Tag Archives: Pipeline and Hazardous Material Safety Administration (PHMSA)

COURTHOUSE NEWS SERVICE: Refinery Town decision may have huge ramifications for nation’s energy infrastructure

Repost from Courthouse News Service

Refinery Town Says No to Valero’s Oil-by-Rail Plan

By Matthew Renda, Friday, September 23, 2016 5:14 PM PT
Courthouse News Service

Courthouse News Service

BENICIA, Calif. (CN) — The City Council of a small city of 27,000 in California’s San Francisco Bay Area made a decision this week that may have huge ramifications for the nation’s energy infrastructure.

The five-person Benicia City Council voted unanimously to reject the Valero Crude Oil by Rail Project — a substantial setback for an oil and gas industry that operates several refineries nearby and setting an interesting precedent for local government’s assertion of jurisdiction over oil and gas routes.

The Valero Crude Oil by Rail Project would have allowed the oil company, which operates a large refinery in Benicia, to bring in crude oil by rail rather than exclusively by ship as the current arrangement dictates.

However, Benicia City Council ended a divisive community fight over the issue by finding the project is too dangerous for the community. The potential for contamination of the Sulphur Springs Creek and other watersheds in the event of a derailment proved too much for the council members to brook.

“I have seen stories piled on top of the other about what wasn’t working and what is particularly troubling is the lack of financial resources provided in the case of a catastrophic event,” Mayor Elizabeth Patterson said during deliberation on Wednesday night. “The money comes in too late, people have to go out of business and people have to move away.”

Leading up to the decision, several questions about whether the City Council even had jurisdiction hovered over the matter, with project proponents asserting that the federal government regulates rail and any decision made by the city government is preempted.

However, the Surface Transportation Board wrote the city on Wednesday before the meeting saying while the federal government does regulate interstate commerce and the railroad, the proposed $70 million rail depot was within the regulatory purview of the city.

While many local residents applauded the decision, environmental groups talked about its reverberations.

“This is a victory for the right of communities to say no to refineries’ dangerous oil train projects,” Ethan Buckner with the group Stand — formerly ForestEthics — said. “The federal government has said once and for all that there is nothing in federal law that prevents cities from denying these oil companies’ dangerous rail projects.”

In the series of meetings leading up to the decision, Valero touted its safety record and said the train project carried minimal risk and would bring jobs and economic activity to the region.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the City Council members have chosen to reject the crude by rail project,” Valero said in a statement. “At this time we are considering our options moving forward.”

Valero is the largest employer in the city, according to a recent comprehensive financial report compiled by the city’s finance team.

However, Patterson said the city’s general plan calls for a more diversified economy that relies heavily on small businesses, many of which would be hampered by the crude oil by rail project, particularly if something went wrong.

“We have to be less dependent on the refinery as we pivot into an era of attracting different kinds of businesses,” she said.

In 2014, trains transporting crude oil spilled about 57,000 gallons of the environmentally hazardous substance, more than any other year since the Pipeline and Hazardous Materials Safety Administration began keeping track in 1975.

The Columbia River, one of America’s most scenic rivers as it carves out the border between Oregon and Washington state, was spoiled by 42,000 gallons of oil when a train derailed due to a defective bolt on the track.

While many celebrated the possibly precedent-setting decision undertaken by the small city body, Councilman Mark Hughes resigned himself to certain litigation and its associated expense.

“Regardless of the decision tonight, I believe a lawsuit will be filed,” Hughes said.

So whether Benicia’s decision will be the first in an onslaught of local entities attempting to regulate elements of the oil and gas industry out of their communities or whether that will be left to federal and state authorities may be a matter for the courts to decide.

There are five major refineries in the Bay Area including the Valero refinery in Benicia: Chevron in Richmond, Tesoro outside of Concord, Phillips 66 in Rodeo and Shell in Martinez also operate and contribute significantly to both the local economy and air pollution.

The five refineries process about 800,000 barrels of crude oil per day and along with other oil and gas companies generate about $4.3 billion in local tax revenue, according to a 2014 study performed by Los Angeles County Economic Development Corporation and commissioned by the Western States Petroleum Association.

But Ralph Borrmann, public information officer for the Bay Area Air Quality Management District, told Courthouse News recently that the refineries are responsible for anywhere from 4 to 41 percent of the pollutants in the area, depending on which pollutant is identified.

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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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Feds Propose New Safety Oil Spill Response Plans and Information Sharing for High-Hazard Flammable Trains

By Roger Straw, July 20, 2016

Following are links to 4 sources with information about the PHMSA’s new proposed rules.  First from the PHMSA itself, then ThinkProgress, Bakken Magazine, and the California Association of Counties.

PHMSA Proposes New Safety Oil Spill Response Plans and Information Sharing for High-Hazard Flammable Trains

Pipeline and Hazardous Materials Safety Administration
By Artealia Gilliard, 7/13/16

WASHINGTON – The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), today announced proposed regulations for Oil Spill Response Plans and Information Sharing for High-Hazard Flammable Trains (HHFTs) to improve oil spill response readiness and mitigate effects of rail incidents involving petroleum oil. The proposed rule would update and clarify the comprehensive oil spill response plan requirements for certain trains, and would require railroads to share information with state and tribal emergency response commissions to improve community preparedness for potential accidents. The rule would also incorporate a test method for initial boiling point for flammable liquids into the hazardous materials regulations. (continued…)


New Federal Rules Proposed for High-Hazard Flammable Trains

Calif. State Ass’n of Counties
By Karen Keene, Cara Martinson, 7/21/16

Two federal agencies are working on new regulations related to so-called “oil trains” that have become more common recently. The goal is to improve oil spill response readiness and mitigate effects of rail incidents involving petroleum oil.

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA) announced proposed regulations for Oil Spill Response Plans and Information Sharing for High-Hazard Flammable Trains (HHFTs).

The proposed rule would update and clarify the comprehensive oil spill response plan requirements for certain trains, and would require railroads to share information with state and tribal emergency response commissions to improve community preparedness for potential accidents.

According to the PHMSA announcement… (continued…)

New Oil Train Rules Would Force Railroad Companies To Plan For The Worst

ClimateProgress
By Natasha Geiling, 7/14/16 3:23 PM

A little over a month after a Union Pacific train carrying Bakken crude oil derailed outside of the tiny Oregon known of Mosier, the Department of Transportation has announced new rules aimed at ensuring that communities near oil train routes have adequate information and help in the event of an oil derailment.

The new rules would, among other things, require railroad companies that ship oil by rail to come up with response plans in case of a worst-case scenario oil spill — something that most railroad companies are not currently required to do.  (continued…)


PHMSA proposes new rules for high-hazard, flammable trains

The Bakken Magazine
By Patrick C. Miller, 7/20/16

In response to train derailments involving flammable oil, the Pipeline and Hazardous Materials Safety Administration (PHMSA) last week announced proposed regulations for oil spill response plans and the sharing of information with state and tribal governments.

PHMSA said the new regulations—aimed at high-hazard flammable trains (HHFT)—are intended to improve oil spill response readiness and mitigate effects of rail incidents involving petroleum oil. The effort is being coordinated with the Federal Railroad Administration.

“The substantial surge in our country’s production of crude oil is creating a serious need for improved response and communication between railroads and the communities through which they travel,” said Therese Dominguez, PHMSA administrator. “This rule would help to ensure that railroads provide vital information to first responders to help them prepare for and respond to a derailment involving crude.”  (continued…)

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