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Latest ‘bomb train’ incident predictable

Repost from The Hawkeye, Burlington, Iowa

Latest ‘bomb train’ incident predictable

By Kathleen Sloan, May 11, 2015

BNSF Railway carried the Hess Corp.-owned rail car, which carried highly volatile Bakken crude oil from North Dakota and appears to have followed the law.

President Barack Obama weighed and rejected using executive authority to curb the transport of this explosive crude oil, rich in butane and propane, because he decided North Dakota state law should be the controlling authority. But the law North Dakota passed in December and went into effect just last month, only requires less than 13.7 pounds-per-square-inch vapor pressure inside the tanker, despite explosions at lower pressures.

That’s almost 40 percent more than the average vapor pressure among the 63 tanker cars that exploded July 6, 2013, at Lac-Megantic, Quebec. That disaster killed 47 people, some of whom could not be found because they were vaporized, and is driving recent federal and state rail car regulations.

According to an Albany, N.Y., Times Union investigation, the average vapor pressure among 72 tanker cars in the Lac-Megantic train was 10 psi.

Hess Corp. tested the crude just before loading at 10.8 psi, according to Associated Press reporters Matthew Brown and Blake Nicholson, in their follow-up story about the derailment at Heimdal, N.D.

While federal regulations only require flash point and boiling point to be measured, North Dakota now requires vapor pressure be measured. But measuring and labeling the danger does not make transporting it safe.

The U.S. Department of Transportation’s two divisions, the Federal Railroad Administration and the Pipeline and Hazardous Materials Safety Administration, are the regulating authorities overseeing railway transport of crude oil. Generally, the FRA is responsible for train car and rail safety, while the PHMSA inspects the proper testing of the oil. That determines the oil’s proper classification and its proper “packaging” in pressurized cars and their labeling.

Other PHMSA duties include checking shipping documents to see if the shipper has self-certified the procedures properly as well as employee safety and handling training.

The U.S. DOT initiated “Operation Safe Delivery” in August 2013, in reaction to the Lac-Megantic incident, although the Bakken oil boom dates to 2008.

A federal rule-making process also began in August 2013. Those rules went into effect last week.

PHMSA, as part of Operation Safe Delivery, took several samples of Bakken crude oil from rail-loading facilities, storage tanks and pipelines used to load rail cars. Several also were collected from cargo tanks.

The first set of samples were taken August through November 2013 and the second set February through May 2014.

The first set showed psi vapor pressure among a dozen samples ranging from 7.7 psi to 11.75 psi.

A second set of 88 samples showed vapor pressure ranging from 10.1 psi to 15.1, with the average at about 12 psi.

Only six of the 88 samples were at or exceeded North Dakota’s 13.7 psi. This means shippers are not required to treat most of the crude generated from the Bakken oil formation before loading it onto cars.

The “Operation Safe Delivery Update,” available on the PHMSA website, also gives test results for propane, sulphur, hydrogen sulfide, methane and butane content.

The conclusions in the Operations Safe Delivery Update, which was not dated, are:

“Bakken crude’s high volatility level — a relative measure of a specific material’s tendency to vaporize — is indicated by tests concluding that it is a ‘light’ crude oil with a high gas content, a low flash point, a low boiling point and high vapor pressure …

“Given Bakken crude oil’s volatility, there is an increased risk of a significant incident involving this material due to the significant volume that is transported, the routes and the extremely long distances it is moving by rail… These trains often travel over a thousand miles from the Bakken region to refinery locations along the coasts…”

And although the report states, “PHMSA and FRA plan to continue … to work with the regulated community to ensure the safe transportation of crude oil across the nation,” the new rules that went into effect last week did nothing about regulating vapor pressure.

Instead, the rules phase out weaker and older pressurized tanker cars, the DOT-111, by 2020, and phase in CPC-1232 cars.

So far, at least four derailments of CPC-1232 cars carrying Bakken oil have exploded:

    • March 5 in Galena, Ill.;
    • Feb. 1 in Mount Carbon, W.Va.;
    • Feb. 15 near Timmons, Ontario; and
    • Last year in Lynchburg, Va.

Experts in various news articles and public comment submitted during the federal rule-making stated the way to make transport safe is to refine the crude before shipping. That would involve building refineries near the extraction point, which experts pointed out would be expensive.

In a Sept. 26, 2014, story, Railway Age contributing editor David Thomas applauded North Dakota for “using state jurisdiction over natural resources to fill the vacuum created by the federal government’s abdication of its constitutional responsibility for rail safety and hazardous materials.”

But Thomas admitted the state law on crude treatment would reduce the danger only slightly.

“Simply put, North Dakotan crude will have to be lightly pressure-cooked to boil off a fraction of the volatile ‘light ends’ before shipment,” Thomas said. “This conditioning lowers the ignition temperature of crude oil — but not by much. It leaves in solution most of the culprit gases, including butane and propane. Even the industry itself says conditioning would not make Bakken crude meaningfully safer for transportation, though it would make the state’s crude more consistent from one well to another.”

“The only solution for safety is stabilization, which evaporates and re-liquifies nearly all of the petroleum gases for separate delivery to refiners,” Thomas said.

