North Dakota perspective on Bakken: ‘Getting it right’

From The Bismarck Tribune, Bakken Breakout
[An interesting analysis of the future of Bakken crude extraction from the perspective of an apparent oil industry advocate.  They’re listening!  – RS]

Getting it right

By Brian Kroshus, Publisher, September 17, 2014

Domestic oil production levels in the United States continue to rise – largely the result of the boom in shale oil drilling across the country. Notable plays like the Bakken shale in North Dakota and Permian and Eagle Ford shale in Texas, have been leading the way with more promising formations in different geographies, targeted for exploration and drilling in the years ahead.

Plays like the Bakken, Permian and Eagle Ford were actually in decline until only recently, having peaked decades ago when conventional, vertical wells were the only economically viable means of extracting crude. Now, those same plays are part of a drilling renaissance in key parts of the country. Geologists have known for years that more oil was present, trapped in source stone within the formations, but developing technology to profitably extract shale oil hasn’t come easy.

Today, oil production in the United States is surging thanks to advances in horizontal drilling and hydraulic fracturing techniques. Drillers are not only better understanding the geology of shale formations, but technology necessary to economically drill and produce oil. Increasingly, they’re becoming more efficient. Still, only a small percentage resource is making its way to the surface presently. Undoubtedly, more will continue to be learned in the years ahead, ultimately leading to higher extraction percentage and proven reserves.

From an energy independence standpoint, the outlook for the United States is certainly promising. In October 2013, for the first time in nearly two decades, the United States produced more oil than it imported. Predictably, while there are those including the current administration attempting to take partial credit, rising output has been the result of drilling on state and private lands. On federal lands, production has actually declined during Pres. Barack Obama’s time in office according to the American Petroleum Institute.

Despite declines on federal ground, experts still predict that the United States could be fully energy independent by the end of this decade. According the EIA, U.S. oil production will rise to 11.6 million barrels per day in 2020, from 9.2 million in 2012, overtaking Saudi Arabia and Russia and becoming the world’s largest oil producer. Over the same period, Saudi Arabia production levels are expected to decline from 11.7 million barrels to 10.6 million. Russia will also product less oil, falling from 10.7 million to 10.4 million barrels per day.

With a shale revolution and energy renaissance underway in the United States, there’s reason to be optimistic. Achieving energy independence appears to be within our grasp. Still, despite the prospect of becoming an energy independent nation, potential roadblocks loom.

In May, at the 2014 Williston Basin Petroleum Conference, Harold Hamm, CEO of Continental Resources told convention attendees that “we can’t have any more issues.” He also said “It has to be done in an absolute, safe manner. It’s going to take all of us.” He was referring to recent problems related to Bakken crude including pipeline ruptures and the fiery train derailment near Casselton, North Dakota this past December.

There’s a lot at stake. Companies like Continental Resources and others, are expected to invest billions in the years ahead to fully develop plays like the Bakken. Drillers are keenly aware that it’s their game to lose. Hamm stressed, “If we have anything, they’re going to shut us down. So many people want to stop fossil fuel use and production.”

Despite the positive macroeconomic effects rising domestic oil production and decreased imports have on the U.S. economy, job creation and economic growth alone won’t guarantee that shale oil production will continue, unless it is deemed safe and not a threat to public safety during transportation of Bakken crude in particular.

Volatility levels of Bakken crude and implication on public safety, continues to be heavily debated. The Lac-Megantic, Quebec, rail tragedy, where 47 people lost their lives when a runaway train carrying tanker cars filled with Bakken formation crude, derailed and exploded in the heart of town has been at the center of that debate. The explosions were so intense, that approximately one-half of the downtown area was destroyed.

Understandably, safely transporting Bakken crude by rail throughout North America, knowing freight rail routes frequently pass through residential areas on their way to final destinations, is a top industry priority. Much of the focus has been and remains on the DOT-111 tank car. On July 23 the U.S. Department of Transportation announced comprehensive proposed rulemaking for the safe transportation of crude oil and flammable materials, with Bakken crude being mentioned – in the form of a Notice of Proposed Rulemaking (NPRM) and a companion Advanced Notice of Proposed Rulemaking (ANPRM).

