Minnesota DOT: More Than 300K Live in Evacuation Zones On Oil Train Routes

Repost from The West Central Tribune, Willmar, MN
[Editor: Quote: “‘It is sheer dumb luck’ that no major oil train issues have occurred in Minnesota, Senate Transportation Chairman Scott Dibble said.”  See also this MPR report, which includes a map of major rail lines in Minnesota.  – RS]

326,170 Minnesotans live near oil train tracks

By Don Davis, Forum News Service, March 19, 2015 11:56 a.m.
A pair of locomotives move past a variety of freight and tanker cars on tracks in December in Willmar.

ST. PAUL — State officials estimate that 326,170 Minnesotans live within a half mile of railroad tracks that carry crude oil, a distance often known as the danger zone.

People within a half mile of tracks usually will be evacuated if an oil train could explode or catch fire after a derailment.

The estimate, released this morning after state officials could not answer a Forum News Service question about the issue last week, is the first time Minnesotans had an idea about the number of people that state transportation and public safety officials say could be in danger of oil train explosions like those seen elsewhere in the United States and Canada.

“This data provides a greater emphasis on the need for a strong rail safety program,” Transportation Commissioner Charlie Zelle said. “If trains derail and an emergency occurs, many lives could be in danger.”

Zelle’s department did not immediately release data showing how many in any specific geographic area live in the danger zone.

State funds were appropriated last year to begin improving firefighter and other public safety workers’ training in dealing with crude oil explosions and spills.

“It is sheer dumb luck” that no major oil train issues have occurred in Minnesota, Senate Transportation Chairman Scott Dibble, D-Minneapolis, said.

Democrats are pushing for more oil train safety training money this year, as well as railroad crossing improvements, funded by increasing assessment on the state’s largest railroads, taxing more railroad property and borrowing money.

Crude oil trains travel on 700 miles of Minnesota tracks, carrying oil that originates in western North Dakota’s Bakken oilfield. Oil trains are destined for the East and Gulf coasts.

Most oil trains enter Minnesota in Moorhead and travel through the Twin Cities, although some come into Minnesota and head south through the Willmar area.

State transportation officials say each train carries about 3.3 million gallons of oil.

Most of Gov. Mark Dayton’s rail safety plan deals with improving railroad crossings, including adding overpasses and underpasses at crossings in Moorhead, Willmar, Prairie Island Indian Community and Coon Rapids. More than 70 other crossings also would be improved under the Dayton plan.

“Improved crossings will mean fewer chances for train and wheeled vehicles crashes, which will mean less likelihood of derailments,” Zelle said. “If an incident does occur, well-trained emergency personnel will be better able to protect the citizens and communities that lie along rail lines.”

None of the recent oil train explosions have occurred at road crossings. Five oil trains have derailed and caught fire in the past six weeks.

A Quebec train carrying North Dakota crude exploded in 2013, killing 47. A nonfatal derailment and fire near Casselton, N.D., brought the issue closer to home late that year.

The governor also proposes adding an oil train response training facility at the National Guard’s Camp Ripley.

Canada Transport Watchdog to Introduce New Tank Cars Ahead of Schedule

Repost from Insurance Journal (Reuters)

Canada Transport Watchdog to Introduce New Tank Cars Ahead of Schedule

By David Ljunggren | March 18, 2015
RTR4PZHU
IN PHOTO: Tanker rail cars burn after a crude oil train derailment 50 miles (80 km) south of Timmins, Ontario, in this picture from the Transportation Safety Board of Canada taken in Gogama, Ontario, February 16, 2015. Canadian National Railway Co is still cleaning up spilled oil and removing damaged rail cars after a weekend derailment on its line at a remote site. The company said 29 of 100 cars on the train heading from Alberta’s tar sands to eastern Ontario derailed late on Saturday and seven caught fire. There were no injuries. Picture taken February 16, 2015. REUTERS/Transportation Safety Board of Canada/Handout via Reuters

Canada’s transportation watchdog said that recent fiery derailments of trains hauling crude oil mean a new generation of stronger tanker wagons should be introduced ahead of schedule.

The Transportation Safety Board (TSB) is probing two accidents within the last month involving Canadian National Railway Co. oil trains which came off the tracks and caught fire near the small northern Ontario town of Gogama.

