All posts by Roger Straw

Editor, owner, publisher of The Benicia Independent

Bakken Crude, Crude By Rail, Derailment, Explosion, Fire, Oil spill, Pipeline transport, Rail Safety

Investment Analyst: Oil Train Derailments Pose Huge Risks

August 7, 2015 Roger Straw

Oil Train Derailments Pose Huge Risks

New Regulations Haven’t Done Enough

By Keith Kohl, August 7, 2015

About 40 miles west of Williston, North Dakota — the epicenter of the Bakken oil formation — sits a tiny rural town that was recently rocked by a strange occurrence.

Culbertson, Montana, a town of less than 1,000 people just north of the Missouri River, saw a massive train derailment in July.

A 106-car BNSF Railway train was carrying oil from the Bakken to a BP refinery in Washington State, but when it reached Culbertson, 22 of the cars derailed and five began leaking crude.

When the cars derailed, a nearby power line was knocked over — a sure sign of imminent catastrophe.

Of course, train derailments and explosions are not strange occurrences these days. Such derailments have become an all-too-common consequence of North America’s shale oil boom.

In 2013, as I have discussed many times, a train derailed and exploded in the center of a small town in Canada, destroying several buildings and killing 47 people.

There was also a crash and explosion earlier this year in West Virginia that threatened residents and nearby water resources.

But this derailment in Montana was different…

You see, despite the five breached tankers, the more than 1,000 barrels of oil that leaked, and the downed power lines, there was no explosion.

CulbertsonCrash

There was no fire to speak of, either — just leaked oil and the torn metal of the train cars scattered near the tracks.

Many began to question exactly how an explosion was avoided and if such conditions could be replicated on all future oil rail shipments.

Unfortunately, as of yet, there are no definitive answers…

Air + Gas + Sparks = Explosion

A local sheriff’s deputy said of the spill: “You could smell it from over a mile away.”

As a precaution, some residents were evacuated, but BNSF crews quickly contained the leaked oil, and the debris and the tracks were soon restored to order.

Some have said that the reason the oil didn’t ignite was because the vapor pressure of the oil was in compliance with new regulations…

After a report released last year by the Pipeline and Hazardous Materials Safety Administration said that crude oil from the Bakken is more dangerous because of its higher-than-normal gas content, regulators in North Dakota required that any oil shipped from the Bakken be heated to 110 degrees to lower the gas content in the oil to below 13.7 psi.

According to Statoil, the owner of the crude in the train, the oil was below the 13.7-psi mark, and many commentators leaped to the conclusion that this prevented fires and explosions.

Of course, this is a bit disingenuous because, as I discussed in a column a few months ago, an oil train in compliance with the same standards crashed outside of Heimdal, North Dakota and burst into flames, forcing the evacuation of the small town.

heimdaltrain

Even though the oil was treated, it still caught fire, so it would seem that the lack of explosion or fire in the Culbertson crash had everything to do with luck and very little to do with science or regulation.

I’ll reiterate: It was very lucky indeed.

Usually a fire starts in a train derailment because the sparks caused by the friction of a train wreck meet the leaking oil and oxygen present in the air and combust.

Once oil and air meet fire, as you know, explosions happen — typically large ones.

Since the incident caused a power line to go down, it’s practically miraculous that there were no explosions or fires.

Still, can we really rely on luck to prevent the dangerous explosions caused by most derailments?

Pipelines are Coming

Despite all of the industry standards and new rules announced by the Department of Transportation, there’s still no definitive solution to stopping these crude oil derailments other than to cull the amount of oil shipped by rail.

Even with oil production in a tenuous position because of low prices, large amounts of crude are still shipped via rail.

And if rail shipments of oil were forcibly halted, the effects could be devastating on the companies drilling in the Bakken that need secure revenue streams now more than ever.

Instead, the solution to cutting traffic has to benefit producers and be market-based. The only way to do this is by pipeline.

As the amount oil traffic — and accidents — on rails has increased, so too has the call for construction of more pipelines.

Within a few years, the pipeline capacity in the U.S. is set to double, and when it does, there will hopefully be a reduction in railroad traffic and accidents.

Until next time,

Keith Kohl

Crude By Rail, DOT-111, Federal Regulation (U.S.)

