Third Fiery Accident in Three Weeks Shows Need for Immediate New Federal Regulations

Repost from The Center for Biological Diversity

Center for Biological DiversityYet Another Oil Train Derails, Catches Fire, This Time in Illinois

Third Fiery Accident in Three Weeks Shows Need for Immediate Major Safety Upgrades for Shipments of Crude by Rail

GALENA, Ill.— An oil train transporting more than 100 cars of highly volatile crude oil derailed and caught fire today in northwest Illinois near the Mississippi River — the third explosive oil train accident in three weeks. Billowing columns of dark smoke and fireballs shooting hundreds of feet into the air were visible this afternoon as at least two tank cars caught fire. Early reports are that first responders had to pull back from the fire due to the heat and ongoing danger of more tank cars catching fire and exploding. The incident follows in close succession fiery oil train derailments in Ontario and West Virginia.

“The only thing more mind-boggling than three such accidents in three weeks is the continued lack of action by the Obama administration to protect us from these dangerous oil trains,” said Mollie Matteson, a senior scientist at the Center for Biological Diversity. “The government has the authority to take immediate action to address this crisis — which puts homes, waters and wildlife at risk – and yet it has sat back and watched.”

The Center for Biological Diversity recently released a report on the danger of oil trains traveling tracks throughout the United States. Among the findings were that some 25 million people live within the one-mile “evacuation zone” of tracks carrying oil trains and that the trains pass through 34 wildlife refuges and critical habitat for 57 endangered species.

The Illinois accident joins a growing list of devastating oil train derailments over the past two years. There has been a more than 40-fold increase in crude oil transport by rail since 2008, but no significant upgrade in federal safety requirements. Oil transport has increased from virtually nothing in 2008 to more than 500,000 rail cars of oil in 2014. Billions of gallons of oil pass through towns and cities ill-equipped to respond to the kinds of explosions and spills that have been occurring. Millions of gallons of crude oil have been spilled into waterways.

Today’s derailment happened where the Galena River meets the Mississippi River. There are no reports of injuries or fatalities, or of drinking water intake closures, although there are communities in the area that draw water from the Mississippi. The Burlington Northern Santa Fe train included 103 tank cars transporting volatile crude oil from the Bakken oil fields of North Dakota.

Loaded oil trains on this particular line first must pass through densely populated areas such as Minneapolis-St. Paul and La-Crosse. The trains also pass through the Upper Mississippi River National Wildlife Refuge, about 50 miles upstream of the derailment site. According to the U.S. Fish and Wildlife Service, the Mississippi River corridor “provides productive fish and wildlife habitat unmatched in the heart of America.”

“There are simply no excuses left for the Obama administration. The fact that these trains are still moving on the rails is a national travesty,” said Matteson. “The next explosive wreck — and there will be more, so long as nothing changes — may take lives, burn up a town or level a city business district, and pollute the drinking water of thousands of people. Enough is enough.”

A series of fiery oil-train derailments in the United States and Canada has resulted in life-threatening explosions and destructive oil spills. The worst was a derailment in Quebec in July 2013 that killed 47 people, forced the evacuation of 2,000 people, and incinerated portions of a popular tourist town.

Ethanol shipments by rail have also raised safety concerns. On Feb. 4, a train transporting ethanol derailed along the Mississippi River in Iowa, catching fire and sending an unknown amount of ethanol into the river.

In February the U.S. Department of Transportation sent new rules governing oil train safety to the White House for review, prior to public release. However, the proposed rules fail to require appropriate speed limitations, and it will be at least another two and a half years before the most dangerous tank cars are phased out of use for the most hazardous cargos. The oil and railroad industries have lobbied for weaker rules on tank car safety and brake requirements. The industries also want more time to comply with the new rules.

Yet, without regulations that will effectively prevent derailments and rupture of tank cars, oil trains will continue to threaten people, drinking water supplies and wildlife, including endangered species.

