Tag Archives: Crude by Rail

Crude By Rail, Derailment, Explosion, Moratorium on oil trains, Take Action

Albany NY – Citizens demand “Ban the bomb trains”

May 7, 2015 Roger Straw

Press Release from People of Albany United for Safe Energy (PAUSE)

Citizens demand “Ban the bomb trains”

Albany, NY, May 7, 2015

At noon today, on the sidewalk in front of the Governor’s mansion on Eagle St., citizens will be calling for a ban on the trains carrying crude oil by rail in New York. Yesterday marked the fifth fiery derailment this year and the tenth explosion since 2013 when 47 people died and the town of Lac-Megantic Canada was destroyed. In chronological order the explosions are:

• July, 2013 – Lac Megantic, Canada
• November, 2013 – Aliceville, AL
• December, 2013 – Casselton, ND
• January, 2014 – New Brunswick, Canada
• April 2014 – Lynchburg, VA
• February 14, 2015 – Timmins, Ontario, Canada
• February 16, 2015 – Mount Carbon, WVA
• March 5, 2015 – Galena, IL
• March 7, 2015 – Gogama, Ontario Canada
• May 6, 2015 – Heimdal, ND

During the protest we will sign a letter asking Governor Cuomo to take all necessary steps to halt the oil trains which may include using summary abatement for receipt and storage of the oil at the Port of Albany. Under the Environmental Conservation Law, summary abatement can be invoked if an activity is deemed to be an imminent hazard.

Dominick Calsolaro of PAUSE states “It is time for Governor Cuomo and Commissioner Martens to take drastic action and ban crude oil-carrying trains from traveling through New York State. There is no way to evacuate the whole city of Albany and the additional 70,000 daily workers who commute to our Capital City should one of these trains derail and catch fire downtown.”

What we do – or don’t do – in New York also impacts those south of us in New Jersey. Rosemary Dreger Carey of 350NJ states “In New Jersey, we’re very concerned about the news of another oil train explosion in North Dakota. That makes five explosions this year. Trains carrying Bakken crude run through our major cities and suburban communities day and night. A similar accident here in the most densely populated state in the country would be unthinkable.” Paul Rogovin, also from New Jersey with the Coalition to Ban Unsafe Oil Trains, remarks “We are glad to hear that no one was injured in today’s explosion in North Dakota, but I’m not sure we’d be safe from a similar blast in New Jersey. The new rules issued by the DOT this week give the industry three to five years to improve their cars, and several years more to upgrade their breaks. That’s unacceptable. Accidents don’t wait to happen. People are in danger now. Trains carrying highly volatile Bakken crude oil should be banned.”

Charley Bowen of the Western New York Peace Center in Buffalo agrees “We are glad no human life was lost. However, the residents of every house, village, town and city living nearby a rail line carrying explosive Bakken crude oil remain at risk of loss of life, limb and property. It’s a shame that public policy continues to support expensive fossil fuels to the detriment of humans and the environment when cheaper and infinitely safer renewable sources of energy are readily available. Gov Andrew Cuomo should act immediately to protect NY State residents, its environment and its increasingly precious aquifers. He should immediately invoke his summary abatement powers to stop the transport of dangerous Bakken crude oil in New York State. ”

Sandy Steubing of PAUSE concludes “At this rate the people of New York cannot wait another month, let alone years. There will always be human error and mechanical failures. There will always be train derailments. However, there can be no margin for error with a substance that is this volatile. Fortunately, world class scientists have proven we can rapidly phase out all fossil fuels.”

An energy feasibility study from Stanford and Cornell concludes that New York can derive 100% of its energy needs including transportation from the renewable sources of wind, water, and solar. Dr. Robert Pollin from the Political Economy Research Inst. of UMass Amherst has found that for a million dollar investment we can achieve five oil/gas jobs or thirteen solar jobs. Let us move away from a 19th century mode of transportation, carrying a 20th century energy source, into the 21st century of renewables.

Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Federal Regulation (U.S.), Fire, Hazmat notification, Public Safety, Rail industry lobby

Crude Oil Rail Shipments Sabotage Freedom of Information Act

May 5, 2015 Roger Straw

Repost from Forbes

Crude Oil Rail Shipments Sabotage Freedom of Information Act

By James Conca, May 5, 2015 @ 4:40 AM

New regulations from the U.S. Department of Transportation declare that details about crude oil rail shipments are exempt from public disclosure (Tri-City Herald).

