Tag Archives: Bakken crude

U.S. oil train rule changes would have side effects on passenger, freight traffic

Repost from The Democrat & Chronicle, Rochester, NY

U.S. oil train rule changes would have side effects

By Brian Tumulty, January 13, 2015
Railroad oil tanker cars parked at the Port of Albany. Each week between 20 and 35 freight trains pulling such tankers roll through Monroe Coundy. (Photo: Mike Groll / AP file photo 2014)

WASHINGTON – Long-distance passenger and freight rail service could be headed for gridlock later this year if trains hauling crude oil and ethanol are limited to 40 miles per hour.

And it could get worse. If the controversial Keystone XL pipeline doesn’t win approval, the American Petroleum Institute estimates “an additional 700,000 barrels per day” will need to be shipped by freight rail. That would require an additional 1,000 rail tank cars every day to transport the tar sands oil the pipeline was intended to carry from Canada to the U.S.

Passengers in the tens of thousands per year travel on trains that stop in Rochester and could potentially be affected by the decisions that will soon be made.

The speed limit, proposed by federal regulators, would cause “severe disruption of freight and passenger rail service across the U.S.,” according to the National Shippers Strategic Transportation Council, a trade group.

The result of the debate will affect both local passengers who use Amtrak — 145,000 people boarded or got off at the Rochester Amtrak station in 2013 — and local activists worried about potential safety issues involving the oil tanker trains that run through Monroe County. Between 20 and 35 oil trains roll across upstate each week, passing through Monroe County on their way to Albany.

The Association of American Railroad says the 40 mph speed limit, and a related proposal requiring freight trains carrying crude oil or ethanol to have electronically controlled pneumatic brakes, “would have a devastating impact on the railroads’ ability to provide their customers with efficient rail transportation.”

Amtrak, which carried 31 million passengers overall in 2013, runs most of its trains on tracks owned by the nation’s major freight railroads. Trains on the Albany-Syracuse-Rochester-Buffalo corridor use a pair of tracks owned by Florida-based CSX Transportation.

Under federal law, freight railroads are required to give priority to Amtrak as they dispatch trains on their systems. But the system has always been imperfect, and scheduling conflicts with freight trains, along with numerous other problems, have made delays a fact of life on most Amtrak routes.

Amtrak supports imposing the 40 mph speed limit only in federally defined “high-threat urban areas” where the risk of a catastrophe is considered greatest. There are just over 50 around the country, including the New York City metro area and Buffalo.

“Anything more restrictive, if it affected network fluidity, could have adverse effects on Amtrak,” the railroad wrote.

The challenge for the oil and gas industry is continuing to safely transport crude oil from new oil fields to refineries.

About 70 percent of crude oil produced in the Bakken Shale Formation of North Dakota and Montana is shipped by rail, according to the oil refineries trade organization.

And production is continuing to increase, from less than 200,000 barrels per day in 2008 to nearly 1.2 million barrels per day in 2014, according to the American Petroleum Institute. Freight railroads predict production eventually will reach 2 million barrels a day.

About 70 percent of ethanol also is transported by rail.

Meanwhile, the nation’s rail network is operating at near capacity. Last year, its choke points resulted in a dramatic drop in the on-time performance of many long-distance Amtrak passenger trains.

Amtrak’s Capitol Limited route between Chicago and Washington had an on-time performance of less than 3 percent in the three months ending Sept. 30. Amtrak provided bus service between Chicago and Toledo, Ohio, for six days in October because some trains were running 10 hours late.

Freight rail shipments from grain elevators faced delays of up to three months a year ago. Freight railroads weren’t prepared for harsh winter weather on top of increased crude oil shipments.

Freight railroads say they’re spending billions of dollars to improve capacity — they largely avoided delays in shipping farm commodities following this year’s harvest — but a 40 mph speed limit for oil trains could undermine that.

“The impact on railroad capacity can be compared to traveling on a two-lane highway,” the Association of American Railroads said. “Slowing down one car or truck affects trailing vehicles. Similarly, slowing down one train affects trailing movements, except that the impact on railroad traffic is much worse because the opportunities to pass are much more constrained than on a highway.”

Trains can pass only at widely spaced locations on a railroad, whether single or double-tracked. Research on rail capacity has shown, and rail operators have long understood, that reducing speeds reduces network capacity.”

At issue is safety in the wake of several derailments of oil trains. The most notable, in the Quebec community of Lac-Mégantic in July 2013, killed 47 people.

Many rail industry groups and shippers say federal efforts to improve the safety of “unit” trains carrying at least 100 tankers loaded with crude oil should focus on fixing faulty tracks. New speed reductions, they say, should be limited to the most densely populated areas.

The National Transportation Safety Board lists improvements in rail tanker car safety as one of its 10 most wanted safety improvements for 2015. It also lists installation of “positive train controls,” which automatically slow trains going into a curve if the operator doesn’t.

