Tag Archives: Bakken

Bakken: The King in the North

Download from Platts.com McGraw Hill Financial
[Editor: Platts.com is an excellent source of energy industry insider information.  Their 4-page May, 2014 report, “Bakken: The King in the North,” has technical data on Bakken background, industry trends and market predictions.  I have excerpted a few sample quotes below.  – RS]

Bakken: The King in the North

Bakken consumers & potential reach in US Atlantic Coast refineriesBakken crude oil represents light sweet crude produced from the Bakken Shale Formation in the North Dakota / Montana / Saskatchewan / Manitoba region. Production from the US side of the Williston Basin, the sedimentary basin that contains the productive Bakken Shale Formation, crossed the 900,000 b/d mark in November 2013 and was more than 888,000 b/d in February, according to the North Dakota Pipeline Authority and estimates from Bentek, a unit of Platts.
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Pipeline capacity out of the Bakken is set to increase from 600,000 b/d currently to over 1 million b/d by early 2016….

Bakken transportation flows by type

Vermont: catastrophic risk to Lake Champlain

Repost from Lake Look, a publication of Lake Champlain Committee
[Editor: An excellent and thorough look at crude oil train derailment risks in and around Lake Champlain.  – RS]

Rail transport of oil poses risk to Lake Champlain

By Lake Champlain Committee Staff Scientist Mike Winslow   |  April, 2014
An oil train rolls south along the shores of Lake Champlain. Photo by Frank Jolin

The sound of trains clacking along the rails that abut Lake Champlain has become more common recently with the dramatic increase in freight traffic attributed to fossil fuel extraction. Each week approximately 60 million gallons of oil travel along the lake carried by 20 trains with up to 100 cars each. The U.S. now meets 66 percent of its crude oil demand from production in North America with tremendous growth in outputs from Canada and the Bakken oil fields of North Dakota. In October 2013 U.S. crude oil production exceeded imports for the first time since February 1995.

Oil produced from the Bakken fields is very light. That means it flows easily, but it also means it is more volatile and flammable. As a result, the potential property damage and loss of life associated with rail accidents involving Bakken oil is higher than oil from other sources. In January of this year two federal agencies issued a safety alert warning of these risks.

The alert was triggered by a series of devastating accidents. The Federal Railroad Administration statistics suggest that on average at least one car slips off the tracks every day. There have been six major derailments between the beginning of 2013 and mid-January 2014. The most infamous occurred on July 5, 2013, in Lac Megantic, Quebec. An improperly secured train began rolling on its own, and 63 cars derailed near the center of town. Derailment led to multiple explosions and fires, evacuation of 2,000 people, and 47 fatalities. On Oct. 19, 2013, 13 tank cars derailed in Alberta leading to evacuation of 100 residents. Three cars carrying propane burned following an explosion. On Nov. 8, 2013, 30 cars derailed in a wetland near Aliceville, Ala., and about a dozen were decimated by fire. On Dec. 30, 2013, two trains, one carrying grain and one oil, collided in Casselton, N.D. Twenty of the oil train cars derailed and exploded leading to evacuation of 1,400 people. On Jan. 7, 2014, 17 cars derailed in New Brunswick and five exploded leading to evacuation of 45 people. On Jan. 20, 2014, seven cars derailed on a bridge over the Schuylkill River in Philadelphia, though no oil leaked. More recently, 15-17 cars derailed in Lynchburg, Va., on April 30. Three fell into the James River and one burst into flames. There were no injuries but 300-350 people had to be evacuated and oil leaked into the James River. The state estimated 20,000 to 25,000 gallons escaped during the wreck.

Our region is no stranger to train derailments. In 2007, a northbound Vermont Railways freight train derailed in Middlebury spilling gasoline into Otter Creek and leading to the evacuation of 30 streets in the vicinity. Trains have also derailed along the Lake Champlain route. In 2007, 12 cars derailed near Route 22 in Essex, N.Y., the same stretch of tracks now carrying volatile oil.

Concern over the state of North American freight rail safety predates the increase in oil shipments. In 2006 the Toronto Star ran a five-part series on rail safety. They noted “Canadian freight trains are running off the rails in near record numbers and spilling toxic fluids at an alarming rate, but only a tiny fraction of the accidents are ever investigated.”

