Tag Archives: Oil industry lobby

Rail Industry Requests Massive Loophole in Oil-by-Rail Safety To Extend Bomb Trains Well Beyond 2025

Repost from DeSmogBlog

Rail Industry Requests Massive Loophole in Oil-by-Rail Safety To Extend Bomb Trains Well Beyond 2025

By Justin Mikulka, July 21, 2016 – 13:00

In the most recent oil-by-rail accident in Mosier, Oregon the Federal Rail Administration (FRA) concluded that the tank cars involved — the jacketed CPC-1232 type — “performed as expected.” So an oil train derailing at the relatively slow speed of 25 mph should be “expected” to have breached cars resulting in fiery explosions.

Current regulations allow those tank cars to continue rolling on the track carrying volatile Bakken crude oil and ethanol until 2025 with no modifications.

Yet industry lobbying group the Railway Supply Institute (RSI) has now requested the Federal Railroad Administration to essentially allow these jacketed CPC-1232 tank cars to remain on the tracks for decades beyond 2025.

This was just one of the troubling facts that came to light at the National Transportation Safety Board (NTSB) roundtable on tank car safety on July 13th, and perhaps the one of greatest concern to anyone living in an oil train blast zone like Mosier, Oregon.

Just Re-Stencil It and Call It a DOT 117

One of the biggest risks with Bakken oil train accidents is that often the only way to deal with the fires is to let them burn themselves out. This can result in full tank cars becoming engulfed in flames for hours or days in what is known as a pool fire. This can lead to a “thermal tear” in the tank and the signature mushroom cloud of fire so often seen with these derailments.

The new regulations address this issue by requiring tank cars to have a layer of ceramic insulation covering the entire tank car to prevent the oil from heating up to the point of creating a thermal tear (ceramic shown in pink in the image below.)


Image credit: NTSB

However, the RSI has requested the FRA to allow the existing jacketed CPC-1232 cars, like the ones in the Mosier accident, to not require the ceramic thermal protection.

The industry’s argument is that the current fiberglass insulation on the CPC-1232 is sufficient protection. However, the fact that the fiberglass insulation was not designed to protect the contents of a tank car from fire does not seem to bother the RSI.

At the same time the RSI is arguing against thermal protection for CPC-1232s, the RSI has helpful videos on its website explaining the new safety features for DOT-117 tank cars — including “thermal protection.”

The NTSB’s Robert Sumwalt summed up what this request would mean in one simple statement at the July 13 round table event saying, “the same type of cars as in Mosier can be re-stenciled as DOT-117R with nothing more than a new bottom outlet valve.” [R stands for retrofit.]

So, they are essentially asking to paint over the CPC-1232 label on the tank cars with a DOT-117 while doing nothing more than changing the bottom outlet valve. Which means we should expect many more accidents like Mosier in the future since most of these CPC-1232 cars are only a few years old and they have an expected working life of 30-40 years.

As Robert Sumwalt said in his opening statement explaining why we should expect many more fiery oil train derailments with the existing tank car fleet, “just do the math.”

Industry Arguments Laughable If Not For the Consequences

Would you believe that one of the arguments made at the roundtable in favor of not requiring thermal protection on these cars was that the oil itself acts as a heat sink? Which is true. Until the point where the oil absorbs so much heat from the fire that the tank car explodes.

However, the reason this argument is given credibility is that the regulations only require a tank car to endure sitting in a pool fire for 100 minutes without exploding. Forget the fact that many of the Bakken oil train accidents have involved fires that burned for days.

This 100-minute limit was the same reasoning used to justify the fiberglass insulation on the current jacketed CPC-1232 as offering sufficient protection, as per the industry request. Which led to the following exchange between the NTSB’s Sumwalt and RSI representative John Byrne.

Byrne: “In our own modeling the fiberglass insulation system met the federal requirement for thermal protection.”

Sumwalt: “But in reality in the fiberglass situation, doesn’t the fiberglass all just melt… doesn’t it also melt and all end up pooling down in the bottom in the void between the blanket and the shell?”

