U.S. Sued Over Refusal to Ban Older Rail Cars for Crude
By Andrew Zajac, Dec 2, 2014
A train with DOT-111 tanker cars. Chris Jordan-Bloch / Earthjustice
Earthjustice and other environmental groups asked a federal court to force the U.S. Transportation Department to reconsider its rejection of an immediate ban on the use of rail tank cars lacking updated safety features for shipping Bakken crude oil.
The tank cars’ safety was questioned after a July 2013 explosion that killed 47 people when an unattended, runaway train hauling 72 carloads of Bakken crude derailed in Lac-Megantic, Quebec.
The transportation department is managing tank car safety issues through a series of directives, short of a ban, and rules are being drafted to phase out the older rolling stock, the agency said in November, declining the groups’ request for an emergency ban.
That response fails to consider the risks posed by the cars, including “past findings that the surge in crude-by-rail shipments of Bakken crude in dangerous tank cars poses imminent hazards and emergency unsafe conditions,” according to the complaint, filed today in federal appeals court in San Francisco.
The rail vessels in question are older models, collectively referred to as DOT-111 tank cars, that lack safeguards needed to improve crashworthiness, according the environmentalists’ original request for a ban, filed in July.
Oil from the Bakken shale region of North Dakota tends to be more volatile and flammable than other crude, according to a Transportation Department study released in July.
Production of Bakken crude is soaring beyond the capacity of pipelines, leading to an increased use of trains.
The Sierra Club and ForestEthics joined Earthjustice in the lawsuit.
The case is Sierra Club v. U.S. Department of Transportation, 14-73682, U.S. Court of Appeals for the Ninth Circuit, (San Francisco).
By John Vidal Monday 10 November 2014
The fossil fuel bailout – G20 subsidies for oil, gas and coal exploration
Rich countries are subsidising oil, gas and coal companies by about $88bn (£55.4bn) a year to explore for new reserves, despite evidence that most fossil fuels must be left in the ground if the world is to avoid dangerous climate change.
The most detailed breakdown yet of global fossil fuel subsidies has found that the US government provided companies with $5.2bn for fossil fuel exploration in 2013, Australia spent $3.5bn, Russia $2.4bn and the UK $1.2bn. Most of the support was in the form of tax breaks for exploration in deep offshore fields.
The public money went to major multinationals as well as smaller ones who specialise in exploratory work, according to British thinktank the Overseas Development Institute (ODI) and Washington-based analysts Oil Change International.
Britain, says their report, proved to be one of the most generous countries. In the five year period to 2014 it gave tax breaks totalling over $4.5bn to French, US, Middle Eastern and north American companies to explore the North Sea for fast-declining oil and gas reserves. A breakdown of that figure showed over $1.2bn of British money went to two French companies, GDF-Suez and Total, $450m went to five US companies including Chevron, and $992m to five British companies.
Britain also spent public funds for foreign companies to explore in Azerbaijan, Brazil, Ghana, Guinea, India and Indonesia, as well as Russia, Uganda and Qatar, according to the report’s data, which is drawn from the OECD, government documents, company reports and institutions.
Oil and gas exploration expenditure in G20 countries (public and private). Photograph: ODI/Rystad Energy
The figures, published ahead of this week’s G20 summit in Brisbane, Australia, contains the first detailed breakdown of global fossil fuel exploration subsidies. It shows an extraordinary “merry-go-round” of countries supporting each others’ companies. The US spends $1.4bn a year for exploration in Columbia, Nigeria and Russia, while Russia is subsidising exploration in Venezuela and China, which in turn supports companies exploring Canada, Brazil and Mexico.
“The evidence points to a publicly financed bail-out for carbon-intensive companies, and support for uneconomic investments that could drive the planet far beyond the internationally agreed target of limiting global temperature increases to no more than 2C,” say the report’s authors.
“This is real money which could be put into schools or hospitals. It is simply not economic to invest like this. This is the insanity of the situation. They are diverting investment from economic low-carbon alternatives such as solar, wind and hydro-power and they are undermining the prospects for an ambitious UN climate deal in 2015,” said Kevin Watkins, director of the ODI.
The report is important because it shows how reforming fossil fuel subsidies is a critical issue for climate change.
The report further criticises the G20 countries for providing over $520m a year of indirect exploration subsidies via the World Bank group and other multilateral development banks (MDBs) to which they contribute funds.
The authors expressed surprise that about four times as much money was spent on fossil fuel exploration as on renewable energy development.
“In parallel with the rising costs of fossil-fuel exploration and production, the costs of renewable-energy technologies continue to fall rapidly, and the speed of growth in installed capacity of renewables has outperformed predictions since 2000,” said the report.
Cuomo: Feds need to address crude-oil shipments by rail
By Leonard Sparks, Dec. 1, 2014
ALBANY – New York Gov. Andrew Cuomo called on the federal government to tighten rules governing crude-oil shipments by rail as the state released a report Monday documenting actions to protect Hudson River communities from derailment-related spills and explosions.
