Tag Archives: Bakken crude

Bakken Crude, Crude By Rail, Public safety funding, Rail infrastructure

Minnesota Gov. Dayton pressures railroads to pony up for safety upgrades

Repost from The Mineapolis StarTribune

Dayton pressures railroads to pony up for safety upgrades across Minnesota

By: Kyle Potter, Associated Press, March 13, 2015 – 3:45 PM

ST. PAUL, Minn. — Gov. Mark Dayton gave railroad companies and Republicans a public tongue-lashing Friday for their resistance to his tax plan to fund safety improvements across Minnesota’s railroad network.

Seven trains haul North Dakota crude across Minnesota daily — an influx that has contributed to backlogs of agricultural shipments and raised safety concerns after a string of recent explosive derailments.

With a throng of officials from towns dealing with the headaches of heavier train traffic behind him, Dayton called it “totally unacceptable” that railroads would oppose contributing more money to the state’s safety efforts. The governor and other fellow Democratic lawmakers have proposed a series of tax increases and annual fees on railroads to upgrade railroad crossings and ease congestion across Minnesota.

“That is the responsibility of the railroad,” Rep. Paul Marquart, DFL-Dilworth, said of improvements.

By taxing train cars and levying an annual fee on Minnesota’ four major freight railroads, the state would net $330 million over the next decade, mostly for improvements at railroad crossings. Dayton’s plan would also fund increased training for first responders, including a new statewide training facility.

The governor is also planning to carve out $76 million from a bonding bill this year to build underpasses or overpasses in Moorhead, Prairie Island, Coon Rapids and Willmar, where passing trains block crossings for hours every day.

Railroad companies such as BNSF Railway, the state’s largest freight railroad and a major shipper of Bakken crude, balked at the governor’s proposal. In a statement, spokeswoman Amy McBeth said the company believes Dayton’s proposed taxes violate federal law “because they single out railroads for discriminatory taxation.”

The other three major freight railroads operating in Minnesota are Canadian Pacific, Union Pacific and Canadian National.

Majority House Republicans have also signaled they’re not on board with the tax increases.

“While the governor and I agree that our railroad crossings need improvements, the funding source is still the main issue,” said Rep. Tim Kelly, the Republican chair of the House Transportation Finance committee.

Dayton criticized Republicans for not supporting his plan, but he saved his strongest words for the railroad companies.

The governor said state officials believe they’re on solid legal ground to foot railroads with a larger tax bill. And he remained defiant in the face of a possible lawsuit from railroads if his proposal goes ahead.

“We’re going to do what we know is right for Minnesota. If they want to take us to court, that certainly shows their true colors,” Dayton said.

Bakken Crude, Crude By Rail, Derailment, Explosion, Federal Regulation (U.S.), Fire, Massive increase in crude-by-rail, Oil stabilization, Tank car design, Tar sands crude, Volatility

NPR Interview: Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

Repost from WAMU, American University Radio – The Diane Rehm Show
[Editor: In this lengthy and informative audio, Diane Rehm interviews Anthony Swift, NRDC; Cynthia Quarterman, Atlantic Council (former Administrator of the Pipeline and Hazardous Materials Safety Administration); Dina Cappiello, Associated Press; and Edward Hamburger, Association of American Railroads. Unfortunately, I am unable to embed The Diane Rehm Show here.  To listen to this 51-minute interview, go to the Diane Rehm Show.  – RS]

Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

The Diane Rehm Show, Mon, Mar 09, 2015
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va.
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va. AP Photo/Steve Helber

Fueled by the shale oil boom in North Dakota and Montana, trains now carry more than 500,000 carloads of oil and ethanol to coastal refineries. Now, a series of fiery train derailments in the U.S. and Canada is raising public safety concerns. On Saturday, a train crashed in Ontario, leaking oil into a nearby waterway. Here in the U.S., another train derailed last week in Illinois, causing evacuations and fire damage. Safety advocates say rail cars carrying oil need to meet tougher design standards and lower speed limits. Shippers argue that stricter measures are costly and risks are exaggerated. We look at the rise in oil train derailments and what can be done to prevent them.

Guests

  • Anthony Swift attorney with the Natural Resources Defense Council.
  • Cynthia Quarterman distinguished senior fellow, The Atlantic Council; former administrator of the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA)
  • Ed Hamberger president and CEO, Association of American Railroads.
  • Dina Cappiello national environment and energy reporter, The Associated Press.
Bakken Crude, Crude By Rail, Emergency Readiness & Response, Federal Regulation (U.S.), Oil spill, Rail Safety, Rivers, Sensitive wildlife habitats, Tank car design

Heitkamp Presses OIRA To Finish Oil Train Rules; DeFazio presses for info

Repost from Roll Call

Heitkamp Presses OIRA To Finish Oil Train Rules

By Roll Call Staff, March 13, 2015 9:55 a.m. 
Sen. Heidi Heitkamp, D-N.D., center, is urging OIRA to "quickly finalize" regulations on rail shipment of crude oil. (Photo By Bill Clark/CQ Roll Call)
Sen. Heidi Heitkamp, D-N.D., center, is urging OIRA to “quickly finalize” regulations on rail shipment of crude oil. (Photo By Bill Clark/CQ Roll Call)

“Oh Ira, why can’t you work more quickly?” That might’ve been what tunesmith George Gershwin said to his lyric-writing brother Ira Gershwin. But for transportation purposes, it’s essentially what Sen. Heidi Heitkamp, D- N.D., said Thursday to OIRA – pronounced “oh-Ira” – the Office of Information and Regulatory Affairs, within the Office of Management and Budget.