This ends DOT’s existing regulations that required railroads to share with state officials, and the public, information about shipping large volumes of dangerous crude oil by rail. These disclosure requirements were put in place last year after a Bakken crude oil train-wreck in Lynchburg, Virginia.

Now, railroads will only have to share this information with emergency responders who will be mum. And the information will be exempt from the Freedom of Information Act as well as public records and state disclosure laws (SSI).

Better response, slower speeds and safer rail cars are needed to stem the rise of crude oil rail car accidents. Transparency would be nice, too, although that took a real hit last week with the new regulations from the Department of Transportation. Source: National Transportation Safety Board

True, the new regulations do cover critical oil train operations in terms of “speed restrictions, braking systems, and routing, and adopts safety improvements in tank car design standards and a sampling and classification program for unrefined petroleum-based products.” All good things long needed to address the growing dangers in rail transport of crude.

But after the Lynchburg derailment and inferno, the feds required railroads to notify emergency response agencies if shipments over a million gallons crude oil were going through their states. Railroads complied, but asked states to keep that information confidential.

Most states refused (McClatchy).

Since then, the industry argued that details about the crude oil rail shipments were sensitive from a security and customer protection standpoint and should not be available to the public, although it’s more likely they just don’t want to get hassled by a public trying to restrict shipments from going through their towns, across their rivers and along their coasts.

At first, the Federal Railroad Administration disagreed with the industry (Federal Register), saying that information about the shipments was not sensitive from any standpoint.

But they seemed to have quietly caved to industry pressure.

The twin forces of the new North American energy boom and the lack of pipeline capacity have combined to suddenly and dramatically increase crude oil shipping by rail. The energy boom is not going away, and the XL pipeline is on hold indefinitely, so the increase in rail will continue.

Crude is a nasty material, very destructive when it spills into the environment, and very toxic when it contacts humans or animals. It’s not even useful for energy, or anything else, until it’s chemically processed, or refined, into suitable products like naphtha, gasoline, heating oil, kerosene, asphaltics, mineral spirits, natural gas liquids, and a host of other products.

Thus, the need to get it to the refineries that can handle it, mostly along the coasts. Without new pipelines, it’s going to go by rail.

But fiery derailments of crude oil trains in North America are becoming almost frequent, along with many simple spills (dot111). Every minute of every day, shipments of two million gallons of crude are traveling over a thousand miles in hundred-tank-car trains (PHMSA.gov), delivering as much oil as is expected by the Keystone XL Pipeline.

A clear example of this danger came on July 6, 2013, when a train carrying 72 tank cars, and over 2,000,000 gallons of Bakken oil shale crude from the Williston Basin of North Dakota, derailed in the small town of Lac-Megantic, Quebec. Much of the town was destroyed and forty-seven people were killed.

According to billionaire Warren Buffett, these new federal standards for shipping crude oil by rail will definitely slow-up the industry, and as CEO of Berkshire Hathaway’s BNSF railroad and its Union Tank Car business, he should know (Tri-City Herald).

Buffett says railroads are critical for transporting potentially dangerous products across the United States, and he thinks it makes more sense for railroads to haul them instead of trucks or pipelines, a controversial stand given the historical data (Pick Your Poison).

So what is the safest way to move crude oil?

The short answer is: truck worse than train worse than pipeline worse than boat (Oilprice.com). But that’s only for human death and property destruction. For the amount of oil spilled per billion-ton-miles, it’s truck worse than pipeline worse than rail worse than boat (Congressional Research Service). Even more different is for environmental impact, where it’s boat worse than pipeline worse than truck worse than rail.

But the accident frequency trend is against rail. Oil trains are getting bigger and towing more and more tanker cars. From 1975 to 2012, trains were short and spills were rare and small, with about half of those years having no spills above a few gallons (EarthJustice.org). Then came 2013, in which more crude oil was spilled in U.S. rail incidents than was spilled in the previous thirty-seven years.

The danger seems to be centered in the rail tank cars themselves (The Coming Oil Train Wreck). If these new regulations makes the rail cars safer, makes them go slower and routes them around environmentally sensitive or vulnerable areas, that’s wonderful.

But I don’t see why we aren’t allowed to know when the crude oil trains are near us.

