Tag Archives: Association of American Railroads

NY Times: excellent report, new information on rail car phaseout, redesign

Repost from The New York Times
[Editor: Significant quote: “But safety advocates, as well as railroad officials, point out that these newer cars — known as CPC-1232s — have also failed in recent crashes….Ten of the 13 cars that derailed in Lynchburg, Va., last week … were built after 2011, including the one that ruptured and spilled 30,000 gallons of oil into the James River, according to Eric Weiss, a spokesman at the National Transportation Safety Board. At least two other recent train derailments also involved newer tank cars.”  – RS]

Despite Orders, Federal Tank-Car Safety Measures Are Slow in Coming

By JAD MOUAWADMAY 8, 2014

The derailment of a freight train carrying crude oil in Lynchburg, Va., last week was a reminder that basic safety features of the oil-by-rails business remain vastly inadequate, despite a flurry of emergency orders by federal regulators.

The federal Department of Transportation, which on Wednesday said that the growing movement of oil trains posed an “imminent hazard” to the public, has nevertheless been slow to toughen up tank-car standards.

While those delays have angered lawmakers and local officials, a small number of railroads and refiners have pushed the industry to change.

BNSF, the rail operator owned by Berkshire Hathaway and the largest carrier of oil from the Bakken region in North Dakota, said in February that it would buy 5,000 new tank cars with the latest safety features. It was a departure from the industry’s practice of railroads not owning cars.

Other railroads and refiners in Canada said they would charge higher rates for older cars in a bid to move the industry to adopt the newer models, built since 2011.

Tracks by the James River near downtown Lynchburg, Va., where tanker cars carrying crude oil derailed on April 30. Credit Steve Helber/Associated Press

And regulators in Canada recently mandated the use of the newest model within three years.

But safety advocates, as well as railroad officials, point out that these newer cars — known as CPC-1232s — have also failed in recent crashes.

Ten of the 13 cars that derailed in Lynchburg, Va., last week, for instance, were built after 2011, including the one that ruptured and spilled 30,000 gallons of oil into the James River, according to Eric Weiss, a spokesman at the National Transportation Safety Board. At least two other recent train derailments also involved newer tank cars.

The fiery Lynchburg derailment, where 350 people were evacuated, was the latest in a series of accidents that have caught industry regulators as well as railroads off guard. Last year, an oil train exploded in Lac-Mégantic, Quebec, killing 47 people.

Critics have long contended that the tank cars that are commonly used to carry crude oil and other petroleum products do not have enough safety features to prevent a spill.

The federal safety board has repeatedly noted in recent years that the tank cars — called DOT-111s — have a high rate of failures in accidents. Making things worse, the kind of oil that comes out of the Bakken region is particularly flammable and prone to explosion.

During a safety forum recently, the departing chairwoman of the safety board, Deborah Hersman, warned of the risk of a “higher body count” if regulators did not update tank car standards.

On Wednesday, transportation regulators said they would urge shippers to stop using older tank cars to carry crude oil, recommending that they use cars with “the highest level of integrity.”

But industry officials point out that phasing out older cars too fast would lead to a shortage in tank cars, which could ultimately curtail the surging production of oil from the Bakken.

About 98,000 DOT-111 tank cars are in service carrying crude oil and ethanol in the United States and Canada, according to the Association of American Railroads. Their design dates to the 1960s and the overwhelming majority were built before 2011. Only about 18,000 were built after that date and could be modified easily if needed.

Thomas D. Simpson, the president of the Rail Supply Institute, a trade group representing shippers and tank car owners, said 55,000 new cars had been ordered through 2015.

The Association of American Railroads, the industry’s trade group, has said older cars should be rapidly phased out or refitted. It has proposed a set of improvements, including better protections to valves and handles, to prevent them from opening in a crash; the use of high-pressure relief valves; and thicker steel tanks and thermal protections. Those improvements are intended to further strengthen safety features that were incorporated after 2011.

The Transportation Department has been working on the new standard for several years. Transportation Secretary Anthony Foxx told a Senate committee hearing on Wednesday that his department was moving as fast as it could on new safety regulations for oil shipments by rail, including new tank standards.