State rail inspectors uncovered more than 700 track and equipment defects and 12 hazardous material violations during seven inspection “blitzes” this year, according to the report, which documents New York’s progress in implementing 12 recommendations to improve safety.
Cuomo’s administration accuses federal officials of moving “unacceptably slow” on proposed rules to make crude shipments safer, including a proposal to phase-out the DOT-111 rail cars that many consider unfit for shipping oil.
“Over the past six months, our administration has taken swift and decisive action to increase the state’s preparedness and better protect New Yorkers from the possibility of a crude oil disaster,” Cuomo said. “Now it is time for our federal partners to do the same.”
Hydraulic fracturing has fueled a surge in U.S. oil production and the use of trains to carry highly flammable crude from the Bakken shale fields in North Dakota to Albany’s port. From there it is shipped by rail and water down the Hudson River valley.
On July 6, 2013, a train derailed at Lac-Megantic, a town in Quebec, Canada. Oil leaked from the train’s DOT-111 cars and ignited, causing explosions and the deaths of 47 people.
In February, a freight train pulling empty oil cars derailed in the Town of Ulster. Supervisor Jim Quigley said he has been vocal about upgrading the tank cars.
New York added five safety inspectors, began training local emergency responders and started the process of updating spill-response plans as part of a multipronged strategy to protect communities along shipment routes.
Last month, the state urged the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration to “expeditiously” remove DOT-111 cars from service or require they be retrofitted to carry oil.
Sen. Charles Schumer described the cars as “ticking time bombs.”
“I am pushing DOT to commit to the strongest of these regulations as soon as possible,” he said. “We can’t afford any delay.”
Map shows 100 schools along crude oil train tracks
By: Mark Lungariello, December 01, 2014
On July 6, 2013, a train hauling more than 70 cars filled with volatile crude oil derailed in Quebec, Canada, after its engine caught fire and power to its air brakes was cut. Several DOT-111 oil tankers filled with crude mined from South Dakota’s Bakken Shale ignited, spilling oil and sending a fireball into the sky of the town of Lac-Mégantic that destroyed 30 buildings, according to reports.
Forty-seven people died. Several thousand more were evacuated while oil seeped into the soil and local waterways. The Quebec derailment and several other disasters have brought increased scrutiny on the transportation of crude oil by rail as the amount of oil mined domestically continues to multiply.
A map of schools in the Hudson Valley within a mile of crude oil train lines. (Click to go to interactive map page.)
New maps from state environmental groups show there are more than 100 public and private K-12 schools within a mile of train lines used to transport crude oil through the region. Albany-based Healthy School Networks released the maps last month in partnership with a coalition of environmental and education activists.
“They are crossing from Buffalo through Rochester and from the upper reaches of Lake Champlain and the Adirondacks to the Port of Albany, then down along the Hudson River,” Claire Barnett, executive director of Healthy Schools Network, said. “A catastrophic event, should it happen near an occupied school, could devastate a community for a generation or more.”
From 15 to 30 trains carrying crude out of South Dakota travel through the Hudson Valley region each week. Each train can haul dozens or as many as 100 oil cars, each that carry tens of thousands of gallons of the Bakken crude, which experts say is more volatile and unstable than other forms of oil. Oil is also transported by barge on waterways through the region and plans are in the gestation phase to begin transporting other types of crude through the area by rail as well.
The maps also included BOCES schools. Statewide, the maps identified 351 schools within one mile of train lines. In Monroe County alone, in the Rochester area, 63 schools were within the one-mile zone.
Environmental group Riverkeeper prepared an additional several maps depicting the potential impact area of local crude oil accidents based on the 300-yard blast radius and 1,100-yard evacuation zone from the Quebec derailment and a Casselton, N.D., derailment that spilled more than 400,000 gallons of crude.
“Based on the human consequences of these two accidents, it is clear that communities on both sides of the Hudson River could be impacted by a crude oil rail disaster,” said Kate Hudson, Riverkeeper’s Watershed Program director.
A CSX Corp. rail line runs from Albany to the state’s border with New Jersey. Land trust organization Scenic Hudson said that 47.7 miles of that track are within yards of the Hudson River. The group estimates the risk area in the event of a derailment would be more than 200,000 acres and include 100,000 households and six drinking water intakes.
The U.S. Department of Transportation Emergency Response Guidebook recommends a half-mile evacuation zone for accidents involving rail cars with flammable liquids and a mile zone around any rail car filled with those materials if they are on fire.
Environmental groups are calling for state and federal government reforms. These include asking government officials to provide emergency planning aid to schools, reduce speed limits for crude oil trains and impose stricter regulations and inspections for deteriorating DOT-111 tankers. The U.S. Department of Transportation is considering stricter regulations of the cars, but environmental groups have said the proposed laws don’t go far enough.
The state has increased its inspection of cars in response to recent derailments, but oil industry experts look to continue to expand their processing capacities as the amount of crude mined through hydraulic fracturing surges. The amount of Bakken moving through the U.S. has risen from 9,500 rail carloads in 2008 to 415,000 rail carloads in 2013, according to the Department of Transportation.
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