Tag Archives: Safeco Field

Oil Train Insurance: Washington State and the Billion Dollar Disaster

Repost from STAND

Oil Train Insurance: Washington State and the Billion Dollar Disaster

By Alex Ramel, extreme oil campaign field director, March 28, 2016
WA Dept of Ecology

Washington is now one of only two states that requires railroads to disclose whether they have sufficient insurance to cover a “reasonable worst case spill.” This is a step in the right direction. But the new rule falls far short of requiring enough insurance to cover a catastrophic oil train derailment, spill and explosion.

The new State rule requires that any major rail company operating in Washington — today, only BNSF — report whether they have sufficient financial resources or insurance to cover the costs of an oil train spill of around $700 million (smaller railroads have smaller requirements). That’s better than nothing, which is what most states have. But it’s not nearly enough.

The deadly Lac Megantic oil train disaster cost more than $1 billion (see page 98 in the federal regulations) and the cost of rebuilding is more like $2.7 billion. As terrible as the Lac Megantic disaster was, and it was a heartbreaking catastrophe, a worst case oil train disaster in Washington could be even much worse.

Washington State’s failure to require railroads to pay the full and true cost of doing business in Washington is an even greater concern if it becomes a precedent in other states. The confusing, undefined phrase “reasonable worst case” appears to have already been copied into a proposed bill in the New York State Assembly.

The federal Pipeline and Hazardous Materials Safety Administration suggested that a disaster inside a major city could cost $12.6 billion (see page 110). What could a $12 billion derailment look like? BNSF runs oil trains within 20 yards of Safeco Field in downtown Seattle during Mariners games when fans are in the stands.

Insurance monetizes risk, assigning a direct cost to risky behavior and assigning financial value to safety. What would your homeowners insurance company do if you wanted to unload oil tanker trucks in your driveway? They would raise your rates (astronomically) or cancel your policy. Railroads, which operate without requirements to carry adequate insurance, make decisions about assuming risk without an important financial feedback loop. If railroads had to be properly insured for the risk to life, property, and the environment from oil trains, there would be far fewer or zero oil trains.

Last year BNSF was fined for 14 spills and leaks and for failing to report problems along the track in Washington. The summer before that three oil tank cars tipped over in downtown Seattle. Over the last two years four BNSF oil trains have derailed and either spilled or exploded in Casselton, ND, Galena, IL, Heimdal, ND, and Culbertson, MT. Under usual circumstances a safety record like that should lead to a very awkward conversation with an insurance agent. And an already expensive, high-risk policy should get even more expensive. But BNSF doesn’t seem to carry enough insurance to cover the real cost of an oil train disaster, and they don’t seem to care.

BNSF has already intimated that they don’t think that the state should be able to require insurance, and it is likely that the company will challenge the rule. The railroad wants the cost of insurance and the calculation of possible damages kept off of their books. That means that in addition to living with the risk, the public is also asked to shoulder the cost. That’s the most unreasonable proposition yet.

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Did a “Bomb” Train Full of Volatile Crude Oil Pass By Tuesday’s Seattle Mariners Game?

Repost from The Stranger, Seattle, WA

Did a “Bomb” Train Full of Volatile Crude Oil Pass By Tuesday’s Mariners Game?

By Sydney Brownstone, Apr 23, 2015 at 1:50 pm
This was taken at around 8:15 p.m. at Tuesday nights Mariners game.
This was taken at around 8:15 p.m. at Tuesday night’s Mariners game. Courtesy of David Perk

Maaaaaybe it wasn’t the thrill he was looking for.

A spectator at Tuesday night’s Mariners game caught a glimpse of what appeared to be a crude-oil unit train moving past Safeco Field.

The attendee took video and photos while taking a walk behind the scoreboard, but didn’t want to be credited for them. David Perk, a friend of the photographer’s who was also at the game, passed along the images on that person’s behalf. Perk, a volunteer with the Washington Environmental Council, went to the game because of the ticket special to honor local volunteering efforts.

Perk says he first spotted the train while driving to the game from Renton. “I was wondering if it was going to roll north while having our tailgate party on the side of the tracks,” Perk said. Nearly 14,000 people attended the game, according to Seattle Mariners spokesperson Rebecca Hale.

Burlington Northern Santa Fe wouldn’t confirm whether the train was carrying crude, but the Sightline Institute’s Eric de Place said that the train was “almost certainly a unit train of crude.” Unit trains often contain a hundred or more tank cars, and can measure as long as a mile. The train was also heading north, which means that it was likely full and heading for refineries near Anacortes or Ferndale.

Unit trains moving crude from the shale oil fields of North Dakota (also known as “bomb trains”) carry a unique risk of derailing and exploding. The US Department of Transportation has estimated that an average of 10 crude-oil trains will derail a year over the next two decades. The DOT has thus far failed to finalize safety rules for crude-by-rail, but did order a 40-mile-per-hour speed limit on unit trains through populated areas last week. On April 14, the Washington State House also passed an oil transportation safety bill sponsored by Representative Jessyn Farrell (D-Seattle).

Much of downtown Seattle falls within the crude-oil route’s half-mile blast zone, including Safeco Field, which sits right next to the railroad. But railroads aren’t required to share crude-oil routes with the public. Earlier this month, Seattle’s new fire chief, Howard Scoggins, told reporters that a derailment in Seattle would “exhaust our resources and require assistance from communities around us.”

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