The Center has also petitioned for oil trains that include far fewer tank cars and for comprehensive oil spill response plans for railroads as well as other important federal reforms, and is also pushing to stop the expansion of projects that will facilitate further increases in crude by rail.

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 825,000 members and online activists dedicated to the protection of endangered species and wild places.

REUTERS: White House mulled, then balked at curbing explosive gas on oil trains

Repost from Reuters

Exclusive: White House mulled, then balked at curbing explosive gas on oil trains

By Patrick Rucker, Mar 5, 2015 5:59pm EST
A aerial image shows a train entering a depot along the Burlington Northern Santa Fe (BNSF) rail line outside of Williston, North Dakota March 12, 2013. REUTERS-Shannon Stapleton
An aerial image shows a train entering a depot along the Burlington Northern Santa Fe (BNSF) rail line outside of Williston, North Dakota March 12, 2013. Credit: REUTERS/Shannon Stapleton

(Reuters) – The Obama administration weighed national standards to control explosive gas in oil trains last year but rejected the move, deciding instead to leave new rules to North Dakota, where much of the fuel originates.

Current and former administration officials told Reuters they were unsure if they had the power to force the energy industry to drain volatile gas from crude oil originating in North Dakota’s fields.

Instead, they opted to back North Dakota’s effort to remove the cocktail of explosive gas – known in the industry as ‘light ends’ – and rely on the state to contain the risk.

North Dakota’s regulations come into force next month.

The administration’s internal debate shows that concern about the risks associated with oil trains reached the upper level of the White House. But the administration balked at addressing the problem in new regulations governing crude oil trains that it is preparing to introduce this spring.

When Transportation Department and White House officials convened on this issue last summer, the administration decided to back North Dakota’s plan to limit vapor pressure – a measure that was just taking shape at the time.

“The Department of Transportation supported North Dakota on treatment of crude oil in the field,” a White House official told Reuters.

But a growing number of safety advocates say relying on North Dakota is not insufficient to regulate a product that is hauled thousands of miles of track and across many state lines.

“These trains are going all across the country so it absolutely has to be the feds who are in charge,” said Karen Darch, mayor of Barrington, Illinois, where several oil and ethanol trains pass through her town weekly.

On Thursday afternoon, a BNSF oil train delivery including more than 100 tanker cars derailed in Illinois, according to local media.

Last summer, Transportation Secretary Anthony Foxx took his concerns about Bakken fuel to the White House and sought advice on what to do about the danger of light ends, according to sources familiar with the meeting who were not authorized to speak publicly about the matter.

By then, Foxx had spent more than 12 months weighing safety measures that would prevent oil train derailments from becoming fiery disasters like the 2013 Lac Megantic tragedy in Canada in which 47 people were killed by a runaway Bakken train delivery.

The Transportation Department was warning that Bakken fuel was uncommonly volatile and explosion-prone. Foxx’s agency conceived an oil train safety plan in July with an array of measures that aimed to make sure oil train cargo moved safely on the tracks.

Tankers would have toughened shells. Oil train deliveries would slow down. Advanced braking systems would be adopted.

But the rule would do nothing to limit volatile gas.

Foxx brought his concerns about the unresolved issue of dangerous gas, commonly measured as vapor pressure, and his agency’s limited power to curtail the problem to President Barack Obamas chief of staff, Denis McDonough. The administration decided to just let the existing oil train safety plan take root.

“Before the meeting, the department had already identified issues with the characteristics of the crude oil, including vapor pressure, and had developed potential strategies related to the overall improvement and safety of the transport of the product and how the industry could treat it,” the White House official said.

Suzanne Emmerling, spokeswoman for the Transportation Department, said on Thursday “neither the White House or anyone in any department has ever balked at improving the safety of this product in any way.”

“The Department looked closely at every aspect of the transportation of flammable products by rail, including vapor pressure, tank cars, and rail operations, and ultimately submitted a rule that we believe will raise the bar on the safe transport of this product.”

Emmerling declined to comment on why the Transportation Department did not include vapor pressure controls in its oil train proposal last year.