Byrne: “Basically yes…but at the same time, that whole system acts as a thermal protection system in that it meets the requirement based on the federal law.”

Sumwalt: “Ok, thanks. So it meets the requirements.”

So, along with the oil itself being offered as adequate thermal protection, we also get fiberglass that melts in a fire being offered as protection for anyone in the blast zone.

So what did the regulators have to say about this absurd argument?

FRA’s Karl Alexy made it clear that “industry” concerns were receiving serious consideration saying, “we’re not taking it lightly, we understand what it means to industry… be certain that we are taking this very seriously.”

Well, we do understand what it means to the industry. Adding ceramic thermal protection would cut into profits. And one thing that was made clear repeatedly during the day’s discussion was that this was all about the money and that safety was only for people worried about “risk.”

As usual when there is a discussion about oil train safety, the oil industry lobbying group the American Petroleum Institute had a seat at the table. API representative Susan Lemieux cut to the heart of the issue with some actual honesty.

“In the industry we don’t see transportation as a risk, it is just a function of business.”

Why try to improve the situation when you don’t see any risk?

The FRA and the Pipeline and Hazardous Materials Safety Administration have informed DeSmog that they will issue a formal response to the industry’s request to allow the fiberglass to qualify as thermal protection in the near future.

The Ground Rules – Profits Over Safety

In the above slide shown of the DOT-117, there is one other important thing to note. The shells on those tank cars are 9/16th of an inch thick. The shells of the jacketed CPC-1232 are 7/16th of an inch thick. This difference has safety implications as the thinner shells rupture more easily.  The RSI points out this fact in a video on its website about the advantages of the thicker shells on the DOT-117 which they say are “less prone to puncture.”

But the more important difference, as we have pointed out repeatedly at DeSmog, is that safer car designs are heavier, which means they can transport less oil per car. That lower capacity again cuts into profits. This point was made by ExxonMobil in a slide they presented to regulators arguing against thicker tank shells.

While Exxon was not at the roundtable, plenty of oil and rail industry representatives were, and they made this point very clear.

Gabe Claypool, President of oil train operators Dakota Plains, explained why it made economic sense to use CPC-1232s over DOT-117s.

“A lot of it’s economics as well…we were just having a conversation around the sizing of the car, the 1232 car type is very much in abundance and it is also a larger car. In the current category of still trying to be profitable, if I can get that extra volume in a larger car that is still regulatorally [sic] compliant, they’re [sic] gonna stick with that.”

Richard Kloster of rail consulting firm Alltranstek was one of the more vocal participants during the roundtable and he repeatedly made points about the economics of retrofitting the CPC-1232 over buying the new DOT-117 saying, “The retrofit is always going to win economically.”

Kloster also made it clear where the industry put its priorities when it came to safety versus profit saying, “There has got to be a balance between safety and the economic viability of moving these products by rail” and that there were a “lot of cases, you know, where economics wins all the time but risk trumps economics in some cases.”

Economics wins all the time.

There was one representative from labor at the roundtable who did not offer a comment until the final closing segment, but he also shared the reality of what was driving the decisionmaking when he discussed the need for safety but stated, “I know it’s about money.”

ExxonMobil Wins Again

So, in the end, ExxonMobil and the oil industry have won again. Watching this roundtable and the many congressional hearings and previous NTSB events in the past few years and seeing the lack of progress on real safety improvements, it almost seems like this all was orchestrated from the start.

In the years leading up to the latest tank car rulemaking, the industry essentially ordered a whole new fleet of CPC-1232 cars which they are currently using. The CPC-1232 cars have the thinner tank shells which makes them more prone to puncture and also more profitable. And they are ok to use, unchanged, until 2025. If the industry request is approved, those cars will just need new bottom outlet valves after 2025.

Regardless, they will always have the thinner tank shells, like Exxon wanted.

At the end of the July 13 event, Robert Sumwalt made an interesting statement. He said, “some of us met yesterday to go over the ground rules.”

The meeting where they went over the ground rules was not open to the public or media. If one were to hazard a guess as to what the first and foremost ground rule set was, it would be a safe bet to posit it was that “economics wins all the time.”