The NPRM language includes “enhanced tank car standards, a classification and testing program for mined gases and liquids and new operational requirements for high-hazard flammable trains that includes braking controls and speed restrictions.” Within two years, it proposes to “phase out of the older DOT-111 tank cars for the shipment of flammable liquids including Bakken crude oil, unless the tank cars are retrofitted to comply with new tank car design standards.” It also seeks “Better classification and characterization of mined gases and liquids.”

The North Dakota Public Service Commission has set a special hearing for September 23rd, as a part of the discussion on the volatility of Bakken crude and potential oil conditioning requirements necessary to safely transport oil from the Williston Basin. Reducing the light hydrocarbons present in Bakken crude would not only provide greater safety, but the standardization of Bakken crude into a class of oil much like West Texas Intermediate, possibly creating premium pricing opportunities.

NDPSC involvement and recommendations in addition to oil conditioning include heightened rail inspection efforts at the state level in addition to the Federal Pipeline and Hazardous Materials Administration, and emergency response training. Working closely with federal officials and a heightened inspection process, will require additional resources moving forward.

Expanding pipeline capacity and reducing reliance on rail to transport Bakken crude will continue to be a growing need, playing a role in addressing public safety concerns. The North Dakota pipeline authority anticipates two new pipelines coming online before the end of 2016, with capacity for 545,000 barrels a day. Another third proposed pipeline, capable of handling an additional 200,000 barrels, could potentially be in operation by late 2016 or early 2017.

With daily production expected to reach 1.5 million barrels in 2017, and 1.7 million barrels in early 2020, diversifying how Bakken crude is moved to market will be necessary not only from a public safety standpoint, but in order to address logistically challenges that continue to surface as production levels increase.

Extracting domestic oil and gas, moving it to market and properly disposing of or using byproducts created during the production process in a safe and efficient manner will be necessary in order for plays like the Bakken to be fully capitalized on. Those opposed to fossil fuel production will continue to watch and patiently wait for any opportunity to pressure elected officials and sway public opinion.

Ensuring both public and environmental safety to ensure the future of domestic oil production – will require a cooperative effort on the part of both industry and the state. As Harold Hamm alludes to, it truly is industries game to lose.

Chevron: deep pockets, heavy influence on electoral politics in Richmond, CA

Repost from Counterpunch

Chevron Sounds Alarm Against East Bay “Anarchism”

Via Mass Mailings & Push Polling
by Steve Early, September 16, 2014

One of the great things about living near Chevron’s big East Bay refinery—yes, the one that caught fire and exploded two years ago—is its system of early warnings about new disasters about to befall Richmond, CA.

In our post-Citizens United era, the nation’s second largest oil producer is now free to spend $1.6 million (or more, if necessary) on direct mail and phone alerts, designed to keep 30,000 likely voters fully informed about threats to their city.

During the last week, glossy mailers from a Chevron-funded group called “Moving Forward” have been flowing our way, at the rate of one or two per day—almost seven weeks before Election Day.

And, then, just to make sure that Chevron’s urgent message is getting through, we’ve also been called by pollsters. They claim to be surveying  opinion about Richmond politics, but actually just recite the contents of these same Moving Forward mailers over the phone.

My favorite manifestation of this negative campaigning involves a Latino candidate for Richmond City council. His name is Eduardo Martinez and remembering the Eduardo part is important. By some strange coincidence, Moving Forward—the Chevron-backed “Coalition of Labor Unions, Small Businesses, Public Safety and Firefighters Associations”—is backing another Martinez for city council whose first name is Al and who is apparently not a public safety threat.