Adirondack rail line marketed for long-term storage of obsolete oil tankers

August 7, 2015 Roger Straw

Repost from the Times Union, Albany NY

Adirondack rail line marketed for long-term storage of obsolete oil tankers

Environmentalists see Adirondacks ”graveyard”

By Brian Nearing, August 7, 2015 Updated 6:33 am

Oil train cars in the Port of Albany on Wednesday April 22, 2015 in Albany, N.Y. (Michael P. Farrell/Times Union) Photo: Michael P. Farrell

TAHAWUS — To the dismay of environmental groups, a railway company potentially is going to store hundreds of emptied-out crude oil tankers on its rail line in the Adirondacks.

The Saratoga and North Creek Railroad initially planned to use its tracks to haul rock from a mine in the High Peaks, but that has not panned out. Now, the owners see a new source of cash from storage of aging oil tankers that don’t meet current Canadian and proposed new U.S. safety standards, and will await either retrofitting or scrapping.

Parent company Iowa Pacific Holdings has already begun to market its line for tanker storage, but questions remain over whether state permits will be required. On Thursday, spokesmen for both the state Department of Environmental Conservation and the Adirondack Park Agency said the situation was being “researched” and declined further comment.

Last month, Iowa Pacific Holdings President Ed Ellis told a panel of Warren County lawmakers that his company believes it needs no outside permission to begin storing the tankers along the Essex County portion of the line and was informing the county merely as a courtesy.

The 30-mile line, which runs from North Creek to near Tahawus in the High Peaks, is owned by Warren County in Warren and Saratoga counties, and leased by the railroad since 2010. The tracks in Essex County are owned by the railroad.

Ellis told county lawmakers that his company could store hundreds of tanker cars on a section of track in Essex County called the Sanford Lake line that runs along the Hudson and Boreas rivers.

He said the tankers would contain only oil residue and pose a “virtually non-existent” risk of explosion or fire. “We have been storing tanker cars on our line in Colorado for nine years without a problem,” Ellis said.

“This opens up a lot of profound questions,” said Roger Downs, conservation director of the Atlantic Chapter of the Sierra Club, which in 2012 had unsuccessfully opposed a federal ruling to reopen the line, which had been closed since 1989, to freight traffic.

“We would hope that the Adirondack Park Agency and local authorities have some local control. We are completely opposed to this plan,” said Downs. Some 13 miles of track run through the forever-wild state Forest Preserve.

Peter Bauer, executive director of the conservation group Protect the Adirondacks, said jurisdiction over potential mass tanker storage was complex. “And no one can say how long those tankers might be there,” he added. “It could potentially be a railroad graveyard.”

Bauer also said the rail line runs through newly acquired state land that once belonged to the Finch Pruyn paper company. “Was this kind of use what the governor had in mind when he supported that purchase?” Bauer asked.

A call to Ellis’ office for comment was not returned. Last week, he said new and proposed regulations could shelve much of an 80,000-car tanker fleet and require that the tankers be stored for years while they await either retrofitting to meet tougher standards or are scrapped.

Canada just required tank cars must have double hulls to reduce the risk of explosions and fires in derailments. U.S. rules were also recently announced.

In addition to its Adirondack line, Iowa Pacific Holdings is also offering other rail lines in California, Colorado, Illinois, Oregon and Texas for tanker storage, according to the company website.

In 2012, Iowa Pacific purchased the rail line from NL Industries, which had stopped mining at Tahawus in the 1980s. Since then, the company has spent millions to replace rails and ties, rehabilitate track sidings and add rock ballast.

Iowa Pacific is a privately held, Chicago-based operator of nine U.S. railroads, manages two rail lines in the United Kingdom and runs other rail-related businesses.

Ellis told county lawmakers that the tanker car storage revenue in the Adirondacks could eventually be worth “seven figures” a year to the railroad.

Bridge safety, Crude By Rail, Derailment, Explosion, Rail infrastructure, Rail inspection

Sen. Bob Casey calls for more funding for railroad bridges

August 7, 2015 Roger Straw

Repost from The Herald, Sharon PA

Casey calls for more funding for railroad bridges

By John Finnerty, CNHI Harrisburg, August 7, 2015 7:38 am

HARRISBURG – The federal government must step up oversight of railroad bridges as hundreds of trains carrying explosive crude oil from the Bakken region of North Dakota cross the state each week, said U.S. Sen. Bob Casey.

