Tag Archives: Crude by Rail

Bill Moyers & Company: America’s Exploding Oil Train Problem

Repost from Bill Moyers & Company

America’s Exploding Oil Train Problem

by John Light, September 2, 2014
FILE - In this July 16, 2013, file photo, railroad oil tankers are lined up at the Port of Albany, in Albany, N.Y. While the federal government has ordered railroads to give states details about shipments of volatile crude oil from North Dakota's Bakken shale region, New York officials haven't decided whether to share that information with the public. (AP Photo/Mike Groll, File)
In this July 16, 2013, photo, railroad oil tankers are lined up at the Port of Albany, in Albany, NY. (AP Photo/Mike Groll, File)

If you reside in the US, there’s around an eight percent chance that you live in an oil train’s blast zone. And there’s a fight going on at the state and federal levels, between monied interests and regulatory agencies, over efforts to ensure that these trains — which have shown a tendency to burst into flames — will be relatively safe.

The increased use of hydraulic fracturing — fracking — has made oil that was previously inaccessible available to drillers. The crude then has to make its way to refineries, and while the boom in pipeline projects has received quite a bit of attention, roughly 60 percent of it travels by rail.

On Friday, California legislators passed a bill that would require railroads to tell emergency officials when oil trains filled with explosive Bakken crude — oil from a particularly productive region in western North Dakota — would pass through the state. The law reflects growing concern, across America, about the dangers of these trains moving through dense communities, including Sacramento, California’s capital.

Oil tanker cars move along a web of routes that crisscross the United States. In 2013, about 400,000 cars made the journey, a 4,000 percent increase over the previous five years. The boost in oil cars has been so great that less lucrative industries are having trouble finding rail transport for their products. In March, General Mills announced that it had lost 62 days of production on such favorites as Cheerios because the trains that had shipped agricultural products were being leased by the fossil fuel industry.

Most oil reaches its destination without any problems, but as production has skyrocketed, the railroads have become increasingly taxed. Those who live near railways have noticed the uptick, with trains rumbling through towns much more frequently, and at much higher speeds.

Last July, a tanker train filled with North Dakota crude derailed in the middle of the night in Lac-Mégantic, a small Canadian town near the border with Maine; the resulting inferno killed 47 people. Since then, derailments in Casselton, North Dakota, and Lynchburg, Virginia, have led to evacuations. The Lac-Mégantic disaster spurred protests from fire chiefs and town officials who said that they were ill-equipped to deal with a possible derailment.

In the year since, officials have moved to formalize several safety measures. This July, the Obama administration proposed a plan that involves banning certain older tank cars, using better breaks on car, restricting speeds and possibly rerouting trains.

That first point, phasing out old tank cars, is a key area of contention. For the most part, the opposition isn’t coming from the railroads; it’s the oil companies that lease the tank cars that are fighting the new regulations. As Bloomberg Businessweek’s Matthew Philips explained earlier this summer:

It’s helpful to understand the three industries with something at stake here: railroads, energy companies, and tank-car manufacturers. The railroads own the tracks but not the tank cars or the oil that’s inside. The oil often belongs to big energy companies such as refiners or even trading firms that profit from buying it near the source—say, in North Dakota—and selling it elsewhere. These energy companies tend to lease the tank cars from large manufacturing companies or big lenders such as General Electric (GE) and CIT Group (CIT).

Although it is never their oil on board, the railroads usually end up in the headlines when something goes wrong. That’s why they have been eager for a rule to make energy companies use stronger tank cars. Meanwhile, the oil industry has been busy issuing studies trying to prove that the oil coming out of North Dakota is safe enough to travel in the existing tank cars. The energy lobby also thinks railroads need to do a better job of keeping the trains on the tracks. Tank-car manufacturers, meanwhile, simply want some clarity around what kind of cars they need to build.

Canada, following the Lac-Mégantic disaster, announced plans to phase out one older tank car that has been linked to several accidents over the next three years; the Obama administration proposal would do it in two.

But the oil industry doesn’t want that. Leading the charge is the American Petroleum Institute, an organization that, so far in 2014, has spent $4 million lobbying regulators and Congress. They’ve pushed back against labeling Bakken crude as more hazardous than other crude oil, even though many studies have found that it is.

