Refiners’ lobby says DOT-111 is “fine” for shipping Bakken crude

Repost from Railway Age

Refiners’ lobby says DOT-111 is “fine” for shipping Bakken crude

Written by  David Thomas, Contributing Editor  | May 19, 2014

Operators of the U.S. fleet of DOT-111 tank cars are fighting the emerging consensus that the cars and their contents are the key culprits in the succession of oil train conflagrations that started last July 6 at Lac-Mégantic, Quebec.

Keeping trains on the tracks should be the priority in the reform of crude-by-rail, said the Washington-based policy advocate for the petroleum refiners that own much of the North American tank car fleet.

Too much focus is on the presumed weaknesses of the DOT-111 general-purpose tank car and on the particular properties of crude oil fracked from Bakken shale, said the American Fuel & Petrochemical Manufacturers (AFPM) in a May 14 submission to the U.S. Department of Transportation. Both are safe for haulage, the refiners argue in a contrarian view that rubs against the otherwise unanimous opinion of accident investigators, regulators, and railroaders that the DOT-111 and Bakken oil are an unacceptably risky pairing.

In an interview with Railway Age May 16, AFPM president Charles Drevna asked: “Can we have an intellectually honest discussion about mechanical and track integrity on the rails? You shouldn’t blame the cargo for an accident.”

At the same time, Canada’s oil shippers are resisting any requirement that they cover their consignments with public liability insurance. Legal and financial responsibility for the consequences of rail accidents should remain entirely with railroads and railroad insurers, the Canadian Association of Petroleum Producers and the Canadian Fuels Association argued in a joint submission to a Transport Canada review arising from the Lac-Megantic accident.

Both Canadian Class I railroads and the Railway Association of Canada submitted that shippers should indeed insure their cargos against loss of life and environmental damages. Furthermore, CN and CP want the right to refuse consignments they judge to be too dangerous. Currently, as common carriers, railroads in both the U.S. and Canada are obliged to haul any legal cargo in authorized containers.

Thus, as the anniversary of the Lac-Mégantic catastrophe approaches, what had seemed to be a public consensus that the ultra-light Bakken crude is inherently too volatile for DOT-111 carriage is fracturing into open dispute between oil shippers and rail carriers.

“As the standards are today for flammable liquids, Bakken crude fits right in, and the DOT-111 cars should be fine,” Drevna said.

While the AFPM supports regulatory adoption of the 2011 standard proposed by a cross-industry committee, Drevna said he doubts that Canada’s phase-out of DOT-111s can be accomplished within the three-year timeline. Any additional new tank car specification beyond the industry-sponsored CPC-1232 standard should be delayed until comprehensive derailment data has been collected and analyzed.

No practical tank car would have survived the 64-mph derailment of Montreal, Maine & Atlantic’s runaway at Lac-Mégantic, said Frits Wybenga of Dangerous Goods Transport Consulting, who on behalf of AFPM analyzed a survey of Bakken oil samples by organization members. “You can’t design-out a tank car rupturing in those circumstances. You can make them heavier and heavier and make a tank car that would withstand those forces, but you wouldn’t be able to carry much crude oil in it.”

Products considerably more hazardous are routinely and legally transported in DOT-111 cars and Bakken crude should continue to be classified and transported like any other Class 3 flammable liquid under the Hazardous Materials Regulations (HMR), said the AFPM.

“Bakken crude oil currently is transported in compliance with the HMR as a Class 3 Flammable Liquid in either Packing Group I, II, or III. In conclusion, there is no identifiable basis for regulating Bakken crude differently than other flammable liquids regulated by the DOT Hazardous Materials Regulations,” says the AFPM submission to DOT.

The AFPM report included an assessment of routine assays performed by its own members in the course of loading and receiving Bakken crude. With just one exceptionally high concentration of hydrogen sulfide among the 1,400 samples drawn between loading terminals and destination refineries, the AFPM concludes that Bakken crude falls comfortably within Class 3 Flammable Liquid specifications for carriage in DOT-111 cars. Furthermore, the DOT-111 was a safe vessel for any flavor of crude oil—providing railroads keep the cars on the tracks.

