Call For Crude-By-Rail Moratorium In California After Train Derailment
2014-12-09, by Mike Gaworecki
A train derailment last week has prompted a California state legislator to call for a moratorium on crude-by-rail shipments through the state’s “most treacherous” passes.
Twelve cars derailed on a Union Pacific rail line along the Feather River northeast of Oroville, CA in the early morning hours of November 5th. The state Office of Emergency Services responded by saying “we dodged a bullet” due to the fact that the train was carrying corn, some of which spilled into the river, and not oil.
State Senator Jerry Hill (D-San Mateo), a vocal critic of the state’s emergency preparedness for responding to crude-by-rail accidents, does not think California should wait around for a bullet it can’t dodge before taking action. Hill sent a letter to Governor Jerry Brown calling for a moratorium on shipments of volatile crude oil from North Dakota’s Bakken Shale and other hazardous materials via the Feather River Canyon and several other high risk routes throughout California.
“This incident serves as a warning alarm to the State of California,” Hill wrote in the letter. “Had Tuesday’s derailment resulted in a spill of oil, the spill could have caused serious contamination in the Feather River, flowing into Lake Oroville and contaminating California’s second largest reservoir that supplies water to the California Water Project and millions of people.”
Hill’s letter goes on to mention the fact that increased use of crude transport by rail due to the fracking boom has also led to many more “fatal and devastating rail accidents involving large crude oil spills,” specifically raising the specter of the derailment and explosion of a train in Lac-Mégantic, Quebec in 2013, which killed 47 people and spilled 26,000 gallons of crude into the Chaudière River.
There is a need for a moratorium, Hill argues, because a train carrying one million gallons of Bakken crude—the same type of oil that was being transported through Lac-Mégantic—travels through the Feather River Canyon every week, and there are plans for a second of these “bomb trains” (so called due to the highly volatile nature of Bakken crude) to be added soon.
According to Hill, the trains travel through some of California’s most remote regions where the risk of derailment is especially high and “emergency responders are ill-equipped to quickly respond in these regions to prevent and mitigate major environmental and public health harm.”
Crude-by-rail has taken off in the U.S. because there is simply not enough space in existing pipelines to transport the glut of oil being produced across North America. This has led to more oil being spilled by train accidents in 2013 than in the previous three decades combined. According to Pipeline and Hazardous Materials Safety Administration data, last year saw some 1.15 million gallons of crude oil spilled by rail incidents, compared to just 800,000 gallons between 1975 and 2012.
It just so happens that there are no pipelines bringing crude to California, however, so the state is bracing itself for a massive increase in the number of oil trains. In 2011 there were 9,000 carloads of oil shipped by rail into the Golden State, but that number is expected to swell to 200,000 carloads by 2016.
So far this year, California has imported nearly 4.4 million barrels of oil by rail through September, compared to just 3.3 million barrels from January to September in 2013. To put that in context: the 6.3 million barrels ultimately shipped via rail to California refineries last year represented a 506% increase over the 1 million barrels shipped by rail in 2012, but was still just 1% of total oil shipments into the state. However, crude-by-rail shipments are growing so quickly that they are expected to reach as much as 150 million barrels by 2016, some 25% of total imports.
When reached for comment, the governor’s office deferred to the California Office of Emergency Services. Kelly Houston, deputy director of the OES, told DeSmog, “We share Senator Hill’s concern about the increase in crude oil coming into California by rail,” but that ultimately any decision on a moratorium would have to come from the Department of Transportation’s Federal Railroad Administration.
Houston stresses that the state is working to make crude-by-rail shipments safer, pointing to a report released by the state this past June, “Oil by Rail Safety in California,” and the work being done with railroad operators and federal regulators to improve California’s safety and emergency preparedness standards. “We’re going to have an increased risk because we don’t want to stop commerce into the state,” Houston says, “but what we want to do is increase safety and preparedness.”
U.S. crude oil and lease condensate proved reserves rose for the fifth consecutive year in 2013, increasing by 9% from the 2012 level to 36.5 billion barrels, according to the U.S. Crude Oil and Natural Gas Proved Reserves, 2013 report released yesterday by the U.S. Energy Information Administration (EIA). U.S. crude oil and lease condensate proved reserves surpassed 36 billion barrels for the first time since 1975.
Proved reserves
Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.