“The NTSB does not have a specific position on any specific speed limits but what we do want to make sure first of all is, does the train stay on the track,” said Robert Sumwalt, a member of the NTSB board. “And PTC (positive train controls) is one good way of ensuring that the trains stay on the track. We want to make sure if they do derail, there’s adequate protection in the tank cars. And finally if the tank cars breach, we want to make sure there’s adequate emergency response.”

Federal officials late last year received more than 3,400 public comments on an array of proposals aimed at safer transportation of crude oil by rail. They include a new design for tank cars, retrofitting existing tank cars, installing new braking systems and speed restrictions.

Three possible speed-limit scenarios been proposed — one would limit oil trains to 40 mph at all times. Another would impose the 40 mph limit only when trains pass through regions of at least 100,000 people, and another would impose it only in cities defined as high-threat urban areas.

Trains using a new generation of safer tank cars would be allowed to travel at 50 mph.

The proposed speed limit would apply to “high-hazard flammable trains,” which federal transportation officials would define as any train carrying at least 20 tankers loaded with crude oil or ethanol.

Railroads say 20 cars is too few because freight trains add and subtract cars as they move along the nation’s vast rail network.

The average unit train has 94 tank cars, according to the American Fuel & Petrochemical Manufacturers association, which represents the owners of 120 refineries.

San Jose City Council unanimous in opposition to planned Phillips 66 oil-by-rail expansion

Repost from NBC Bay Area
[Editor: The Phillips 66 trains would come over the Sierra, and through Sacramento.  From there, they COULD travel south through Stockton and then west to the Bay Area.  OR they could continue west from Sacramento, through Davis, Dixon, Vacaville, Fairfield and BENICIA.  Here the trains would cross two seriously aging bridges in Benicia and Martinez before traveling through the heavily populated East Bay and South Bay.  See also the announcement by the Center for Biological Diversity.  Apologies for the video’s commercial ad.  – RS]

San Jose City Council Votes to Oppose Plans For Crude Oil Transport

By Robert Handa, Jan 13, 2015 


A major oil company looking to transport millions of gallons of crude oil on a train line through San Jose and Santa Clara has many South Bay residents up in arms.

Part of the expansion of the Phillips 66 Santa Maria refinery operation includes transportation along a stretch on Monterey Road in South San Jose. Many people in the area are worried about a possible train derailment involving toxic crude oil.

“Our concerns are ‘What would happen if a derailment occurred?’ And, in particular, the load that the trains are carrying,” said Sergio Jimenez, who heads up a homeowners association in South San Jose.

A check of the area shows a fence separating homes from the train tracks.

City Councilman Ash Kalra proposed San Jose take a stance on the issue with a letter opposing the oil company’s plan.

“It’s coming right through our cities within a hundred feet of homes in my council district,” Kalra said. “Going through farmlands in my council district as well, and going through downtown.”

The issue was discussed at Tuesday’s council meeting and a debate lasted lasted late into the afternoon, with some council members saying it is the federal government’s job, not the city’s, to make the call.

“We should also be asking ‘Is enough being done to make us safe?'” Councilman Johnny Khamis said. “But not outright oppose it.”

Ultimately, the council voted unanimously to oppose the plans for crude oil to be transported through San Jose and urged the San Luis Obispo Planning Commission to reject the expansion proposal.

Other cities along the rail route affected by the Santa Maria Phillips 66 project have also submitted letters or passed resolutions against crude-by-rail, including Oakland, Berkeley, Richmond, Martinez, Davis and Moorpark.

Phillips 66 did not return calls seeking comment.

New Death Count Projections for Bakken Oil Train Disasters?

Repost from The Coalition for Bakken Crude Oil Stabilization

New Death Count Projections for Bakken Oil Train Disasters?

By Ron Schalow, January 13, 2015
The Coalition for Bakken Crude Oil Stabilization
Facebook: The Coalition for Bakken Crude Oil Stabilization

Firefighters, Emergency Personnel, Lawmakers, and Media:

Last June (2014), North Dakota Governor Jack Dalrymple called disaster agencies and emergency personnel together for a “tabletop exercise” to practice a response to a possible Bakken oil train derailment, and the subsequent explosions. They estimated there would be more than 60 deaths if such an incident occurred in Bismarck, ND (65,000 pop.) or Fargo, ND (110,000 pop.).
http://www.prairiebizmag.com/event/article/id/19629/
http://news.prairiepublic.org/…/inside-energy-making-bakken…

I don’t know the times, locations, or other variables, in the exercise calculations, but I can envision places in Bismarck and Fargo where the death count might be zero at certain times of the day. I could also think of cases, especially in downtown Fargo, when thousands would be in the blast zone.

There were 47 deaths in Lac-Megantic (6,000 pop.) after a Bakken oil train derailed on July 6, 2013. Dozens of downtown buildings were incinerated, but due to the late hour, most of the people who died were assembled at one place of business.
http://www.bing.com/videos/search…

Then, on December 9th, 2014, all three North Dakota Industrial Commission members signed Order No. 25417.
http://www.nd.gov/ndic/ic-press/dmr-order25417.pdf

“This order will bring every barrel of Bakken crude within standards to improve the safety of oil for transport,” said Governor Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, in a joint statement.