Crude By Rail, Diluted bitumen (Dilbit), Raw bitumen (undiluted tar sands heavy crude), Rawbit-By-Rail, Tar sands crude, Volatility

Canadian oil trains carrying more undiluted raw bitumen

May 5, 2015 Roger Straw

Repost from Reuters
[Editor: How, you ask? Quote: ” …raw bitumen can be shipped on heated and coiled rail cars without diluent.” Less volatile, and therefore supposedly safer, unless you consider the overall safety of the planet. Cheaper for Canadian oil companies, though, so surely a hot ticket. They’re actually planning to DILUTE the stuff to send it down pipelines to a rail facility, then REMOVING some or all the diluent before loading it as “raw” bitumen – onto oil train tank cars. All for you and me – gee, no thanks. – RS]

Canadian oil trains shift to carry less-volatile crude

CALGARY, Alberta | By Nia Williams, May 5, 2015 1:00am EDT

May 5 (Reuters) – A growing share of Canadian oil-by-rail traffic is made up of tough-to-ignite undiluted heavy crude and raw bitumen, say industry executives, as companies scramble to cut expenditures with the price of crude down more than 40 percent since June.

By eliminating the cost of diluting with ultra-light condensate, heavy oil offers rail shippers an opportunity to claw back a few dollars per barrel in transportation costs.

Official data does not break down the different Canadian crudes shipped by rail but interviews with industry executives suggest undiluted heavy and raw bitumen shipments now make up roughly a quarter of the estimated 200,000 barrel per day (bpd) oil-by-rail market.

An added bonus is that heavy crude and bitumen are far less combustible than the Bakken and Canadian synthetic crudes involved in fiery crashes that spurred the Canadian and U.S. governments on Friday to tighten safety rules for trains carrying oil.

With very high boiling and flashpoints they fall outside Packing Groups 1 and 2, used to classify the more volatile types of crude oil for transport, and are already shipped in double-hulled cars, meaning they should be unaffected by last week’s tank car phase-out rules.

Oil-by-rail shipments have come under increased scrutiny and public outrage following 10 oil-train derailments involving fires in less than two years.

“The business is moving back to where it started, which is as a vehicle to move undiluted heavy oil,” said John Zahary, chief executive of Altex Energy, which operates crude-by-rail terminals.

Normally, rail is more expensive than shipping by pipeline, but undiluted rail shipments offer better returns because shippers do not need to add between 15 and 30 percent condensate per barrel, which often trades at a premium to U.S. benchmark crude.

Overall rail volumes have dipped in recent months, as the shrinking gap between U.S. and cheaper Canadian crude prices has eroded arbitrage opportunities. Total crude-by-rail export volumes, not including shipments within Canada, dipped 5 percent quarter-on-quarter in the final three months of 2014 to 173,000 bpd, according to the National Energy Board.

Still, Jarrett Zielinksi, chief executive officer of TORQ Transloading, said the proportion of heavy undiluted crude shipped is growing.

TORQ’s overall volumes fell to approximately 25,000 bpd this year, but it is now moving essentially 100 percent undiluted conventional heavy, up from around 85 percent last year.

Meanwhile, Altex moved around 35,000 bpd of conventional heavy last month and has just finalized plans for a 100,000 bpd unit train facility in Lashburn, Saskatchewan.

RAWBIT-BY-RAIL

Like heavy crude, raw bitumen can be shipped on heated and coiled rail cars without diluent. But it is a much smaller segment of the market due to the infrastructure needed at both loading and unloading facilities.

Canadian National Railway is pushing hard towards shipping more of this so-called neat bitumen to improve both economics and safety.

“It’s the wave of the future,” James Cairns, CN vice-president of petroleum and chemicals, told a recent conference. “When we move bitumen it doesn’t even move as a dangerous commodity. The safest crude you can move by rail is a heavy, neat bitumen crude.”

MEG Energy Corp and Keyera Corp have looked at building diluent recovery units. This would enable them to receive diluted bitumen by pipeline at rail terminals, remove all or some of the diluent and then load the raw bitumen onto railcars.

Both companies have put those plans on hold due to low oil prices but said they could be developed in future.

