More Fiery Oil Train, Pipeline Accidents Unless Government Acts: Report
September 22, 2014
If the U.S. doesn’t quickly address the safe transportation of oil and gas, Americans could pay the price with more fiery train and pipeline accidents, according to a report released Monday by the Government Accountability Office.
“Without timely action to address safety risks posed by increased transport of oil and gas by pipeline and rail, additional accidents that could have been prevented or mitigated may endanger the public and call into question the readiness of transportation networks in the new oil and gas environment,” found the report.
The GAO report focused on the safety of moving crude oil by train and the growing network of “gathering lines,” largely unregulated natural gas pipelines. Both have been subjects of recent investigations by NBC News. The GAO determined that the Department of Transportation had “not kept pace with the changing oil and gas transportation environment.”
Oil and gas production in the U.S. increased more than fivefold between 2007 and 2012, a boom brought on by technological advances in drilling and hydraulic fracturing, or “fracking.” Vast volumes of oil and gas production soon outstripped the pipeline infrastructure in place to move them.
Crude producers began to load their oil on trains. More than 400,000 carloads of crude ran over North American rails in 2013, up from just 9,500 in 2008. But a series of explosive wrecks have raised concern about the safety of oil trains — the worst, a 2013 derailment outside a small Quebec town, killed nearly 50 people.
A 2013 NBC News investigation found regulators had long known that the tank cars used to ship oil were vulnerable to rupture in an accident.
The DOT has since issued proposed rules to improve the train cars that carry oil. In its report, the GAO applauded the move, but emphasized safety improvements must go beyond the cars, including testing the makeup of the oil, which the DOT has said is particularly flammable.
The GAO also warned better oversight was needed over the growing network of “gathering pipelines” that move natural gas from the well. In August, an investigation by NBC News found that 250,000 miles of these lines are in rural areas and subject to little or no federal or state safety oversight, despite sometimes running beside homes.
Nebraska has emerged as ground zero in oil transport showdown
September 21, 2014, By Russell Hubbard
SARAH HOFFMAN/THE WORLD-HERALD | Oakland, Nebraska, and the tracks that carry trains through town have been together for more than 100 years. But trains hauling crude oil in tanker cars through Oakland and other parts of the state are a recent development, and concerns about safety grow. Oil pipelines such as the proposed Keystone XL have their opponents as well.
OAKLAND, Neb. — If you visit here and turn off Oakland Avenue toward the railroad tracks, you just might find Brendan Murray prowling up and down the street, cataloging the cracks in the pavement and the scars on the buildings.
SARAH HOFFMAN/THE WORLD-HERALD | Brendan Murray holds a piece of a building that fell near the tracks. He often walks Oakland Avenue cataloging cracks in the pavement and on buildings that he suspects are caused by vibrations from oil trains.
The owner of an apartment building facing the railroad tracks says problems with his 100-year-old structure accelerated with the massive increase in BNSF Railway trains hauling crude oil in tanker cars. Murray also says a derailment and crude oil fire would be deadly for Oakland, population 1,244.
“Keep it underground,” Murray says, referring to transporting crude by pipeline.
Not so fast, says Jane Kleeb. She is not a fan of crude trains either, but she is also the director of Bold Nebraska, the group opposed to construction of the Keystone XL pipeline. It would bring 1 million barrels of crude oil per day across the state.
Kleeb said her group doesn’t expect the world economy to forgo fossil fuels and survive on renewables right now. But she said the pipeline proposed to transport northern crudes to refineries presents too much environmental risk.
“Accidents are going to happen and it is Nebraska that is going to wind up paying for it,” Kleeb said.
All of which leaves a rather obvious question: If neither by train nor pipeline, just how is oil supposed to get from where it is produced to where it is refined into fuels and other materials that power the U.S. economy?
With its main modes of transport assaulted on all sides, the petroleum industry faces a major showdown, and Nebraska is shaping up to be ground zero.
Central to both major U.S. railroads hauling crude oil — Union Pacific is based in Omaha and BNSF’s parent company is based here — the Cornhusker State is also the terminus of the existing Keystone pipeline and is the proposed ending point for the much-debated and delayed Keystone XL.
“Some of the people who don’t want us to transport oil don’t want us to use oil,” said John Felmy, chief economist for the American Petroleum Institute, a group funded by oil companies. “We need to do a better job about telling our story, but we also need to be honest about the realities of energy.”
The United States last year consumed 6.89 billion barrels of petroleum products, producing 2.7 billion barrels itself, making it the global leader. Oil is everywhere — about 71 percent goes for gasoline and other fuels. Other common uses are rubber, fabrics and solvents.
There are no current replacements for oil, Felmy said, calling renewable energies promising and worthy of development but not an immediate substitute. And “choking off the supply points and the transport links would have serious implications for the economy,” Felmy said.