North Dakota had the largest increase (1.9 billion barrels, 51%) in oil reserves among individual states in 2013, based on development of the Bakken/Three Forks formation in the Williston Basin. With 5.7 billion barrels of proved reserves, North Dakota has more reserves than the federal offshore waters of the Gulf of Mexico. Texas remains by far the leading state in total proved oil reserves—its reserves increased from 11.1 billion barrels in 2012 to 12 billion barrels in 2013 (an 8% increase). The largest decline of 2013 was in Alaska, where proved reserves decreased by 454 million barrels, due mainly to reduced well performance at large existing oil fields.
Changes in reserves reflect exploration and development activities as well as financial factors. Increases in crude oil and lease condensate reserves in 2013 were mainly attributable to nearly 5 billion barrels of extensions to existing fields. Extensions are the result of additional drilling and exploration in previously discovered reservoirs, and have accounted for the majority of reserves increases over the past three years. Continued development of the Bakken/Three Forks play in North Dakota accounted for a large portion of the reserves additions, and overall, tight oil plays accounted for almost 30% of all U.S. crude oil and lease condensate proved reserves.
Repost from The Wall Street Journal [Editor: This is a must-read. IMPORTANT – See the Wall Street Journal site for an excellent video report and an interactive U.S. map showing the weekly average number of crude oil trains from the Bakken Shale in North Dakota that pass through each county. – RS]
Oil Trains Hide in Plain Sight
Rail Industry’s Secret: Volatile Crude Routes Often Kept From Cities and Towns
By Russell Gold, Dec. 3, 2014
Finding the locations of oil-filled trains remains difficult, even in states that don’t consider the information top secret. WSJ’s Leslie Eaton and Simon Constable discuss. Photo: AP
NEWARK, Del.—Early last year, a new kind of pipeline full of volatile oil appeared in this college town, halfway between Philadelphia and Baltimore.
If it had been a traditional pipeline, there would have been government hearings and environmental reviews. There would be markers or signs along the line’s route and instructions for nearby residents on how to react in an emergency. A detailed plan for responding to a spill would be on file with the federal government.
None of that happened here in Newark. In fact, nobody initially notified the city’s fire chief about the new line, which can carry more than a hundred thousand barrels of oil a day along Amtrak’s busiest passenger-rail corridor.
This was possible because the oil here is transported by a virtual pipeline: mile-long strings of railroad tanker cars that travel from North Dakota to a refinery in Delaware. In Newark, the cars are especially easy to spot as they often sit for hours on tracks 10 feet away from passing passenger trains, waiting for an opening at the nearby PBF Energy Inc. plant.
While the existence of this virtual pipeline is obvious to its neighbors—trains are visible from homes, the local commuter rail station, a park and a popular jogging trail—it is officially secret. Delaware Safety and Homeland Security officials contend that publicizing any information about the oil trains parked there would “reveal the State’s vulnerability to terrorist attacks,” according to a letter to The Wall Street Journal.
A Norfolk Southern Corp. train in a refinery in Delaware, waiting to unload its cargo of crude oil from North Dakota. Russell Gold/The Wall Street Journal
Finding the locations of oil-filled trains remains difficult, even in states that don’t consider the information top secret. There are no federal or state rules requiring public notice despite several fiery accidents involving oil trains, including one in Lac-Mégantic, Quebec, that killed 47 people.
The desire for secrecy seems wrongheaded to some experts. “If you don’t share this information, how are people supposed to know what they are supposed to do when another Lac-Mégantic happens?” asked Denise Krepp, a consultant and former senior counsel to the congressional Homeland Security Committee.
She said more firefighting equipment and training was needed urgently. “We are not prepared,” she said.
In May, federal regulators ordered railroads to tell states about the counties traversed by trains carrying combustible crude oil from the Bakken Shale in North Dakota so local first responders could be notified.
The Journal submitted open-records requests to all 48 contiguous states and the District of Columbia and received at least some information from all but 14: Colorado, Delaware, Idaho, Indiana, Louisiana, Maine, Maryland, Michigan, Nevada, Ohio, Tennessee, Texas, Vermont and West Virginia.
Mapping data received from the disclosing states, the Journal found a lot of other cities in the same situation as Newark. On its way to refiners on the East Coast and along the Gulf of Mexico, oil often sits in tank cars in railroad yards outside Harrisburg and Pittsburgh, Penn., and passes through Cleveland, Chicago, Albany, Seattle and a dozen other cities.
