Category Archives: Ethanol

Bakken Crude, CPC-1232, Crude By Rail, Derailment, DOT-111, Electronically controlled pneumatic braking (ECP), Ethanol, Federal Regulation (U.S.), Keystone XL, Media accuracy, Oil industry lobby, Oil spill, Pipeline transport, Rail vs. Pipeline, Tar sands crude, Train braking systems

The Flipside of Accuracy: NPR Report on Oil and Ethanol Train Derailments Full of Industry Talking Points

Repost from DeSmogBlog

The Flipside of Accuracy: NPR Report on Oil and Ethanol Train Derailments Full of Industry Talking Points

By Justin Mikulka • Wednesday, December 2, 2015 – 15:16
Derailment by Sarah Zarling
Image credit: Train derailment in Watertown, Wisconsin by Sarah Zarling.

On November 7th, a train carrying ethanol in DOT-111 tank cars derailed in Wisconsin, resulting in rail cars rupturing and a spill of 18,000 gallons of ethanol into the Mississippi River.

The next day, a train carrying Bakken crude oil derailed in a residential area in Watertown, Wisconsin, resulting in a spill of around 1,000 gallons of oil.

These two spills provide another stark reminder of the dangers of moving oil and ethanol along waterways and through residential areas.

It also apparently provided an opportunity for National Public Radio (NPR) to push multiple oil and rail industry talking points. And the article on NPR’s website notes NPR is sponsored by America’s Natural Gas (ANGA).

The Flipside of Accuracy

The blurb that introduces the story about the two rail incidents has a curious introduction.

Wis. Tanker Derailments Revive Debate Over Safest Way To Transport Crude

Some worry the Obama administration’s decision to reject the Keystone XL pipeline will lead to a significant increase in the amount of crude being shipped by rail. It can also be shipped by truck.

Who are these “some” that “worry” exactly? Apparently, based on this report, just NPR employees and the oil industry lobbyist quoted in the piece. It also would appear the only one “reviving the debate” about the safest way to transport crude oil is NPR.

The radio piece is introduced with NPR host Steve Inskeep saying that they are following a story on “the flipside of rejecting the Keystone pipeline,” even though the story has nothing to do with that.

He then goes on to talk about how oil is moving from Canada by rail. And it is. However, the two trains that derailed were 1) not coming from Canada,  2) not carrying Canadian oil, and 3) not headed to the Gulf Coast. So, a completely misleading setup, but one that pushes the industry talking point that all pipelines should be approved because they are safer than rail transport.

This false argument ignores the reality that the most common destinations for Bakken crude shipments are U.S. East Coast refineries that can only be accessed by rail.

Building the Keystone XL pipeline — which would’ve run from Alberta across the US border south to connect with an existing pipeline system in Nebraska and then either to Illinois refineries or to Cushing, Oklahoma to continue south to the Gulf Coast refineries and export terminals — does nothing to change that fact.

The Tank Cars

The NPR piece then moves on to the notorious oil tank cars and notes how “safety advocates” are concerned about these tank cars. Reporter David Schaper notes that the new oil-by-rail regulations require that “Within a couple of years [the tank cars] be strengthened,” giving an unrealistic picture of how soon this issue will be addressed.

The regulations allow versions of the DOT-111 tank cars to remain on the rails carrying crude oil — like the oil involved in Lac-Megantic — until 2023. So unless a “couple” now means eight, this wasn’t even close to accurate.

The piece also quotes Karl Alexy of the Federal Railroad Administration explaining how — if the first accident in Wisconsin involved the new updated CPC-1232 cars instead of the DOT-111s — the spill may have been prevented.

This ignores the fact that there have been seven oil train accidents this year that have resulted in spills, and in five of those, also massive fires. They all involved the newer CPC-1232 cars.

Modern Brakes and Myth Making

The current braking technology on oil trains was invented in the late 1800s. The new regulations announced in May require modern electronically controlled pneumatic (ECP) braking systems on certain oil trains by 2021 and all by 2023.

When the new regulations were announced, regulators included the following language: “This important, service-proven technology has been operated successfully for years in certain services in the United States, Australia, and elsewhere.”

