Tag Archives: CSX

Bakken Crude, Civil penalties, Crude By Rail, Derailment, Evacuation, Explosion, Fire, Rail defect, Rail inspection, Rail Safety, Tank car design

Tests showed rail defect 2 months before W.Va. oil train derailed

Repost from McClatchyDC News

Tests showed rail defect 2 months before W.Va. oil train derailed

By Curtis Tate, October 9, 2015

HIGHLIGHTS:
• Feds identify broken rail as primary cause
• Flaw detected in two prior track inspections
• CSX, contractor will pay $25,000 in fines

Scorched and deformed tank cars await examination by federal investigators at Handley, W.Va., on Feb. 24, 2015. A CSX train carrying crude oil had derailed a week earlier, spilling nearly 400,000 gallons and igniting a fire that kept 100 people from their homes for four days.
Scorched and deformed tank cars await examination by federal investigators at Handley, W.Va., on Feb. 24, 2015. A CSX train carrying crude oil had derailed a week earlier, spilling nearly 400,000 gallons and igniting a fire that kept 100 people from their homes for four days. Curtis Tate – McClatchy

WASHINGTON – Two separate tests in the two months prior to a fiery oil train derailment in West Virginia earlier this year showed the presence of a rail defect, according to a report on the incident.

But neither the railroad nor the contractor who did the tests followed up on the results in December 2014 and January 2015, and the rail broke under a 107-car CSX train loaded with Bakken crude oil. The Feb. 16 derailment near Mount Carbon, W.Va., led to explosions, fires and the evacuation of 1,100 nearby residents.

On Friday, the Federal Railroad Administration said it had issued $25,000 civil penalties against both CSX and Sperry Rail Service, the contractor that performed the rail tests.

The railroad agency recommended that both companies enhance employee training and use improved technology. It also asked CSX to establish a plan to identify and correct track defects on routes used to ship crude oil.

Noting that track flaws are a leading cause of derailments, Sarah Feinberg, the agency’s acting administrator, said railroads hauling hazardous materials need to pay closer attention to track conditions.

“All railroads, not just CSX, must be more diligent when inspecting for internal rail flaws or when contracting out inspection work,” she said in a statement.

In a statement, CSX said it would develop additional inspection processes in collaboration with federal regulators.

“CSX intends to pursue these efforts to their maximum potential as part of our commitment to the safety of the communities where we operate, our employees and our customers,” said Kaitlyn Barrett, a spokeswoman.

According to the agency’s report, 24 of the 27 derailed tank cars sustained significant damage that released oil, fueling fires and explosions even in single-digit temperatures. One resident’s home was destroyed by fire, but no one was seriously injured or killed.

The Mount Carbon wreck was among six oil train derailments in North America this year and one of four in the U.S. All revealed vulnerabilities in the kinds of tank cars used to transport oil, as well as shortcomings in the inspection and maintenance of track and rail car wheels.

In April, the Federal Railroad Administration recommended improved wheel inspections. A broken wheel was suspected in the March 6 oil train derailment near Galena, Ill., though the agency has yet to announce an official cause.

In May, the U.S. Department of Transportation announced its final rule requiring more crash and fire resistance for tank cars used to transport flammable liquids, including crude oil and ethanol.

The recent push for improved track and tank cars in North America followed the July 2013 oil train disaster in Lac-Megantic, Quebec, where 47 people died. On Friday, a U.S. bankruptcy judge approved a $343 million settlement with the families of the victims.

Crude By Rail, Empty tank cars, Federal Regulation (U.S.), Freedom of Information Act (FOIA), Hazardous cargo transparency, High Hazard Flammable Trains (HHFTs), North American light crude oils, Oil prices, Open-records request, Parked trains, Rail industry, Residue train

Held up in court for a year, Maryland oil train reports outdated

Repost from McClatchyDC

Held up in court for a year, Maryland oil train reports outdated

By Curtis Tate, September 12, 2015

HIGHLIGHTS
•  McClatchy received reports it asked for in 2014
•  Documents contained data previously revealed
•  Economics of crude by rail have shifted since

After more than a year, McClatchy finally got the oil train reports it had requested from Maryland.

And they were badly out of date.

Last year, McClatchy filed open-records requests in about 30 states for the documents, and was the first news organization to do so in Maryland, in June 2014.

Maryland was poised to release the records in July 2014, when two railroads, CSX and Norfolk Southern, sued the state Department of the Environment to block the disclosure.

Finally last month, a state judge ruled in the favor of the release, marking the first time a court had affirmed what many other states had already done without getting sued.

The documents McClatchy and other news organizations ultimately received were dated June 2014, not long after the U.S. Department of Transportation began requiring the railroads to notify state officials of shipments of 1 million gallons or more of Bakken crude oil.

After more than a year, however, the economics of shipping crude by rail had changed substantially.

Amid a slump in oil prices, refineries once receiving multiple trainloads of North American crude oil every day have switched, at least temporarily, to waterborne foreign imports.