Bakken oil is flowing in two directions from North Dakota: west toward Portland and the Puget Sound; and east through Minneapolis, then southeast through Chicago, and across the northern edge of Indiana and Ohio. There it splits into three routes: One heads to Albany; another goes to Yorktown, Va., where the crude is transferred to barges for trips up and down the East Coast. The third heads to Philadelphia through Ohio, which is one of the states that doesn’t disclose data, but the Journal was able to deduce the routes by following available maps.
Other oil trains run south from Oregon to California, from Minnesota to Texas, and from Wisconsin toward the Gulf Coast.
Maryland previously had attempted to release oil-train information, but was successfully sued by Norfolk Southern Corp. and CSX Corp. Norfolk argued that these trains were carrying “highly volatile cargo” that could be a target for terrorists.
Railroads have continued to press for secrecy; in August, the Association of American Railroads and the American Short Line and Regional Railroad Association wrote a confidential letter to the federal government asking that routing information be kept from the public. The request was denied.
“The rail industry is concerned making crude oil route information public elevates security risks by making it easier for someone intent on causing harm,” said AAR spokesman Ed Greenberg. The group said it supports sharing information with local officials.
Neither the oil nor the railroad industry anticipated the rapid and dramatic rise of oil shipments by train. In 2009, U.S. railroads transported about 21,000 barrels a day of oil; today they carry 1.1 million barrels a day, according to data from the Surface Transportation Board, a federal regulator. Last year, railroads generated about $2.15 billion in revenue from moving crude.
Shipments of hazardous material, especially crude oil, have soared recently, even for railroads whose routes are far from the oil fields of North Dakota. Norfolk Southern and CSX, which serve the East Coast, moved 53,001 carloads of oil in the three months ended September, compared with just seven carloads during the same period of 2009, according to data from the federal Surface Transportation Board. They transported 156,731 carloads of industrial chemicals, some of which are hazardous, in the third quarter of this year, up 8% from five years ago.
Trains are the new pipelines, and have become a vital link in the energy infrastructure, said Dave Pidgeon, a spokesman for Norfolk Southern. “We are the keystone, the bridge, between the source of where the energy is extracted and where it is refined,” he said. Moving hazardous material like crude, he added, is “safe and getting safer.”
Trains offer the energy industry flexibility to move oil where it can fetch the highest prices. Building the needed loading and unloading terminals is fast and inexpensive, and an extensive rail network connects the Midwest to the East and West coasts.
While these virtual pipelines can be created in months, traditional pipelines have become increasingly difficult to install as environmental groups seek to block permits for new energy infrastructure.
“What we are seeing on rail is largely due to opposition to and uncertainty around building pipelines,” said Brigham McCown, who was the chief pipeline regulator under President George W. Bush . Pipelines, he adds, are far safer than trains.
Since Lac-Mégantic, several trains have derailed and exploded. Most of these accidents have happened in relatively rural areas like Casselton, N.D., a town of about 2,500 people 24 miles west of Fargo. But one occurred in downtown Lynchburg, Va., forcing the evacuation of much of the downtown in a city with 78,000 residents.
In response, railroads agreed to slow oil trains to 40 miles an hour in urban areas, and federal regulators have proposed a broader speed limit for older tank cars carrying volatile crude oil.
The rules don’t apply to other freight trains or Amtrak trains that share tracks in Newark with oil trains; about 85 Amtrak trains run through Newark every day, according to a spokesman, at speeds of up to 100 miles an hour. In addition to Norfolk Southern, which operates on the outskirts of town, CSX runs oil trains on a wholly separate track heading north toward refineries near Philadelphia.
Without oil trains, the local PBF Refinery might not be operating. Opened in 1956 on the Delaware River, the refinery handled imported oil that arrived by water from overseas; it was mothballed in 2009 as the economics of importing crude oil soured and demand for gasoline slumped.
PBF bought the refinery in 2011, reopened it the next year and began adding facilities to unload crude from trains. The company owns or leases 4,000 tank cars, has 1,900 more on order and said it is committed to using the safest cars available.
The refinery built a double loop that can accommodate two trains, each holding 70,000 barrels of crude. It can take workers 14 hours to unload each train by connecting hoses to drain out the cargo.