Regulators sent their latest proposals to the White House last week, and said they expected to make their proposed rules public by the summer. This would be followed by a 60-day public comment period, which would also need to be reviewed. This means final regulations would not be likely before the end of the year.

“These issues are complex and recent crashes, including Lynchburg, show why we need to take the time to get it right and make sure the new design reflects the latest information,” said Casey M. Hernandez, deputy director of public affairs at the Department of Transportation.

The number of oil tank-car failures and accidents has risen sharply in recent years, as crude shipments have surged. In the emergency order directing railroads to provide traffic information to state officials, the Department of Transportation called the accident rate “startling.”

In 2013, there were 116 episodes involving tank cars carrying crude oil, according to the Transportation Department’s Pipeline and Hazardous Materials Safety Administration, more than twice the number of all episodes between 1990 and 2009. And 154 tank cars failed last year, according to federal records, a 50 percent jump from the previous year.

The details of what regulators are considering have not been made public and industry officials said they did not know yet what to expect. If the United States regulations are more stringent than those adopted in Canada, officials there said they would toughen their own rules to match them.

“We recognize the status quo isn’t acceptable,” said Mr. Simpson of the Rail Supply Institute. “If I could say one thing to the secretary of transportation, it is get the rule out. Give us certainty and we will act.”

A version of this article appears in print on May 9, 2014, on page B3 of the New York edition with the headline: Despite Orders, Federal Tank-Car Safety Measures Are Slow in Coming.

What they are thinking and planning: Crude By Rail Conference & Expo

Repost from Railway Age
[Editor: A Benicia Independent reader sent me an email notification of this Conference, suggesting that it might be instructive for one of us to attend.  Anyone with time and money available to go?  – RS]

June 12 & 13, 2014  |  Key Bridge Marriott  |  Arlington, VA
· Moving CBR Profitably — and Safely ·

Crude by Rail (CBR) is a rapidly growing source of traffic for the railroads, as well
as a key driver of new freight car construction for carbuilders and component suppliers. Because of recent serious accidents, CBR is also under heavy scrutiny by safety and regulatory agencies.

Railway Age’s Crude By Rail Conference & Expo focuses on moving CBR not just safely,
but also profitably.

Speakers include:
CBR Speakers675
Join these and other industry experts to discuss:
•  Safety & Regulations •  New-Gen Tank Cars
•  Traffic Trends •  First Responder Training
•  Tank Car Financing & Leasing •  Insurance & Liability

Who should attend?
•  Railroad transportation & operating personnel •  Government personnel
•  Carbuilders and component suppliers •  Crude oil producers & refiners
•  Consultants •  First responders
View the full agenda now, including confirmed speakers and topics.
 
REGISTER-BUTTON

Gold SponsorGenesee & Wyoming Supporting organizationsRailWorks   The Greenbrier Companies  AAR
Contact us:   Tel. 212.620.7208 / 212.620.7205 | conferences@sbpub.com | @RailwayAgeEvent

Debate: thickness of the steel walls of tank cars

Repost from International Business Times
[Editor: Important report, please read.  – RS]

Oil Industry And Railroads Shipping Shale Boom Riches Are Separated By Just An Eighth Of An Inch

By Meagan Clark  |  April 29 2014
Coal railcars Wyoming by Shutterstock Coal railcars in Wyoming  |  Shutterstock.com

Energy companies and the firms that make the rail cars carrying the flow of crude oil and other products from America’s shale boom are separated by a mere 1/8 of an inch.

That’s the added thickness in the walls of the steel rail cars that the manufacturers say is needed to achieve safe standards. The oil and gas industry argues that the current 7/16 of an inch thickness is adequate.

The debate is important because the U.S. is currently hammering out guidelines that will eventually set the new national standards for transporting hazardous cargo by rail.

The standards for tank cars have made national headlines after several fiery derailments of trains carrying crude in the past year, some near homes.

After several congressional hearings,  the Department of Transportation (DOT) is expected to propose a new set of rules this week for White House review, including “options for enhancing tank car standards,” Anthony Foxx, transportation secretary, blogged for DOT on Thursday. Foxx was visiting Casselton, North Dakota, the site of an explosive train derailment and 400,000-gallon crude spill late last year that managed to not injure anyone.