OIRA is where proposed regulations go for a final vetting and it now has under review a series of proposed rules on more robust oil tank cars and safer transport of crude oil.

In a letter to OMB director Shaun Donovan, Heitkamp urged OIRA to “quickly finalize” the regulations so that shippers and first responders can know what they must do to more safely ship crude oil. Much of that oil comes from the Bakken formation in Heitkamp’s state and in Montana and is carried by rail to refineries on the East Coast and the West Coast.

She cited the December 2013 derailment, explosion and fire in Casselton, N.D., noting that while no one was killed in that incident “we were lucky… but we cannot depend on luck.”

Meanwhile House Transportation and Infrastructure Committee ranking member Peter A. DeFazio, D- Ore., has asked the Government Accountability Office to report to him on what railroads and the federal government are doing to prepare for an oil train derailment and fire “particularly in the most remote and environmentally sensitive areas”

DeFazio specifically asked the GAO to examine what the railroads are doing to preposition “critical resources necessary to respond to spills in both urban and rural areas, including forest lands, with limited road access, prone to catastrophic fire, or at-risk due to long-term drought” and to preposition “critical resources to contain and clean-up oil spills into rivers or other water bodies.”

As the Oregonian reported last year, “Eighteen oil trains a week move along the Washington side of the Columbia River Gorge.” Part of the gorge is a national scenic area and it borders national forests.

Bakken Crude, Crude By Rail, Derailment, Explosion, Massive increase in crude-by-rail, Tank car design, Tar sands crude

Rail industry: Recent train derailments are not a sign of deteriorating safety record

Repost from The Financial Post
[Editor:  Read this if you want to hear rail and transportation managers squirm.  Best quote: “If you ship 10 times as much crude oil, you’ll get 10 times more derailments.”   To which one might answer, “Yep.”  – RS]

Recent train derailments are not a sign of deteriorating safety record, say analysts

By Kristine Owram, Mar 12 5:42 PM ET
Four separate oil trains — two in Ontario and two in the United States — have derailed and caught fire in the past month and in each case the tank cars met what are supposed to be tougher, safer standards.
Four separate oil trains — two in Ontario and two in the United States — have derailed and caught fire in the past month and in each case the tank cars met what are supposed to be tougher, safer standards. THE CANADIAN PRESS/HO – Glenn Thibeault

A recent spate of train derailments is not a sign that the industry’s safety record is deteriorating, but is rather “the bad luck of the stats,” analysts say.

A Canadian National Railway Co. train derailed near Brandon, Man., on Wednesday night, joining two other high-profile incidents involving CN trains in less than a month.

CN spokesman Brent Kossey said the cars were carrying refinery cracking stock, a non-regulated commodity that’s used in the petroleum refining process. One of the 13 cars that derailed sprung a leak, but there was no fire.

This is in contrast to two CN derailments near the community of Gogama, Ont., in the past month, both of which were carrying crude oil and caught fire. There have also been two fiery oil-train derailments in the U.S. since mid-February — one a BNSF Railway Co. train in northern Illinois and the other a CSX Corp. train in West Virginia.

It sounds like an alarming trend but analysts say it’s simply the inevitable result of the growing volumes of crude transported by rail, as well as increased scrutiny of the industry following the Lac-Mégantic, Que., disaster in 2013.

“Last year was the safest year on record,” Tony Hatch, principal at railway consulting firm ABH Consulting, said in an interview. “I think what you’re seeing is intense scrutiny and the bad luck of the stats.”

According to the National Energy Board, the volume of Canadian crude-by-rail exports has increased by 1,000% in less than three years, from 1.45 million barrels in the first quarter of 2012 to 15.95 million in the fourth quarter of 2014.

“If you ship 10 times as much crude oil, you’ll get 10 times more derailments,” Allan Zarembski, director of the railroad engineering and safety program at the University of Delaware, said in an interview.

He added that an oil-train is no more likely to derail than any other type of train.

“The oil trains aren’t heavier than a coal train or an iron-ore train or even a grain train,” he said.

“They’re all loaded to the same range, they don’t travel any faster — in fact, they travel somewhat slower than the heavy intermodal trains. There’s no particular reason why you should have more derailments associated with an oil train.”

The industry’s safety record has been steadily improving over the last several years thanks to new technology, said Russell Quimby, a former rail safety engineer with the U.S. National Transportation Safety Board and president of Quimby Consulting.

“In the last 20 years, the amount of detection and inspection technology introduced and implemented is tremendous,” Mr. Quimby said. “The accident statistics reflect that.”

According to the Transportation Safety Board, a total of 83 main-track derailments were reported in 2013, down 6% from the five-year average.

Transport Canada is also working to reduce the risk of fires and spills. The agency proposed Wednesday a new standard for the tank cars used to ship crude that will include thicker steel, insulation to protect the contents from fire and a shield to guard against punctures, among other things. If the measures are approved, older tank cars will be phased out by 2025.

“While we have already banned the least crash-resistant tank cars from the system and came out last year with tougher new regulations, we will continue to do more,” Transport Minister Lisa Raitt said in a statement. The minister has also called on CN to testify before the Transport Committee about the recent derailments.

But as long as crude is being shipped by rail, there will always be a risk of fiery derailments, Mr. Quimby said.

“You want to have zero accidents,” Mr. Quimby said. “It’s like flying. Statistically, flying is safer than driving but it’s not safer if you happen to be in the airplane that goes down.”