Tag Archives: Bakken crude

Two-month comment period starts for new federal oil train rules

Repost from The Hill
[Editor: The U.S. Department of Transportation is proposing new rules for oil train transport. You can post a comment online here.  The proposed rules, including instructions for submitting comments, can be downloaded here.  – RS]

Comment period starts for oil train rules

By Timothy Cama – 08/01/14

The Obama administration Friday formally published proposals in the Federal Register to stiffen safety rules for trains carrying crude oil and other fuels, kicking off a two-month period in which the public can comment.

The proposals were prompted chiefly by the increase in oil shipped by rail from the Bakken region of North Dakota, which Transportation Secretary Anthony Foxx said last week necessitates “a new world order on how this stuff moves.” A train carrying crude derailed in Quebec last year, setting off an explosion that killed 47.

The Department of Transportation (DOT) proposed phasing out old rail cars for oil and other flammable liquids like ethanol, implementing new speed and braking standards for the trains and establishing a new testing and classification system for the fuels. Foxx called the rules “the most significant progress” in protecting the country from explosions caused by trains carrying Bakken crude.

DOT said it wants comments on three different possible rules for speed limits and three different options for the thickness of steel on cars.

DOT also said it was not likely to extend the comment period beyond the 60-day standard, “given the urgency of the safety issues addressed in these proposals.”

Delta Airlines enters Bakken crude-by-rail business

Repost from UPI.com Business News

Delta sources Bakken crude for Pennsylvania refinery

Deal accounts for one third of refinery’s capacity.
By Daniel J. Graeber   |   July 21, 2014

Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com.

 

 

ATLANTA, July 21 (UPI) —A subsidiary of Delta Air Lines said Monday it signed a five-year deal to send 65,000 barrels of Bakken crude oil per day to its refinery in Trainer, Pa.

Delta subsidiary Monroe Energy signed the deal with midstream energy company Bridger LLC to supply about 30 percent of the crude oil refined daily at the Trainer facility. The crude oil would be sourced primarily from the Bakken reserve area in North Dakota, which the company says is cheaper than oil imported from overseas markets.

“Supplying a third of the crude refined at Trainer from the Bakken further reduces the overall cost of fuel for Delta,” Graeme Burnett, a senior vice president for fuel optimization for Delta and chairman of Monroe, said in a statement.

Bridger is a midstream company that recently invested $200 million on railcars, which are said to exceed current safety standards for crude oil transportation.

There’s not enough pipeline capacity in the United States to handle the glut of oil, forcing some companies to rely on rail as an alternative transit method.

A federal warning in early 2014 said Bakken crude oil may be more prone to explosion than other grades if involved in a derailment. The 2013 derailment of a train carrying Bakken oil in Lac-Megantic, Quebec, left more than 40 people dead.

Increased crude oil production has sparked calls for U.S. exports, though Burnett told U.S. lawmakers more exports of U.S. crude would mean more imports for some markets, which would lead to higher global oil prices.

Environmental groups to DOT: Ban Older Railcars for Bakken Oil

Repost from EarthJustice.org

Community Leaders, Advocates Call on Secretary of Transportation To Ban Use of Hazardous Rail Cars

Seek emergency order banning the use of hazardous rail cars to ship explosive crude oil

July 15, 2014
Crude-by-rail explosion
The fireball that followed the derailment and explosion of two trains, one carrying Bakken crude oil, on December 30, 2013, outside Casselton, N.D. — U.S. Pipeline and Hazardous Materials Safety Administration

Washington, D.C. — Today, two national environmental organizations filed a formal legal petition to compel the Secretary of the U.S. Department of Transportation to issue an emergency order prohibiting the use of hazardous rail cars—known as DOT-111s—for shipping flammable Bakken crude oil (See FAQ sheet for more info on petition). The National Transportation Safety Board has repeatedly found that the DOT-111 tank cars are prone to puncture on impact, spilling oil and often triggering destructive fires and explosions. The Safety Board has made official recommendations to stop shipping crude oil in these hazardous tank cars, but the federal regulators have not heeded these pleas (See quote sheet of on-record statements by public officials for more info).

“These oil tankers have been called the Ford Pinto of the rails,” said Ben Stuckart, City Council president in Spokane, Washington. “National Transportation Board members, U.S. Senators, and local officials are all on record on the danger of these antiquated, unsafe rail cars. It’s long past time for the government to take action to protect communities like mine.” Officials estimate between 13 and 16 oil trains a week come through Spokane, a major hub for rail traffic, although those numbers would skyrocket if planned oil terminals on the West Coast are built. Spokane is one of many towns across the country that has seen an organized and strong community opposition to these trains.

In September 2013, in the wake of the deadly Lac-Mégantic and other rail disasters, the federal government began a rulemaking process to set new safety standards for crude oil rail cars. Transportation Secretary Anthony Foxx has stated publicly that the DOT-111s will likely have to be phased out, and even questioned whether the industry’s replacement design is safe enough for U.S. communities. The draft rule is currently under review at the White House. But the groups believe that the process is moving too slowly and likely to drag on a year or more before a final rule is in place. While he has issued emergency orders addressing other urgent safety issues, all the Department has done to date is urge shippers to use the safest tank cars in their fleets. Immediately banning the use of DOT-111 tank cars to ship Bakken crude would reduce the risk of punctures and oil spills by over 75 percent, according to rail industry estimates.

“The continued use of potentially unsafe DOT-111 train cars is a disaster waiting to happen. The people of Albany County are standing up today to ask the federal government take swift action to improve rail safety,” said Albany County Executive Daniel P. McCoy. “In light of recent incidents in North America, a strong response from the federal government is needed to protect the public.” Trains carrying Bakken crude oil arrive daily into the Port of Albany, like many other towns across the country. Firefighters and first responders have hurried to train for impending disasters and increased risk.