In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult.

The greatly increased traffic in oil has further strained railroad infrastructure. According to an article in Pacific Standard Magazine, 85 percent of the 92,000 tank cars that haul flammable liquids around the nation are standard issue DOT-111s. They have been referred to as “Pepsi cans on wheels.” These cars are built to carry liquids, but lack specialized safety features found in pressurized tanks used for hauling explosive liquids. The industry has agreed to include additional safety features in any new cars put on the tracks, but since rail cars have an economic life of 30 to 40 years, conversion to the newer cars has been slow.

One relatively new risk is the predominance of “unit trains.” These are long series of cars all shipped from the same originating point to the same destination. Often the cars will all carry the same product. It used to be that oil cars were mixed in with other freight cars bound for different locations. Unit trains are a greater risk in part because safety standards are based on the carrying capacity of a single car and don’t account for the greater volumes that unit trains can transport. The National Transportation Safety Board, an independent federal agency charged with investigating accidents, has called on the Federal Railroad Administration to change this standard.

Recently, an oil company submitted plans to build an oil heating facility in Albany, N.Y. The facility would be used to heat oil shipped via rail. The oil would then be transferred to barges and floated to refineries. If permitted, a heating facility would draw increased transport of Canadian tar sands, which needs to be diluted or heated for loading or unloading, through the Lake Champlain region. In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult. When a pipeline carrying tar sands oil broke near Kalamazoo, Mich., 850,000 gallons spilled. The resulting cleanup cost over $1 billion and costs were “substantially higher than the average cost of cleaning up a similar amount of conventional oil,” according to a report prepared by the Congressional Research Service.

In November of 2013, the New York Department of Environmental Conservation (DEC) declared the proposed facility would have no significant environmental impacts. However, public outrage led them to reconsider that declaration, expand the public comment period, and seek additional information from the proponents. Still, the additional requested information only touches the tip of the facility’s impacts on the region. The facility should undergo a full environmental impact review that includes potential impacts on freight shipping throughout the region including along Lake Champlain.

The increased risk associated with more oil transport along Lake Champlain and in the region seemed to catch regulators by surprise, but they are reacting now. On Jan. 28, N.Y. Gov. Andrew Cuomo issued an executive order directing several state agencies to do a top-to-bottom review of safety procedures and emergency response preparedness related to rail shipments of oil. On Feb. 26, Sen. Schumer called for the phase-out of all DOT-111 rail cars and reduction in rail speed limits in heavily populated areas. On March 4, Cuomo sent a letter to the secretaries of the departments of Homeland Security and Transportation urging them to expedite and strengthen rail safety standards, require reporting by railroad companies of derailments, increase inspections and identify and track rail cars carrying crude oil. On April 10, the DEC issued a joint press release with EPA and the Coast Guard committing the agencies to enhance emergency preparedness and response capabilities for potential crude oil incidents. On April 30, Gov. Cuomo wrote a letter calling on President Barack Obama to prioritize federal actions to reduce risks of future train derailments.

Delays by the Federal Railroad Administration in updating standards to reflect the greatly increased traffic of potentially explosive Bakken crude oil all around the country puts people, communities, Lake Champlain and other waterways at risk. The administration needs to act before another disaster like what occurred in Lac Megantic occurs here or elsewhere. Train whistles echoing off the lake should elicit wistful thoughts of faraway places, not shudders of dread.

Lake Look is a monthly natural history column produced by the Lake Champlain Committee (LCC). Formed in 1963, LCC is the only bi-state organization solely dedicated to protecting Lake Champlain’s health and accessibility. LCC uses science-based advocacy, education, and collaborative action to protect and restore water quality, safeguard natural habitats, foster stewardship and ensure recreational access.

Setting the record straight on the oil industry studies of Bakken crude by rail

Repost from Reuters

Industry tests of oil train dangers need scrutiny, U.S. officials say

By Patrick Rucker  |  WASHINGTON, June 2, 2014

(Reuters) – Oil industry studies concluding that Bakken crude oil is safe to move by rail under existing standards may underestimate the dangers of the fuel and should not be the last word, U.S. lawmakers and industry officials said on Monday.