Casey, a Democrat and the state’s senior senator, has repeatedly criticized the government’s regulation of railroads in light of derailments and explosions involving crude oil.

Pennsylvania has more than 900 bridges that carry trains over highways, Casey said. The Federal Railroad Administration has just one inspector to check those bridges.

Under a 2010 Federal Railroad Administration rule, railroads must check each bridge at least once a year. At the time that rule was adopted, the government estimated there were 100,000 railroad bridges in the United States.

Railroads face fines of $100,000 for failing to comply with inspection rules.

But short-staffing at the railroad administration means the agency is in no position to ensure that railroads comply, Casey said.

“This lack of oversight could cause gaps in our rail safety system and creates an environment where hundreds of unsafe bridges could be in daily use without proper federal oversight,” he said in a written statement. “It’s time to put more cops on the beat by hiring more rail inspectors. With the risks that our communities face only increasing, the FRA needs to put this process into overdrive.”

Before the Bakken region’s tracking boom, railroads carried about 9,500 cars of crude oil a year. This year they’re on track to top a half-million, according to the American Association of Railroads.

That includes trains that carry at least 60 to 70 million gallons of crude oil across Pennsylvania each week.

Crude By Rail, Derailment, Fire, Human error, Rail infrastructure, Rail inspection

To boost the safety of moving oil by rail, focus on the tracks, paper argues

August 6, 2015 Roger Straw

Repost from the Houston Chronicle

To boost the safety of moving oil by rail, focus on the tracks, paper argues

Infrastructure report says broken rails and human error are also problems as shipments of crude increase

By Jennifer A. Dlouhy, August 6, 2015

A train hauls crude oil in Seattle last month. Railroads and regulators can leverage technology to make existing inspection programs more efficient and effective, says a white paper by the Alliance for Innovation and Infrastructure.on Wednesday, July 15, 2015. The highly controversial trains haul rail cars loaded with oil brought from the oil fields of North Dakota and Montana. (Joshua Trujillo, seattlepi.com) Photo: JOSHUA TRUJILLO / SEATTLEPI.COM

WASHINGTON – More can be done to boost the safety of moving oil by rail by focusing on the tracks themselves, according to a white paper released Thursday by a group promoting infrastructure investments.

New rules requiring more resilient tank cars are an important step, the Alliance for Innovation and Infrastructure said, but regulators, railroads and shippers now need to do more to combat the leading cause of derailments, including broken rails and human error.

From integrity sensors to measurement systems, an array of technologies can help ensure tracks are sound, said Brigham McCown, chairman of the alliance and a former head of the Pipeline and Hazardous Materials Safety Administration.

‘Proactive engagement’

“We tend to be reactionary. Something happened, so what are we going to do to fix it?” McCown told reporters Thursday. “We focus on the accident, rather than focusing on a long-term proactive engagement of reducing the potential for accidents to begin with.”

The issue has drawn attention amid a surge in oil-by-rail traffic. As trains carry crude across the United States to refineries and ports, there has also been a series of fiery derailments involving tank cars carrying that hazardous material.

Over 22 pages, the alliance’s white paper makes the case that railroads and regulators can leverage technology to make existing inspection programs more efficient and effective.

Existing regulations, updated in 2014, already mandate both track and rail inspections – the former often entails workers examining the physical conditions of track structures and the roadbed by foot or by vehicle, with that monitoring required as frequently as weekly in some cases. Rail inspections use ultrasonic or induction testing to identify hidden internal defects, with their timing generally pegged to the amount of traffic on rail segments.

The Federal Railroad Administration also requires other probes, including monthly inspections of switches, turnouts, track crossings and other devices.

Constant inspections

Many railroads go above and beyond those inspection requirements.

“Freight railroads spend billions of dollars every year on maintaining and further modernizing the nation’s rail network, including safety enhancing rail infrastructure and equipment,” said Ed Greenberg, a spokesman for the Association of American Railroads. “At any point during the day or night, the nation’s rail network is being inspected, maintained or being upgraded.”

But the infrastructure alliance reiterates a previous assertion by the National Transportation Safety Board, that track inspections are undermined when a single worker can inspect multiple lines at the same time, as currently allowed.

And McCown emphasized that existing technology can boost the odds of catching broken rails and other problems before an accident.