As noted on DeSmog, the rail and oil industries lobbied against a requirement for ECP brakes in the new regulations, and since then have stated intentions to not let this regulation stand.

The industry has argued the ECP braking technology is “unproven,” which David Schaper repeats in this piece despite the regulators having described it as a “proven technology.”

Earlier this year, DeSmog contacted the Federal Railroad Administration (FRA) to clarify the agency’s position on ECPbrakes. And FRA was quite clear in its response.

“ECP brakes are a proven technology that will reduce the number of train derailments and keep more tank cars on the track if a train does derail. Delaying the adoption of ECP brakes seriously jeopardizes the citizens and communities along our nation’s freight network,” FRA communications director Matt Lehner told DeSmog.

A decade ago, the FRA commissioned consulting firm Booz Allen Hamilton to study the benefits and costs of ECPbrakes for the U.S. freight-rail industry. Released in 2006, the firm’s report (PDF) stated that the brakes are a “tested technology” that offers “major benefits” and could “significantly enhance” rail safety.

And yet, NPR repeats the industry talking point that the technology is unproven.

NPR also describes the braking systems as “expensive,” which is technically true. An Association of American Railroads piece opposing ECP brakes estimates a cost of $1.7 billion. That’s a lot of money, until you consider the cost of say, rebuilding downtown Lac-Megantic, which was just one oil-by-rail accident that could have been prevented byECP brakes.

Finally, NPR’s Schaper notes that because the industry says ECP brakes are unproven, this adds “uncertainty over the future of the oil train safety rules.”

The Concerned Mom

The one Wisconsin resident interviewed for the piece is Sarah Zarling. While not mentioned in the piece, Zarling became an oil train activist earlier this year over her concerns about the risks of the trains that ran so close to her home. Her concerns were obviously validated by this recent incident.

DeSmog contacted Zarling to comment on the NPR segment.

“I can’t even begin to talk about what they left out, honestly. I was so excited because he asked really good questions. He really does his homework,” Zarling explained. “So I really thought that this was going to be an opportunity to finally have a side of this story that is not told in the mainstream [media] finally be told and talked about. So the fact that I just came off as a mom cooking in her kitchen and heard this derailment is very disappointing.”

Reviving Debates, Delaying Safety

Sarah Zarling noted that she was impressed with David Schaper’s knowledge of the oil-by-rail issue and that he had “really done his homework.”

And yet the result is a segment pushing many of the top industry talking points, including setting the expectation that there is “uncertainty” that the new regulations will ever be implemented. Left out were any actual concerns or viewpoints from concerned citizen activists.

Some worry that the lack of regulation of the transportation of oil and ethanol by rail isn’t going to change because we “don’t have a high enough body count.”

As trains full of volatile Bakken oil continue to derail and the implementation of new safety regulations are many years away, the reality that at some point there will be “a high enough body count” becomes ever more likely.

Broken rail, Crude By Rail, Derailment, Ethanol, Federal Regulation (U.S.), High Hazard Flammable Trains (HHFTs), Rail industry lobby, Rail wear limits, Tank car retirement, Tank car retrofit, Track maintenance, Train speed, Train weight

AP: Railroads beat back new safety rules after derailments

Repost from the Boston Herald

AP: Railroads beat back new safety rules after derailments

By Matthew Brown and Michael Kunzelman, December 05, 2015
FILE -In this Monday, Feb. 23, 2015, file photo, clean up continues near Mount Carbon, W.Va., where a train derailed and sent a tanker with crude oil into the Kanawha River. A little-known truth about North American railroads: No rules govern when rail becomes too worn down. Since 2000, U.S. officials blamed rail wear as the direct cause of 111 derailments causing $11 million in damage. (AP Photo/Chris Tilley, File)

A pair of train derailments in 2012 that killed two people in Maryland and triggered a fiery explosion in Ohio exposed a little-known and unsettling truth about railroads in the U.S. and Canada: No rules govern when rail becomes too worn down to be used for hauling hazardous chemicals, thousands of tons of freight or myriad other products on almost 170,000 miles of track.