The White House’s Office of Information and Regulatory Affairs (OIRA) will review the DOT’s proposal. The turnaround usually takes about three months, but could take longer since the regulation in dispute is controversial and costly. The public will have a chance to submit comments before the final rules are set.

“We look forward to working collaboratively with OIRA on the Administration’s proposal and initiating the formal comment process as soon as possible,” Foxx said in the blog post.

The current regulation DOT-111 has been the federal standard for oil-by-rail shipping for more than a decade, and nearly all parties involved in the trade agree it needs updating.  Some officials claim the crude from the Bakken Shale formation in Wyoming and North Dakota is more volatile and dangerous than other domestic crude oil.

Rail operators, oil producers and tank car manufacturers have argued without resolve for months on what the best dimensions would be to transport crude.

The American Petroleum Institute claims that the current a 7/16th inch-thick steel frame is adequate for crude shipments, while the Association of American Railroads, the rail industry’s lead representative, proposes a thicker 9/16th inch frame.

The thicker tank not only would cost the companies more to buy; it also holds less crude, which adds to shipping costs.

A 7/16th inch model called the CPC-1232 has been a voluntary industry standard since 2011, and factories have sold many of the tank cars in recent years to transport crude. AAR introduced the standard after several DOT-111 derailments, but now recommends phasing out or retrofitting the older models for a minimum 9/16th inch-thick tank.

AAR estimates its proposal would phase out or retrofit about 92,000 cars built since 2011 that meet the current standard. Retrofitting the whole existing fleet of current-standard cars carrying flammable liquids would be more than $3 billion, according to the rail group.

Once the rules are final, rail companies will have to decide whether to upgrade their existing fleet or wait for tanks to be built to the new standard.

North America’s oil boom has increased rail transport of crude from 9,500 carloads a year in 2008 to 400,000 carloads last year, according to the U.S. Energy Information Association. The more oil riding the rails, the more likely spills and accidents are to occur. Only 0.0023 percent of hazardous material carloads spill or crash, according to the Association of American Railroads and the American Shortline and Regional Railroad Association. But that small percentage of accidents gets a lot of attention.

Safer tank car rules not expected until late 2014 (at earliest)

Repost from Associated Press – The Big Story

Rail safety effort marred by squabbling

By JOAN LOWY — Apr. 23, 2014 7:37 PM EDT
Train Safety
FILE – This Dec. 30, 2013 file photo shows a fireball going up at the site of an oil train derailment in Casselton, N.D. An effort by government and industry to make the tank cars used to ship crude oil and ethanol safer, spurred by a series of fiery train crashes, is becoming mired in squabbling and finger-pointing. The Department of Transportation, concerned about the potential for catastrophic accidents involving oil and ethanol trains that are sometimes as many as 100 cars long, is drafting new tank car regulations aimed at making the cars less likely to spill their contents in the event of a crash. But final regulations aren’t expected until the end of the year at the earliest, and it is common for such government rulemakings to drag on for years.  (AP Photo/Bruce Crummy, File)

WASHINGTON (AP) — Spurred by a series of fiery train crashes, a push by government and industry to make safer tank cars used for shipping crude oil and ethanol has bogged down in squabbling and finger-pointing over whether they’re needed and if so, who should pay.

The Transportation Department, worried about the potential for catastrophic accidents involving oil and ethanol trains that are sometimes as many as 100 cars long, is drafting new tank-car regulations aimed at making the cars less likely to spill their contents in the event of a crash. But final rules aren’t expected until late this year at the earliest, and it is common for such government rulemaking to drag on for years.

But one safety official said urgent action is needed.

The Obama administration needs to take steps immediately to protect the public from potentially catastrophic oil train accidents even if it means using emergency authority, Deborah Hersman, chairwoman of the National Transportation Safety Board, said Wednesday.

“We are very clear that this issue needs to be acted on very quickly,” she told reporters at the conclusion of a two-day forum the board held on the rail transport of oil and ethanol. “There is a very high risk here that hasn’t been addressed.”

The Transportation Department said in a statement in response to Hersman that: Safety is our top priority, which is why we’re putting every option on the table when it comes to improving the safe transport of crude oil by rail.”

