is nearly impossible to clean up from waterways like the Hudson River because it sinks to the bottom.

The Boston law firm specializes in environmental law and employees about 500 attorneys. It has offices in London, Los Angeles, New York, San Francisco and elsewhere. Attorneys at Mintz Levin helped draft the state’s Brownfield pollution mitigation legislation and has defended enforcement actions in federal and state court, according to its website.

Global, which is based in Waltham, Massachusetts and is a Fortune 500 company, threatened legal action against the county shortly after the moratorium was issued, but has yet to file suit.

Albany County Executive Dan McCoy has taken a more aggressive approach to oil train enforcement than city and state officials and has also proposed a law that would fine oil train operators who fail to quickly report spills. McCoy has appointed a health and safety panel that is examining Global’s crude-handling facilities.

Global wants to build a series of boilers at the port that would allow it to bring in heavy crude oil, like from the oil sands of western Canada.

Albany has become one of the nation’s largest hubs from crude oil from the Bakken formation of North Dakota. The proposed boiler facility would effectively turn New York into a major oil-by-rail pipeline for another type of crude and has generated strong opposition.

Oil train risks push communities to prepare for worst – “Little Black Bullets”

Repost from Poughkeepsie Journal
[Editor: Significant quote: “The U.S. Department of Transportation acknowledged in its proposed rule that an another accident isn’t a question of if, but when.  “Absent this proposed rule, we predict about 15 mainline derailments for 2015, falling to a prediction of about 5 mainline derailments annually by 2034,” the department’s proposal stated. Reviews and lawsuits mean it could be years before the rule is implemented.”  – RS]

Oil train risks push communities to prepare for worst

Khurram Saeed   |   August 21, 2014
The home of Doris Quinones is less than 100 feet away from the CSX railroad track, on which as many as 4 oil trains pass by every day, not to mention freight trains carrying other hazardous chemicals. An oil train is seen passing from the yard of Doris Quinones, July 31, 2014 in Haverstraw.(Photo: Tania Savayan/The Journal News)

Little black bullets.

That’s what Doris Quinones calls the dozens of outdated tank cars filled with crude oil that rumble yards away from her Haverstraw home every day.

One train hauling oil can have up to 100 cars, and as many as 30 oil trains pass through Rockland each week on the way to refineries. That’s twice the number from just six months ago as demand continues to grow for the volatile crude oil drawn from the Bakken region in North Dakota.

Those trains also pass through Ulster County.

In Highland, the trains roll past a restaurant and a Hudson River waterfront park that is being outfitted with a new deep-water dock for tour boats.

Ulster County’s vulnerable infrastructure includes drinking water intakes for Port Ewen and the Town of Lloyd.

A 100-car oil train can carry 3 million gallons of crude oil, and because so many more are on the rails, the number of derailments and accidents is rising.

The oil trains, which do not travel on a set schedule, roll through four of Rockland’s five towns on CSX Railroad’s River Line. Fully loaded trains run north to south, less than a mile from Helen Hayes Hospital in West Haverstraw, Lake DeForest reservoir in Clarkstown, the Palisades Center in West Nyack and Dominican College in Blauvelt, not to mention dozens of neighborhoods, scores of schools and day care centers and right past key highways like the Thruway.

Given her proximity to the tracks, Quinones said a derailed train would “land in my living room.”

“We’re all realists,” Quinones said recently in her backyard, where she sometimes lounges in her swimming pool and tends to her cucumbers. “They got to get something somewhere. It’s got to go on the freight train but they got to take extra measures even if it costs them more money.”

The oil trains are hard to miss, and the safety issues surrounding them, particularly their tank cars, have become harder to ignore. There have been a number of fiery explosions and accidents since 2013 that have caused officials at all levels to look closer at the dangers of shipping oil by rail.

Just over a year ago, 47 people died when an unattended oil train derailed and exploded in Lac-Megantic, Quebec. Rockland had a close call in December when an oil train transporting 99 empty tank cars from Philadelphia to North Dakota hit a truck stuck on the crossing in West Nyack, sending the truck’s driver to the hospital.