“Bakken crude oil was found to be well within the limits for what is acceptable for transportation as a flammable liquid,” the AFPM reported. “Bakken crude oil was compared with other light crude oils and determined to be within the norm in the case of light hydrocarbon content, including dissolved flammable gases. Measured tank car pressures show that even the older DOT-111s authorized to transport Bakken crude oil are built with a wide margin of safety relative to the pressures that rail tanks may experience when transporting Bakken crude oil.”

The report relies substantially on the “Reid Vapor Pressure” test, which was abandoned in 1990 for U.S. hazmat classification in favor of the dual criteria of whether a material is liquid or gas at 20°C (68°F) or, alternatively, has a vapor pressure of more than 300 kPa (43.5 psia) at 50°C (122°F). The Reid test remains a common industry measure of vapor pressure at 100°F (38°C) and transposes accurately to the HMR-approved pressure scale, says the AFPM.

“AFPM and its members appreciate the concerns raised in relation to rail transport of Bakken crude oil and stand ready to work cooperatively with DOT and other governmental organizations to ensure the safe transportation of Bakken crude oil,” the report says. “This survey shows that Bakken crude oil does not pose risks that are significantly different than other crude oils and other flammable liquids authorized for transportation as flammable liquids.”

California Senate committee approves fracking moratorium – oil lobbyists spending millions

Repost from Daily Kos
[This from Judi Sullivan of Benicia, who attended the Appropriations Committee meeting: “This is a big victory.  The entire Senate vote is scheduled for this Tuesday, May 27.   All the senator’s offices, those listed HERE and the others not mentioned, along with the governor’s office have been contacted by phone.  According to the people I spoke with, they have been deluged with calls asking for support of This Bill.  Talked to real people each  time.  In addition to asking for a “yes” vote on sb 1132,  they were were open to hearing detailed comments about fracking concerns backed by research revealed in prior testimonies. All was respectfully received, even by those who represent  the fracking districts.  The more of us who voice our objections re: the  negative impacts of fracking to our government officials, the stronger our opposition can be felt.  The public’s grassroots effort is definitely gaining power. Hurray!”]

Senate Appropriations Committee Approves Fracking Moratorium Bill

By Dan Bacher  |  May 23, 2014

In spite of the millions spent by Big Oil on lobbying in Sacramento every year, the California Senate Appropriations Committee today voted 4 to 2 to approve a bill, SB 1132, to place a moratorium on fracking (hydraulic fracturing) in the state.

SB 1132, authored by Senators Holly Mitchell and Mark Leno, now moves to a vote on the Senate floor. Senators Gaines and Walters voted against the bill while Senators De León, Padilla, Hill and Steinberg voted to advance the bill to the floor.

The bill moved forward the same week that the U.S. Energy Administration reduced its previous estimate of recoverable oil in California by 96 percent.

“The cost-benefit analysis of fracking in California has just changed drastically,” said Senator Mitchell in a statement. “The costs to people, homes and the environment remain unacceptably high, but we now also know that the projected economic benefits are only a small fraction of what the oil industry has been touting.”

“The latest report from the U.S. Energy Information Administration reduces prior estimates of oil potential by 96%. Why put so many at risk for so little?” Mitchell asked.

“There’s no ocean of black gold that fracking is going to release tomorrow, leaving California awash in profits and jobs. We have the time, the need and, in SB 1132, the mandate to halt fracking while we determine if and how it can be done safely in California,” she said.(http://sd26.senate.ca.gov/…)

David Turnbull of Oil Change International pointed out that those who voted against the legislation received big campaign contributions from Big Oil. (http://priceofoil.org/…)

“As usual, those voting against safeguarding the public interest and in favor of Big Oil’s wishes have received far more in Big Oil political contributions than those voting in favor of climate and community safety and against dangerous oil extraction processes,” said Turnbull.