Officials may not comment on pending rules, she said, noting that the final rule may contain elements not included in the draft.

That approach is not good enough for many critics.

New York Senator Charles Schumer warned this week that oil train “disasters” could continue “until the stability of the crude being loaded into the tank cars themselves is improved.”

Of the roughly 1.2 million barrels of crude oil produced in North Dakota daily, more than 60 percent of that fuel reaches refineries by rail, typically in 100-tanker unit trains that can stretch a mile long.

A large share of that fuel moves through New York on the way to refineries in the mid-Atlantic.

In a letter to Secretary Foxx and Energy Secretary Ernest Moniz, Schumer encouraged the officials “to work together to develop new regulations that would require the stabilization of crude oil prior to shipment.”

An Energy Department official said the agency is in the early stages of developing a report on Bakken crude dangers that “may be of use to the Department of Transportation, which has regulatory authority over the transport of crude oil.”

(Reporting by Patrick Rucker; Additional reporting by Ernest Scheyder; Editing by Nick Zieminski and Richard Chang)

Northern California Representatives call for no delay in or weakening of new oil-by-rail safety standards

Repost from The Benicia Herald
[Editor: In an otherwise excellent report, this story fails to mention that Benicia’s own Representative Mike Thompson and 5 other Northern California legislators joined with Reps. Garamendi and Matsui in signing the letter.  Note as well that the fires in the West Virginia explosion burned for nearly 3 days (not 24 hours per this article).  See also Rep. Garamendi’s Press Release.  A PDF copy of the signed letter is available here.  See also coverage in The Sacramento Bee.  – RS]

Garamendi calls for no delay in oil-by-rail safety improvements

By Donna Beth Weilenman, March 4, 2015

U.S. Rep. John Garamendi, D-Fairfield, is urging the Department of Transportation to issue stronger safety standards for transporting oil by train “without delay.”

Garamendi, a member of the House Committee on Transportation and Infrastructure, made his call in a letter he authored after working with U.S. Rep. Doris Matsui, D-Sacramento, and circulated among members of the House.

He said the letter responds to news that the DOT may consider weakening oil train safety regulations and delaying a deadline for companies to comply with certain safety guidelines.

He said he also has been making his appeal to DOT officials in person as well as in committee hearings and in speaking with reporters, urging the department to adopt stronger safety measures designed to protect communities near rail lines.

He said several key intercontinental rail lines that reach West Coast ports and refineries lie within his Third District.

Those rail lines go through Fairfield, Suisun City, Dixon, Davis, Marysville and Sacramento, he said.

Garamendi is the leading Democrat on the House Committee on Transportation and Infrastructure’s Subcommittee on the Coast Guard and Maritime Transportation.

He pointed to a February accident in West Virginia in which a train carrying crude oil derailed and exploded, and said that was just the latest in a series of more frequently occurring incidents.

That accident happened in Fayette County, in which Garamendi said 28 tanker rail cars in a CSX train went off the tracks and 20 caught fire, accompanied by explosions and 100-yard-high flames.

Nearby residents were evacuated, and the fires burned for 24 hours.

West Virginia’s governor, Earl Ray Tomblin, issued a statement saying the train was carrying Bakken crude from North Dakota to Yorktown, Va. The train had two locomotives and 109 rail cars, according to a CSX statement.

CSX originally said one car entered the Kanawha River, but later said none had done so.

The company reported at least one rail car ruptured and caught fire. One home was destroyed, and at least one person was treated for potential inhalation of fumes.

The rail line said it was using newer-model tank cars, called CPC 1232, which are described as tougher than DOT-111 cars made before 2011. Garamendi confirmed that.

He also said the train was traveling at 33 mph, well below the 50-mph speed limit for that portion of the track.

