Tag Archives: Department of Transportation

NY Times: Our secretive railroads

Repost from The New York Times, Business Day
[Editor: partway through this article there is an image with instruction to click for the inset article, “More Shipments, New Accidents and Calls for Safety“.  Don’t miss this – it details the massive increase in oil by rail accidents 2005-1014.  The inset is also available here on BenIndy at More Shipments.  – RS]

Despite Rise in Spills, Hazardous Cargo Rides Rails in Secret

By JAD MOUAWAD  |  APRIL 15, 2014

Jodi Ross, town manager of Westford, Mass., and Joseph Targ, its fire chief, could learn little when a train derailed there this year. Credit: Gretchen Ertl for The New York Times

Jodi Ross, town manager in Westford, Mass., did not expect she would be threatened with arrest after she and her fire chief went onto the railroad tracks to find out why a train carrying liquid petroleum gas derailed on a bridge in February.

But as they reached the accident site northwest of Boston, a manager for Pan Am Railways called the police, claiming she was trespassing on rail property. The cars were eventually put back on the tracks safely, but the incident underlined a reality for local officials dealing with railroads.

“They don’t have to tell us a thing,” Ms. Ross said. “It’s a very arrogant attitude.”

American railroads have long operated under federal laws that shield them from local or state oversight and provide a blanket of secrecy over much of their operations. But now a rapid rise in the number of trains carrying crude oil — along with a series of derailments and explosions — has brought new concern about the risks of transporting dangerous cargo by rail.

Local and state officials complain that they receive very little information about when hazardous materials are shipped through their communities or how railroads pick their routes. Federal interstate commerce rules give them little say in the matter and railroads are exempted from federal “right to know” regulations on hazardous material sites.


Graphic: More Shipments, New Accidents and Calls for Safety (click on image for details)

Under pressure to act, the Transportation Department said in February that railroads had agreed to apply the same routing rules to oil trains that they already apply to other hazardous materials, such as explosives, radioactive materials and poisonous substances like chlorine.

This voluntary agreement, which takes effect in July, was among commitments that also included lowering speed limits to 40 miles per hour when traveling in large metropolitan areas, and providing $5 million to develop training programs for emergency responders.

Still, the railroads remain particularly secretive about how they determine the precise routing of their hazardous cargo. The rules that apply to that cargo, which came into effect in 2008 during the Bush administration, give railroads a lot of leeway.

Recently, resolutions seeking more information from the railroads have been approved in Seattle, Spokane and Bellingham, Wash., and are being debated by the legislatures in Washington and Minnesota, among other places.

The problem has taken on a new urgency since federal regulators warned earlier this year that crude oil from the Bakken region in North Dakota, which is mainly transported by rail, can explode in an accident, like it did near Casselton, N.D., in December. Last July, 47 people were killed in Canada, about 10 miles from the border with the United States, when a runaway train carrying Bakken oil derailed and blew up.

Railroads are required to look at 27 factors before they determine the “safest and most secure” route for hazardous shipments. These include the type of tracks on the route, distance traveled, the number of grade crossings and the proximity of “iconic targets” like sports arenas along the way.

That information is fed into the Rail Corridor Risk Management System, a web-based program that examines alternative routes and ranks them. Tens of thousands of routes are examined in this manner every year.

The software, partly financed by the federal government, considers safety requirements as well as security factors such as the threat of terrorism, according to Robert E. Fronczak, assistant vice president for environment and hazardous materials at the Association of American Railroads, the industry’s trade group.

But the system provides little transparency, and outsiders cannot find out why a particular route is favored, for instance. Railroads do not provide any information on their route selection, citing safety concerns.

And railroads are also allowed to consider the economic effects of their routing choices and how it would affect their customer relationships, which gives them additional flexibility in their choice.

Gary T. Sease, a spokesman for CSX, said the results of the program’s analysis “are considered sensitive security information, and we are not able to share details.”

Fred Millar, an independent rail consultant, said the system had not demonstrated that it reduced shipping hazards by avoiding populated areas. “The federal government has produced not one line of public assessment on the effectiveness of the law in reducing risk,” he said.

 
Aftermath of an oil train accident in Casselton, N.D. this year. Credit Jim Wilson/The New York Times

Railroads are subject to periodic federal audits. But none has ever been fined over its choice of route since reviews started in 2009, according to Kevin Thompson, a spokesman for the Federal Railroad Administration.

Some analysts cautioned that rerouting was not always possible or even desirable. Brigham A. McCown, an administrator of the Pipeline and Hazardous Materials Safety Administration during the Bush administration, said a railroad may decide that a shorter route through a city may have better tracks, and therefore be less risky, than a longer route with older tracks.

“Rerouting may be less effective than some believe,” he said. “The current concern is that the volume of hazmat is growing exponentially, and the question is whether the agencies have the adequate resources to actively monitor that.”