One Martinez Too Many

Eduardo, the dangerous Martinez, is a retired public school teacher and registered Democrat. He’s silver-haired, soft spoken, neatly dressed, and rather distinguished looking. For years, he has devoted himself to good causes in Richmond, including serving on the city planning commission. On that body, he has been an influential voice for Richmond’s Environmental Justice Coalition.

Earlier this summer, for example, he voted to impose additional air quality and safety requirements on Chevron, in return for city approval of its long-delayed $1 billion refinery modernization plan. This project was finally OKed by the city council majority in July after some improvements were obtained, plus $90 million in Chevron-funded “community benefits.”

Chevron did not forget that Martinez—Eduardo, not Al—helped to challenge and change its original blueprint for “modernization,” a project that will employ 1,000 building trades workers. And that’s why Richmond voters have just discovered, via expensive mass mailers and phone calls, that Eduardo Martinez is really a wolf in sheep’s clothing.

This alarming news first arrived in the form of a lurid four-color mailer, with a cover picture of “Black Bloc” demonstrators wearing face-masks and brandishing shields on behalf of the “99%” three years ago.  Inside, 65-year old Martinez is fingered as a fellow “Occupy Oakland member, who believes that anarchy is the highest form of government.” In a second “hit piece” a few days later, Chevron—through its “Moving Forward” front group–claimed that, after enlisting in Occupy, Martinez urged others “to join the group, which has been blamed for violent protests that cost Oakland more than $5 million, hurt local businesses, and drove away new business.”

Abolish The City Council?

This mailer again displayed a glowering, angry-looking headshot of Martinez—one of three appearing in the first piece (which made him look a little bit like the late Leon Trotsky, who was no anarchist). The second brochure noted that “Richmond needs new businesses and jobs” but, with a card-carrying “anarchist” on its council, the city won’t be able to attract either. The bottom line: “Eduardo Martinez is too radical for Richmond.” For more details, readers are directed to a Moving Forward website – www.NoEduardo.com – where we learn that Martinez is “so radical that he does not think the city council should exist”—a truly unusual stance for any city council candidate anywhere.

Just as these dire warnings landed in the mailbox, my home phone started ringing. It was Research America, a Sacramento-based pollster, calling to discuss local politics. Who was paying for this opinion survey, I asked. Oh we can’t disclose that, my would-be interviewer said, but you can talk to my supervisor. Her supervisor didn’t know or wouldn’t say who was behind the call either, disclosing only that Research America had been retained by EMC Research, a firm based in Oakland, who was acting on behalf of some third party whose identity could not be revealed in order to “maintain as much impartiality as possible” in the polling.

I objected to this policy of client anonymity but asked the supervisor to put her subordinate back on the line.  OK, I said, what do you want to know? Actually, she had some things that Research America/EMC wanted me to know like, for example, that Martinez and his “Team Richmond” running-mate, Gayle McLaughlin, were part of “an extreme left wing group called the Richmond Progressive Alliance. It’s a group of radicals out of touch with Richmond voters.”

Stop right there, I said. How could that be? McLaughlin has twice been elected mayor of Richmond, and once before that to the city council.  Martinez only narrowly lost his previous council race two years ago. How “out of touch” could they be with a won/loss record of 3 to 1 between them? Besides, I said, “I belong to the RPA and I’m a Richmond voter. Does that mean I’m ‘out of touch’ with myself?

Push Polling Paymasters

My good-natured interlocutor at Research America plodded through the rest of her dreary task—which consisted of reading and asking my reaction to a long series of questions or statements, almost all of which deliberately misrepresented the political views, personal behavior, or public record of Martinez, Mayor McLaughlin, and Richmond Vice-Mayor Jovanka Beckles, a third RPA-backed council candidate.

The Occupy-related scuffles in downtown Oakland in 2011, which Martinez had no connection with, were duly revisited.  Anyone who didn’t know the RPA candidates personally—or hadn’t bothered to follow Richmond issues very closely—would have been left with a distinctly unfavorable impression of Martinez, McLaughlin, and Beckles.

