Tag Archives: Bakken crude

Pittsburg CA: WesPac oil storage project no longer includes Bakken crude trains

Repost from the San Jose Mercury News
[Editor: For original project documents and the recent announcement, see the City of Pittsburg’s WesPac Pittsburg Energy Infrastructure Project.  – RS]

Pittsburg: WesPac oil storage project no longer includes Bakken crude trains

By Sam Richards, 04/01/2015 11:40:04 AM PDT

PITTSBURG — Amid the growing national debate over the safety of transporting crude oil by trains, an energy firm has dropped the rail component from a controversial proposal to transform an old PG&E tank farm into a regional oil storage facility here.

WesPac Midstream LLC’s proposed Pittsburg Terminal Project, which had been attacked by local activists as posing a serious safety threat, is back on the table after a year of dormancy.

But the elimination of the crude-by-rail element doesn’t mean critics are satisfied that a revived oil storage and shipping operation would be safe for the community. The dormant tanks are less than a half-mile from hundreds of houses and apartments on West 10th Street and in the downtown area between Eighth Street and the waterfront.

“There are still environmental issues … having the stored oil in those tanks so close to homes, ground pollution issues, vapors from the big tanks,” said Frank Gordon of Pittsburg, a vocal opponent of the project in the past.

The City Council on Monday is expected to approve another review of the proposed oil storage facility’s environmental impact reports — this time excluding the prospect of rail deliveries.

The WesPac plan, as presented in October 2013, included facilities just north of Parkside Avenue — south of the tank farm — to handle as many as five 104-car oil trainloads a week.

Art Diefenbach, WesPac’s Pittsburg project manager then and now, said this week that the “regulatory environment” surrounding rail shipments of crude oil — in particular, the more volatile Bakken crude from an area covering parts of North Dakota, Montana and Saskatchewan in Canada — isn’t stable enough to plan a major project around.

“We just can’t proceed with that uncertainty floating out there,” said Diefenbach, also noting that falling crude prices help make shipping oil by rail a less attractive alternative, at least in the short term.

He said protests against the crude oil trains — in Pittsburg, the East Bay and the nation — were a factor in the plan change, too. Such decisions, he said, “are always a combination of factors.”

Oil trains, he said, are out of the picture for the foreseeable future.

Several communities in the East Bay have expressed alarm in recent months about the transport of crude by rail through the region in the wake of several high-profile derailments and accidents in North America in recent years, including one in Quebec in 2013 that killed 47 people and destroyed part of a town. At a meeting in Crockett last week, residents raised concerns about plans to ship oil by rail through Contra Costa County and other parts of the Bay Area to a refinery in Central California.

Without trains, all oil arriving at the WesPac facility would be via either ship or a pipeline from the southern reaches of the Central Valley.

Pittsburg Mayor Pete Longmire said removing the trains from the WesPac equation should result in a safer project for the community. “And it’s probably less controversial than before,” he said.

Although the council will decide Monday night on only an amendment to one of the project’s environmental studies, Longmire expects a large crowd to turn out to discuss what many still likely see as a polluting facility that could present a health danger to the hundreds of people who live near the old tanks.

WesPac Energy, as the company was called then, first applied in March 2011 for needed permits to renovate and restart the former PG&E oil storage and transfer facilities off West 10th Street on the city’s northwestern edge. The $200 million project calls for an average of 242,000 barrels of crude or partially refined crude oil to be unloaded daily from ships on the nearby Sacramento River, and from pipelines, and stored in 16 tanks on 125 acres.

The oil would then be moved to Contra Costa County refineries, and the Valero refinery in Benicia, via pipeline for processing.

The Pittsburg Defense Council, a group of opponents to the WesPac project in general, had decried the prospect of Bakken crude oil coming into town for unloading. Some already has rolled through Pittsburg on BNSF rails, destined for a Kinder-Morgan facility in Richmond.

Diefenbach said that, assuming various approvals come at a typical pace, construction could begin in early 2016, and likely would take from 18 to 24 months.

Longmire said he doesn’t have strong feelings about WesPac either way at this point but insists that the project — with its jobs and its boost to the local economy — must be safe. Gordon said he is still leaning against it. They agree, though, the formal permitting process must be allowed to play out.

