Tacoma Editorial: Washington should impose per-barrel fees like California

Repost from The News Tribune, Tacoma, Washington

Paying to protect ourselves from North Dakota crude

EDITORIAL, The News Tribune, July 1, 2014
Tank cars loaded with crude oil head east at Hurricane, West Virginia, on May 11. Oil trains have become an increasingly common sight traveling through South Sound communities – and their numbers are projected to continue growing. CURTIS TATE — MCT

There’s good news about the explosive oil tankers rolling through our communities: We can finally find out what the bad news is.

Until Tuesday, the public knew only that the state had suddenly become a magnet for thousands of antique tanker cars, each filled with 680 barrels of volatile crude oil from North Dakota’s Bakken region.

We’ve all seen them: huge black tanks topped with what look like black caps. Their design is a half-century old. The National Transportation Safety Board has been yelling for years about their tendency to split open and explode in crashes.

Federal regulators finally took the risk seriously after one oil train — more or less identical to countless others — exploded in Quebec last year and incinerated 47 human beings.

The new gusher of North Dakota crude has sent a storm surge of tankers across the continent. The rail industry and some states haven’t been eager to tell the public where the trains are going and how many there are.

One particularly specious claim is the information might fall into the hands of terrorists — as if any terrorist with time on his hands couldn’t simply stand by the track in a given locale and count.

The U.S. government last month declared that the train movements aren’t state secrets. Washington state’s emergency preparedness people last week released the details. In Pierce County, for example, BNSF Railway is currently moving 11 to 16 major oil trains through University Place, Tacoma and other communities.

The typical train pulls about 100 cars. Trains that pull fewer than 35 or so aren’t reported. Keep in mind: Shipments are still curving up. In 2011, zero crude was sent to Washington refineries by rail. In 2013, that zero had grown to 29 million barrels.

It’s crucial that the public have this information. Without it, we couldn’t assess either the threat or the preventive measures.

BNSF appears to be trying to get ahead of the problem. (As common carriers, railways are legally obligated to carry oil trains.) It is upgrading its tracks aggressively and is funding training for the state’s first responders.

Railway companies don’t normally deploy cars of their own, but BNSF is buying a small fleet of modern, much-safer oil tankers. Credit where it’s due.

Washington is reacting to the surge faster than the federal government did. This year’s Legislature appropriated nearly $1 million to develop response plans. State agencies are on task.

Unfortunately, lawmakers failed to take one obvious step: imposing a per-barrel fee on rail-borne oil, as California does and as this state already does with the seaborne crude that arrives at our refineries. As a result, taxpayers are footing the bill for much of the emergency preparation.

Heaven knows how many oil barons and CEOs are enriching themselves by rolling these potential bombs through our cities. It’s galling that we have to pay to protect ourselves from them.

Texas Public Radio: Derailments Spike Along With Oil Shipments

Repost from Texas Public Radio
[Editor: This seems to be an early posting on Texas Public Radio, with actual interview audio to follow.  I will return to add the audio when it is posted.  – RS]

The Source: Derailments Spike Along With Oil Shipments

By Paul Flahive, July 1, 2014
Link to original image: http://bit.ly/1lvK3ci Credit Flickr user Paul Sullivan / cc

Transporting crude oil from areas booming with the hydraulic fracturing revolution relies heavily on railroads. Busier railroads means more derailments and more derailments with trains loaded with old cars filled with oil means more tragedies.

Chris Hart, acting chairman of the National Transportation Safety Board, noted the dramatic rise in flammables being transported by rail the in a letter to U.S. Senators Ron Wyden and Jeff Merkley while noting a number of specific oil derailments:

  • March 27, 2013, derailment of a Canadian Pacific train involving 14 tank cars of Western Canadian crude oil in Parkers Prairie, Minnesota, that released 15,000 gallons of product.
  • January 31, 2014, 11 tank cars of a Canadian National (CN) train transporting North Alberta crude oil in New Augusta, Mississippi, derailed, releasing 50,000 gallons of product.
  • February 13, 2014, 19 tank 2 cars of a Norfolk Southern train carrying Western Canadian heavy crude oil derailed in Vandergrift, Pennsylvania, releasing 4,300 gallons of product.
  • January 7, 2014, 5 tank cars of a CN train carrying Western Canadian (Manitoba/Saskatchewan) crude oil derailed in Plaster Rock, New Brunswick, releasing 60,000 gallons of product.