The trend is reflected from the East Coast to the West Coast, where long strings of surplus tank cars have been parked on lightly used rail lines, generating rental income for small railroads but also the ire of nearby residents.

The documents released in Maryland show that in June 2014, Norfolk Southern was moving as many as 16 oil trains a week through Cecil County on its way to a refinery in Delaware.

But McClatchy has known that since August 2014, when it received a response to a Freedom of Information Act request from Amtrak.

The Delaware News Journal reported that the PBF Refinery in Delaware City, Del., now receives only about 40,000 barrels a day of crude by rail. That’s about 56 loaded tank cars, or half a unit train, nowhere close to the volume of mid-2014.

The June 2014 Maryland documents also show that CSX was moving as many as five oil trains a week on a route from western Maryland through downtown Baltimore toward refineries in Philadelphia.

But that had been clear since at least October 2014, when the Pennsylvania Emergency Management Agency released its oil train reports showing an identical number of CSX trains crossing from western Pennsylvania into Maryland, then back into southeast Pennsylvania.

CSX told the Baltimore Sun that it had not regularly moved a loaded oil train through Baltimore since the third quarter of 2014. The company had earlier told the newspaper that it moved empty oil trains through the city and state.

Federal regulators never required railroads to report empty oil train movements.

The vast majority of loaded CSX oil trains move to Philadelphia via Cleveland, Buffalo, Albany, N.Y., and northern New Jersey, according to records from Ohio, Pennsylvania and New York.

Common Carrier Obligation, Federal Regulation (U.S.), Positive Train Control, Rail industry

Safety deadline may exempt U.S. railroads from common carrier freight obligations

Repost from Reuters

Exclusive: Safety deadline may exempt U.S. railroads from freight obligations

By David Morgan, September 8, 2015
A freight locomotive rolls across an intersection in Fresno, California January 6, 2015. REUTERS/Robert Galbraith
A freight locomotive rolls across an intersection in Fresno, California January 6, 2015. REUTERS/Robert Galbraith

U.S. railroads may not be obligated under federal law to carry freight including crude oil and hazardous materials from Jan. 1 if they fail to meet a year-end deadline for implementing new train safety technology, according to a top federal regulator.

In a Sept. 3 letter to the Senate Commerce Committee, U.S. Surface Transportation Board Chairman Daniel Elliott says the common carrier obligation requiring freight railroads to honor reasonable requests for service from shippers “is not absolute, and railroads can suspend service for various reasons, including safety.”

The letter, reviewed by Reuters, presents the most tangible sign yet of what could lie ahead for rail carriers and their customers, if Congress fails to extend its Dec. 31 deadline for railroads to implement positive train control, or PTC.

The National Transportation Safety Board, which has been calling on railroads to adopt PTC since the late 1960s, says the technology would prevent major rail accidents such as the May 12 Amtrak derailment that killed eight people and injured more than 200 others.

The approaching deadline has prompted at least one major railroad company to look seriously at suspending service: billionaire investor Warren Buffett’s BNSF Railway Co (BRKa.N), the No. 2 freight railroad operator and the leading carrier in the $2.8 billion U.S. crude-by-rail market.

“BNSF confirmed that it will not meet the deadline and offered the possibility that neither passenger nor freight traffic would operate on BNSF lines,” Elliott said in the letter, which was addressed to the committee’s Republican chairman, Senator John Thune of South Dakota.

In a July 24 letter provided to Reuters by BNSF, railroad president and chief executive Carl Ice informed Elliott that BNSF is analyzing the possibility of a service shutdown and actively consulting with customers.

CSX Corp (CSX.N), the No. 3 U.S. freight handler, also told the board that it would not meet the PTC deadline but did not discuss possible decisions on whether to continue service, Elliott said.

A CSX spokeswoman said the company was working diligently to implement PTC but that a “seamless, safe operation is imperative to maintain the fluidity of the national rail network.”

Railroad officials in June raised the possibility of shutting down service as a way to avoid potential legal liabilities and fines for operating outside the law.

Elliott told Thune it was unclear whether railroads would be exempt from their obligation to provide freight service for cargo, including hazardous materials, under federal rules that say service cannot be denied simply because it is inconvenient or unprofitable for the carrier.

The Surface Transportation Board, a regulatory agency charged by Congress with resolving rail disputes over rates and service, had no immediate comment, nor did the Federal Railroad Administration, the main U.S. railroad regulator.

Up to now, the board has mainly handled common carrier obligation cases involving services that have complied with federal safety rules. “A carrier-initiated curtailment of service due to a failure to comply … would present a case of first impression,” Elliott wrote. “I cannot predict the outcome of such a case.”

PTC can avoid accidents by using a complex network of sensors and automated controls to slow or stop a train under dangerous conditions.

In 2008, Congress mandated that railroads implement the technology by the end of 2015. But only a small number of U.S. passenger, commuter and freight railroads will meet the deadline, according to an Obama administration report released last month. [ID: L1N11A275]. The report named BNSF as one of only three railroads that have provided regulators with a PTC implementation plan.