Said Gordon, “We’ll have to see what they do with the new” environmental impact report.

If you go…

The Pittsburg City Council meets at 7 p.m. Monday at City Hall council chamber, 65 Civic Ave. in Pittsburg. The public is welcome.

New vapor pressure rule in North Dakota fails to account for additional explosion risks

Repost from Reuters
[Editor:  Reference below is to an important new Energy Department study on the volatility of Bakken crude.  – RS]

North Dakota’s new oil train safety checks seen missing risks

By Patrick Rucker, Mar 31, 2015 4:14pm EDT

WASHINGTON, March 31 (Reuters) – New regulations to cap vapor pressure of North Dakota crude fail to account for how it behaves in transit, according to industry experts, raising doubts about whether the state’s much-anticipated rules will make oil train shipments safer.

High vapor pressure has been identified as a possible factor in the fireball explosions witnessed after oil train derailments in Illinois and West Virginia in recent weeks.

For over a year, federal officials have warned that crude from North Dakota’s Bakken shale oilfields contains a cocktail of explosive gas – known in the industry as ‘light ends.’

The new rules, which take effect on April 1, aim to contain dangers by spot-checking the vapor pressure of crude before loading and capping it at 13.7 pounds per square inch (psi) – about normal atmospheric conditions.

The plan relies on a widely-used test for measuring pressure at the wellhead, but safety experts say gas levels can climb inside the nearly-full tankers, so the checks are a poor indicator of explosion risks for rail shipments.

It is “well-understood, basic physics” that crude oil will exert more pressure in a full container than in the test conditions North Dakota will use, said Dennis Sutton, executive director of the Crude Oil Quality Association, which studies how to safely handle fossil fuels.

Ametek Inc, a leading manufacturer of testing equipment, has detected vapor pressure climbing from about 9 psi to over 30 psi – more than twice the new limit – while an oil tank is filled to near-capacity.

About 70 percent of the roughly 1.2 million barrels of oil produced in North Dakota every day moves by rail to distant refineries and passes through hundreds of cities and towns along the way.

The state controls matter to those communities because there is no federal standard to curb explosive gases in oil trains.

North Dakota officials point out that the pressure limit is more stringent than the industry-accepted definition of “stable” crude oil. They also say that they lack jurisdiction over tank cars leaving the state and that the pressure tests are just one of the measures to make oil trains safer.

“We’re trying to achieve a set of operating practices that generates a safe, reliable crude oil,” Lynn Helms, director of the North Dakota Department of Mineral Resources, has said. Helms has also said that test readings for near-full containers were less reliable.

However, given different testing and transport conditions, industry officials say the pressure threshold may need to be lowered to reduce the risks.

Limiting vapor pressure to 13.7 psi in transit would require an operator to bring it to “something well below that” at the loading point, Sutton said.

The uncertainty about regulatory reach and safety has spurred calls for the White House to develop national standards to control explosive gas pressure.

“Let me be really clear,” Democratic Senator Maria Cantwell of Washington state told reporters last week. “They should set a standard on volatility.”

The National Transportation Safety Board, an independent safety agency, has already encouraged a federal standard for “setting vapor pressure thresholds” for oil trains citing Canadian findings linking such pressure and the size of explosions in train accidents.

Meanwhile, a leading voice for the oil industry is lobbying Congress to resist federal vapor pressure benchmarks.

Last week, the American Petroleum Institute urged lawmakers to oppose “a national volatility standard” and pointed to an Energy Department study that the severity of an oil train mishap may have more to do with the circumstances of the crash than the volatility of the cargo.

That same report said much more study was needed to understand volatility of crude oil from the Bakken. (For a link to the study: tinyurl.com/nvjqmxt)

The oil industry has said that wringing ‘light ends’ out of Bakken crude may keep a share of valuable fuel from reaching refineries.

Reuters reported early this month that Transportation Secretary Anthony Foxx took his concerns about Bakken oil volatility to the White House last summer and sought advice on what to do about the danger of explosive gases.

The administration decided that rather than assert federal authority it would allow the North Dakota rules to take root, according to sources familiar with the meeting.