U.S. transportation officials moved to establish universal standards for when such steel gets replaced, but resistance from major freight railroads killed that bid, according to Associated Press interviews with U.S. and Canadian transportation officials, industry representatives and safety investigators.

Now, following yet another major accident linked to worn-out rails — 27 tanker cars carrying crude oil that derailed and exploded in West Virginia earlier this year — regulators are reviving the prospect of new rules for worn rails and vowing they won’t allow the industry to sideline their efforts.

“We try to look at absolutely every place where we can affect and improve safety,” said Federal Railroad Administrator Sarah Feinberg. “Track generally is the place that we’re focusing at the moment, and it’s clearly overdue. Rail head wear is one place in particular that we feel like needs to be addressed as soon as possible.”

An official announcement on the agency’s intentions to revisit rail wear is expected by the end of the year.

In the meantime, federal regulators haven’t taken the positive steps that they need to, said Ronald Goldman, an attorney for the families of the two 19-year-old women who died in a 2012 derailment outside Baltimore.

“It’s a lack of will, not a lack of ability, in my opinion,” he added.

Industry supporters argue that the seven major freight railroads in the U.S. and Canada are in the best position to know what is going on with their lines, including when they need to be replaced or have the maximum speeds for trains traveling on them lowered. They also note a long-term decline in accidents that has reduced the frequency of derailments by more than 40 percent since 2000.

All sides agree it’s difficult to pinpoint how many accidents are tied to worn rail. Since 2000, U.S. officials blamed rail wear as the direct cause of 111 derailments causing $11 million in damage.

That’s less than 1 percent of all accidents, yet it masks a broader safety dilemma: Years of massive loads rolling over a rail will exacerbate defects in the steel, such as cracks or fractures. Investigators ultimately list the defect as the cause of a derailment, but it might never have been a problem if the rail had not been worn down.

“Rail defects are internal and rail wear is external, and when external meets internal, that’s when problems may arise,” said John Zuspan of Track Guy Consultants, a Pennsylvania firm that offers track inspections, safety training and other services for railroads.

Two accident causes in particular have the strongest correlation with worn-out rails: “detail fractures” that result from fatigued metal, and “vertical splits” in the head of the rail, where it makes contact with a train’s wheels, according to the FRA.

Those problems caused a combined 1,200 derailments with $300 million in damages, three deaths and 29 people injured in the U.S. between 2000 and the present, according to accident records reviewed by the AP.

Among them was the July 2012 derailment of a Norfolk Southern Railway train hauling ethanol and other products through Columbus, Ohio. Seventeen cars derailed, including three hauling highly flammable ethanol that exploded into flames, triggering an evacuation of surrounding neighborhoods.

A month later, another accident occurred involving a CSX Transportation train hauling coal over a bridge along Main Street in Ellicott City, Maryland, outside Baltimore. Twenty-one cars derailed when the company’s worn-down rail split beneath the weight of the coal cars. The two college students sitting on the bridge died, crushed by thousands of pounds of spilled coal.

The victims’ families reached a settlement with CSX last year for undisclosed terms. Goldman, the families’ attorney, said he pressed federal officials for a forum that would allow his clients to testify about the issue, but “nothing really happened.”

A month after the CSX derailment, federal regulators asked the Rail Safety Advisory Committee — a panel created by the Railroad Administration to include the industry and others in fashioning safety rules — to craft new standards to reduce the risks of worn-down rail. The committee set up a 116-person working group to tackle the problem, made up of industry representatives, government officials, consultants, researchers and railroad worker unions.

The group included 55 representatives from the major freight railroads and their industry organization, the Association of American Railroads. The FRA had 14 seats at the table and their counterparts from Transport Canada had five.

Following several meetings in 2012 and 2013, the group — which required consensus before recommending action — agreed on voluntary guidance for companies to manage rail wear, but no new regulations.

“There was certainly a lot of pushback and a lot of political pressure put on FRA not to adopt regulations for rail wear,” said Richard Inclima, director of safety for the union that represents track inspectors and a member of the working group. “Rail wear limits were on the table. The industry raised a lot of arguments against rail wear limits.”

“The industry doesn’t want to be regulated,” he added. “That’s no secret.”