In the past year, several doomed oil trains originated from North Dakota’s Bakken region, including a shipment that jumped the tracks and burst into flames in Lynchburg, Virginia, on April 30. Last July, a fiery derailment destroyed the center of the village of Lac-Megantic, Quebec, killing 47 people.

Two industry-funded studies conclude Bakken fuel is rightly classed as a flammable liquid that can safely move in standard tank cars. The cargo is nothing akin to flammable gasses like propane that must move in costlier, heavier vessels, the oil industry has said.

But the industry findings hinge on incomplete and out-of-date methods for determining vapor pressure, an important indicator of volatility, that may miss the true dangers of Bakken fuel, according to several industry officials.

Lawmakers say they expect regulators to scrutinize the industry’s findings.

“These studies should be taken with a grain of salt,” said Senator Charles Schumer, Democrat of New York, a state that is a major pass-through point for Bakken fuel.

One study released May 20 by the North Dakota Petroleum Council (NDPC) collected samples with open bottles rather than a precision instrument, known as a floating piston cylinder, that is being adopted by the industry.

Gas can escape with bottle sampling and such tests are unreliable, said the Canadian Crude Quality Technical Association, a trade group.

“We would consider the data suspect,” the group said.

ASTM, an international standard-setting body, last month deemed the floating piston cylinder the right tool for Bakken fuel samples. Open bottle samples can skew vapor pressure nearly 10 percent lower, according to research from Ametek, which manufactures testing equipment.

Industry officials say that any underestimation of vapor pressure would be negligible.

Vapor pressure results did not exceed 15 pounds per square inch (psi) in the NDPC report.

A separate study by the American Fuel and Petrochemical Manufacturers (AFPM) returned readings below 17 psi.

The threshold pressure for flammable gas is 43 psi under those same conditions.

Rich Moskowitz, general counsel for the AFPM, the refining industry trade group, said its report “clearly found that Bakken crude oil is properly transported as a flammable liquid. That’s the bottom line.”

Industry officials note that the U.S. Department of Transportation has not issued any of its own findings on Bakken fuel despite collecting samples since the summer.

The issue will likely be raised on Tuesday at a panel of the Senate Commerce Committee which will feature testimony from railroad regulators, among others.

“It is my hope that any private data collection and studies on this issue will be highly scrutinized,” said Senator Cory Booker, Democrat of New Jersey, who sits on the panel.

(Reporting by Patrick Rucker; Editing by Grant McCool)

Chicago, nation’s busiest rail hub: firefighters unprepared, lacking foam and equipment

Repost from the Chicago Tribune

Area poorly prepared for crude-oil train fires

Stocks of firefighting foam few and far between

By Richard Wronski, Tribune reporter  |  May 25, 2014
Cherry Valley accidentIn 2009, a Canadian National freight train hauling 75 tank cars with ethanol derailed and erupted into a massive fireball in Cherry Valley, near Rockford. Although firefighters had about 400 gallons of foam on hand and more on the way, they concluded it wasn’t enough to put out the fire. (National Transportation Safety Board / June 19, 2009)

Few Chicago-area fire departments have enough firefighting foam and equipment to respond effectively to the roaring infernos seen near Rockford and elsewhere in recent years when multiple railroad tank cars carrying flammable liquids derail and explode, the Tribune has found.

So-called unit trains, rolling pipelines with more than a hundred tank cars hauling millions of gallons of crude oil, have become game changers for emergency responders, posing new threats and requiring updated safety strategies, experts say.

Such trains have become a common sight in the Chicago area, the nation’s busiest rail hub. Each day, one-fourth of U.S. freight traffic — nearly 500 freight trains and 37,500 rail cars — passes through the city and suburbs, experts say, although it’s unknown exactly how much of this traffic is crude oil.

Yet, the majority of communities lack the thousands of gallons of foam and equipment — like airport “crash trucks” — to respond immediately and effectively to smother flames fueled by one or more railroad tank cars, officials say.