According to a report by the Wall Street Journal and a statement from the North Dakota Industrial Commission, the oil contained volatile gases, and its vapor pressure was 13.9 pounds per square inch. A new limit of 13.7 pounds per square inch is expected to be set by North Dakota in April on oil carried by truck or rail from the Bakken Shale fields, though Brad Leone, a spokesperson from Plains All American Pipeline, the company that shipped the oil, said his company had followed all regulations that govern crude shipping and testing.

A few days before, another Canadian National Railways train derailed in Ontario.

“Families living near oil-by-rail shipping lines are rightfully concerned about the safety of the trains that pass through their communities,” Garamendi said.

“For that reason, I have repeatedly called on the Department of Transportation to use all the tools at their disposal to ensure that these shipments are as safe and secure as possible.”

He said he also wants the DOT to act quickly.

“Every day that strong and effective rules are delayed is another day that millions of Americans, including many in my district, are put at greater risk.

“While the Department has made this a priority, they must move with greater urgency to address this matter.”

He and Matsui have written Timothy Butters, acting administrator of the Pipeline and Hazardous Materials Safety Administration, and Sarah Feinberg, acting administrator of the Federal Railroad Administration, expressing “our strong concern that despite increased train car derailments and an overall delay in the issuance of oil-train safety regulations, the Department of Transportation may be considering a revision that could delay the deadline for companies to comply with important safety guidelines, including upgrading CPC-1232 tank cars to new standards.”

Citing the frequency of derailments, they wrote that such measures as stabilizing crude and track maintenance before transport should be added to those standards. “Any weakening of the proposed rule would be ill-advised,” they wrote.

The two wrote that the West Virginia accident was the third reported in February.

In addition to that one and the Ontario accident, another train carrying ethanol derailed and caught fire in Iowa.

“These are in addition to recent derailments in Northern California’s Feather River Canyon, Plumas County, and Antelope region where three train cars derailed earlier this year while en route from Stockton to Roseville,” they wrote.

The two said the need for safer train cars “has long been documented and is overdue.”

They said the DOT began updating rules in April 2012. Meanwhile, from 2006 to April 2014, 281 tank cars derailed in the United States and Canada.

They wrote that 48 people died and nearly 5 million gallons of crude oil and ethanol were released.

“Serious crude-carrying train incidents are occurring once every seven weeks on average, and a DOT report predicts that trains hauling crude oil or ethanol will derail an average of 10 times a year over the next two decades, causing billions of dollars in damage and possibly costing hundreds of lives,” they wrote.

In the wake of “this alarming news,” they wrote of their “great concern” that Pipeline and Hazardous Materials Safety Administration failed to meet its Jan. 15 deadline to release a final rule on crude-by-rail regulations.

They urged the DOT to maintain the timeline that gives companies two years to retrofit cars and to have provisions in place or additional regulations drafted to require stabilization of crude as well as better track maintenance technology.

“We understand that more than 3,000 comments to the rule were analyzed and we commend the DOT for its work with industry thus far on information sharing, slower speeds, and reinforced railcars, but the multi-pronged solutions for this important safety issue must be implemented as quickly as possible,” they wrote.

“We also believe that DOT should issue a rule that requires stripping out the most volatile elements from Bakken crude before it is loaded onto rail cars.

“This operation may be able to lower the vapor pressure of crude oil, making it less volatile and therefore safer to transport by pipeline or rail tank car,” they wrote.

In addition, they wrote that greater priority must be placed on track maintenance and improvement.

“We need safer rail lines that are built for the 21st century, including more advanced technology in maintaining railroad tracks and trains so that faulty axles and tracks do not lead to further derailments,” they wrote.

Saying 16 million Americans live near oil-by-rail shipping lanes, Garamendi and Matsui wrote that if “dangerous and volatile crude” is to be shipped through municipalities and along sensitive waters and wildlife habitat, “the rail and shipping industries must do more.”

The two praised the National Transportation Safety Board for investigating the accidents thoroughly.

But they added that those living near crude-by-rail tracks “should not have to live with the fear that it is only a matter of time.”

Instead, they wrote, the DOT should work toward “release of a strong and robust safety rule as soon as possible.”

US running out of room to store oil; price collapse next?