“These exploding oil trains are in our backyards, where our kids play,” said Charlene Benton, president of the Ezra Prentice Homes Tenants Association in Albany, NY. “We’re putting our children’s and our neighbors’ lives in jeopardy here. Over the last three years, we’ve seen a huge increase in the number of these dangerous oil trains coming through our community. Our community has organized against these oil trains because we don’t want to be the site of another catastrophic disaster. We need a national emergency ban of these oil rail cars.”

The recent surge in U.S. oil production, much of it from Bakken shale, has led to a more than 4,000 percent increase in crude oil shipped by rail since 2005, mostly in long oil trains with as many as 120 cars and over 1.5 miles long. The Bakken crude has proven to be more explosive than shippers represented. And the Bakken crude has been shipped in the most dangerous tank cars on the market – the DOT-111s. The result has been oil spills, destructive fires, and explosions when oil trains have derailed. More oil spilled in train accidents in 2013 than the total in 1975-2012 combined. Canada has taken steps to ban many DOT-111s immediately and is phasing them out of hazardous transport altogether, which will shift even more of these tank cars to the U.S.

The petition follows closely on the announcement that the oil and rail industries have reached their own compromise proposal on rail safety, one that would only seek to slowly phase out dangerous DOT-111s over three years, and that would propose a weaker standard for new rail cars than the industry had previously proposed.

Meanwhile, it is estimated that 25 million Americans live in the dangerous blast zone along the nation’s rail lines. View this MAP of the nation’s rail lines and local actions against oil-by-rail or this MAP that shows your proximity to an oil rail line.

The petitioners are Sierra Club and ForestEthics, represented by Earthjustice.

KPFA: Benicians oppose crude-by-rail ‘bomb trains’

Repost from AnnGarrison.com

Benicians win first victory in opposition to crude-by-rail ‘bomb trains’

KPFA Weekend News, 07.12.2014

On Thursday, Citizens of Benicia, California won a 45-day extension of the public comment period on the Draft Environmental Impact Report regarding Valero’s plan for bringing tar sands and shale oil to its Benicia Refinery. Activists opposing the shipments began calling them “bomb trains” after explosions around the U.S. and in Canada.

Transcript: 
KPFA Evening News Anchor Cameron Jones:This week the Benicia Planning Commission voted, 4 to 2, for the 45 day public comment period extenion on Valero Oil’s crude by oil The town of Lac Mégantic, Quebec, Canada, burned for four days after a crude-by-rail train derailment and explosion. Forty-seven people died and some of their bodies were never even found. plan. KPFA’s Ann Garrison spoke to Andrés Soto, KPFA host, Benicia resident, and organizer with Communities for a Better Environment. 

KPFA/Ann Garrison: Andrés Soto, could you tell us what happened at the Benicia Planning Commission meeting on Thursday evening? 

Andrés Soto: Yeah, two things occurred. One was that the local group Benicians for a Safe and Healthy Community held a rally that was designed to commemorate the 47 people who lost their lives at Lac Mégantic a year ago. It was part of a national campaign along with Forest Ethics, as well as a rally before going into the meeting. 

KPFA: Regarding Lac Mégantic, that’s the community in Quebec where 47 people died after a crude by rail car blew up?
Soto: Crude by rail train.
KPFA: Train.Soto: A crude-by-trail train derailed, and a number of cars exploded, and the town burned for four days, and 47 people were essentially incinerated. Some of their bodies were never found.

KPFA: OK, what happened when you got into the Planning Commission meeting, in Benicia.Soto: Once in the meeting, the Planning Commission had to deal with a couple of ideas. One was whether or not to extend the public comment period from the 45 days it is now to 90 days, and that occurred on a 4 to 2 vote, so the public was allowed to have a longer public comment period.

Before the Benicia Planning Commission meeting on July 10, Benicia residents commemorated the 47 lives just over a year ago, when a crude-by-rail train derailed and cars carrying Bakken shale oil exploded in Lac Mégantic, Quebec. And the other action was, they started to take comment from the public on the Draft Environmental Impact Report on Valero’s crude-by-rail project. They only were able to listen to about five or six people by the time they got around to that at 11:30 pm, so the meeting is going to be continued, and the public will be allowed to give more testimony at their next meeting in August. The crowd was overwhelmingly anti crude-by-rail. The Valero forces were able to turn out a few folks, mostly from the building trades unions, but the bulk of the people who were there were opposed to it. There was also an opportunity for people who live uprail, in Roseville and Davis and Vacaville and places like that. They allowed those folks to actually offer their commentary first, before the Benicia residents, because they had come from such a long way.

So we think we’re in a good place right now and looking forward to the next meeting.

KPFA: If you’re opposing crude by rail, then you’re basically opposing the transport of shale oil and tar sands oil from the middle of the country, right?

Soto: Correct. Valero and Union Pacific have teamed up to begin to try to deliver Bakken crude and tar sands crude, Bakken crude from North Dakota, and tar sands crude from Alberta, Canada by rail down here since there is no Keystone pipeline to the West Coast. And in the city of Benicia, Valero wants to shift from getting all of its oil delivered by ships, at their port, and converting to getting it all by rail. And we believe this puts the CIty of Benicia and the surrounding communities and the Suisun Marsh at an unnecessary risk. And our position is that they ought to leave that stuff in the ground, that just because they can get it out doesn’t mean we want it. What we support is a just transition from a fossil fuel based economy to one based on the expansion of renewable energies.

KPFA: And that was Andrés Soto, Benicia resident and organizer with Communities for a Better Environment. In Berkeley, for Pacifica, KPFA Radio, I’m Ann Garrison.