Bloomberg: Feds announce weak “emergency order”

Repost from Bloomberg Business Week

The Government Takes a Weak Stab at Making Oil Trains Safer

By Matthew Philips  |  May 08, 2014

On Wednesday, a week after a train loaded with crude oil from North Dakota exploded in downtown Lynchburg, Va., dumping 30,000 gallons of oil into the James River, the Department of Transportation announced two moves to try to keep this from happening so frequently. It’s doubtful that either will make much of a difference in preventing what’s become a major safety hazard in the U.S.

Under a new “emergency order,” the DOT said it’s now going to require any railroad that ships a large amount of crude to tell state emergency responders what it’s up to. That includes telling them how much crude it’s hauling and the exact route it intends to take. Railroads also now have to provide local emergency responders with contact information of at least one person who’s familiar with the load, in case, you know the local fire chief needs to find out what the heck’s inside that overturned tank car that just unleashed a 400-foot fireball.

This emergency order applies to any train carrying more than 1 million gallons of crude specifically from the Bakken region of North Dakota. That’s essentially all the trains hauling crude across the U.S. right now. Since there aren’t enough pipelines connecting the oil fields in North Dakota, most of the nearly 1 million barrels the state produces leaves every day by train. It takes about 35 tank cars to haul 1 million gallons. Most of these oil trains are 100 cars long and stretch over a mile.

The reason this applies only to Bakken crude is twofold. First, that’s most of what’s being hauled. Second, the oil coming out of the Bakken is unlike any other kind that’s out there. It’s light, sweet, and superflammable, with high levels of propane and methane. That makes it almost impossible for local first responders to put out the fires that erupt when these trains derail. Sometimes, their only recourse is to evacuate the area and watch the tank cars burn.

The amount of oil moving by train each month has risen by nearly 400 percent since 2009Data: American Association of RailroadsThe amount of oil moving by train each month has risen by nearly 400 percent since 2009

On top of the emergency order, the DOT on Wednesday issued a “safety advisory,” in which it “strongly urg[ed]” the oil companies shipping Bakken crude on trains to use the best tank cars they can. This advisory came from the Federal Railroad Administration, a division of DOT. How that differs from the organization’s normal position on safety isn’t clear. But it seems not unlike the FAA, after a rash of plane crashes, “strongly urging” airlines to buy the safest kind of planes they can and stop using old, outclassed ones.

The old, outclassed ones in this case is the DOT-111 model of tank car that’s been involved in most of the crude train explosions, including the one last summer in Quebec that killed 47 people. Although it’s widely deemed unfit for transporting crude, the DOT-111 is used to move the vast majority of oil sent by train in the U.S. It’s also the same classification of tank car that’s used to haul agricultural commodities, such as corn or soybeans.

According to the investment bank Cowen Group, about 100,000 DOT-111 tank cars in the U.S. are used to haul flammables such as crude and ethanol. About three-quarters of them may require retrofitting or a gradual phaseout. While some energy companies, such as Tesoro, are already choosing to phase out DOT-111s in their North Dakota operations, most companies are sticking with them until they’re forced to change. A complicating factor is that it’s not even clear, given how volatile Bakken crude is, whether using safer, better-reinforced cars would even help keep a derailed train from exploding.

The DOT’s safety advisory urging the use of better tank cars is a weaker step than what Canadian regulators did two weeks ago, when they aggressively moved to phase out all DOT-111s from hauling crude within three years. In an e-mail, a DOT spokesperson wrote that the agency is moving as quickly as it can to update its tank car regulations and that the safety advisory is a step it can take immediately. Last week, DOT Secretary Anthony Foxx sent to the White House a list of options on how to make crude-by-rail safer.

 
Philips is an associate editor for Bloomberg Businessweek in New York.

What they are thinking and planning: Crude By Rail Conference & Expo

Repost from Railway Age
[Editor: A Benicia Independent reader sent me an email notification of this Conference, suggesting that it might be instructive for one of us to attend.  Anyone with time and money available to go?  – RS]

June 12 & 13, 2014  |  Key Bridge Marriott  |  Arlington, VA
· Moving CBR Profitably — and Safely ·

Crude by Rail (CBR) is a rapidly growing source of traffic for the railroads, as well
as a key driver of new freight car construction for carbuilders and component suppliers. Because of recent serious accidents, CBR is also under heavy scrutiny by safety and regulatory agencies.

Railway Age’s Crude By Rail Conference & Expo focuses on moving CBR not just safely,
but also profitably.

Speakers include:
CBR Speakers675
Join these and other industry experts to discuss:
•  Safety & Regulations •  New-Gen Tank Cars
•  Traffic Trends •  First Responder Training
•  Tank Car Financing & Leasing •  Insurance & Liability

Who should attend?
•  Railroad transportation & operating personnel •  Government personnel
•  Carbuilders and component suppliers •  Crude oil producers & refiners
•  Consultants •  First responders
View the full agenda now, including confirmed speakers and topics.
 