As we enter July, the property damage by oil on rail derailments has already surpassed all of last year and these derailments have affected every region of the country according to a Politico investigation.

As these trains travel through our communities, sometimes without the knowledge of first responders, are we safe? Should we have more information and the ability to keep these trains outside densely populated areas? Are there alternatives, and how does the Keystone XL pipeline figure in?

Guests:

  • Kathryne Wolfe, Politico’s deputy transportation editor
  • Tom “Smitty” Smith, Texas director of Public Citizen, a consumer and citizen advocacy group

*This is the second segment in the July 1 edition of The Source, which airs at 3 p.m. on KSTX 89.1 FM.  Audio from this segment will be posted by 5:30 p.m.

Video coverage of BSHC Workshop on Valero DEIR

See video below from Constance Beutel on YouTube

Benicia Videographer Constance Beutel covers Workshop sponsored by Benicians For a Safe & Healthy Community

On Saturday, June 28, Benicians For a Safe and Healthy Community (BSHC) offered a free public workshop on “How to Read and Comment on Valero’s Draft EIR.”

The event, attended by over 60, was primarily an objective study of general information on Environmental Impact Reports, legal requirements under the California Environmental Quality Act (CEQA), and an explanation of how ordinary citizens are encouraged to participate in reviewing and commenting on these lengthy documents.

While event planners sought to present an impartial forum as an educational experience, there were plenty of questions and comments from participants that took issue with Valero’s proposal.

After the presentations, breakout groups worked on issues of concern to participants.

Local videographer Constance Beutel covered three of the speakers on her YouTube page.  See the video below, and check out Constance’s many other videos here: http://youtu.be/9Prey7fckk8.

‘Micro refineries’ a solution to oil-train woes, energy firm says

Repost from Reuters in The Jamestown Sun

‘Micro refineries’ a solution to oil-train woes, energy firm says

By Reuters Media Today

WASHINGTON – A handful of small refineries in North Dakota could remove dangerous gas from oil train cargoes and make shipments from the state’s productive Bakken shale area safer on the tracks, according to a company which has pitched the idea to regulators.

The proposal from Quantum Energy Inc would strip propane and other volatile gas from North Dakota crude and send much of the remaining fuel to distant refineries.

Williston, North Dakota-based Quantum hopes to build five “micro refineries” near railheads already handling Bakken crude to strip about 100,000 barrels a day of fuel from that stream.

Some of the resultant gas could add to household fuel supplies in the upper Midwest while making Bakken-origin rail cargoes safer, Quantum’s executive vice president Russell Smith told Reuters.

“Our plan solves a couple of important problems,” said Smith, who earlier this month pitched the idea in meetings with White House officials and Transportation Department regulators mulling oil train safety.

Besides light fuels, Smith said, the Quantum facilities would also pull a stream of diesel gasoline from Bakken sources to help slake demand in the region. Executives hope to have permits and financing to break ground on at least one of the proposed refineries before year-end.

The company expects that each processing center would cost about $500 million.

A spokesman for the U.S. Department of Transportation said officials could not comment on their deliberations about oil train safety or meetings with industry.

In the coming weeks, though, officials are expected to outline measures to improve oil train safety such as demanding tougher tank cars, slower speeds and diversions around urban centers.

Several oil cargoes from North Dakota’s Bakken have exploded during rail accidents in the last year. Some officials say toughened tank cars should be used to move such fuel.

Regulators have homed in on the vapor pressure of Bakken fuel, one index of the explosion risk.

Industry-funded tests of Bakken fuel have returned vapor pressure readings of 15 pounds per square inch on the commonly-used Reid scale, while Quantum Energy believes it could bring that reading below 6 psi, similar to fuels like ethanol and heavy crude.

“The crude is much less volatile once you take these light tops off,” said Smith, referring to the gassy share of Bakken fuel.

Some oil industry officials, though, see little need to reduce vapor pressure in oil train cargoes and think Quantum might have misjudged demand for gas.

“There will be a market for propane, potentially in North Dakota, but what about the other components they’ll be removing?” said Kari Cutting, vice president of the North Dakota Petroleum Council.

Pentane, butane and other light gases are not easily marketable in North Dakota currently and may have to be shipped to buyers such as far-off chemical plants in tank cars fit to carry dangerous gas.

Smith said Quantum expects to find buyers that would welcome the portion of Bakken fuel not marketed close to the source. The Bakken field extends into Montana and Canada’s Saskatchewan and Manitoba provinces.