Planning for worst

Peter Miller, chief of the Highland Fire District, said firefighters took part in a drill in Kingston on May 30, along with other fire departments. The drill was sponsored by the Ulster County Emergency Services Department and CSX.

He said the district’s response plans are constantly being updated, particularly now that the Bakken crude is rolling through.

“We upgrade our training and our response plans to cover what we would do, depending on where the incident is,” he said.

Even as federal transportation officials are proposing more stringent requirements for tank cars to make them safer, Rockland’s first responders are planning for nightmare scenarios and how to evacuate thousands of people quickly in a catastrophe or have them stay where they are.

“Our job is to really plan for the worst,” said Chris Jensen, Rockland County’s hazardous materials coordinator.

Rockland emergency officials are finishing the evacuation map for residents and businesses within a mile of the River Line.

It covers a mile on either side of the rail line, broken into half-mile sections, from Bear Mountain to the New Jersey border.

Gordon Wren Jr., director of Rockland’s Office of Fire and Emergency Services, said the map “allows us to make the decisions quicker, faster.”

“Do you evacuate or not? If so, how far?” Wren said.

The map identifies schools, day care centers, nursing homes and senior housing, among other landmarks.

“(A police officer) can look at that and say, ‘Let’s get the people out of here,’ ” said Dan Greeley, assistant director of the county Office of Fire and Emergency Services. “It happens instantaneously.”

The U.S. Department of Transportation acknowledged in its proposed rule that an another accident isn’t a question of if, but when.

“Absent this proposed rule, we predict about 15 mainline derailments for 2015, falling to a prediction of about 5 mainline derailments annually by 2034,” the department’s proposal stated. Reviews and lawsuits mean it could be years before the rule is implemented.

In 2008, just 9,500 carloads of crude oil moved by rail. Last year, the figure exceeded 400,000, the Association of American Railroads said.

Rail industry officials note that 99.9 percent of all hazardous rail shipments reach their destinations safely and that only rail has afforded the nation the flexibility to move large volumes of oil so quickly and freely, letting the United States wean itself off foreign oil.

Susan Christopherson, chair of Cornell University’s city and regional planning department, said though pipelines are safer, oil shippers from western Canada and the Bakken shale region prefer trains because they provide flexibility from different points of origin to refineries nationwide.

The problem, she said, is the Federal Railroad Administration has “little capacity” to regulate the rail industry or monitor rail infrastructure safety.

“Costs for emergency preparedness have to be absorbed by state and local government,” Christopherson wrote in an email. “There is little or no compensation for these costs, which can be significant.”

Under Gov. Andrew Cuomo, the state has become increasingly proactive, carrying out inspection blitzes of rail yards and leveling fines.

‘Witches’ brew’

The River Line, part of CSX’s rail network, runs from outside Albany. In February, the railroad told The Journal News that two oil trains used the line daily, or 14 a week. By June, the railroad fixed the number of trains hauling 1 million gallons or more of Bakken crude at 15 to 30, or up to four each day, according to documents it had to file with the state.

CSX spokesman Gary Sease said there have been incremental increases in crude oil volume over the past several weeks with likely more to come. The railroad recently completed double-tracking work in north Rockland to increase capacity on the track.

“It is a result of market conditions and can fluctuate,” Sease wrote in an email.

“We see customers investing in additional crude oil terminals over the next couple of years.”

Bakken crude oil is just the latest dangerous substance to travel the line, Jensen said. Toxic substances such as chlorine, ethanol, propane and vinyl chloride have moved on the former West Shore line for decades.

“It’s a witches’ brew of stuff,” Jensen said.

But one big difference is the amount of Bakken crude that passes through Ulster, Rockland and, for that matter, 15 other counties in New York.

Aside from CSX, Canadian Pacific Railway hauls Bakken crude from the Midwest to Albany, with an average of one train a day with a million-plus gallons.