REGISTER-BUTTON

Gold SponsorGenesee & Wyoming Supporting organizationsRailWorks   The Greenbrier Companies  AAR
Contact us:   Tel. 212.620.7208 / 212.620.7205 | conferences@sbpub.com | @RailwayAgeEvent

Dirty Energy – Clean Solutions: Climate Conference, May 9th -11th

Repost from The Sunflower Alliance and 350.org
[Editor: Highly recommended.  Note that Benicia’s own Marilyn Bardet will welcome participants and introduce Richard Heinberg at 9am Saturday morning, Laney College, Oakland.  Richard is a noted author and Senior Fellow of the Post Carbon Institute and is widely regarded as one of the world’s foremost Peak Oil educators.  – RS]

Dirty Energy – Clean Solutions: Climate Conference, May 9th -11th

clean-energy-conference.gifThis first ever grassroots Climate Conference featuring activists and leading scientists addressing technical and political climate topics.

Friday
First Unitarian Church, San Francisco
Featured speaker, Professor Mark Jacobsen

Saturday
Laney College, Oakland
Panels tackling urgent issues in climate movement, including
• Fracking in California
• Fossil fuel infrastructure expansion in California
• Clean energy solutions
Lunch included.

Sunday
Laney College, Oakland.
Workshops and trainings to strategize on ways to stop the fossil fuel attack.
These include The People’s Climate Curriculum, presented by Laurie Baumgarten.

Complete list of speakers and agenda
Would you like to volunteer to help at the Conference?

To register and view full schedule,visit  conference web page.
Buy tickets today to take advantage of Early Bird pricing.

Pittsburg: School trustees take stand against WesPac oil-by-rail project

Repost from The Contra Costa Times

Pittsburg: School trustees take stand against WesPac oil-by-rail project

By Eve Mitchell  |  05/07/2014

PITTSBURG — Pittsburg school district trustees have taken a stand against the proposed WesPac oil storage and transfer project.

The resolution approved by a 5-0 vote at Wednesday night’s meeting carries no legal power to stop the project, but it is yet another blow to a developer’s plan to transport domestic crude oil by rail cars to storage tanks, from where it would be piped to local refineries.

The resolution originated with district trustees after a presentation on the project made in March by project opponents.

“I don’t think anybody on this board is against industry,” trustee Vince Ferrante said after the meeting, adding that recent reports of crude-by-rail explosions are a matter of great concern.

“We really have a focus on the children. It doesn’t end when they walk out of the classroom,” Ferrante said. “The city has done a wonderful job developing downtown. This is a situation where we felt this project may not fit because of its proximity to residences, churches and schools.”

The board’s action is a bold statement, said Lisa Graham, a member of the Pittsburg Defense Council, which is fighting the WesPac project. “It has an amazing impact because it is a very significant body that represents lots of people, students, faculty and families,” she said. “(Trustees) have made a very bold and defensive statement to protect their constituents.”

The resolution calls on the Pittsburg City Council and other local, state and federal government agencies to categorize the WesPac project as “unequivocally contrary to public health and safety and beyond mitigation, and declare that it should not be placed within Pittsburg nor anywhere in Contra Costa County.”

Mayor Sal Evola disagreed with the resolution.

“The school board’s action is outside of their purview, and it is premature. I feel there is a process the city is obliged to abide by to review all of the proposal and then make an informed decision,” he said.

“One may question if the school board is out of line. Their action crosses the line between school business and city business. … We don’t take up resolutions on their issues. I don’t feel the school district should take up a position on our issues, especially while the project is under review.”

The $200 million waterfront project, which would be built near homes, schools and churches, would bring in an average of 88 million barrels annually of domestic crude oil by rail, and imported crude by marine vessels, to a 125-acre storage facility next to what is now the NRG power plant. The oil would be stored in 16 upgraded or new storage tanks that once stored fuel oil for a former PG&E power plant more than 25 years ago.

Project supporters say it would help refineries take advantage of a domestic oil boom at a time when California production is falling. WesPac officials have said the project would be safe, address environmental concern raised by opponents, create jobs and provide $800,000 in yearly property tax and tidelands lease revenue to the city.

In February, the City Council voted to reopen the project’s public review process in response to safety, air quality and other environmental concerns raised by residents. A new timeline for the review process is still being worked out by city staff.

The state Attorney General’s Office wrote in a January letter that the draft environmental impact report failed to disclose the sources of the crude oil and their environmental impacts, which made the entire document inadequate.

However, in an online presentation about the project, WesPac has said the domestic crude would come from the Bakken region of North Dakota, Colorado, west Texas and New Mexico. Bakken crude oil has been involved in several recent explosions while being moved by rail.