Both trains were hauling CPC-1232 crude tankers, meant to be safer than the older DOT-111 models that blew up in downtown Lac-Megantic, Quebec in 2013, killing 47 people. Canada last week unveiled tough standards for a new generation of tanker cars that would replace the CPC-1232s by 2025 at the latest.

“While the proposed standards look promising, the TSB has concerns about the implementation timeline, given initial observations of the performance of CPC-1232 cars in recent derailments,” the agency said in a release.

“If older tank cars, including the CPC-1232 cars, are not phased out sooner, then the regulator and industry need to take more steps to reduce the risk of derailments or consequences following a derailment carrying flammable liquids,” it said, but gave no details.

The agency said track failures may have played a role in each of the Gogama derailments as well as in the case of an oil train that left the tracks near Minnipuka, also in northern Ontario. No crude caught fire in that accident.

The TSB has issued a safety advisory letter asking the federal transport ministry to review the risk assessments conducted for the area.

“Petroleum crude oil unit trains transporting heavily-loaded tank cars will tend to impart higher than usual forces to the track infrastructure during their operation,” said the agency.

“These higher forces expose any weaknesses that may be present in the track structure, making the track more susceptible to failure.”

It noted trains traveling in the area were under orders to travel slowly to protect against various infrastructure and track maintenance issues.

CN spokesman Jim Feeny said the company “has enhanced its already rigorous infrastructure and mechanical inspection procedures on this northern Ontario rail corridor.”

The office of Transport Minister Lisa Raitt – which has overall responsibility for regulating the rail industry – was not immediately available for comment.

(Additional reporting by Allison Martell in Toronto; editing by Chizu Nomiyama and Marguerita Choy)

Related article:
Canada Proposes Tough New Oil Tank Car Standards

U.S. exporting more crude oil to Canada

Repost from Bloomberg Business News

Canadian Refiners Set to Buy More U.S. Oil With Wider Discount

By Robert Tuttle, March 18, 2015 4:14 PM PDT 

(Bloomberg) — Cheaper North American oil is poised to replace West African and Middle East cargoes at eastern Canadian refineries with U.S. crude prices at the lowest level compared with the international benchmark in 14 months.

Imports to Canada from outside North America averaged 244,089 barrels a day this month through March 15, down 27 percent from a year earlier, according to New York-based ClipperData, which tracks tanker shipments.

Canada, the world’s fifth-largest oil supplier, produces most of its oil in the western province of Alberta and exports it south to the U.S. A lack of pipelines means Canada’s eastern refineries depend on imports by tanker and train.

U.S. export “volumes have been growing pretty exponentially,” Katherine Spector, a commodities strategist at CIBC World Markets Inc. in New York, said by phone Wednesday. U.S. oil is “going to Eastern Canadian refineries and displacing waterborne light crude.”

U.S. crude oil exports averaged 478,000 barrels a day the week ended March 13, up almost eightfold from a year earlier, preliminary data from the Energy Information Administration show. Canada, the only country that U.S. producers can export to without restrictions, receives the bulk of the shipments.

Oil has flowed north as West Texas Intermediate crude’s discount to Brent averaged $9.43 a barrel this month from $2.41 in January as U.S. stockpiles rose to a 458.5 million barrels, the most in decades.

The U.S. displaced Algeria in 2013 as Canada’s biggest source of imported oil and accounted for about half of imports in the first eight months of last year, the country’s National Energy Board said in a November report. The trend was driven by availability of tight oil from North Dakota as well as Texas, New Mexico and Colorado.

Bakken crude from North Dakota traded at about $40 a barrel today versus $55 for oil from West Africa, according to data compiled by Bloomberg.

“Especially with lower prices, a difference of a dollar or so in transport costs is significant,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone Wednesday. “If you can bring it in from the U.S. rather than West Africa, it’s a little closer and cheaper.”

Expanded rail capacity has linked U.S. oil producers with Canada, Spector said. The movement parallels the movement of Bakken crude to U.S. East Coast by rail, which cut the region’s imports of crude from Nigeria by half in two years and from Algeria by 81 percent, EIA data show.

