Tag Archives: Cleanup funding

Bakken Crude, Cleanup funding, Crude By Rail, Derailment, Explosion, Funding for emergency response, Insurance and liability, Lac-Mégantic

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.

Cleanup funding, Crude By Rail, Derailment, Explosion, Lac-Mégantic, Rail routing

University students find Lac-Megantic on verge of rebuilding after disaster

Repost from The Portland Press Herald, Portland, ME
[Editor: See photos, following the text below.  – RS]

UMF students find Lac-Megantic on verge of rebuilding after disaster

But the residents of the Quebec town are divided on how to proceed.
By Kaitlin Schroeder, December 4, 2014

FARMINGTON — More than a year after a train carrying crude oil derailed and exploded in downtown Lac-Megantic, the Quebec town is making plans to rebuild.

A group of students from the University of Maine at Farmington who recently visited the town just over the Maine border said the community is working on a plan to rebuild, but is divided on how to proceed and hoping it can come up with the necessary money.

The students visited Lac-Megantic last month on the pilot trip of Global Perspectives, a two-day UMF excursion program focused on making international education more accessible and affordable for students.

The town was devastated July 7, 2013, by the worst Canadian railway disaster in 150 years, when an unmanned train with 72 carloads of crude oil rolled down an incline, derailed and exploded, killing 47 people and leveling 40 downtown buildings in the town of 6,000.

Over the past year, the town has started slowly to rebuild. The Farmington students visited the recently rebuilt public library, and on Wednesday they met with Maurie Stockford, director of the Farmington Public Library, to present her with tokens of friendship from its Lac-Megantic counterpart.

Farmington and Lac-Megantic are longtime partner towns. The Farmington library led a book drive to help Lac-Megantic rebuild its library and replace its collection of 60,000 books.

Clint Bruce, assistant professor of French at UMF, who helped lead the trip the first week of November, said Lac-Megantic officials are getting ready to start reconstruction.

Senior Tobias Logan said the town’s residents want to move past the disaster and are primarily interested in finding government funding to help pay for reconstruction. The cost of rebuilding the town is estimated at as much as $200 million.

Bruce said some limited reconstruction already has started. After the downtown destruction, he said, some of the businesses left but others, such as a large grocery store, have set up shop again on the outskirts of town.

Bruce said there are differing opinions about how to rebuild downtown, some wanting it exactly the way it was and others hoping to take advantage of the opportunity to make changes.

While community members disagree on some points, Bruce said, there is one area of consensus: Residents want to reroute the train tracks.

“They scare people,” he said. “People want the trains to go around the town.”

The railroad is operational again, and residents fear it will derail again, he said.

Images

Searchers dig on July 8, 2013, through rubble on a search for victims of the inferno in Lac-Megantic, Quebec, a day after a runaway train derailed, igniting tanker cars and burning much of the town, killing 47 people.

Searchers dig on July 8, 2013, through rubble on a search for victims of the inferno in Lac-Megantic, Quebec, a day after a runaway train derailed, igniting tanker cars and burning much of the town, killing 47 people. Canadian Press file photo
Crude oil tankers from the Montreal, Maine & Atlantic railways are seen in the heart of downtown Lac-Megantic, Quebec, on July 9, 2013, two days after a train derailed then ignited, burning much of the town.

Crude oil tankers from the Montreal, Maine & Atlantic railways are seen in the heart of downtown Lac-Megantic, Quebec, on July 9, 2013, two days after a train derailed then ignited, burning much of the town. Staff file photo by Michael G. Seamans

 

 

Bakken Crude, Canadian regulation, Cleanup funding, Crude By Rail, Emergency Readiness & Response, Massive increase in crude-by-rail, Rail inspection, State regulation, Tar sands crude

Washington State report on oil train safety: new risks, more to do

Repost from BismarckTribune.com, Bakken Breakout

Study: more to do as oil trains pose new risks

December 02, 2014, PHUONG LE, Associated Press

SEATTLE — The spike in crude oil shipments by rail in Washington is creating new potential risks and will require increased safety measures and improved oil spill response and prevention, according to a state study delivered to lawmakers.

Even as more trains carry volatile shipments of crude oil into the state, nearly 60 percent of first responders said they don’t have sufficient training or resources to handle a train derailment accompanied by a fire.

The draft report delivered on Monday makes a dozen key recommendations to the Legislature for the upcoming two-year budget, including more training for first responders, more railroad inspectors and ensuring that those who transport oil can pay for cleanup.

Some actions don’t require money, but the others could total more than $14 million.

The report also outlines the environmental and safety risks from oil transport, many of which could be mitigated with additional federal and state resources.

Derailments of oil trains have caused explosions in several states and Quebec, where 47 people were killed when a runaway train exploded in the city of Lac-Megantic in July 2013.

In Washington, crude oil shipments went from zero in 2011 to 714 million gallons in 2013, and could reach nearly 3 billion gallons by the end of this year or in 2015, the report said.

As many as 19 mile-long trains carrying Bakken crude oil from North Dakota and Montana pass through the state weekly. Nearly 3 million people live in 93 cities and towns on or near these routes, posing potential public safety, health and environmental risks, the report said.

One train typically has about 100 rail cars and carries about 3 million gallons of oil. Some trains head south to Oregon and California without stopping to transfer oil in Washington. Others deliver oil to Washington facilities.

By 2020, the number of trains could grow to 137 a week if all proposed crude-by-rail terminals, including projects in Longview and Grays Harbor are built out and oil continues to be exported through the state, the report said.

Those proposed terminals could also bring more tanker and tug and barge traffic in the Columbia River and Grays Harbor area, as well as along the coast.

BP Cherry Point Refinery in Puget Sound is currently receiving Bakken crude oil deliveries from tug-barges from the Columbia River.

The report also raises concerns about diluted bitumen, which comes mostly from Alberta oil sands and has been shipped into the state for years. But shipments are increasing. Bitumen raises spill response challenges because it may sink or submerge in water if spilled, making recovery of the oil difficult, the report said.

The Department of Ecology, the Utilities and Transportation Commission and the Washington Military Department’s Emergency Management Division worked on the report.

Bakken Crude, Bay Area, Benicia CA, Blast zone, Cleanup funding, Crude By Rail, Emergency Readiness & Response, Explosion, Federal Regulation (U.S.), Fire, Massive increase in crude-by-rail, Oil spill, Schools, Tank car design, Train crew size, Valero Benicia Refinery

KPIX: State Senator Says Bay Area Not Prepared For Crude Oil Trains

Repost from 5KPIX TV CBS SF Bay Area
[Editor: apologies for the video’s commercial ad.  You can pass on choosing an ad – the video will begin if you just wait.  – RS]

State Senator Says Bay Area Not Prepared For Crude Oil Trains

Phil Matier talks with state senator Jerry Hill who believes that Bay Area emergency crews are not properly prepared to handle the hundreds of tanker trains bringing shale crude oil from the Dakotas to local refineries. (11/23/14)