He points out owners and shippers in the Eagle Fork formation in Texas, voluntarily stabilize their crude before shipping. It’s more volatile than Bakken crude.

“So far, stabilized Eagle Fork crude has been transported by tank car as far away as Quebec City, without the fireballs that have plagued the shipment of unstabilized Bakken crude,” Thomas said. “The Texan gases are liquefied and piped underground to the state’s Gulf Coast petrochemical complex for processing and sale.”

Keeping the volatile gases in solution during shipping, while dangerous, is profitable.

Thomas said North Dakota has no nearby petrochemical plants, which “explains the oil industry’s collective decision not to extract the otherwise commercially valuable gases from North Dakota crude oil. Instead, most of the explosive gases remain dissolved in the unstabilized Bakken oil for extraction after delivery to distant refineries.”

The PHMSA, however, requires butane and propane be removed from the crude before it is injected into pipelines, Thomas said.

Comments to the federal rule-making pointed out Bakken oil is made more dangerous still by corrosive chemicals used in the fracking process. The crude is further treated with chemicals to make the molasses-like consistency easier to pump.

Severe corrosion to the inner surface of the tanker cars, manway covers, valves and fittings have been recorded in various incidents, commentators said.

The lack of federal regulations is not the only problem. Enforcement is minimal because there are only 56 inspectors, according to PHMSA spokesman Gordon Delcambre.

Ten of those have been assigned to the North Dakota Bakken oil formation region, he said.

In the PHMSA 2013 annual enforcement report, 151 cases were prosecuted and 312 civil penalty tickets were issued, resulting in $1.87 million in fines. The largest fine was $120,200.

The report did not mention what the hazardous material was in 173 of the 463 enforcement actions.

Only one enforcement action appeared to result from an inspection of “fuel oil” transport, which resulted in a $975 fine for incorrect “packaging” and failure to prove, through documents, employees had been given the required safety and hazardous material handling training.

According to BNSF Railway’s report to the state Homeland Security and Emergency Management, required by a U.S. DOT emergency order since May 2014, a range of zero-to-six trains carrying at least 1 million gallons (30,000 gallons per car or about 35 cars or more) pass through Burlington each week.

Energy, Transportation departments to study volatility of oil moved by rail

Repost from McClatchyDC

Energy, Transportation departments to study volatility of oil moved by rail

By Curtis Tate, April 28, 2015
The federal government will conduct a two-year study of how crude oil volatility affects the commodity’s behavior in train derailments, Energy Secretary Ernest Moniz told a Senate panel Tuesday.The Energy Department will coordinate the study with the Department of Transportation, Moniz told the Senate Energy and Natural Resources Committee.

After a series of fiery train derailments, the Transportation Department concluded early last year that light, sweet crude oil from North Dakota’s Bakken region is more volatile than other kinds.

But derailments involving ethanol and other types of crude oil have cast doubt on whether Bakken is likely to react more severely than other flammable liquids transported by rail.

The petroleum industry has been citing its own studies and a recent report from the Energy Department’s Sandia National Laboratory to support its position that there’s no difference. But it’s clear that more crude oil is moving by rail, and an increase in serious accidents has come with that increased volume.

Moniz said the Sandia report was “the most comprehensive literature survey in terms of properties of different oils” but showed the need for more research to determine their relevance in train derailments.

The joint Energy-Transportation study would look at other kinds of crude moving by rail, such as light crude from west Texas and heavy crude from western Canada.

Sen. Maria Cantwell, D-Wash., a member of the Senate Energy panel who requested the departments work together on a study, noted that there had been four derailments of oil trains in the U.S. and Canada since the beginning of the year.

“A number of high-profile incidents have underscored major safety concerns,” she said.

On April 1, North Dakota began setting vapor pressure limits for crude oil loaded in tank cars at no more than 13.7 pounds per square inch.

But the crude oil tested in many serious derailments had a lower vapor pressure than the new standard…..  [MORE]

Quake experts think fracking maps may predict future temblors

Repost from the San Antonio Express-News 

Quake experts think fracking maps may predict future temblors

Experts creating models to gauge future activity

By Sean Cockerham, Tribune News Service Washington Bureau, April 23, 2015 10:02pm
Chad Devereaux works to clear up bricks that fell from three sides of his in-laws' home in Sparks, Okla, after two earthquakes hit the area in less than 24 hours in 2011. A government report released Thursday found that a dozen areas in the United States have been shaken in recent years by small earthquakes triggered by oil and gas drilling, Photo: Associated Press File Photo / AP
Chad Devereaux works to clear up bricks that fell from three sides of his in-laws’ home in Sparks, Okla, after two earthquakes hit the area in less than 24 hours in 2011. A government report released Thursday found that a dozen areas in the United States have been shaken in recent years by small earthquakes triggered by oil and gas drilling, Photo: Associated Press File Photo / AP

WASHINGTON — As earthquakes triggered by oil and gas operations shake the heartland, the federal government is scrambling to predict how strong the quakes will get and where they’ll strike.