The numbers, according to the organization’s Dirty Energy Money database, tell the story:

On average, Senators voting against the moratorium have received nearly 3 times as much in Big Oil contributions than those voting for.

The two Senators voting against the moratorium have received over $110k in Big Oil money combined (Sen. Walters = $82k, Sen. Gaines = $29k).

“As the vote comes to the California Senate floor in the coming days, you can be sure the oil industry will put the pressure on. The question is whether the members of the California Senate will listen to the people, who recent polls show resoundingly support a moratorium on fracking, or the Big Oil benefactors lining their campaign coffer,” said Turnbull.

“And, of course, Governor Brown could also step in any time now and enact a ban on fracking in the State…but so far he appears to be listening to his Big Oil friends as well,” noted Turnbull.

A previous analysis by Oil Change International showed that the 2 Senators voting against the passage of the fracking moratorium by the Senate Environmental Quality Committee in April received 16 times as much in fossil fuel contributions, on average, than those Senators in support of the bill.

The Western States Petroleum Association (WSPA) that is leading the campaign to frack California spends more money every year on lobbying in Sacramento than any other corporate group. Catherine Reheis-Boyd, the former Chair of the Marine Life Protection Act (MLPA) Blue Ribbon Task Force to create alleged “marine protected areas” in Southern California, is the President of the Association.

In her latest statement on the Western States Petroleum Association blog, Reheis-Boyd claims, “The U.S. Energy Information Administration’s (EIA), revision does not change the estimate of the amount of oil present. It only changes their estimate of how much of that oil can be produced given the current state of technology in California.” (http://www.wspa.org/…)

She used the new estimate as an opportunity to promote new “research and exploration,” which you can bet would be subsidized by taxpayers’ dollars.

“This change in the estimate of recoverable oil indicates the need to continue to invest in research and exploration in this area to adapt technologies that have proved successful at producing oil from shale resources elsewhere to California’s unique geology,” she claimed. “We have a great deal of confidence that the skill, experience and innovative spirit possessed by the men and women of the petroleum industry will ultimately solve this puzzle and improve production rates from the Monterey Shale.”

Reheis-Boyd’s organization spent a total of $5,331,493 in 2009, $4,013,813 in 2010, $4,273,664 in 2011, $5,698,917 in 2012 and $4,670,010 in 2013 on lobbying at the State Capitol – and spent $1,456,785 in just the first 3 months of 2014. (http://www.truth-out.org/…) You can bet that a good chunk of this money spent so far this year was spent on trying to stop Senate Bill 1132.

A report released on April 1, 2014 by the ACCE Institute and Common Cause also reveals that Big Oil’s combined spending on lobbying and political campaigns in Sacramento amounts to a stunning $266.9 million over the past 15 years. (http://www.counterpunch.org/…)

However, the oil industry’s money, power and enormous influence over state officials doesn’t change the fact that the Energy Information Administration’s estimate for technically recoverable oil in the Monterey Shale has been reduced from 13.7 billion barrels of oil to just 0.6 billion barrels of oil.

As Turnbull said so well, “With reports showing the bonanza that Big Oil wants Californians believe is largely a fantasy, and two-thirds of Californians supporting a stop to fracking in the state, Big Oil is on its heels. It’s time the people’s voice was heard over rustle of Big Oil dollar.”

Senate Bill 1132 Background:

SB 1132 requires the California Natural Resources Agency to facilitate an “independent scientific study” on well stimulation treatments (fracking and acidizing) and their hazards and risks to natural resources and public, occupational, and environmental health and safety by January 1, 2015.