The Bakken crude contains a lot of butane, making it volatile but useful for mixing with heavier oils or as a refined byproduct, said refinery manager José Dominguez. On a recent afternoon, the refinery was running mostly Bakken oil, along with some diluted crude from Canadian oil sands and a ship’s worth of light sweet oil from Basra, Iraq.
When Norfolk Southern began routing crude trains through Newark, it didn’t notify the local emergency officials. Last March, a year after trains started turning up, Fire Chief A.J. Schall sat down with officials from the railroad and refinery to discuss the crude shipments.
“It shows a lack of communication,” he said. By the summer, Norfolk Southern and PBF paid for Mr. Schall and another local fire chief to fly to Colorado and attend a three-day class on crude-by-rail trains.
Some people who live and work along the tracks say that they are disquieted by the increased traffic and especially of the new presence of mile-long strings of black tanker cars, but unaware of any new accident-preparedness plans.
Demitri Theodoropoulos, who manages a record store facing the intersection, said that since 2004 his security cameras have recorded 14 collisions, including one in 2012 when a train smashed into a large truck.
“We have major, major freight traffic here,” he said. “I see trains with crude every day or so. I don’t like it, but this is the way it is.”
Burlington Northern Santa Fe car carrying pork derails in Richmond, raising concerns about more hazardous materials
By Robert Rogers, December 3, 2014
RICHMOND — The derailment Friday of a single rail car containing refrigerated pork is under investigation by Burlington Northern Santa Fe officials, who say it occurred during a low-speed movement within its rail yard and suggests no added risk for the rail transport of more hazardous materials in Contra Costa County.
“This was a very minor incident with a single car going less than 10 mph,” BNSF spokeswoman Lena Kent said. “There are many precautions we take to ensure that 99.997 percent of all hazardous materials we transport reach their destinations without a release caused by an accident.”
The car was being pulled by a locomotive through the yard just west of Richmond Parkway near Pennsylvania Avenue when it tipped over.
Kent said people cut through a chain-link fence soon after and took boxes of refrigerated pork that spilled from the crumpled hull. Empty cardboard Tyson Foods boxes were seen scattered in the neighborhood nearby.
Kent said the incident is under investigation, and she declined to say what may have caused it or whether the line on which the derailment occurred is ever used to transport hazardous materials.
The incident and its aftermath — the car remains broken beside the tracks and will soon be scrapped — has only heightened concerns in a community already on edge over the recent influx of crude-by-rail shipments, much of it from the Bakken region of North Dakota.
City officials last month sent a letter to the Bay Area Air Quality Management District urging the agency to revoke a permit allowing Kinder Morgan to offload Bakken crude and Canadian tar sands oil at its Richmond rail yard, the major draw for local crude-by-rail traffic.
In September, a lawsuit by environmental groups seeking to revoke that permit — which was issued without public notice — was tossed out by a judge on the grounds that it was filed too late.
Kent said BNSF transports two oil-carrying trains per month in California but declined to say exactly where, citing security concerns.
Industry experts expect crude-by-rail traffic to increase in the coming years, as North American oil extraction grows, and the product must be refined in facilities across the United States, including several in Contra Costa County.
Randy Sawyer, Contra Costa County’s chief environmental health and hazardous materials officer, said trains of up to 100 cars travel into Richmond before being transferred to trucks or pipelines to be refined. He noted that cars carrying hazardous materials are more robust than the one that carried the spilled pork, and they would be unlikely to spill in a low-speed derailment.
Nonetheless, “A crude car could tip over also,” Sawyer said. “It’s a possibility.”
Kent said Friday’s derailment does not indicate a wider problem.
“We operate all of our trains with safety as our first priority,” Kent said. “However, when it comes to hazardous material we do have more restrictive operating procedures.”
County Supervisor John Gioia said BNSF officials have told him they are developing “more resilient” cars for crude oil, a development he took to mean that the company expects the crude-by-rail market to continue to grow, and that federal regulators are likely to impose new standards as communities across the country see increased crude-by-rail traffic in their midst.
“Any train derailment concerns me because there could be anything from injury to a larger public safety issue; it’s all important,” Gioia said. “But this new (incident) hasn’t told me anything new other than what we know already based on derailments in other parts of the country: that trains with hazardous materials pose a risk.”
You must be logged in to post a comment.