One of those transport links runs through Oakland. The rear of the buildings along Oakland Avenue, 20 or so brick and masonry two- and three-floor structures, face the north-south railroad tracks operated by BNSF Railway, the employer of 5,000 people in Nebraska that is owned by Omaha’s Berkshire Hathaway Inc.
The closest buildings, such as Murray’s 12-unit apartment building, are about 45 yards away.
The tracks and the town in Burt County have been together for more than 100 years. But the oil trains are a recent development. Oil shipments from North Dakota’s recently tapped shale formations first hit 800,000 barrels a day late last year, up from fewer than 100,000 barrels a day in 2010.
BNSF is by far the largest carrier, its oil trains entering Nebraska at South Sioux City from routes in Iowa. Oil has been a growth business for BNSF: Volumes from shale formations such as those in North Dakota have risen to 620,000 barrels per day last year, from 59,000 barrels per day in 2010.
Transporting crude has been a huge boost for BNSF, bought for $26 billion in 2009 by Omaha’s Berkshire Hathaway. BNSF operating revenue, the main financial metric by which railroads are gauged, has risen almost 60 percent since 2009, to about $22 billion last year from $14 billion.
“You can feel the ground surging when they come through now,” said the 72-year-old Murray, a graduate of Omaha’s Benson High School who later owned a general contracting company. “It’s just that the railroad has always been here and people don’t pay it much attention anymore.”
A tour of Murray’s street reveals a collapsed brick wall, lots of hairline cracks and loose masonry. Murray acknowledges that most of the buildings are 100 years old or older, and that he can’t prove the cause. But he said he suspects the culprits are the heavy liquid cargo and the increased frequency of trains passing by because of sharply higher crude shipments.
BNSF says: Nonsense. “We know of no mandated statutes requiring maximum or minimum weights for trains, although there are different weight rails according to the type, size and speed of trains,” said BNSF spokeswoman Roxanne Butler.
The railroads say oil by rail, while the subject of much debate, is quite safe.
In 2012, according to the Association of American Railroads, the incident rate for release of hazardous materials from rail cars was 0.013 per thousand carloads, down from 0.14 in 1980. That means, the association says, that 99.99 percent of hazardous rail cargo shipments are incident-free.
It is a highly regulated industry. Federal regulators set the standards for hauling crude and other hazardous materials, from the route selection and track inspections to train speeds and personnel training, the railroad association says.
“According to the Federal Railroad Administration, 2013 was the safest year in history for the rail industry,” said BNSF’s Butler. “In 2013, BNSF experienced the fewest number of mainline derailments in its history. Rail is the safest mode of land transportation for freight in general and is one of the safest ways to transport crude oil and hazardous materials.”
Butler said BNSF considers all accidents preventable, and is spending $5 billion this year on capital improvements. The Fort Worth, Texas-based company, about tied with Union Pacific as largest U.S. railroad in 2013 operating revenue, also inspects track more frequently than required by regulators, Butler said.
Union Pacific is spending $4.1 billion on capital improvements this year, much of that related to track safety.
U.P. Chief Executive Jack Koraleski said the industry also is working with the Department of Transportation to make existing crude tank cars safer, and to develop a new and stronger one.
There has never been a fatal U.S. oil-train incident, though 47 people were killed last year when one derailed and blew up in Quebec, Canada.
Koraleski, whose company employs about 8,000 people in Nebraska, said the probabilities of such accidents are small and the trade-offs worth it.
“We have been hauling crude by rail for a long time,” said Koraleski, whose oil shipments rose 20 percent last year. “If the pipelines don’t, and the railroads don’t, the alternatives are fully negative for the U.S. economy.”
As for the Keystone XL pipeline proposed by pipeline operator TransCanada, it is on hold pending permit approval by President Barack Obama.
It should not be approved, said Kleeb, the director of Bold Nebraska. She said the pipeline endangers the Ogallala Aquifer and only encourages oil companies to spend additional money chasing harder-to-get deposits, such as shale formations in the northern United States and southern Canada. Those require rocks underground to be broken up under high pressure to release the petroleum.
Kleeb says she and her group are not against fossil fuels, acknowledging that it would be impractical to go 100 percent renewable immediately. She also said ceasing production from hard-to-get deposits in North Dakota’s Bakken region isn’t going to send the economy into a malaise. The Bakken produces about a million barrels a day out of the 19 million consumed each day in the country.
“What we need to do is slow down,” Kleeb said. “The oil isn’t going anywhere. You can make all the money you need to make.”
Mark Johnson, the Nebraska spokesman for TransCanada, said pipelines are the most efficient method of transporting oil between distant points, passing along the lowest costs to consumers.
“The bottom line is that the United States needs oil and it is going to get to market one way or another,” Johnson said.
