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

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
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.

Sen. Bob Casey calls for more funding for railroad bridges

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.

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

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
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.

Santa Barbara oil spill might have been far larger than projected

Repost from Associated Press
[Editor:  See also local coverage in the Benicia Herald.  – RS]

Oil spill might be larger than projected

By Michael R. Blood, Aug. 5, 2015 4:04 PM EDT
In this May 21 file photo, David Ledig, a national monument manager from the Bureau of Land Management, walks past rocks covered in oil at Refugio State Beach, north of Goleta. New documents released Wednesday show that the Plains All American Pipeline spill, originally estimated to be around 101,000 gallons, might have been much larger than projected. JAE C. HONG , THE ASSOCIATED PRESS

LOS ANGELES (AP) — More than two months after oil from a ruptured pipeline fouled California beaches, documents released Wednesday disclosed that the spill might have been far larger than earlier projected.

Plains All American Pipeline had estimated that the May 19 break along a corroded section of pipe near Santa Barbara released up to 101,000 gallons of crude. The resulting mess forced a popular state park to shut down for two months, and goo from the spill washed up on beaches as far as 100 miles away.

In documents made public Wednesday, the Texas-based company said alternate calculations found the spill might have been up to 143,000 gallons, or about 40 percent larger.

The company is continuing its analysis, and the figures are preliminary. Plains All American has hired an outside consultant as part of the effort to reconcile the differences, the documents said.

At this point, the company considers the methodology used in its initial estimate to be “the most straight forward and accurate calculation.” However, it emphasized the estimate could change as the investigation continues.

In a statement, Sen. Edward J. Markey, D-Massachusetts, faulted the federal agency responsible for regulating the nation’s pipelines for the conflicting figures.

“The revelation that the Santa Barbara pipeline spill was much larger than originally thought underscores the importance of our pipeline safety agency providing complete information to Congress and the American people. Unfortunately, the Pipeline and Hazardous Materials Safety Administration’s operational culture has been to withhold information from the American people and Congress,” he said.

The company has been criticized for taking about 90 minutes to alert federal responders after confirming the spill, even though federal regulations require the company to notify the National Response Center, a clearinghouse for reports of hazardous-material releases, “at the earliest practicable moment.” State law requires immediate notification of a release or a threatened release.

The cleanup is nearly complete, although the cause of the break is under investigation. The state attorney general and local prosecutors are considering possible charges, and the documents said the U.S. Justice Department is also investigating.

The company said it’s covering legal costs for several employees who could be questioned by the Justice Department.

No timeline has been set to restart the pipeline.

CEO Greg Armstrong told Wall Street analysts in a phone call that the company faced as much as $257 million in potential costs from the break, which includes estimates for cleanup operations, possible legal claims and fines.

At the end of June, the company said cleanup costs had hit $92 million.

Wildlife officials reported that nearly 200 birds and more than 100 marine mammals were found dead in the spill area. Investigators have not yet determined what, if any, role the spill played in those deaths.

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