Environmental groups blame this lobbying effort for several weaknesses in the proposed rules. For one, they would only apply to trains that have 20 or more carloads of Bakken crude. “If the rule is approved as drafted, it would still be legal to transport around 570,000 gallons (the equivalent of the fuel carried by seven Boeing 747s) of volatile Bakken crude in a train composed of 19 unsafe, [aging] tank cars—and none of the other aspects of the new rules, including routing, notification, train speed, and more would apply,” wrote Eric de Place of the sustainability think-tank Sightline Institute, who also criticized the proposal for not immediately banning older tankers.

And even if the regulations were to be put in place despite the API’s attempts to weaken them, there’s the distinct possibility that regulators will fall short. The government has often taken a hands-off approach in determining what gets shipped, and how — and in enforcing existing rules requiring that officials in the cities it passes through be informed that potentially hazardous shipments are coming. In These Times reported that government inspections to make sure railroads are properly labeling the product they are shipping (the Bakken crude was improperly labeled in the Lac-Mégantic disaster) are supposed to be unannounced, but are sometimes pre-arranged. Meanwhile, railroads are cutting back on the number of crew members manning trains, a move that some workers feel will lead to less safe travel.

“No one would permit an airliner to fly with just one pilot, even though they can fly themselves,” wrote John Previsich, the president of the Sheet Metal, Air, Rail and Transportation union’s transportation devision. “Trains, which cannot operate themselves, should be no different.”

John Light blogs and works on multimedia projects for Moyers & Company. Before joining the Moyers team, he was a public radio producer. His work has been supported by grants from The Nation Institute Investigative Fund and the Alfred I. duPont-Columbia Awards, among others. A New Jersey native, John studied history and film at Oberlin College and holds a master’s degree in journalism from Columbia University

Oil train regulation passes in California Assembly

Repost from Reuters
[Editor: The bill is AB380.  For text, analysis and votes on the bill, see leginfo.ca.gov.  – RS]

Oil train regulation passes in California

By Jennifer Chaussee, Aug 29, 2014

(Reuters) – California lawmakers on Friday passed legislation requiring railroad companies to tell emergency officials when crude oil trains will chug through the state.

The bill would require railroads to notify the state’s Office of Emergency Services when trains carrying crude oil from Canada and North Dakota are headed to refineries in the most populous U.S. state.

It passed its final vote in the Assembly 61-1, with strong bipartisan support within the state legislature in Sacramento. The bill now goes to Democratic Governor Jerry Brown for his signature.

“We have a spotlight on this issue because of the seriousness of the risk to public safety that it presents,” said the bill’s author, Democratic Assemblyman Roger Dickinson, whose district encompasses parts of Sacramento along the trains’ route.

The legislation follows a disastrous oil train derailment in Canada that killed 47 people and spilled 1.6 million gallons of crude last year.

Worried that a similar spill could happen in California, firefighters and other safety officials have urged state lawmakers to increase safety regulations on oil trains and improve communication between railroads and first responders about when oil shipments are coming through.

President Barack Obama proposed new safety requirements last month that could lower speed limits for trains carrying oil and increase safety standards for oil tank cars.

The volume of oil shipped by train through California has increased dramatically in recent years, public safety experts told a legislative committee at a hearing in June.

The influx has been propelled by increased production in Western Canada and North Dakota without an accompanying boost in pipeline capacity.

Oil and rail industry representatives told lawmakers that they had already done much to improve safety. BNSF Railway lobbyist Juan Acosta testified that the company had agreed to slow its oil trains to 40 mph and increase inspections of its tracks.

Railroads are not currently required to proactively share their oil train schedules with first responders.

(additional reporting by Aaron Mendelson in Sacramento; Editing by Sharon Bernstein and Simon Cameron-Moore)

Concerns Raised About Oil Trains In The Adirondacks

Repost from Vermont Public Radio

Concerns Raised About Oil Trains In The Adirondacks

By Mitch Wertlieb & Melody Bodette, August 28, 2014
Government offices, track-side warehouses and Monitor Bay Park campground surround the tracks on the south end of Crown Point, New York. The Adirondack Council has raised concerns about oil trains in the Adirondacks. | Adirondack Council

Ever since the train disaster last summer at Lac Megantic, Quebec, people in our region have been taking more notice of the oil trains traversing our rails.

Concerns have been raised on the New York side of Lake Champlain, where the Canadian Pacific railroad tracks run close to the water.