The Keystone pipeline, now about four years old, runs from the southern Canadian province of Alberta and terminates in southern Nebraska at Steele City, the proposed endpoint for the Keystone XL.
Johnson said danger to the Ogallala is low, with nature having provided the aquifer with a deep and effective filtering system of sand and rock. Pipelines and oil wells already dot the Ogallala landscape, Johnson said, and the existing Keystone pipeline has operated without serious incident.
Like oil-train accidents, pipeline incidents tend to be attention-grabbing, such as the one in Kalamazoo, Michigan, in 2010, when an oil pipeline broke and spilled almost 1 million gallons. Cleanup costs have approached $1 billion.
From 1994 through 2013, there were 2,715 significant pipeline incidents, according to the federal Pipeline & Hazardous Materials Safety Administration. That is an average of 136 a year, defined as causing death or hospitalization, incurring costs of more than $50,000, or erupting in fire or explosion. The incidents have caused 40 deaths and 132 injuries.
Joseph Schwieterman, a professor at Chicago’s DePaul University specializing in transportation, said perfect safety in the U.S. economy’s supply chain — train or pipeline or any other mode — is an unreasonable expectation.
“The accidents that happen are headline makers, but the risks are manageable,” he said. “The hype is out of proportion.”
Schwieterman also said there is a generational component to opinions on oil production and the transportation of its products.
“Oil invokes a negative, visceral reaction among young people,” Schwieterman said, acknowledging that high-profile troubles such as the 2010 BP Gulf Coast oil rig blowout has had the same effect on some people as the Exxon Valdez tanker spill in 1989.
“People tend to forget about the value of energy independence,” he said, “and that such independence will come at a certain price.”
The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc.
Dangerous Oil-by-Rail Is Here, but Railroad Bridge Inspectors Are Not
By Ken Broder, September 18, 2014
The California Public Utilities Commission (CPUC) estimates there are about 5,000 railroad bridges in California, but doesn’t really know for sure. They are privately owned and inspected and were off the public radar until oil companies started shipping dangerous crude by rail to California refineries in increasingly large quantities.
Governments are not ready to have volatile loads of cargo rolling through sensitive habitats across the state, much less through heavily-populated metropolitan areas. But help is on the way. In March, the CPUC requested funding (pdf) for seven inspectors to specifically handle oil-by-rail, and two of them would focus on bridges.
The Contra Costa Times reported last week that the two inspectors have not yet been hired, but when they are, they will be the only two inspectors checking out the bridges. They will be assisted in their task by the sole federal inspector assigned to the area―an area that includes 11 states.
One of their first jobs will be to find the bridges. There is no comprehensive list. Judging by some industry comments, there may be some reluctance on the part of rail owners to provide all the information the government might ask. Bridge consultant and former American Society of Civil Engineers President Andy Hermann told the Times that the companies kept bridge data secret for competitive reasons.
But not to worry. The owners already do a good job of maintaining the bridges because, in Hermann’s words, “There’s a very strong profit motive to keep the bridges open. Detours will cost them a fortune.” In other words, this would be a situation where a company does not make a risky decision based on short-term, bottom-line considerations that could adversely affect the well-being of people and the environment.
In a report (pdf) to lawmakers on rail safety last December, the CPUC called California’s rail bridges “a potential significant safety risk.” It said most of them “are old steel and timber structures, some over a hundred years old.” Big rail companies tout their safety programs but the report points out often these bridges are owned by small short line railroads “that may not be willing or able to acquire the amount of capital needed to repair or replace degrading bridges.”
That’s bad, but not AS bad when the rail shipments aren’t volatile oil fracked from North Dakota’s Bakken formation, loaded on old rail cars ill-equipped to handle their modern cargo. Federal regulations to upgrade the unsafe cars will probably take at least a few years to complete.
When safety advocates talk about the dangers of crude-by-rail, they invariably cite the derailment last July in Quebec that killed 47 people, burned down 50 buildings and unleashed a “river of burning oil” through sewers and basements. But the Times reached back to 1991 for arguably California’s worst train derailment, albeit sans crude oil.
A train in Dunsmuir, Siskiyou County, fell off a bridge and dumped 19,000 gallons of a concentrated herbicide into the Sacramento River. Fish and vegetation died 45 miles away. Some invertebrate species went extinct. Hundreds of people required medical treatment from exposure to the contamination.
Railroads are carrying 25 times more crude oil nationally than they were five years ago. Most oil in California is moved via pipeline or ship. In 2012, only 0.2% of the 598 million barrels of oil arrived by rail in California. But the California Energy Commission (CEC) has said it expects rail to account for a quarter of imports by 2016.
Earthjustice, an environmental advocacy group, does not want safety measures to amble down the track years after the crude roars through. Its lawyers joined with the Sierra Club and ForestEthics to file a lawsuit in federal court last week to force a U.S. Department of Transportation (DOT) response to a July legal petition seeking a ban on the type of rail cars that derailed and exploded in Quebec.