Railroad officials said they provide local emergency responders with a list of the 25 most hazardous commodities transported through their communities. But the recipients must sign an agreement to restrict the information to “bona fide emergency planning and response organizations for the expressed purpose of emergency and contingency planning,” a constraint that precludes them from making the information public.

“We feel the information is getting to where it needs to get,” said Thomas L. Farmer, assistant vice president for security at the Association of American Railroads. “It should be on a need-to-know basis. Public availability of highly detailed information is problematic from a security perspective.”

In 2005, the District of Columbia and a handful of other communities sought to stop the traffic of hazardous products in their city centers. But the ban was successfully challenged in federal court by CSX.

“It’s hard for the regulator and industry not to become somewhat comfortable with each other’s dance moves — like in an old marriage,” said Reuven Carlyle, a representative in the Washington State Legislature and chairman of the House finance committee. “But you shouldn’t have double-secret nondisclosure agreements. Information is not a luxury. Regular people have a right to this information.”

The National Transportation Safety Board recently recommended that railroads “avoid populated and other sensitive areas” when shipping hazardous materials, something they are not required to do today.

Little oil was transported by trains just five years ago. Today, about 784,000 barrels a day of oil, or 11 percent of domestic production, goes on trains, according to the Association of American Railroads, and those figures are expected to keep growing in the next decade. Carrying mostly oil from the Bakken, these trains cross the country to reach coastal refineries.

Oil trains regularly run through Minneapolis and St. Paul, for instance, instead of using bypass tracks to the west, according to Frank Hornstein, a Democrat in the Minnesota House of Representatives.

Railroad officials say there is no need for tighter regulation. They argue that the industry has made big investments in recent years to upgrade tracks and that train safety has improved.

But critics say the federal government has been too slow to address the danger posed by these new shipments.

“There is an unwillingness to use any kind of enforcement power at the federal level,” said Mike O’Brien, a Seattle City Council member who sponsored a resolution seeking greater disclosures from the industry. “The railroads have a lot of protections through federal statutes. That’s the ongoing challenge we face as cities.”

A version of this article appears in print on April 16, 2014, on page B1 of the New York edition with the headline: Despite Rise in Spills, Hazardous Cargo Rides Rails in Secret.

Setback on new federal regulations governing oil by rail

Repost from DeSmogBlog

Feds Weaken New Oil-By-Rail Safety Regulations Days After Announcing Them

Nine days after announcing new regulations designed to improve oil-by-rail safety, the Department of Transportation quietly weakened the rules for testing rail cars and exempted shippers of bitumen from having to…

DOT-111 tank cars inadequate, but rolling through our cities today

Repost from PublicSource
[Editor: two significant excerpts: “While federal officials work on new safety requirements for DOT-111 tank cars, these cars are out there carrying crude oil, rolling through Pennsylvania daily…” AND “The Pennsylvania Emergency Management Agency recently struck an agreement with CSX railroad to get real-time information on the tracking of hazardous material shipments, including crude oil, in the state.” – RS]

Rail cars moving crude oil need makeover

By Natasha Khan | PublicSource | March 25, 2014

Train Derailment 2006: Flames continue to burn a day after a Norfolk Southern train derailed on Oct. 21, 2006, in New Brighton. Flames continue to burn a day after a Norfolk Southern train derailed on Oct. 21, 2006, in New Brighton, Pa. (Photo by Lucy Schaly / Beaver County Times)

Walking with his daughter from a Friday night football game in New Brighton, Pa., Fire Chief Jeffrey Bolland heard what sounded like a jet overhead and saw an orange glow in the distance.

Twenty-three rail tank cars of ethanol derailed on a bridge above the Beaver River on that night in 2006, setting off an explosion that burned for 48 hours. Some of the black, torpedo-shaped cars tumbled into the river.

No one was injured, but 150 people were evacuated and a nearly multi-million dollar cleanup ensued in the city about 30 miles Northwest of Pittsburgh.

The rail cars in the accident were DOT-111s, designed in the early 1960s and originally used to haul non-hazardous materials such as corn syrup. Now, they are the worker bees for the glut of crude oil and ethanol being transported across Pennsylvania and the country.

“The same old clunkers are still out there,” said Fred Millar, a Washington, D.C., consultant to the rail industry. “They’re Pepsi cans on wheels.”

For more than 20 years, safety officials have warned about these cars as accidents involving them have multiplied. One of the worst was in Lac-Mégantic, Quebec, in July 2013, when 47 people died after a runaway train carrying Bakken crude oil from North Dakota exploded, decimating the town.

Now, state, federal and industry officials are demanding that regulations be put in place to improve the safety of the cars, which are “subject to damage and catastrophic loss of hazardous materials” when trains derail, according to the National Transportation Safety Board (NTSB).