Railroad officials have complained about the cost and complexity of adopting PTC and have produced freight and commuter rail estimates showing full implementation could cost the industry nearly $13 billion.

A six-year transportation bill approved by the Senate last month would allow the Obama administration to extend the deadline for up to three years.

“The administration requested authority to extend the deadline for positive train control and the Senate subsequently advanced a bipartisan proposal to create accountability and set realistic deadlines,” said Frederick Hill, Republican spokesman for the Senate Commerce Committee.

“This provision in the surface transportation bill will address the concerns summarized in Chairman Elliott’s correspondence,” he added.

But the Senate measure is not expected to be taken up by the House of Representatives when lawmakers return from their summer break this week. Republican staff with the House Transportation Committee were not available for comment.

(Reporting by David Morgan; Editing by Nick Zieminski)
Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Federal Regulation (U.S.), Fire, Funding for emergency response, Hazmat notification, Massive increase in crude-by-rail, Per-barrel tax, Public safety funding, Rail inspection, Rail Safety, Spill, State regulation, Track maintenance, Volatility

States Step Up Scrutiny of Oil Train Shipments

Repost from GOVERNING The States and Localities

States Step Up Scrutiny of Oil Train Shipments

Some states are looking to prevent more derailments and spills, but the freight industry doesn’t want more regulation.
 By Daniel C. Vock | August 26, 2015
In 2014, several CSX tanker cars carrying crude oil derailed and caught fire along the James River near downtown Lynchburg, Va. (AP/Steve Helber)

When it comes to regulating railroads, states usually let the federal government determine policy. But mounting concerns about the safety of oil trains are making states bolder. In recent months, Oregon, Pennsylvania and Washington state have taken steps to strengthen oversight of the freight rail industry.

The three join several other states — mostly led by Democrats — in policing oil shipments through inspection, regulation and even lawsuits. Washington, for example, applied a 4-cent-per-barrel tax on oil moved by trains to help pay for clean-ups of potential spills. The new law also requires freight rail companies to notify local emergency personnel when oil trains would pass through their communities.

“This means that at a time when the number of oil trains running through Washington is skyrocketing, oil companies will be held accountable for playing a part in preventing and responding to spills,” said Democratic Gov. Jay Inslee when signing the measure this spring.

The flurry of state activity comes in response to a huge surge in the amount of oil transported by rail in the last few years. Oil from the Bakken oil fields in North Dakota and nearby states must travel by train to refineries and ports because there are few pipelines or refineries on the Great Plains. The type of oil found in North Dakota is more volatile — that is, more likely to catch on fire — than most varieties of crude.

Public concerns about the safety of trains carrying oil have increased with the derailments in places like Galena, Ill.; Mt. Carbon, W. Va.; Aliceville, Ala.; Lynchburg, Va.; Casselton, N.D.; and especially Lac-Megantic, Quebec, where 47 people died in 2013.

Federal regulators responded to these incidents by requiring railroads to upgrade their oil train cars, to double check safety equipment on unattended trains, and to tell states when and where oil trains would be passing through their borders. This last requirement was hard won. This summer, the Federal Railroad Administration tried to encourage states to sign nondisclosure agreements with railroads about the location of oil trains. After several states balked, the agency relented.

California, Louisiana, New Jersey, Ohio and Oklahoma have all signed nondisclosure agreements, while Idaho, Illinois, Montana, North Dakota, Washington and Wisconsin have refused to do so, according to the Reporters Committee for Freedom of the Press.

A Maryland judge earlier this month ruled against two rail carriers, Norfolk Southern and CSX, that wanted to block the state’s environmental agency from releasing details of their oil shipments. The railroads have until early next month to decide whether to appeal.

“The ruling isn’t the first time railroads have lost their bid to keep the oil train reports secret,” wrote reporter Curtis Tate of McClatchy, one of the news organizations that requested the records, “but it is the first court decision recognizing the public’s right to see them.”

Many states want this information so that fire departments and other emergency personnel can prepare for a potential derailment. California passed a law last year imposing clean-up fees on oil shipped by rail. The railroad industry challenged the law in court, but a judge ruled this summer that the lawsuit was premature. Minnesota passed a similar law last year, and New York added rail inspectors to cope with the increase in oil train traffic. A 1990 federal law lets states pass their own rules to prepare for oil spills, as long as those rules are at least as rigorous as federal regulations.

In Pennsylvania, which handles 60 to 70 oil trains a week, Democratic Gov. Tom Wolf asked a University of Delaware expert to help to improve safety of oil trains traveling through the state. The professor, Allan Zarembski, produced 27 recommendations for the state and the railroads. He called on the state to improve its inspection processes of railroad tracks, particularly for tracks leading into rail yards, side tracks and refineries that often handle oil trains. The professor also encouraged the state to coordinate emergency response work with the railroads and local communities.

Zarembski’s suggestions for the railroads focused on how they should test for faulty tracks, wheel bearings and axles. Most major derailments in recent years were caused by faulty track or broken equipment, not human error, he noted in his report.