The railroads’ opposition was confirmed by others involved with the group’s work including from the National Transportation Safety Board, the FRA and Transport Canada.

Association of American Railroads spokesman Ed Greenberg said the railroads were “unaware of any science-based data supporting rail wear limits.”

NTSB investigator Richard Hipskind, who took part in the Ellicott City and Columbus accident investigations and later served on the rail wear working group, said more research would be needed to establish universal standards.

Railroads have their own internal standards for rail wear, and have replaced more than 30,000 miles of rail since 2010, according to reports submitted by the major railroads to the U.S Surface Transportation Board, a semiautonomous agency under the umbrella of the U.S. Department of Transportation.

Standards vary among railroads and are complicated by differences in how much weight a given line bears, whether it’s in a wet or dry climate, and if the line goes through mountains or involves lots of turns. Those variables can make the difference between well-worn rail that’s still safe and routes that poses a heightened safety hazard, according to industry experts and safety officials.

Greenberg said the industry takes an aggressive approach to identifying and removing defective or worn sections of rail.

“Each railroad has its distinct operating environment and operating conditions that would be factored into this,” Greenberg said. He added that the industry was now interested in “renewed dialogue” with the FRA on the topic.

The AP requested details on rail wear standards from each of the seven major freight railroads — BNSF Railway, Union Pacific, Canadian Pacific, CSX, Canadian National, Norfolk Southern and Kansas City Southern. They either refused the request or referred questions to the railroad association, which also declined to release the standards.

Public attention to train derailments increased sharply after July 2013, when an out-of-control oil train derailed and exploded in Lac-Megantic, Quebec, killing 47 people. One of the most significant changes to emerge from that and other accidents involving crude and ethanol was a mandate for companies to phase out or upgrade tens of thousands of tank cars that are prone to rupture.

Those are important changes, said James Horbay, a rail safety engineer with Transport Canada. But what causes trains to come off the tracks in the first place needs to be resolved, he said.

“If you crash an airplane, are you going to say, ‘Let’s build an airplane that’s not going to fall apart when it hits the ground?'” he asked. “Whether rail wear is something that should be looked at is a good question to ask. You’re going right to the cause now.”

Matthew Brown reported from Billings, Montana.  Michael Kunzelman reported from Baton Rouge, Louisiana. 
Bakken Crude, Crude By Rail, Derailment, Ethanol, Oil prices, Spill, Tar sands crude

How Cheap Crude Stalled America’s Booming Oil Trains

Repost from Bloomberg Business

How Cheap Crude Stalled America’s Booming Oil Trains

It was a record year for oil train mishaps—and the year crude-by-rail hit the brakes.

By Matthew Philips , December 2, 2015 – 4:00 AM PST

 

David Wilson/Flickr

It’s been several months since an oil train accident grabbed big headlines—but not because there haven’t been any. A single weekend in November saw two trains derail in Wisconsin. The first spilled about 20,000 gallons of ethanol into the Mississippi River, followed a day later by a spill of about 1,000 gallons of North Dakota Bakken crude.

This year has already been the costliest by far for crude train explosions. Derailments in 2015 have caused $29.7 million in damage, according to data from the U.S. Department of Transportation, a huge increase from $7.5 million in 2014. Most of this year’s price tag can be attributed to two crashes within a three-week span. The Feb. 16 derailment of a CSX train in West Virginia triggered a massive explosion near a cluster of homes along the Kanawha River and led to more than $23 million in damage. A BNSF train that derailed and exploded in Illinois on March 5 caused an additional $5.5 million in damage. Both trains were carrying highly explosive crude from North Dakota.

The lesser-noticed recent accidents haven’t come with explosions or towering fireballs. At least some of the ruptured tank cars were the newer-model CPC-1232, which are supposed to be less likely to split open. The U.S. and Canada earlier this year announced stricter tank car standards, mandating further improvements in the future. Those rules will cost companies—mostly those that ship crude—an estimated $2.5 billion from 2015 to 2034; government estimates suggest the benefits will range from $912 million to $2.9 billion, presumably from fewer accidents.