Most fire departments stock only enough 5-gallon containers of foam to extinguish fires involving vehicles and tanker trucks. Larger incidents, involving train loads of flammable liquids, would overwhelm individual departments, officials say.

“We couldn’t carry enough 5-gallon drums and couldn’t switch them out fast enough to get that kind of foam on a tank car or any fire like that,” said Jim Arie, Barrington’s fire chief. “That requires very specialized equipment and personnel.

“It’s truly the worst-case scenario for a fire department, and it’s not the kind of thing you can staff for or have enough equipment for.”

These days, tank-car trains run frequently through scores of suburbs on the tracks that Canadian National Railway Co. acquired in 2009 from the Elgin, Joliet & Eastern Railway, Arie said.

“We may be two years, five years or 12 years before we have an incident. We can’t staff up for that every day, day in, day out, knowing that it may be way down the road before something happens,” Arie said.

In Aurora, which has nine fire engines and 195 firefighters, including a 27-member hazardous-materials team, a fiery derailment would result in a “major disaster,” said Chief John Lehman. Both the Canadian National and the BNSF Railway Co. run tank-car trains through Aurora.

“We could do all the training in the world and have all the equipment in the world, but if one of those (trains) comes off the rails and creates an issue in a very densely populated area, our exposure would be very significant,” Lehman said. “Our ability to deal with an incident of that magnitude would be very taxing.”

Nationwide, crude shipments have grown from 9,500 carloads in 2008 to more than 400,000 in 2013, according to the Association of American Railroads.

The industry stands by its performance, saying more than 99.9 percent of its shipments arrive safely, according to the railroad association.

To deal with any large-scale emergency, nearly all of the state’s 1,200 fire departments depend on each other for help as part of the Mutual Aid Box Alarm System, or MABAS. Besides responding to major events like fires and natural disasters, MABAS also has 42 specialized operations teams for hazardous materials.

MABAS mobilized crews and equipment from several departments June 19, 2009, when a Canadian National freight train hauling 75 tank cars with ethanol derailed and erupted into a massive fireball in Cherry Valley, near Rockford.

Although firefighters had about 400 gallons of foam on hand and more on the way, they concluded it wasn’t enough to put out the roaring fire, which eventually spread to 13 tank cars, said Steve Pearson, who was then chief of the North Park Fire Protection District in Machesney Park.

Unable to get close enough to attack the intense flames, which rose hundreds of feet high, firefighters could do little but let the blaze burn itself out and go into a “defensive position” a half-mile away, Pearson told the National Transportation Safety Board forum on railroad safety last month.

“Even if we had an endless amount of foam, it could not have been safely applied to this incident,” he said.

But firefighters stress the importance of responding to such incidents as swiftly as possible with ample foam before they get out of control.

Although some people were rescued, a 44-year-old woman in a car stopped at the train crossing was fatally burned and several others were injured. Her pregnant 19-year-old daughter lost her baby.

It wasn’t until 5 p.m. the next day, nearly nine hours after the derailment, that all fires were extinguished and residents could return to about 600 homes that were evacuated, Pearson said.

Increased risks

The roster of fiery derailments has steadily grown along with the flow of volatile crude oil from the booming Bakken fields of North Dakota, Montana and Canada.

Nine oil train derailments have occurred in the U.S. and Canada since March 2013, several resulting in intense fires and evacuations, according to the NTSB.

By far the worst occurred when a runaway oil train derailed and exploded July 3, 2013, in Lac-Megantic, Quebec. Sixty-three tank cars spilled more than 1.3 million gallons of oil. Forty-seven people were killed and 30 buildings destroyed, officials said.

Earlier this month, Canadian officials charged the railroad — which was then owned by Rosemont-based Rail World Inc. — and three of its employees with criminal negligence in connection with the incident.

Reacting to the spate of incidents, the NTSB convened a two-day forum last month in Washington to address the safety of shipping crude oil and ethanol by rail. More than 20 fire officials, federal administrators, railroad and tank car industry representatives, and other experts testified.

One focus was the crash-worthiness of the tank cars. The NTSB has warned for decades that older-model cars like those involved in the Cherry Valley incident, known as DOT-111s, are prone to rupture in a derailment.