Eager to confirm the identify of those displaying such “impartiality” while conducting a public opinion survey, I called and/or emailed Research America in Sacramento, EMC Research in Oakland, Chevron in Richmond, Moving Forward in San Rafael, and the firm of Whitehurst/Mosher, a key Chevron advisor, in San Francisco. Whitehurst/Mosher is listed as a paid “campaign consultant” on the California Fair Political Practices Commission Form 460, filed on July 30, which shows Chevron ponying up $1.6 million, all by itself, for the Moving Forward “coalition.” Neither Research America or EMC are listed yet as “payees” for any services rendered.

None of the above, except EMC responded, in any form, by Beyond Chron’s deadline. Reached by phone, EMC president and founder Alex Evans told me he has been a pollster since 1984 but would “neither confirm or deny” that Chevron/Moving Forward was currently his client. A Richmond city councilor in the late 1990s, Evans also wouldn’t acknowledge any past work for the oil company, before, during, or after his council service. “We have no disclosure obligations, no professional obligation to disclose unless directed by our client,” he said. (According to longtime Richmond council member and current mayoral candidate, Tom Butt, Evans is a Chevron pollster.)

These calls were necessary because, as Evans correctly noted, there is no mandated disclosure of who is financing phone polling, no matter how propagandistic.  Corporations or unions bankrolling “independent expenditure” committees–like Chevron’s Moving Forward—have to put their names on the direct mail brochures they send out to sway the electorate (and, in California, report their funding sources to the FPPC.)  But their hired “public opinion” surveyors are free to engage in “push polling,” with complete funder anonymity, until the next round of FPPC form-filing months later.

Aren’t You That Anarchist?

Two years ago, Eduardo Martinez was first runner up in a large field of Richmond council candidates, falling about 500 votes short. When one of the three winners died shortly after that election, Martinez should have been named to fill the vacancy– based on the 11,000 votes he received and the fact that the city’s Latino population, its largest ethnic minority, has no council representation. (Martinez chairs the Richmond chapter of MAPA–the Mexican-American Political Association.)

Instead, a non-Latino who received half the votes that Martinez got—but who doesn’t belong to the RPA —was appointed to the council for the next two years. This led Eduardo to run for city council again this year, as part of the three-person slate which includes RPA leader Gayle McLaughlin, a registered California Green, who is termed out, as mayor, after eight years in that office.

When Martinez was out campaigning last weekend, he made stops at a neighborhood block party, a local Democratic Party club, and a Pt. Richmond fundraiser for his campaign. At the block party, after he mingled and chatted affably with potential voters, one confessed to him: “You know, talking to you is not the same as reading about you.”

At the meeting of West County Democrats, Martinez tried to convince his fellow party members that his personal refusal to accept corporate donations made him a good candidate for local Democrats to endorse. Both he and Beckles, who was also seeking the club’s backing, pointed out that Chevron’s massive display of unfettered (and, in some forms, hidden) political spending illustrated the post-Citizens United threat to reform candidates throughout the country, regardless of party label. Their plea fell on partially deaf ears. Neither RPA candidate got the 2/3 vote necessary for the group’s endorsement.

On Sunday, Martinez was raising funds the old-fashioned way, one-on-one, at a house party attended by Richmond residents. The donations were modest, but there was a silent auction to boost the take. In his 2012 race, Martinez raised about $35,000–$20,000 coming from individual donors and $15,000 in local public matching funds. He expects to raise and spend a similar amount in the course of this year’s run for office.

It’s easy to do the electoral math. Eduardo’s total spending will be in the range of $1 per voter, if turnout is similar to last time. Meanwhile, Moving Forward will be spending more than $50 per voter, for its four preferred Richmond candidates, and possibly much more. Already, Chevron’s “independent expenditures” on behalf of the other Martinez have given him instant visibility via billboards, direct mail, other advertising, and, soon, paid canvassing as well. None of this activity has, of course, been “authorized” by or coordinated with any of its lucky beneficiaries—and certainly not the “push polling” that depicts a local progressive Democrat as an “anarchist,” of the violent and irresponsible sort.