But even without changing safety standards, there’s reason to suspect that costly train accidents will decline. While 2015 will go down as the worst year for crude train disasters, it’s also shaping up to be the year crude-by-rail hit the brakes. The crash in prices has slowed activity in the oilpatch and reduced the amount of petroleum riding the rails. The number of train carloads carrying petroleum has fallen 30 percent through Nov. 20 since peaking in December 2014, according to the American Association of Railroads. The monthly data on crude-by-rail shipments kept by the U.S. government lags a few months behind, but as of September those shipments had dropped 21 percent from their peak in January 2015.

Rail shipments of petroleum are down 30 percent in 2015.
Rail shipments of petroleum are down 30 percent in 2015.

This marks the first sustained decline in crude-by-rail traffic since it took off in 2009, jumping an astounding 5,000 percent in a little more than five years. Putting oil on trains was never the most efficient way to move it. It’s expensive and slow, not to mention dangerous. But in the places where the shale boom has unlocked the biggest amounts of crude, trains were often the only option.

That’s especially true in North Dakota, home to the Bakken formation, where oil production has risen from about 200,000 barrels a day to more than 1 million. By 2013, 71 percent of Bakken crude was transported by train. North Dakota has almost single-handedly driven the crude-by-rail boom, accounting for 80 percent of all oil train traffic in the U.S. as of earlier this year.

Since the third quarter of 2014, however, two pipeline projects have been completed in North Dakota, increasing the amount of oil that can be piped out of the state by nearly 200,000 barrels a day. There’s also a new refinery that opened earlier this year, reducing the amount of oil that needs to be railed down to the large refineries outside Chicago. Since 2011, North Dakota’s combined pipeline and refining capacity has doubled, from 400,000 barrels a day to 800,000. By the end of 2017 it’s slated to double again, to 1.5 million barrels a day.

Oil traders now have options for how to move oil out of North Dakota. But there’s another reason they’re pulling back on the amount they put on the rails: It’s not as profitable as it used to be. Early on, the shale boom created an enormous glut of crude that ended up stuck in the middle of the country. Getting it to market meant putting it on trucks and trains and barges, which was expensive and slow. So the price of U.S. crude fell compared with international prices. By October 2011 a barrel of U.S. oil pegged to the West Texas Intermediate contract that trades in New York was $27 cheaper than an equivalent barrel priced against the Brent contract trading in London.

That differential led to one of the biggest arbitrage opportunities the oil market has ever seen. Savvy traders could buy cheap oil in the middle of the U.S., find a way to move it, and sell it for higher prices along the coasts, where the market is more exposed to Brent prices. The price to send a barrel of oil by rail from North Dakota down to the U.S. Gulf Coast was about $9 or $10; the rest became profit. Over the past few years, millions of barrels of oil in North Dakota got loaded onto trains bound for the East Coast and the Gulf.

But as the U.S. oil infrastructure reoriented around the shale boom and pipelines began moving domestic oil to the coasts, instead of moving imports into the heartland, the spread between WTI and Brent has narrowed. The crash in global oil prices has closed the gap even further, to the point that a barrel of WTI crude is now just $3 cheaper than a barrel of Brent. That’s not enough to make money if you have to ship it hundreds of miles on a train. Refineries in Texas and Louisiana have switched from railing oil in from North Dakota to importing more crude from West Africa.

As a result, there’s now a glut of tank cars on the market. According to energy research firm Genscape, lease rates have fallen from $2,500 a month to about $500. Big refining companies, which are among the largest crude-by-rail shippers, are shifting their strategy and trying to lock in prices for three and four years rather than just a few months.

David Vernon, a transportation analyst at Sanford C. Bernstein, thinks crude-by-rail traffic has peaked. “The heyday is over,” he said. “The high-water mark has likely been set in terms of volumes.”

Canada’s growing oil production is expected to outpace its capacity of new pipelines.
Canada’s growing oil production is expected to outpace its capacity of new pipelines.
Citigroup

Canada, however, could be a different story. Although the country’s oil sands industry is struggling against low prices, there are projects currently under construction that will be finished over the next few years. That extra oil will have to move somehow, and as of now, trains are looking like a strong candidate. Canada’s oil production is forecast to grow faster than pipelines can be built, especially now that the Keystone XL is officially dead. So while the number of trains loaded with crude crisscrossing the U.S. may diminish in the next few years, rail may remain a viable option in Canada.