Blog Image Credit: Dawn Faught via NTSB

 

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    Top 3 Myths on Oil Export Ban; Meet the Lobbyists; Paris Agreement Should Spook; Climate Denial Scandal; 5 Stocks to Watch

    From an E-ALERT by DeSmogBlog
    Five excellent reports distributed by email on Dec 17, 2015

    Top Three Myths Used to Sell the Lifting of the Crude Oil Export Ban, A Climate and Security Disaster In The Making

    It can be difficult to win an argument when you have no viable position. However, when you are the oil industry, you can just buy the win. Which is what the oil industry is poised to do regarding the lifting of the crude oil export ban.

    The GOP is currently holding up Congressional action needed to avoid a government shutdown by demanding inclusion of the lifting of the crude oil export ban in the government spending package.

    Here are some of the disingenuous arguments the oil industry has paid to have members of Congress make over the past two years. Read more.

    Meet the Lobbyists and Big Money Interests Pushing to End the Oil Exports Ban

    The ongoing push to lift the ban on exports of U.S.-produced crude oil appears to be coming to a close, with Congress agreeing to a budget deal with a provision to end the decades-old embargo.

    Just as the turn from 2014 to 2015 saw the Obama Administration allow oil condensate exports, it appears that history may repeat itself this year for crude oil. Industry lobbyists, a review of lobbying disclosure records by DeSmog reveals, have worked overtime to pressure Washington to end the 40-year export ban — which will create a global warming pollution spree. Read more.

    Historic Paris Climate Agreement Should Spook Fossil Fuel Markets and Escalate Clean Tech Investment

    World leaders reached an historic agreement in Paris moments ago, capping off the COP21 climate talks with a unanimous deal among 195 countries to curb global warming pollution and hasten the clean energy transition. The gavel just fell on the Paris Agreement, and it’s time to celebrate.

    Is it enough to please everyone? No. Will people continue to suffer from climate-charged extreme weather events? Yes. But it is a welcome change from previous summit failures. Read more.

    In Midst of ExxonMobil Climate Denial Scandal, Company Hiring Climate Change Researcher

    Caught in the crosshairs of an ongoing New York Attorney General investigation exploring its role in studying the damage climate change could cause since the 1970’s and then proceeding to fund climate science denial campaigns, ExxonMobil has announced an interesting job opening.

    No, not the new lawyer who will soon send the “private empire” billable hours for his defense work in the New York AG probe, though that’s a story for another day. Exxon is hiring for a climate change researcher to work in its Annandale, New Jersey research park facility. Read more.

    Five Energy Stocks to Watch After Paris Climate Agreement

    With a new global agreement on climate change gaveled into the history books in Paris tonight, many people including me believe we have just witnessed the end of the fossil fuel era.

    So-called “pure play” fossil fuel companies that have not significantly diversified into other areas of energy production will be huddled in boardrooms this week trying to figure out what the Paris Agreement means to their bottom line. Read more.

     

     

     

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      Breaking: Emergency Calls Needed to Protect Oil Export Ban

      Action Alert from the Center for Biological Diversity

      TELL THE SENATE AND PRESIDENT TO PROTECT THE OIL EXPORT BAN

      Fracking illustration
      Fracking illustration courtesy Flickr/Jared Rodriguez, Truthout.

      America’s decades-old crude oil export ban is under urgent threat of repeal through backroom dealing and an imminent vote on a congressional spending bill. The ban is a critical safeguard against climate change and the damages and risks of fracking.

      Lifting the ban would massively boost oil production at a time when the science demands that we must leave at least 80 percent of remaining fossil fuels in the ground. The combustion of the additional oil that would be produced is estimated to generate more than515 million metric tons of carbon pollution per year — the equivalent annual greenhouse gas emissions of 135 coal-fired power plants or more than 100 million passenger cars.

      If this horrendous bill passes, communities across America will face more pollution, illness and disruption from drilling and fracking. We can’t afford to lift the crude oil export ban just to contribute to Big Oil’s windfall profits.

      Phone calls to your senators and the White House are urgently needed. Here are some talking points. Type in your ZIP code below to get your senators’ numbers, then let us know you called. 