The freight railroad industry proposed tougher tank-car standards last fall, and recently upped its proposal another notch. The government and the Association of American Railroads say oil being shipped from the booming Bakken region of North Dakota and Montana may be more volatile than previously thought.

But oil companies — which own or lease the tank cars, and would have to bear much of the cost of tougher standards — want to stick to voluntary standards agreed to by both industries three years ago unless it can be shown that new standards are needed, American Petroleum Institute officials said. The railroads, they say, are refusing to share the “scientific basis” for their proposal.

The petroleum institute wants “a comprehensive examination” of changes proposed by the rail industry, including whatever computer-modeling was used to support tougher standards so that it can be peer-reviewed, said Brian Straessle, a spokesman for the institute. “So far, no data has been provided,” he said.

The railroads are “pulling this out of thin air,” said Eric Wohlschlegel, another petroleum institute official.

The government, however, says it’s the oil industry that’s not sharing its data.  Transportation Department officials complained recently that the agency had received only limited data from a few oil companies on the safety characteristics of Bakken oil, despite requests made in January by Secretary Anthony Foxx. Hundreds of oil producers, shippers, and brokers operate in the region.

So far, only seven oil companies have responded, and several of those provided only sparse information, Foxx said in an interview. The government wants to know what is in the oil so regulators can decide what types of protections are needed for shipping, he said.

“One of the most fundamental questions that cuts across everything in crude oil by rail is how it is classified,” Foxx said. “If it is not classified correctly at the beginning, then it is not packaged correctly and the emergency response needs aren’t understood by the communities through which this material is moving.”

The oil industry is using every tank car available to keep up with the exponential growth in Bakken oil production since hydraulic fracturing, or “fracking,” made it possible to extract more oil from the ground. Freight railroads transported 434,032 carloads of crude in 2013, up from just 9,500 in 2008.  Three years ago, the U.S. became a net exporter of petroleum products for the first time since 1949. Ethanol production has also escalated dramatically, creating competition for available rail cars. About 69,000 carloads of ethanol were shipped on rails in 2005. Last year, it was about 325,000 carloads.

In July, a runaway oil train derailed and exploded in Lac-Megantic, Quebec, near the Maine border. Forty-seven people died and 30 buildings were incinerated. Rail and safety officials said they were surprised by the ferocity of the fire. They were used to dealing with sludge-like crude that doesn’t ignite easily, but Canadian investigators said the combustibility of the 1.3 million gallons of light, sweet Bakken crude released in Lac-Megantic was more comparable to gasoline.

There have been eight significant accidents in the U.S. and Canada in the past year involving trains hauling crude oil, including several that resulted in spectacular fires, according to a presentation by crash investigators at a two-day National Transportation Safety Board forum this week on the transport of crude oil and ethanol. Most of the accidents occurred in lightly populated areas, although one derailment and fire in December occurred less than two miles from the town of Casselton, N.D.

Railroads can’t be sure what they’re hauling, said Robert Fronczak, assistant vice president of the rail association. Given that uncertainty, he said, they want oil shipped in tank cars with thicker shells like those required for chemicals that form toxic vapor clouds when released.

Regulators who have tested some Bakken oil samples on their own warned emergency responders and the public in January that it could be more dangerous than many conventional types of crude. But petroleum institute officials say they don’t believe Bakken crude is significantly different than other light crudes, such as those from Texas.

Transportation officials are now “assessing whether or not we will need to take additional steps to gather the information we requested” from oil companies, according to a government statement provided to The Associated Press.

Thousands of older tank cars that predate the voluntary standards adopted three years ago may also have to be discontinued for oil transport, Fronczak said. Canadian authorities announced Wednesday that they will require a three-year phase out or retrofit of older cars like the ones that ruptured in Lac-Megantic. But oil industry consultant Lee Johnson, testifying for the petroleum institute, told the safety board that U.S. oil companies need the “flexibility” to continue to use the older cars, and any decision on retrofits should be “data-driven.”

Of course, if the railroad industry were to do a better job of fixing broken and substandard track, a major cause of accidents, or installing positive train control, a technology designed to reduce human error and prevent the most catastrophic kinds of collisions, there might be fewer crashes, Christopher Barkan, executive director of the railroad engineering program at the University of Illinois, told the board.