 

 

Bakken Crude, Crude By Rail, Derailment, DOT-111, Emergency Readiness & Response, Ethanol, Explosion, Fire, Keep it in the ground, Massive increase in crude-by-rail, Pipeline transport, Spill, Tar sands crude

Three derailments are three too many

Repost from the Winona Post

Three derailments are three too many

By Kat Eng, Honor the Earth volunteer, 11/23/2015
Train derailment, Alma, Wisconsin << CBS Minnesota

It’s hard to believe Andy Cummings, spokesperson for Canadian Pacific Railway, when he says CP Rail feels it is “absolutely” safe to resume the transportation of oil in the wake of the three derailments last week in Wisconsin.

The first derailed (BNSF) train hurled 32 cars off the tracks outside of Alma, Wis., pouring more than 18,000 gallons of ethanol into the Mississippi River upstream of Winona. The Environmental Protection Agency (EPA) report notes that ethanol (denatured alcohol) is flammable and toxic to aquatic organisms and human life — and it’s water soluble. Though the EPA and Wisconsin DNR admitted they could not remove the toxic product from the water; site coordinator Andy Maguire claims that since they cannot detect concentrated areas of ethanol, it is not negatively impacting the surrounding aquatic life. This was the third derailment on the Upper Mississippi River Wildlife Refuge in the last nine months, according to the community advocacy group Citizens Acting for Rail Safety (CARS).

The next day, 13 DOT-111 tankers with upgraded safety features derailed in Watertown, Wis., spilling crude oil and forcing residents to evacuate from properties along the CP tracks. Four days later, another train derailed a mere 400 feet from that spill site.

Train derailment, Watertown, Wisconsin << fox6now.com

How can we possibly feel safe with ever-greater amounts of toxic products hurtling down inadequately maintained infrastructure every single day? A report released last week by the Waterkeeper Alliance found that “[s]ince 2008, oil train traffic has increased over 5,000 percent along rail routes … There has also been a surge in the number of oil train derailments, spills, fires, and explosions. More oil was spilled from trains in 2013 than in the previous 40 years combined.”

Emergency management has become routine rather than remedial. Teams show up, “contain” the spills, replace some track, and the trains roll on. With forecasts that Canadian oil production will expand by 60,000 barrels per day this year, and an additional 90,000 barrels per day in 2016, toxic rail traffic shows no signs of decreasing.

Energy giant Enbridge has taken this as its cue to size up northern Minnesota and plot pipeline (through Ojibwe tribal lands and the largest wild rice bed in the world) between the North Dakota Bakken oil fields and refineries in Wisconsin and Illinois. Its momentum depends on us puzzling over the false dichotomy of choosing to move oil by pipeline or by rail. At the June 3 Public Utilities Commission hearing, it admitted the proposed Sandpiper/Line 3 pipeline corridor will not alleviate railway congestion but rather potentially reduce “future traffic.” It uses this assumption of unregulated growth to make people today think they have no choice but to sell out the generations of tomorrow.

Proponents of the line want us to choose our poison: will it be more explosive trains or more explosive trains and leaky pipelines? What if an oil tanker derailed on Huff Street in the middle of rush-hour traffic and we became the next Lac-Mégantic (where an oil train exploded downtown killing 47 people)? What if a hard-to-access pipeline spewed fracked crude oil into the headwaters of the Mississippi River?

The real harm is in the delusion that we should accept and live with these risks. It is delusional that despite repeated derailments and toxic spills, business should continue as usual. It is delusional to think the oil and rail industry have our communities’ best interests at heart.

We have the vision, the intelligence, and the technology to choose a way forward that does not compromise our resources for the generations to come. As Winona Laduke says, “I want an elegant transition. I want to walk out of my tepee, an elegant indigenous design, into a Tesla, into an electric car, an elegant western design.” Fossil fuels are history. We need to keep them in the ground and pursue sustainable energy alternatives or risk destroying the water and habitat on which all our lives depend.