      For senators:

      Hi, my name is ______, and I live in ______. I’m calling to urge you to vote NO on the omnibus bill that repeals the crude oil export ban. Lifting the ban would increase oil production and damage from fracking and other dangerous drilling while undercutting progress fighting climate change. It will increase Big Oil’s profits at our expense. No deal could justify lifting the 40-year-old crude oil export ban.

      Please — vote against any bill that lifts the crude oil export ban or has other sneak attacks on our environment and democracy.

      Can you tell me how Senator X plans to vote? Thank you.

      For the White House: 

      Hi, my name is ______, and I live in ______. I’m calling to urge you to veto the omnibus bill that repeals the crude oil export ban. Lifting the ban would increase oil production and damage from fracking and other dangerous drilling while undercutting progress fighting climate change. It will increase Big Oil’s profits at our expense. No deal could justify lifting the 40-year-old crude oil export ban.

      Please veto any bill that lifts the crude oil export ban or has other sneak attacks on our environment and democracy.

      Contact information for your Senators and the White House: Click here to go to the Centers for Biological Diversity page, then scroll to the bottom to look up and use your zip code for contact info.

      Please take action by Jan. 31, 2016.

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        First National Conference on Oil Train Threats – excellent report by Justin Mikulka

        Repost from DeSmogBlog
        [Editor:  Many thanks to Justin Mikulka for this excellent report on “Oil Train Response 2015,” nicely summarizing the important issues as well as the event.   Great photo below – click on it to enlarge so you can play Where’s Waldo.  🙂  For a local media report and some good links, see also my earlier posting.  – RS]

        “We Need Not Be Polite” Hears First National Conference On Oil Train Threats

        By Justin Mikulka • Wednesday, November 25, 2015 – 03:58
        oil train conference
        Oil Train Response 2015, 1st national conference on oil train threats, 11/14-15/15, Pittsburgh

        On November 12th, I boarded a train headed to Pittsburgh, PA to attend the first national independent gathering focused on the topic of oil trains. The trip would take me through Philadelphia where an Amtrak train crashed in May resulting in eight fatalities and over 200 injuries.

        There is general consensus that the accident would have been avoided if positive train control technology had been in place. In 2008, Congress mandated that positive train control be installed by the end of 2015. However, the railroads failed to do this and were recently given a three to five year extension by Congress after the rail companies threatened to shut down rail service if the mandate were enforced.

        It is a reminder of the power of the rail lobbyists. Another example of this power is currently playing out in Congress. Earlier this year, the Senate voted to raise the amount of money that could go to victims of accidents such as the one in May. However, rail lobbyists and members of Congress are working to strip this change out of pending legislation.

        Having covered the topic of oil trains for the past two years, none of this is surprising. The rail and oil lobbyists have been very effective at weakening new oil-by-rail regulations and achieving huge delays for any actual implementation of these changes.

        In 2013, an oil train full of Bakken crude oil derailed in Lac-Megantic resulting in a fire that killed 47 people. The existing regulations will allow trains like the one in Lac-Megantic to roll on the rails until 2023.

        These known risks and lack of regulations have created new activists across the continent and the Oil Train Response 2015 conference was the first time they have all come together in one place to discuss the issue and organize together. The event was sponsored and organized by The Heinz FoundationFracTracker and ForestEthics.

        The first day of the conference was designed to inform the attendees about various aspects of oil-by-rail transportation and included presentations from first responders, politicians, Riverkeepers, legal experts and railroad safety consultant Fred Millar.

        What You Are Up Against

        Ben Stuckart is president of the Spokane city council, a city currently seeing 15 oil trains a week and facing the potential of as many as 137 a week by 2020 by some estimates. During his presentation, Stuckart described a trip he took to Washington, D.C. to meet with Secretary of Transportation Anthony Foxx to express his concerns about the oil trains.

        “We sit down and we’re talking to him and he’s like ‘well here is what you are up against.’ He goes, ‘My first day in office.  BNSF and Union Pacific just showed up and walked into our office.’ And he asked up front what’s going on, I don’t have an appointment. ‘Oh there is an open door policy.’