But it sure makes running for municipal office a lot easier if your name is Al rather than Eduardo Martinez. If the latter suffers a second defeat on Nov. 4, he won’t be the only loser in Richmond.

Steve Early lives in Richmond and belongs to its ten-year-old Progressive Alliance. He is the author of Save Our Unions (Monthly Review Press, 2013) and is now researching a book about recent political changes and environmental conflicts in Richmond.

‘Flawed’ oil spill drill offers lessons to state, feds

Repost from The Poughkeepsie Journal
[Editor: Commentary received in an email from Dr. Fred Millar – “Reporter John Ferro in Poughkeepsie has relentlessly dug up the almost always hidden ‘after action’ documents from agencies which participate in emergency drills.   The reports are supposed to show gaps in preparedness revealed by the drills, but are usually whitewashed, scrubbed all together to get an official version of what happened that makes no one look too bad, with overall aim re ‘public perception’, as Ferro indicates, of reassuring the public.  ¶  Unlike oil-loaded ships and storage facilities [under the Oil Pollution Act mandates], crude oil-shipping railroads have offloaded all the responsibility for ER capabilities and planning onto local and state officials.”  – RS]

‘Flawed’ oil spill drill offers lessons to state, feds

Poughkeepsie Journal investigation offers the first detailed account of largest multi-agency drill along the Hudson River in at least a decade.
John Ferro, September 15, 2014
(Photo: File photo/AP)

In the aftermath of a high-profile, multi-agency oil spill drill in New Windsor last year, officials were pleased by the mostly positive news coverage.

“Thank goodness,” wrote one official from the National Oceanic and Atmospheric Administration in an email.

“It was basically lucky that things turned out as well as it did for the public perception,” said a follow-up report from the state Department of Environmental Conservation.

But beyond the relief, there were concerns about how the drill came together, communication during it, as well as other issues, a Poughkeepsie Journal investigation has found.

At a time when Gov. Andrew Cuomo’s administration has repeatedly sought to reassure the public about the state’s handling of the sudden rise in crude oil transport, the Journal’s report offers the first detailed account of the most comprehensive oil spill drill on the Hudson River in at least a decade.

“The drill was flawed, no question about that,” said Charles Rowe, a spokesman for the local Coast Guard sector. “The areas where it was flawed were planning and communication. However, it was flawed for all the right reasons.”

Indeed, experts and officials say drills are successful when they identify areas of improvement, as this one did. And no glaring deficiency in the local response capacity was identified, they said.

The drill was held Nov. 12 and involved railroad and in-river simulations, as well as a tabletop exercise. It was co-sponsored by the DEC and Global Companies, the private company that owns the New Windsor terminal.

“In our experience, drills do not turn out well by luck, but rather are based on sound preparation and planning,” DEC spokesman Peter Constantakes said. “DEC believes that this drill provided an effective test of response activities.”

Still, the lessons learned from that test have gone largely unreported even as the public is being asked to comment on an update of the local area contingency plan. In fact, the DEC released its final report on the drill on Saturday, 10 months after the drill and nearly eight months after the Journal first requested it under the Freedom of Information Act.

Area contingency plans were mandated by federal legislation passed in 1990 following the Exxon Valdez accident. They define roles, responsibilities, resources and procedures necessary to respond to spills and are updated every three years. The deadline for public comment on the local plan is Oct. 10.

Drill grew larger

The emails, reports and interviews paint a picture of a drill that began as a small exercise and grew into something much larger.

Owners of oil terminals such as Global Companies must conduct drills every year. They can range from tabletop exercises to much larger drills involving role-played scenarios.

The New Windsor drill came about a year after crude oil began moving down the Hudson River in large quantities by rail and vessel. And it followed an accident involving the very first oil tanker to leave Albany.