(Reporting By Patrick Rucker; Additional reporting by Ernest Scheyder in North Dakota; Editing by Tomasz Janowski, Bernard Orr)

U.S. EIA now reporting monthly crude-by-oil movement

Repost from The DOT-111 Reader
[Editor:  DOT-111 Reader presents a good overview and early analysis.  For original reports and charts, see The U.S. Energy Information Administration.  – RS]

U.S. Movements of Crude Oil by Rail Now Online!

March 31, 2015

march31c

For the first time, EIA [The U.S. Energy Information Administration] is providing monthly data on rail movements of crude oil, which have significantly increased over the past five years. The new data on crude-by-rail (CBR) movements are integrated with EIA’s existing monthly petroleum supply statistics, which already include movements by pipeline, tanker, and barge. The new monthly time series of crude oil rail movements includes shipments to and from Canada and dramatically reduces the absolute level of unaccounted for volumes in EIA’s monthly balances for each region.

EIA is initiating the new series with monthly data from January 2010 through the current reporting month, January 2015. CBR activity is tracked between pairs of Petroleum Administration for Defense District (PADD) regions (inter-PADD), within each region (intra-PADD), and across the U.S.-Canada border. EIA developed the new series using information provided by the U.S. Surface Transportation Board (STB) along with data from Canada’s National Energy Board, and EIA survey data.

Total CBR movements in the United States and between the United States and Canada were more than 1 million barrels per day (bbl/d) in 2014, up from 55,000 bbl/d in 2010. The regional distribution of these movements has also changed over this period.

[Click here for the EIA crude oil movements by rail, including a series of annual maps that provide general flows of CBR movements annually from 2010 through 2014.]

DIGGING INTO THE DATA FURTHER…

Before digging into the data, a short explanation is required to understand PADDs (Petroleum Administration for Defense Districts). PADDs are geographical regions: PADD 1 is the East Coast, PADD 2 the Midwest, PADD 3 Gulf Coast, PADD 4 Rocky Mountain, PADD 5 West Coast, AK and HI.

mar31a

From this knowledge, we can now look at each region for the number of barrels shipped and received. For example, let’s look at trends in crude oil shipments by rail for the entire U.S. by using this data table [found here.]

mar31a

By putting a check box for the row labeled “Total”, we can now view this chart showing oil shipments by rail in the U.S. since 2010.

mar31b

Besides many excellent charts, we can also look at recent data. This chart [found here] shows the thousands of barrels/day for the month of January 2015:

mar31d

As you can see, the majority of the oil shipped from the Bakken fields (PADD 2) is shipped east to (PADD 1). 437,000 bbl/day. This is close to what we have calculated is heading through the La Crosse, WI area from both the CP and BNSF rail lines. Although it would be preferred to have data at a more refined level (by rail carrier, through cities, by day & month) at least we are able to now see trends on a regional level. Lot’s of digging to do!

Fixing railroad tank cars gains traction after recent derailments

Repost from McClatchyDC News

Fixing railroad tank cars gains traction after recent derailments

By Curtis Tate, McClatchy Washington Bureau, March 30, 2015
US NEWS RAILSAFETY-CA 1 SA
Recently filled, a tanker truck drives past railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. North Highlands is a suburb just outside the city limits of Sacramento, Calif. RANDALL BENTON — MCT

— While some government and industry officials have repeatedly said there’s no silver bullet to improve the safety of oil trains, a persistent problem runs through every new derailment: the tank cars.

Oil industry groups maintain that railroads should do a better job of maintaining track to prevent derailments, while the rail industry has called for more robust tank cars that are better equipped to survive accidents.

Although there’s almost universal consensus that improvements are required in both areas, there’s one key difference.

Railroads have already spent heavily in recent years to improve their track for all kinds of freight and have pledged to spend more. Meanwhile, the companies that own and lease tank cars for transporting oil and other flammable liquids have been waiting for regulators to approve a more robust design to account for the exponential increase in energy traffic on the rails before they invest an additional cent.