        The railroads have an open door policy. Do you know how long it took for me to get an appointment with transportation secretary Foxx?”

        This isn’t the only time Secretary Foxx learned what we “are up against.”

        Earlier this year, Reuters reported that when the White House was finalizing the new regulations, Secretary Foxx requested that the regulations address the volatility of Bakken crude oil. His request was denied.

        Stuckart’s recounting of Foxx’s candid explanation of the reality of regulation in Washington, D.C. is an excellent example of the power of the industry, and provides insight into why these trains continue to run despite the known risks.

        We Need Not Be Polite

        Much of the morning session of the first day of the conference was devoted to emergency response, featuring three different presentations on the topic. A bit later, rail safety consultant Fred Millar took to the podium and wasted no time in getting everyone’s attention. With the earlier emergency response presenters flanking him on either side of the podium, Millar did not pull any punches.

        “We need not be polite with the railroads and first responders,” Millar said. And then he proceeded to point out what a farce the idea of emergency response planning is regarding Bakken oil trains.

        “It’s a lie,” Millar said as he showed a slide of emergency responders operating fire hoses standing very near a black rail tank car that was on fire. Millar noted that these are public relations efforts meant to calm the public, but the reality of a Bakken oil train accident is that everyone within a half mile is evacuated and the train is allowed to burn itself out because it is too dangerous for first responders to approach. Often the fires last for days.

        Millar’s presentation was enthusiastically received by the conference audience. As he delivered one of his many hard-hitting lines to applause, an audience member could be heard saying, “He’s like a preacher up there!” However, as repeatedly noted in his presentation, his opinion is that very little is being done to address the risks of oil-by-rail transportation.

        They Are Our Children

        Things got a bit heated in the question and answer session following Millar’s presentation. One point of contention was that the first responders maintained that they need to keep information about oil trains secret so as to not help out “the bad guys” — an idea not well received by the many people in the audience living near oil train tracks.

        Raymond DeMichiei, Pittsburgh’s Deputy Coordinator of Emergency Management, sparked the biggest outcry when he stated that he didn’t see why “people need to know how many daycare centers are within the blast zone.” Among the responses was a woman yelling, “They are our children!”

        As the session came to a close, a frustrated DeMichiei said, “Get ’em off the rails. I’ll be a happy guy.”  It was one point that everyone in the room could agree on.

        FRA Administrator Grateful For Luck

        A week before the conference, an ethanol train derailed in Wisconsin and spilled ethanol into the Mississippi River. The next day, an oil train derailed and spilled oil in a residential neighborhood in Wisconsin. On the first day of the conference, news broke that an oil train derailed near Philadelphia, although there was no spill.

        Sarah Feinberg, head of the Federal Railroad Administration, commented on the accidents in Wisconsin saying, “We feel we got really lucky.” When I pointed out on Twitter that luck is currently a big part of the oil train safety plan, she responded.

        While it is true that regulators are taking many steps to improve safety, it is also true that the oil and rail industries are working hard against any real improvements to safety. The dangerous oil is not being stabilized. The unsafe tank cars will be on the rails for at least eight more years. Modernized braking systems are years away and the industry is fighting that as well. And trains continue to run through many large cities.

        On my train ride home from the conference, I saw many of the signature black tank cars on the rails. Some were carrying liquid petroleum gas, some ethanol and at least one was a unit train of oil cars (although likely empty as it was traveling West). The potential of an accident involving a commuter train and an oil train didn’t seem far fetched.

        View from Amtrak train, photo by Justin Mikulka.

        A National Movement Begins

        The people gathered in Pittsburgh don’t want to rely on luck to protect their communities. They are committed to fighting for real rail safety, and they were clearly energized by this event. As Ben Stuckart said, “This is so awesome. I haven’t seen this big of a group about this very specific issue since I’ve been working on it the last four years.”

        And that is good news for the 25 million people currently living within bomb train blast zones. Because if there is one lesson learned from the long delay over the implementation of positive train control, it is that this battle is likely to be a long and difficult effort.

        Blog image credit: Paul Anderson
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