Repost from The Associated Press

US running out of room to store oil; price collapse next?

By Jonathan Fahey, AP Energy Writer, Mar 4, 1:01 PM EST
Older and newly constructed 250,000-barrel capacity oil- storage tanks north of Cushing, Okla. Extra crude is flowing into storage tanks now, especially in Cushing. (Michael Wyke/AP)
Older and newly constructed 250,000-barrel capacity oil- storage tanks north of Cushing, Okla. Extra crude is flowing into storage tanks now, especially in Cushing. (Michael Wyke/AP)

NEW YORK (AP) — The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.

For the past eight weeks, the United States has been producing and importing an average of 1.1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country’s main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, according to the Energy Department.

If this keeps up, storage tanks could approach their operational limits, known in the industry as “tank tops,” by mid-April and send the price of crude – and probably gasoline, too – plummeting.

The supply growth may even be speeding up.  U.S. crude supplies rose 10.3 million barrels last week, the government said Wednesday, the largest weekly increase since October 2002.

“The fact of the matter is we are running out of storage capacity in the U.S.,” Ed Morse, head of commodities research at Citibank, said at a recent symposium at the Council on Foreign Relations in New York.

Morse has suggested oil could fall all the way to $20 a barrel from the current $50. At that rock-bottom price, oil companies, faced with mounting losses, would stop pumping oil until the glut eased. Gasoline prices would fall along with crude, though lower refinery production, because of seasonal factors and unexpected outages, could prevent a sharp decline.

The national average price of gasoline is $2.44 a gallon. That’s $1.02 cheaper than last year at this time, but up 37 cents over the past month.

Other analysts agree that crude is poised to fall sharply – if not all the way to $20 – because it continues to flood into storage for a number of reasons:

– U.S. oil production continues to rise. Companies are cutting back on new drilling, but that won’t reduce supplies until later this year.

– The new oil being produced is light, sweet crude, which is a type many U.S. refineries are not designed to process. Oil companies can’t just get rid of it by sending it abroad, because crude exports are restricted by federal law.

– Foreign oil continues to flow into the U.S., both because of economic weakness in other countries and to feed refineries designed to process heavy, sour crude.

– This is the slowest time of year for gasoline demand, so refiners typically reduce or stop production to perform maintenance. As refiners process less crude, supplies build up.

– Oil investors are making money buying and storing oil because of the difference between the current price of oil and the price for delivery in far-off months. An investor can buy oil at $50 today and enter into a contract to sell it for $59 in December, locking in a profit even after paying for storage during those months.

The delivery point for most of the oil traded in the U.S. is Cushing, a city of about 8,000 people halfway between Oklahoma City and Tulsa at an intersection of several pipelines. The city is dotted with tanks that can, in theory, hold 85 million barrels of oil, according to the Energy Department, though some of those tanks are used for blending or feeding pipelines, not for storing oil.

The market data provider Genscape, which flies helicopters equipped with infrared cameras and other technology over Cushing twice a week to measure storage levels, estimates Cushing is two-thirds full.

Hillary Stevenson, who manages storage, pipeline and refinery monitoring for Genscape, says Cushing could be full by mid-April. Supplies are increasing at “the highest rate we have ever seen at Cushing,” she says.

Full tanks – or super-low prices – are not a sure thing. New storage is under construction at Cushing, and there are large storage terminals near Houston, in St. James, Louisiana, and elsewhere around the country that will probably begin to take in more oil as prices fall far enough to cover the cost of transporting the oil.

Also, drillers are quickly cutting back because oil prices have plummeted from $107 a barrel in June. And demand is showing signs of rising.

Despite the enormous increase in crude stocks reported Wednesday, inventories of gasoline did not rise and diesel fuel inventories have fallen slightly over the past two weeks. That leads some to conclude that demand for crude could soon pick up, easing the surplus somewhat.

But many analysts believe oil prices will fall through the spring, before summer drivers start to relieve the glut.

For safe and healthy communities…