Considering the improved safety, North Dakota officials should have updated projections of fatalities for Fargo and Bismarck. They would know the June variables and the change in composition of the contents of the tanker cars, due to the new Order. You could extrapolate the information to predict the deaths and damage for your community.

What’s the new number for casualties? These people should know…

North Dakota Industrial Commission
701-328-3722
ndicinfo@nd.gov

Governor Dalrymple’s Chief of Staff
Ron Rauschenberger
701-328-2222
rrausche@nd.gov

Governor Dalrymple’s Director and Policy Advisor
Jeff Zent
701-328-2424
jlzent@nd.gov

Lynn D. Helms, Director
Department of Mineral Resources
701-328-8020
lhelms@nd.gov

Oil and Gas Division
701-328-8020
oilandgasinfo@nd.gov

North Dakota Department of Emergency Services
701-328-8100
nddes@nd.gov

Cass County (Fargo) Emergency Management
Dave Rogness
701-476-4065
rognessd@casscountynd.gov

Fargo Fire Department
Steve Dirksen Fire Chief
701-241-1540
sdirksen@cityoffargo.com

Burleigh County (Bismarck) Emergency Management and Homeland Security
Mary H. Senger Emergency Manager
701-222-6727
msenger@nd.gov

Bismarck Emergency Management Division
Gary Stockert Emergency Manager
701-221-6804
gstockert@bismarcknd.gov

Bismarck Fire Department
Joel Boespflug Chief
jboespfl@bismarcknd.gov

Quebec town: Train disaster settlement provides very little

Repost from AP News, The Big Story
[Editor: Significant quote: “Lac-Megantic Mayor Colette Roy Laroche said over the weekend the estimated cost of rebuilding the town is about $2 billion.”  See also: repost from The Globe and Mail.  – RS]

Quebec town: Train disaster settlement provides very little

Jan. 12, 2015

MONTREAL (AP) — The deputy mayor of a Quebec town where a fiery oil train derailment killed 47 people said Monday a proposed settlement fund for victims represents just a fraction of what’s needed.

A $200-million settlement was announced last week, with more than one-half of the money going to various levels of government. About $50 million is destined for relatives of the 47 people who died in the July 2013 disaster, although the amount could rise. The settlement involves the Montreal Maine and Atlantic Canada Co., its insurance carrier, rail-car manufacturers and some oil producers. Three major companies have declined to participate — World Fuel Services, Canadian Pacific Railway and Irving Oil.

Lac Megantic Deputy Mayor Richard Michaud said the families of the victims will share in the settlement money, which is “very little considering there are more than 20 orphans who must rebuild their lives.”

“Two hundred million can seem like a lot of money but in my opinion, it’s very little,” Michaud said. “Much more than $200 million has been injected by the federal and provincial government to decontaminate the devastated territory alone, and we’re not even talking about reconstruction.”

Much of downtown Lac Megantic was destroyed on July 6, 2013, by a raging fire caused when an unattended train with 72 oil tankers carrying volatile crude derailed after it began rolling downhill toward the town of 10,000 people. More than 60 tankers derailed and several exploded. Forty-seven people died, and dozens of buildings were destroyed.

U.S. bankruptcy trustee Robert Keach is hoping the $200 million amount rises considerably before final approval of the plan in U.S. and Canadian courts.

Keach, a court-appointed trustee in the defunct railroad’s bankruptcy case in Maine, said the draft sets aside about $50 million of the $200 million pool for wrongful death claims, which could increase through a reallocation of the federal government’s share to as much as $57 million.

Up to $29 million could go to property damage, while another $19 million could go to bodily injury and moral damage claims, Keach said.

Those amounts reflect a possible reallocation of the federal government’s take. As it currently stands, more than 52 percent of the overall funds would go to provincial, federal and municipal governments. The formulas could change if the amount goes up.

“This is only a draft, so there are separate but parallel processes on both sides of the border,” Keach said. “The hope is we’ll have all the approval orders in place in early to mid-April so we could have a distribution in place by June or July.

“We are hoping (the final amount) grows between now and then, but the deadline for it growing is going to be those final hearings,” he added.

Yannick Gagne, owner of the Musi-Cafe, a business that was destroyed and where the majority of the victims died, said money won’t bring back the lives lost but could help with the relaunch of the downtown. Plenty more money will be required, however, to rebuild the town center essentially from scratch, he said.

Reconstruction costs are significant and Gagne himself has taken out loans, used insurance money and paid out of pocket. He also spent seven months out of work.

“For many people, it was a difficult time financially,” said Gagne, whose cafe quietly reopened on Dec. 15. “The mayor said it best —that $200 million is not sufficient.

“We are a long way from what we need. And it’s not up to the population to pay for this tragedy.”

Lac-Megantic Mayor Colette Roy Laroche said over the weekend the estimated cost of rebuilding the town is about $2 billion.