The U.S. Geological Survey released maps Thursday that show 17 areas in eight states with increased rates of manmade earthquakes, including places such as North Texas, southern Kansas and Oklahoma where earthquakes were rare before fracking sparked a U.S. drilling boom in recent years.

Seismologists are using the maps in an attempt to create models that can predict the future of such quakes.

“These earthquakes are occurring at a higher rate than ever before and pose a much greater risk to people living nearby,” said Mark Petersen, chief of the USGS national seismic hazard modeling project.

Studies show the earthquakes primarily are caused by the injection of drilling wastewater from oil and gas operations into disposal wells, said Bill Ellsworth, a seismologist with the USGS.

The fact there have been many small earthquakes “raises the likelihood of larger earthquakes,” Ellsworth said. While most of the quakes have been modest, a 5.7-magnitude earthquake near Prague, Oklahoma, in 2011 destroyed 14 homes and was felt as far away as Milwaukee.

The USGS is working on a model, to be released at the end of the year, that can predict the hazards a year in advance.

People who live in areas with manmade quakes can use the forecasting information to upgrade structures to be safer and in order to learn what they should do in case of an earthquake, he said.

“Many of these earthquakes are now occurring in areas where people have not been familiar with earthquakes in the past,” Ellsworth said. “So there’s just a lot of basic education that is worth doing.”

The USGS maps show the earthquakes are mostly in Oklahoma, Texas and Kansas, but also Colorado, Ohio, Arkansas, Alabama and New Mexico.

“What we’ve seen is very, very large volumes of wastewater being injected over many different areas in the midcontinent, Oklahoma principally but also Kansas, Texas and other states,” Ellsworth said.

Fracking produces large amounts of wastewater, which oil and gas companies often pump deep underground as an economical way to dispose of it without contaminating fresh water. That raises the pressure underground and can effectively lubricate fault lines, weakening them and causing earthquakes.

While there was some initial skepticism, it’s become increasingly accepted that oil and gas activities are behind the surge in American earthquakes since 2008. Southern Methodist University researchers said in a research paper this week that these activities were the most likely cause of a rash of earthquakes that hit an area northwest of Fort Worth, Texas, from November 2013 to January 2014.

Oklahoma was rocked with nearly 600 earthquakes big enough for people to easily feel last year.

The Kansas Corporation Commission, a state regulatory agency, has responded to the earthquakes there with new rules that limit how much saltwater drilling waste can be injected underground. Ellsworth said seismic researchers were watching Kansas closely to see whether the new rules reduced the quakes.

U.S. exporting more crude oil to Canada

Repost from Bloomberg Business News

Canadian Refiners Set to Buy More U.S. Oil With Wider Discount

By Robert Tuttle, March 18, 2015 4:14 PM PDT 

(Bloomberg) — Cheaper North American oil is poised to replace West African and Middle East cargoes at eastern Canadian refineries with U.S. crude prices at the lowest level compared with the international benchmark in 14 months.

Imports to Canada from outside North America averaged 244,089 barrels a day this month through March 15, down 27 percent from a year earlier, according to New York-based ClipperData, which tracks tanker shipments.

Canada, the world’s fifth-largest oil supplier, produces most of its oil in the western province of Alberta and exports it south to the U.S. A lack of pipelines means Canada’s eastern refineries depend on imports by tanker and train.

U.S. export “volumes have been growing pretty exponentially,” Katherine Spector, a commodities strategist at CIBC World Markets Inc. in New York, said by phone Wednesday. U.S. oil is “going to Eastern Canadian refineries and displacing waterborne light crude.”

U.S. crude oil exports averaged 478,000 barrels a day the week ended March 13, up almost eightfold from a year earlier, preliminary data from the Energy Information Administration show. Canada, the only country that U.S. producers can export to without restrictions, receives the bulk of the shipments.

Oil has flowed north as West Texas Intermediate crude’s discount to Brent averaged $9.43 a barrel this month from $2.41 in January as U.S. stockpiles rose to a 458.5 million barrels, the most in decades.

The U.S. displaced Algeria in 2013 as Canada’s biggest source of imported oil and accounted for about half of imports in the first eight months of last year, the country’s National Energy Board said in a November report. The trend was driven by availability of tight oil from North Dakota as well as Texas, New Mexico and Colorado.

Bakken crude from North Dakota traded at about $40 a barrel today versus $55 for oil from West Africa, according to data compiled by Bloomberg.

“Especially with lower prices, a difference of a dollar or so in transport costs is significant,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone Wednesday. “If you can bring it in from the U.S. rather than West Africa, it’s a little closer and cheaper.”

Expanded rail capacity has linked U.S. oil producers with Canada, Spector said. The movement parallels the movement of Bakken crude to U.S. East Coast by rail, which cut the region’s imports of crude from Nigeria by half in two years and from Algeria by 81 percent, EIA data show.

“The maritime provinces of eastern Canada do resemble the U.S. East Coast in many ways,” Antoine Halff, head of the International Energy Agency’s oil industry and markets division, said in a March 18 phone interview. “When Bakken crude started being railed to the U.S. East Coast in significant quantities, it displaced imports from West Africa.”