The Stena Primorsk ran aground about 6 miles south of Albany on Dec. 20, 2012. Though the ship’s outer hull was gashed open, the inner hull kept any of its 11.7 million gallons of crude from leaking.

In 2013, the DEC and the Coast Guard approached Global to request an expanded drill. The original drill called for a simulated leak of crude oil. It was changed to a catastrophic failure of a 50,000-gallon heating oil tank that leaked into the river.

DEC officials then added a train derailment to the scenario.

More participants added

The initial planning included representatives of the Coast Guard, DEC, the New Windsor Fire Department, Global Companies and oil-spill recovery organizations contracted by Global and DEC.

But in the end, more than 20 public and private entities either observed or took part in at least one of the simulations, including emergency response officials from Dutchess, Ulster and Orange counties.

The additions created some headaches for drill planners. A DEC memo obtained by the Journal described the planning phase as being “pieced together in a Frankenstein-ish manner.”

“The increased level of participation led to last-minute changes in the scenario and to ad-hoc planning,” Rowe, the Coast Guard spokesman, said. “This complicated the exercise, but is good news for the Hudson River. It shows that agencies recognize the potential for an incident and that those agencies are willing to commit resources and assets to preparation and training.”

Constantakes, the DEC spokesman, said the decision to use fuel oil instead of Bakken crude was made because the New Windsor facility did not store Bakken crude in any of its tanks. The tank used in the drill was the largest in the Global facility, and stores fuel oil most of the time, he said.

“The physical properties of Bakken crude oil and diesel oil are similar, so this change did not significantly alter the simulated response actions,” he said.

Problems with hardware

Participants were hampered by a lack of simple hardware such as enough electric outlets, consistent Internet access and computer printers, the documents say. And a sudden overnight drop in temperatures caught some by surprise.

Experts say that these snafus can be a blessing in disguise, however, since they can mirror real-world situations.

“I thought that was a really interesting comment, that folks were cold,” said Brian House, chief executive officer of Moran Environmental Recovery LLC in Randolph, Massachusetts. “If this had been a real event, folks would have been a lot colder.”

House is a past-president of the Spill Control Association of America and was the spill-recovery industry’s representative on a federal review of the BP Deepwater Horizon disaster. Neither he nor his company was involved in the drill.

At the Journal’s request, House reviewed a detailed, bullet-point summary, called a “hot wash,” that was sent by a DEC’s regional spills engineer to about 15 private and public entities a few days after the drill. The military term has been adopted by first responders to describe a post-event debriefing. It is derived from the practice of soldiers who used hot water to clean weapons of dirt and residue.

“Nothing jumped out at me as being a catastrophic flaw,” House said. “I think any time you have a drill with a mix of public and private sector resources, it is a learning experience. I think the issues, for the most part, revolved around ways to enhance communication.”

Communication between commanders and the teams at the rail car was initially hampered because of the use of different radio frequencies, the hot wash summary said. The problems were quickly resolved.

The hot wash summary also highlighted concerns over whether private railroad officials from CSX were moving out of sync with the incident command system, or ICS. An ICS is a standardized, uniform response structure that allows people or departments to respond to incidents regardless of size.

“That can be as simple as five guys in a tent, or on large events, it can be hundreds of people,” House said.

‘Chaos’ within command system

The DEC memo indicated there was a “good deal of chaos” within the ICS.

“Emergency response events and drills are by their very nature chaotic and cannot be perfectly organized,” Constantakes said. “These situations are somewhat similar to hospital emergency rooms.”

Constantakes said that in the agency’s view, ICS staffing came together quickly, with people assigned to each of the units necessary to perform their assigned tasks.

Within an ICS are sections, or departments, such as planning, logistics and operations. At New Windsor, communication issues arose between the sections. In one instance, the planning section lacked information on what equipment had been deployed, making it difficult to plan the next operational phase.

There were smaller issues, such as responders not having the right tools when they performed an initial reconnaissance entry to the train.

Participants also expressed frustration that too many media representatives and other observers distracted them from doing their jobs.