In May, CSX began a first responders training program by bringing equipment and experts to communities to teach them about incidents involving crude oil. More than 1,000 people have been trained, he said.

That’s a good start but more needs to be done, said Jerry DeLuca, executive director and CEO of the New York State Association of Fire Chiefs.

“You don’t fight an oil fire with water. We need to have foam and a lot of it,” said DeLuca, whose group represents more than 11,000 professional and volunteer fire chiefs. “It’s not something we utilize every day, so you have to be trained.”

Poughkeepsie Journal staff writer John Ferro contributed to this report.

CSX reimburses Lynchburg $107,853; Virginia regulators negotiating further penalties

Repost from The Richmond Times-Dispatch

State regulators expect penalty for CSX oil train wreck

April CSX wreck sent oil into river at Lynchburg
By Alicia Petska, The News & Advance, August 21, 2014 10:30 pm

— State environmental regulators are in talks with CSX to negotiate the terms of a consent order that will be issued in response to the estimated 29,916 gallons of oil released into the James River during the April 30 train derailment in downtown Lynchburg.

The order is expected to include a financial penalty, but the amount has not been determined yet, said Robert Weld, regional director for the Department of Environmental Quality.

Other measures may include long-term monitoring of river conditions and replanting vegetative buffers along the riverbank.

Water quality testing in the weeks after the derailment found no contaminants of concern, Weld said, but visual checks and other monitoring will continue out of an “abundance of caution.”

It remains unclear just how much of the Bakken crude oil that leaked during the downtown derailment actually mixed into the river or made its way downstream.

Much of it burned in the large fire that erupted after 17 cars on a 105-car oil train derailed near downtown Lynchburg. Three cars tumbled over the riverbank, and one ruptured. There were no injuries or building damage.

The incident drew Lynchburg into a national debate over how to safely ship the volatile crude found in Bakken shale around North Dakota, where production has skyrocketed in recent years.

On Wednesday, Weld was among more than a dozen state officials who convened in Lynchburg for the second meeting of a new rail safety task force formed by Gov. Terry McAuliffe after the derailment.

The meeting, held at City Hall, included a presentation from the federal agency charged with regulating hazmat shipments and public comments from environmental advocates and rail employee representatives.

CSX had offered to reimburse the city for the cost of its emergency response and sent the final check last week, according to Lynchburg’s finance department.

The reimbursement totaled $107,853 for personnel and equipment costs, as well as minor property damage to trees, curbs and sidewalks.

The new rail safety task force has been asked to advise the state on how it can improve its own preparedness and response efforts.

It also might weigh in on the federal regulations that govern most aspects of rail operations. The U.S. Department of Transportation has been studying the oil-by-rail issue since a deadly oil train derailment in Quebec in July 2013.

Last month, federal officials released a set of proposed rules that may lead to phasing out older DOT-111 model tankers that have been criticized as puncture prone.

There also may be higher standards for braking systems, speed limits and testing of volatile liquids. The proposed rules are in a 60-day public comment period that will end Sept. 30.

During a public hearing Wednesday, water quality advocates with the Chesapeake Bay Foundation and James River Association urged officials to take a comprehensive look at the rail safety issue and not limit themselves to one region, cargo or issue.

The proposed federal regulations may not do anything to deter the kind of derailment that occurred in Lynchburg, said Pat Calvert of the James River Association, whose office is close to the derailment site.

Given the location of the derailment — near several downtown businesses and a popular trail system — it’s a miracle no one was injured, he said.

“We dodged a bullet,” Calvert said. “But we shouldn’t necessarily be playing Russian roulette here.”

The cause of the Lynchburg derailment is under investigation by the National Transportation Safety Board. The NTSB said it could be a year or more before its report is ready.

The state’s rail safety task force plans to hold its next meeting in September in the Norfolk area. It hopes to tour the Yorktown oil refinery — where oil-by-rail shipments through Virginia end up — and meet with a representative of the NTSB.