(Additional reporting by Allison Martell in Toronto; Editing by Jeffrey Hodgson and Alan Crosby)

Air Quality, Clean Air Act, Crude By Rail, Derailment, Environmental review, Explosion, Public Health, Public permitting, Volatility

EPA Cites Bakersfield Oil Train Terminal for Clean Air Act Violations; Permit Invalid

May 4, 2015 Roger Straw

News Release from Earthjustice

EPA Cites Bakersfield Oil Train Terminal for Clean Air Act Violations

Federal agency says California oil train terminal is major air pollution source, permit is invalid without significant environmental review

Contact: Maggie Caldwell, Earthjustice, 415-217-2084, mcaldwell@earthjustice.org, Monday, May 4, 2015

The newly opened Bakersfield Crude Terminal in Taft which the EPA has found in violation of the Clean Air Act. | Elizabeth Forsyth / Earthjustice

Taft, CA —The U.S. Environmental Protection Agency has cited the Bakersfield Crude Terminal for 10 violations of the Clean Air Act, declaring the California crude-by-rail facility a major air pollution source that should have been subjected to rigorous environmental review during the permitting process. The federal agency found that the terminal’s permit is invalid and that the facility lacks required pollution controls and emissions offsets, and that it is in violation of the Clean Air Act’s public notice and environmental review requirements.

In January, Earthjustice and Communities for a Better Environment sued the San Joaquin Valley Air Pollution Control District, which issued the invalid permit, over the permitting process for the facility’s expansion— a process that was conducted without public review. Earthjustice is representing the Association of Irritated Residents (AIR), ForestEthics, Sierra Club and the Center for Biological Diversity.

A public records request revealed communications between San Joaquin Valley Air District officials and the project manager for the terminal that included advice from the officials about how the project could avoid public noticing and pollution controls. The Air District approved the massive expansion in a piece-meal permitting process that allowed one of the largest crude oil operations in California to expand largely out of public scrutiny.

“The EPA’s announcement declares the Air District’s permit a sham and that the Bakersfield terminal is operating illegally,” said Elizabeth Forsyth, Earthjustice attorney. “Air District officials went out of their way to exclude the public from the process and speed the approval through, ignoring the environmental review required by state and federal law. We applaud EPA for stepping in and enforcing the Clean Air Act.”

EPA’s action could subject the terminal to serious Clean Air Act fines, and should force the Bakersfield Crude Terminal to undergo the major source permitting required by the Clean Air Act.

“The EPA stepped in to protect California from this crude-by-rail facility’s dangerous air pollution,” said Vera Pardee, an attorney with the Center for Biological Diversity. “Federal intervention is urgently needed because the air district and Kern County officials have utterly failed to safeguard public health and the environment. They’re turning a blind eye to air pollution and environmental risks such as catastrophic explosions linked to these massive trains full of volatile crude.”

“EPA’s notice of violation should serve as a wake up call to local authorities around the country who help polluters when they should be protecting public health,” said Matt Krogh, ForestEthics Extreme Oil Campaign Director. “Oil trains threaten 25 million Americans who live in the blast zone, plus millions more who live downwind of a refinery, downstream of where an oil train crosses a river, or in the Bakken and tar sands producing regions of North Dakota and Alberta, Canada.”

“In Kern County, with the worst air in the nation, the air district has harmed the health of the public by intentionally allowing this facility to violate the Clean Air Act,” said Tom Frantz, with Association of Irritated Residents.

“Given the increased pollution and hazards from refining and transporting a lower quality crude, there is immediate need for a moratorium that halts new permits and construction of extreme oil infrastructure, not the opposite fast track permitting process that Air District officials put this massive crude by rail terminal on – and in secret,” said Roger Lin, attorney with Communities for a Better Environment.

“The US Environmental Protection Agency’s announcement today is a significant step forward for Bakersfield and Kern County residents who bear all the burdens of volatile, accident-prone crude by rail transport and none of the benefits,” said Gordon Nipp Bakersfield resident and Sierra Club Kern-Kaweah Chapter Vice Chairman. “This terminal wreaks havoc on our region’s already compromised air quality and our communities now fear the risk of exploding trains.”

The agency also weighed in on the issue of vapor pressure of Bakken crude, declaring it unreasonable to underestimate the vapor pressure when permitting a crude-by-rail site and requiring vigorous monitoring and reporting of what crude oil is actually shipped. One way many of these facilities get around major source permitting is by cherry-picking the volatility of the crude oil being shipped, estimating the vapor pressure on the low end of the spectrum, which would keep emissions of volatile organic compounds under the threshold for triggering Clean Air Act review.

In addition to emitting volatile organic compounds from the off-loading of crude oil, the facility endangers Bakersfield and other communities in California by increasing the amount of explosive crude oil transported by rail through the state. There have been multiple incidents of train derailments and explosions across the nation and in Canada. An oil train that derailed in Lac Megantic, Quebec, destroyed most of the town center, burning more than 30 buildings to the ground and killing 47 people. Just this year, there have been four derailments and explosions in West Virginia, Illinois and Ontario involving oil trains.

Read EPA’s Notice of Violation.