“In some places they are literally right next to the water,” said Mollie Matteson, a senior scientist for the Center for Biological Diversity. “They run through towns like Plattsburgh, Essex, and Westport, and then eventually they end up down in Albany. From there they go on down south either to refineries or to other places by ship.”

The shipments are relatively new, having begun in the past two years.  Matteson said the trains were brought to the attention of more people by the disaster in Lac Megantic.  The unit trains, as they are sometimes called, are trains entirely of tank cars of crude oil.

“What’s unique is this cargo and this new phenomenon of carrying crude oil by rail. And it’s something that’s been happening all around the country, but only just in the last couple years we’ve seen tremendous growth around the country,” Matteson said. “What’s happening here locally is that we have this new cargo, that has proven to be highly dangerous explosive and obviously if there’s a derailment and a spill it could severely damage our aquatic ecosystems and drinking water for thousands and thousands of people.”

A demonstration was held in Plattsburgh in July and some protestors expressed concern about whether the local emergency services are prepared to deal with a potential derailment and disaster.

Matteson said a starting point would be to make sure the transportation is safer. “These tank cars have been known for 20 years to be very puncture prone in any kind of derailment, even a low speed derailment. We need to get the oil off the rails. It’s simply not a sensible way to be transporting a hazardous material through thousands of small towns and cities around the country, exposing millions of people to this risk.”

The bigger question, Matteson said is should we be extracting more fossil fuels from the ground?

“Really what we need to be looking at is transitioning to a different energy regime.”

There are proposed rules to require upgrades to safer tank cars, but they would be phased in over a number of years and Matteson said, the Center for Biological Diversity believes the trains need to be off the rails immediately until there are safer cars in place, and there needs to be adequate oil spill response plans.

This oil is coming from the North Dakota Bakken oil fields to the terminal in Albany, a company called Global Partners. They are looking to expand their operations in the port. The Center for Biological Diversity has been involved in lawsuit against the company and the New York Department of Environmental Conservation over the proposed expansion plans.

Global Partners did not respond to a request for comment.

A community forum on the oil trains will be held on Thursday, August 28, from 7-9 p.m. at the Plattsburgh City Hall.

USA Today: Rail deliveries of U.S. oil continue to surge

Repost from USA Today
[Editor: Nothing new here, but good that mainstream publications are taking notice.  – RS]

Rail deliveries of U.S. oil continue to surge

Wendy Koch, August 28, 2014
oil trains
(Photo: Connor Lake AP)

Amid a boom in U.S. oil production, the amount of crude oil and refined petroleum products moved by rail continues to climb.

There were 459,550 carloads of oil and petroleum products transported during the first seven months of this year, up 9% from the same period in 2013, according to the Association of American Railroads.

More than half of these carloads carried oil, moving 759,000 barrels of crude per day and accounting for 8% of U.S. oil production.

The surge in oil trains began in mid-2011. At that time, weekly carloads of oil and petroleum products averaged about 7,000. In July, they reached nearly 16,000, according to the AAR.

“The increase in oil volumes transported by rail reflects rising U.S. crude oil production, which reached an estimated 8.5 million barrels per day in June for the first time since July 1986,” the U.S. Energy Information Administration reported Thursday.

The use of horizontal drilling and hydraulic fracturing or fracking has made it possible to extract huge amounts of oil from underground shale deposits. The Bakken Shale, mostly in North Dakota, accounts for much of the growth in U.S. oil production. One of every eight U.S.-produced barrels comes from North Dakota, now the second-largest oil producing state.

Between 60% and 70% of the state’s oil was moved by rail to refineries during the first half of 2014, according to the North Dakota Pipeline Authority.

Spurred by this surge in oil-carrying trains and several recent tragic accidents, the Obama administration proposed stricter rules last month for tank cars that transport flammable fuels.

The Department of Transportation proposal will require the phaseout, within two years, of tens of thousands of tank cars unless they are retrofitted to meet new safety standards. It will also require speed limits, better braking and testing of volatile liquids, including oil. It will require that cars constructed after October 2015 have thicker steel.

The DOT proposed rule, which will take months to finalize after a 60-day comment period, applies to shipments with at least 20 rail cars carrying flammable fuels, including ethanol.

In May, an oil-carrying freight train derailed in Lynchburg, Va., spilling 30,000 gallons of oil into the James River. Last year in Lac-Megantic, Quebec, an oil train exploded and killed 47 people.