The legislation would also:

      • require the Division of Oil, Gas, and Geothermal Resources (DOGGR) to adopt rules and regulations for well stimulation treatments by January 1, 2015, in consultation with the Department of Toxic Substances Control (DTSC), the California Air Resources Board (CARB), the State Water Resources Control Board (SWRCB), CalRecycle, and any local air and regional water quality control boards;
      • require DOGGR to complete a statewide environmental impact report (EIR) by July 1, 2015 ;
      • allow operators to continue well stimulation practices while DOGGR completes its regulations, providing that the well owner complies with interim requirements.

If fracking is not banned, groundwater and surface supplies will be polluted with numerous toxic chemicals, including methanol, benzene, naphthalene and trimethylbenzene.  According to the Center for Biological Diversity, evidence is mounting throughout the country that these chemicals are making their way into aquifers and drinking water.

Human health, endangered Central Valley salmon, steelhead and other fish populations and many wildlife species will be imperiled by increasing water pollution in California, as well as by the increasing use of water for fracking that is badly needed for people, farms and fish during the current drought.

Tar sands in our back yard

Repost from The Martinez News Gazette
[Editor: An excellent fact-filled summary on tar sands crude by our colleagues in the Martinez Environmental Group.  Note that Valero Benicia Refinery has admitted (in its open community meeting on March 24, 2014) that it may include tar sands crude in its “mix.”  See “NRDC report: Valero’s Magic Box.”  Also: “KPIX reports: Valero admits Tar Sands Crude, Fracked Oil could come through Benicia.”  – RS]

Martinez Environmental Group: Tar sands in our back yard

By AIMEE DURFEE & TOM GRIFFITH | May 22, 2014

Because fossil fuels are a finite resource, petroleum companies are now resorting to more extreme forms of oil extraction, including tar sands, fracking, and Arctic exploration. The tar sands are deposits of heavy crude oil trapped in sand and clay that are extracted using enormous amounts of water, as well as open pit mining, heat and horizontal wells. The largest deposit of Canada’s tar sands is along the Athabasca River in Alberta (Source: http://albertacanada.com).

Why is everyone so worried about the tar sands? First, tar sands oil extraction and production emit three times more carbon dioxide than the extraction and production of conventional oil. Second, tar sands extraction requires total destruction of pristine areas within the Canadian Boreal forest, one of the few large, intact ecosystems on Earth (Source: Friends of the Earth). Finally, the extraction of tar sands will have devastating global impacts. In a 2012 editorial in the New York Times, Jim Hansen of NASA famously wrote that if the tar sands are fully excavated, it will be “game over for the climate,” because Canada’s tar sands contain twice as much carbon dioxide (CO2) as has been emitted over the entire span of human history (Source: NYT! 5/9/12).

What does this have to do with Martinez? Shell Refinery in Martinez is currently receiving and processing tar sands (Source: CC Times, 6/1/13). Contra Costa County’s air is already very polluted, and this type of refining will only make it worse. Shell’s choice to refine tar sands will worsen the health of Martinez residents; pollution emanating from tar sands refineries are directly linked to asthma, emphysema and birth defects. (Source: Sierra Club, Toxic Tar Sands: Profiles from the Front Lines).

Additionally, the U.S. Geological Survey found that tar sands bitumen contains “eleven times more sulfur and nickel, six times more nitrogen, and five times more lead than conventional oil.” (Source: Environmental Integrity Project, Tar Sands: Feeding U.S. Refinery Expansions with Dirty Fuel).

But wait, there’s more … Shell also has a global role in profiting from the destruction of the climate. Royal Dutch Shell owns a whopping 60 PERCENT of the Athabasca Oil Sands in Alberta, Canada (Source: www.shell.com). If you Google “Athabasca tar sands,” you will see a veritable “Mordor” on Earth.

If all this makes you feel completely overwhelmed, get connected locally and join the Martinez Environmental Group. Climate change issues are happening literally in our back yard and we CAN do something about it.

If you want to stay updated on these issues and learn how to get involved, please go to http://mrtenvgrp.com/category/meetings.

For safe and healthy communities…