Under a section headlined “Positives,” the hot wash summary indicated that public perception was good; the initial confusion took a while to clear but started to work at the end; and that there was a great deal of coordination between multiple agencies.

But the summary also indicated that some felt the drill may have been too big.

The DEC says all of those lessons, as well as others, will be incorporated into future drills. One lesson: Seek help when planning a comparatively complex event.

“The overall review of the drill indicated that the use of both a professional planner and professional facilitator would have been helpful for a drill of this magnitude,” Constantakes said.

Rowe said the drill was “not perfect by any means,” primarily because the total number of agencies that participated was considerably larger than was initially planned.

But, the Coast Guard spokesman said it revealed that the Hudson River has a larger response capability than initially had been thought, that responders “are serious” about the potential for oil and hazardous materials spills and that all participants understand the necessity of working together under an organized command structure.

“Obviously, there is work to be done,” Rowe said, “but there are many willing hands to do that work.”

 

 

 

 

U.S. Mayors: oil trains must be drained of explosive gas

Repost from Reuters
[Editor: see also Safety of Citizens in Bomb Train Blast Zones in Hands of North Dakota Politicians and North Dakota seizes initiative in CBR degasification. – RS]

U.S. oil trains must be drained of explosive gas, mayors say

By Patrick Rucker. WASHINGTON, Sep 16, 2014

(Reuters) – Dangerous gas should be removed from oil train shipments to prevent a future disaster on the tracks, U.S. mayors and safety officials will tell regulators in comments on a sweeping federal safety plan.

The Department of Transportation in July proposed measures meant to end a string of fiery accidents as more trains carrying oil from North Dakota wind across the United States.

Tank cars carrying flammable cargoes would be toughened and forced to move at slower speeds under the plan. But critics say the failure to address vapor pressure, a measure of how much volatile gas is contained in the crude, is a major omission, and intend to drive their point home.

“That’s an oversight we’re going to push them to fix,” Elizabeth Harman, an official with the International Association of Fire Fighters, told Reuters.

Responses to the DOT’s plan are due by Sept. 30, and so far more than 100 comments have been received. Typically in a contentious rulemaking major stakeholders submit their views just before the deadline.

U.S. officials have studied vapor pressure since July 2013, when a runaway oil train derailed in the Quebec village of Lac-Megantic, killing 47 people in a fireball that shocked many with its explosive power.

Until recently, official findings on vapor pressure were in line with industry-funded studies: That the North Dakota fuel is similar to other U.S. light crude oil deemed safe to move in standard tank cars.

But the DOT said last week that it did not properly handle prior samples and that a precision device, a floating piston cylinder, is needed to reliably detect vapor pressure dangers.

Given that disclaimer, many officials simply want dangerous gas removed from crude oil before it is loaded onto rail cars.

“The technology exists so it boils down to costs,” said Mike Webb, a spokesman for Davis, California, who expects nearby cities will join a call for safer handling of Bakken crude from North Dakota.

Under one scenario, energy companies would siphon gas from crude oil and send the fuel to market via different channels. But building such infrastructure, like separators or processing towers, could cost billions of dollars.

The North Dakota Petroleum Council has sampled some Bakken fuel using a floating piston cylinder and the results have been inconclusive, said Kari Cutting, vice president for the trade group.

“But nothing we’ve seen supports the idea that Bakken crude is more volatile than other light crude oils or other flammable liquids,” said Cutting.

But leaders of many railside towns say uncertainty demands the fuel only move under the most stringent safety measures.

“There is a way to haul dangerous cargo safely and that means using state-of-the-art tools,” said Karen Darch, mayor of the Chicago suburb of Barrington, where fuel-laden freight trains cross commuter tracks as many as 20 times a day.

North Dakota officials will next week hold a hearing to consider measures to de-gasify crude oil in the state.

(Reporting by Patrick Rucker, editing by Ros Krasny and Cynthia Osterman)

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