“The maritime provinces of eastern Canada do resemble the U.S. East Coast in many ways,” Antoine Halff, head of the International Energy Agency’s oil industry and markets division, said in a March 18 phone interview. “When Bakken crude started being railed to the U.S. East Coast in significant quantities, it displaced imports from West Africa.”

Legislation proposed in state of Washington to regulate oil trains

Repost from The Pacific Northwest Inlander

Big Boom

What officials want to do with exploding oil train traffic

By Jake Thomas, March 18, 2015
A train shipping oil through Montana.
A train shipping oil through Montana.

Every day a potential bomb, sometimes a mile long, quietly passes through Spokane as it makes its journey across the state.

Beginning four years ago, Washington began seeing a big change in how crude oil was transported across the state. Historically, Washington received 90 percent of its crude oil from tanker ships from Alaska or an international source. Now it comes by trains from North Dakota loaded with crude oil from the Bakken shale. Every week 16 Burlington Northern Santa Fe trains carrying Bakken oil pass through Spokane County, according to a recent report from the state Department of Ecology. The study found that the number of oil trains traveling through the state could rise to 137 a week by 2020.

Bakken oil is particularly volatile, and sometimes these trains derail and explode. In the last month alone, four oil trains have derailed in Illinois, West Virginia and twice in Quebec, causing explosions and environmental contamination. In 2013, a train derailed in a small town in Quebec, killing 47 people.

In Washington, a rail line runs through Spokane Valley, downtown Spokane and Cheney and intersects with I-90. An oil train explosion along this stretch could be catastrophic.

“All of Cheney could be wiped out,” says Laura Ackerman, oil and coal campaign director at the environmental advocacy group the Lands Council. “All of these places could be wiped out.”

Last year, Washington lawmakers were unable to pass any legislation regarding oil trains. They’re trying again this session, and legislators are split on two competing proposals. In Spokane, the only urban center the trains pass through on their way to western Washington, the city’s officials have taken different approaches to potential legislation.

Earlier this month, two bills passed out of the House and Senate, respectively. They both seek to provide local communities with more information and resources for responding to an oil train derailment, but differ on how to do that.

The Senate version would require railroad companies to submit notices to be shared with local authorities on the route, time, volume and type of crude oil that was sent through their jurisdiction for the previous week. An amendment to the bill also requires a minimum of three crew members on trains carrying hazardous materials, four if the train is longer than 51 cars. It also creates grants for local first responders.

A competing bill in the House, backed by Gov. Jay Inslee, would go further by requiring rail companies to provide daily notices to local governments. Under the bill, rail companies would have to demonstrate the ability to pay for worst-case spills. It would also increase a per-barrel tax, that currently only applies to marine transport, from 4 cents to 8 cents. The tax, which is directed toward oil spill prevention, would also be applied to oil transported by rail and pipeline in Washington state.

“[The Senate bill] is too weak to declare victory, if that’s the one that passes,” says Spokane City Council President Ben Stuckart, who has traveled to Olympia to support the governor’s bill.

Proponents of the governor’s bill, which includes Spokane Democratic state Reps. Timm Ormsby and Marcus Riccelli, say that local governments should have daily notification of oil trains because different types of oil, such as Bakken crude, are more volatile and fires resulting from them are more difficult to put out, and first responders could be better prepared if they know what’s coming.

Opponents of requiring more frequent disclosure from rail companies say that the information could be hacked and land in the hands of terrorists, to which Stuckart responds, “I think we’ve got a lot bigger threat with oil trains than terrorists.”

Mayor David Condon has not been to Olympia to lobby on the bills, and he says he doesn’t have a firm position on either. But he might develop a firmer position as the session progresses.

“You know, I just got a side-by-side comparison [of the bills],” Condon tells the Inlander. “I haven’t had a chance to review them.”

Condon says he has been engaged on oil train safety, serving as co-chair on a committee with the Association of Washington Cities dedicated to freight rail. Local first responders have undergone training exercises to prepare for an oil train derailment, says Condon, and his administration has concentrated on making sure that planning and communication are in place for such an event.

Stuckart and Councilman Jon Snyder, however, would like to see the mayor push harder for better protections.

“I’d like to see him be more [engaged on the legislation],” says Snyder.

For safe and healthy communities…