The railroad industry petitioned the U.S. Department of Transportation in March 2011 for a more robust tank-car design. Rather than wait for an answer, the industry adopted its own upgrades later that year. But several recent derailments involving different types of crude have suggested that those cars don’t perform significantly better than those they replaced.

The DOT-111A tank car

About 92,000 DOT-111s are in use; 78,000 lack extra safety features. Most tank cars are leased by oil companies or other firms moving products by rail.

TheDOT-111TankCar (FRA)And unlike the controversy that surrounds other proposed solutions or doubts about their effectiveness, tank car upgrades have the support of lawmakers, regulators, mayors and governors, community and industry groups, and the National Transportation Safety Board.

“We certainly have been distracted from doing what is the most obvious safety improvement: the cars,” said Peter Goelz, former managing director of the NTSB.

The White House Office of Management and Budget is reviewing a package of proposals that include an improved tank-car design. But the new rules aren’t scheduled to be published until May, frustrating many who’ve pushed for better tank cars for years.

In January, the NTSB included tank cars on its “Most Wanted List” of safety improvements.

For more than two decades, the NTSB has called for improving the most common type of tank car, the DOT-111. But those calls were largely ignored until railroads started carrying dramatically larger volumes of domestically produced crude oil and ethanol.

The minimally reinforced cars proved vulnerable to punctures in derailments, spilling their contents, which quickly caught fire. Such fires could compromise other cars by heating their contents to the point where they burst through the tank walls with explosive force.

“Once you get a leak and fire, that can spread to other cars,” said Greg Saxton, chief engineer for the Greenbrier Companies, which is already building a tank car to tougher standards. “That’s the No. 1 thing we want to do. We don’t want to have a leak.”

After a July 2013 oil train derailment in Lac-Mégantic, Quebec, killed 47 people, Canada’s Transportation Safety Board found that none of the cars in that incident was equipped with thermal protection. The cars that sustained only minor impact damage ultimately ripped open after fire exposure, violently releasing their pressurized contents as large fireballs.

The rail industry made a few modifications to DOT-111 cars manufactured since 2011, including shields that protected the bottom half of each end of the car and more reinforcement for valves and outlets. But an outer steel jacket to provide extra puncture resistance and insulation to protect the car’s contents from fire exposure were optional.

In recent derailments in West Virginia, Illinois and Ontario, the newer cars, called CPC-1232s, lacked those extra safeguards.

“Do we need a new standard for tank cars? Absolutely,” said Ed Hamberger, president and CEO of the Association of American Railroads, the industry’s principal advocacy group.

Those existing cars could be retrofitted with jackets and thermal insulation until new ones are built. But even those improvements are waiting on the White House for final approval.

Sen. Maria Cantwell, D-Wash., along with three Democratic co-sponsors – Patty Murray of Washington state, Dianne Feinstein of California and Tammy Baldwin of Wisconsin – introduced a bill last week that would require an immediate ban on crude oil shipments in DOT-111 and non-jacketed CPC-1232 tank cars. It also would force new cars to meet a standard that exceeds any current requirement.

“No one wants to pull the trigger and say they should be removed,” she said in an interview. “We can’t wait to see a more aggressive plan.”

The redesigned tank car may look like the one the Canadian government proposed this month. It includes full-height shields on both ends, thermal insulation and an outer jacket.

Last year, railroads voluntarily agreed to limit oil train speeds to 40 mph in a select number of densely populated areas and 50 mph everywhere else. But six of the most recent derailments cast doubt on the effectiveness of reducing speeds as a mitigation measure.

All the trains in the four most recent U.S. derailments that resulted in fires or spills were going under 40 mph. Three were traveling at less than 25 mph and one at just 9 mph. In the two most recent Canadian wrecks, the trains were traveling at 38 and 43 mph.

The Federal Railroad Administration wants railroads to install electronic braking systems on trains that carry crude oil. But the industry opposes new braking requirements, and they wouldn’t address the vulnerabilities of tank cars to punctures and fire exposure.

Even those who support an “all of the above” approach to dealing with the problem say tank car improvements are a crucial step.

“It’s unfortunate to have the NTSB investigating the same accident over and over again,” said Jim Hall, a former NTSB chairman. “We’re overdue in addressing this issue with the DOT-111.”