A week ago, a San Francisco County Superior Court judge told Earthjustice and other environmental groups they couldn’t sue to halt deliveries of crude oil to a rail terminal in Richmond because the deliveries had been legally permitted by the state―without public notification―and the 180-day deadline to appeal had quietly passed.
Repost from The Columbian [Editor: An important local study, calling for better disaster preparedness. Significant quote – “…oil trains travel through three significant zones in Seattle: passing within blocks of two stadiums, through the downtown tunnel, and along the north end, which has limited access because of high banks along the waterfront.” – RS]
Oil trains called hazard in old Seattle tunnel
Report says railroad, city must prepare to limit a catastrophe
By PHUONG LE, Associated Press, September 16, 2014
A long line of rail tanker cars sits on tracks south of Seattle, Tuesday, Sept. 16, 2014. In a report to the Seattle City Council, city emergency planners say more must be done to lower the risk of a possible oil train accident and improve the city’s ability to respond. (AP Photo/Ted S. Warren) (Ted S. Warren/AP)
SEATTLE — With increasing numbers of trains carrying volatile crude oil through Seattle’s “antiquated” downtown rail tunnel, city emergency planners say more must be done to lower the risk of an oil train accident and improve the city’s ability to respond.
In a report to the Seattle City Council, emergency managers warned that an oil train accident resulting in fire, explosion or spill “would be a catastrophe for our community in terms of risk to life, property and environment.”
BNSF Railway can make immediate safety improvements in the mile-long 100-year-old rail tunnel that runs under downtown Seattle, including installing radio communication, a fire suppression system to release water and foam, and a permanent ventilation system, according to the report written by Barb Graff, who directs the city’s office of emergency management, and Seattle assistant fire chief A.D. Vickery.
About one or two mile-long trains a day carrying shipments of crude oil from the Bakken region of North Dakota, Montana and Canada through the city of about 630,000 residents.
Several refineries in the state are receiving shipments of crude oil, and the others are upgrading facilities to accept oil trains. Once refineries are able to accommodate additional shipments, three or more trains could pass through Seattle each day, the city report said.
Oil trains currently enter Washington state near Spokane, and travel through the Tri-Cities and along the Columbia River before traversing Seattle to refineries to the north. In the state, as many as 17 trains carry about 1 million gallons of crude oil a week through several counties, including Spokane, Benton and Clark, BNSF reported to the state in July.
“We know they can explode. We’ve seen the tragedy in Canada. We know they can derail. That happened two months ago in our own city,” said Councilor Mike O’Brien, whose committee scheduled a special meeting Tuesday night to discuss the report. “We have to treat this as a real threat.”
Oil-train derailments have caused explosions in North Dakota, Virginia, Alabama and Oklahoma, as well as in Quebec, where 47 people were killed when a runaway train exploded in Lac-Megantic in July 2013.
Two months ago in Seattle, three tanker cars derailed as an oil train bound for a refinery in Anacortes pulled out of a rail yard in Seattle. BNSF officials noted at the time that nothing spilled, and a hazardous materials crew was on the scene in 5 minutes, but the incident raised new concerns.
BNSF spokesman Gus Melonas said the railway has improved tracks and roadbed to ensure that trains travel the tunnel safely. He said the concrete-lined tunnel is inspected regularly and is “structurally safe.”
“We’ll review the (city) report further,” he said. “We take safety extremely seriously and the operation of trains is a top priority, and we’ll continue to enhance our safety process.”
The railway plans to locate a safety trailer with foam equipment and extinguishers in the Seattle area, and plans to continue to train Seattle firefighters and responders.
Seattle’s report notes that oil trains travel through three significant zones in Seattle: passing within blocks of two stadiums, through the downtown tunnel, and along the north end, which has limited access because of high banks along the waterfront.
“The tunnel runs under all of downtown. What happens if something goes wrong there?” O’Brien said. “We’ve heard the fire department say we aren’t sure we can send firefighters to fight if it’s too dangerous.”
Oil trains typically move at about 10 mph through the tunnel, less than the maximum speed of 20 mph, and do not operate in the tunnel at the same time as a passenger train, BNSF’s Melonas said.
A derailment and fire involving Bakken oil tank cars could stress fire department resources, the report said. It recommends limiting track speeds in high-density urban areas, and that the railroad company help pay for specialized training, sponsor annual drills to respond to tank car emergencies and provide a foam response vehicle to use in case of an oil train accident.
Eric de Place, policy director for Sightline Institute, an environmental think tank, said other local governments should be doing similar reviews.
“Railroads don’t carry near the rail insurance they need,” he said. “If there’s a meaningful risk, the railroads should have to be insured against it and they should have to find private insurance.”