The Canadian government has ordered a phaseout of the DOT-111s over the next three years unless they’re retrofitted with better protection in case of derailment. So far, the U.S. Department of Transportation has only recommended that shippers avoid using the DOT-111s “to the extent possible.”

The U.S. is being “extremely lethargic and to some extent irresponsible” in not dealing with the DOT-111s, said Aurora Mayor Tom Weisner, who, with Barrington Village President Karen Darch, is co-chairman of a coalition of communities pushing for more tank-car safety measures.

“The bureaucracy of it all is literally costing people’s lives, and the potential catastrophe before us, unless something is done, is scary,” Weisner said.

Officials at the NTSB forum called for greater community awareness, enhanced planning and preparedness, and improved training for emergency responders.

“While most fire-service personnel are generally familiar with flammable and combustible liquid emergencies, we know from recent catastrophic events that the amount of product being transported via unit trains exceeds our current response capabilities,” Richard Edinger, vice chairman of the International Association of Fire Chiefs, told the forum.

One strategy would be to establish stockpiles of foam at key locations along rail lines where crude oil and other hazardous materials are shipped. Currently, such supplies are few and far between and would probably arrive too late to quell an inferno, experts say.

Increasing supplies of foam would require fire departments, organizations like MABAS and the Illinois Emergency Management Agency to evaluate their current equipment supplies, officials say.

Although the state agency would coordinate the statewide response to a large-scale emergency, it maintains no inventory or list of foam stockpiles, a spokeswoman said.

The agency, however, is considering the possibility of contracting with foam manufacturers to provide the product on short notice, she said.

Combined with water, foam works by smothering combustible liquid fires, suppressing vapors and cooling the fuel and other surfaces. Applying water alone to a crude oil or ethanol fire will spread the flames.

Generally, only refineries, chemical plants and airports have extensive supplies of firefighting foam and special tanker trucks to spray it quickly, experts say.

The Chicago Fire Department has several crash trucks with foam on hand at O’Hare International and Midway airports. Whether the trucks have sufficient foam to respond to a fiery derailment and could be sent elsewhere in the city or suburbs is unclear.

Despite several requests from the Tribune, the city of Chicago and the Chicago Fire Department did not respond to questions about the city’s foam capability.

Canadian National doesn’t stock foam along its routes, but it is “aware of significant foam locations along (the) system which could be called upon during an incident,” a spokesman said.

As evidenced by Cherry Valley, however, it’s questionable whether those stocks could get to the scene of a crude oil disaster quickly enough.

‘Skin in the game’

One community with a significant store of foam is the village of Bedford Park. Close to Midway, the village is the site of several chemical plants, liquid bulk-storage terminals and a large railroad switching yard.

Chief Sean Maloy said his village is a MABAS division headquarters and is well-equipped and trained to deal with most hazmat situations. It has several hundred gallons of foam — much of it stored on a trailer — that could be offered to other communities in an emergency.

“We’ve got a lot of foam available to us. It’s a matter of getting it there quickly,” he said. “It comes down to how much foam you can bring at one time.”

Some experts and public officials have suggested that companies benefiting from the boom in crude oil such as oil producers, tank-car owners and railroads pay a per-gallon fee to help fund training and programs to prepare for emergencies.

Such a fee was proposed in January by Chicago Mayor Rahm Emanuel before a meeting of the U.S. Conference of Mayors in Washington.

On Tuesday, Minnesota Gov. Mark Dayton signed a law to collect $2.5 million annually from railroad and oil pipeline companies to help first responders get ready for derailments and spills involving oil and other hazardous substances.

Jay Reardon, the head of Illinois’ MABAS, said that the risk posed by crude oil shipments should prompt local municipal officials to re-evaluate the ability of their fire departments to provide adequate mutual aid responses.

If Illinois were to set such a fee, Reardon said, the money could fund groups like MABAS to stockpile foam and provide additional hazmat training.

“If there are companies who are making money on this, then don’t they have skin in the game?” Reardon asked. “Shouldn’t they be charged a minute portion, and that money go into a pool to fund risk mitigation?”