After two recent derailments in Pennsylvania — one in Westmoreland County, one in Philadelphia — involving the cars and crude oil, U.S. Sen. Bob Casey, D-Pa., sent a letter to U.S. Secretary of Transportation Anthony Foxx.

“Steps must be taken to make rail cars safer and to ensure greater transparency in the transportation of hazardous materials,” Casey wrote.

tankers-growth-print600x340.jpg

A sharp increase in North American crude-oil production — mainly because of fracking — has pushed a high percentage of crude oil onto the tracks.

In 2008, there were 9,500 carloads of crude oil on the tracks in the country. In 2013 that number ballooned to 415,000 carloads, according to the Association of American Railroads (AAR).

The amount of crude oil spilled last year was more than the total amount spilled  in the 37 previous years, according to an analysis of federal data by McClatchy Newspapers.

“Most times, people don’t want regulations, [but] in this case, everybody wants them,” said Anthony Hatch, a rail transportation analyst and consultant.

Rolling through PA

Pennsylvanians usually associate fracking with natural gas, but much of the crude oil being fracked in the North Dakota Bakken Shale formation goes to refineries in and around Philadelphia, which include Philadelphia Energy Solutions, the largest refiner of Bakken crude.

Railway officials don’t reveal their routes for hazardous materials for security reasons, and aren’t required to by law. However, a state official said Bakken crude does come through Pittsburgh on the way to Philly.

And the number of trains carrying crude oil through Pennsylvania are set to spike with the opening of a new crude oil terminal in Eddystone in Delaware County at the end of April. Trains carrying more than 80,000 barrels of North Dakota crude oil are expected to arrive daily.

Virtually no one in the rail and oil industries anticipated that railroads would be a primary mode of transporting the massive amounts of newly fracked crude oil in North America, said Hatch, the rail industry analyst.

“Nobody saw it coming,” he said.

Now, federal regulations need to play “catch up” with this reality, said Deborah A.P. Hersman, former chairwoman of the NTSB, in a statement.

“The large-scale shipment of crude oil by rail simply didn’t exist 10 years ago,” she said.

Now the NTSB — which investigates accidents, but doesn’t regulate railroads — and others are insisting that regulations be written covering the DOT-111s and other rail cars.

“Right now, there is so much uncertainty that people aren’t going to make investments in safer cars and they’re going to keep running these crummy cars and killing people,” said Rep. Peter DeFazio, D-Ore., at a U.S. House subcommittee hearing focused on rail safety in February.

The job of writing the regulations falls to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA).

In September, PHMSA put out a notice asking for comments from citizens, environmental and industry groups, and railroad companies on proposed rules to improve the design of the DOT-111 tank car, as well as other safety rules.

PHMSA officials said they’ve been busy since the comment period ended in December analyzing numerous comments on the rules. But changes aren’t pegged to come until early 2015, according to the agency’s timeline.

This month, a Senate panel grilled regulators on taking too long to pass regulations improving the tank cars used to haul crude.

The panel’s chairman, Sen. Richard Blumenthal, D-Conn., said he was “disappointed and disturbed by some of the delays and failures in rulemaking and scrutiny.”

PHMSA head Cynthia L. Quarterman told the panel that her agency is working as fast as possible.

A PHMSA spokesman, Joe Delcambre, told PublicSource in an email that “it was crucial to get input from a wide variety of stakeholders, including shippers and carriers, state and local officials and concerned citizens.”

The AAR estimates there are 92,000 DOT-111 tank cars used to transport hazardous chemicals and that more than 75,000 of those would need to be retrofitted or possibly to be phased out. These tank cars are not usually owned by railroads but by chemical or oil producers and leasing agencies.

Inspection blitzes 

While federal officials work on new safety requirements for DOT-111 tank cars, these cars are out there carrying crude oil, rolling through Pennsylvania daily, said Christina Simeone, director of PennFuture’s energy center, an environmental advocacy group in Pennsylvania.

Simeone said that during the year or so it may take for federal rules to pass, state and local officials should do inspection blitzes of tank cars and rail lines carrying hazardous materials.

The Pennsylvania Public Utility Commission, which works with the Federal Railroad Administration (FRA) to inspect rail operations, is now focused on inspecting tracks and rail equipment that carries crude oil shipments, a spokeswoman wrote in an email.

Railroad officials seem to be willing to communicate information about their shipments to state officials.

The Pennsylvania Emergency Management Agency recently struck an agreement with CSX railroad to get real-time information on the tracking of hazardous material shipments, including crude oil, in the state.

“It will better prepare [state emergency workers] to respond to any incidents that may occur,” said Cory Angell, a spokesman with the agency, who added that his agency is also reaching out to the Norfolk Southern line for a similar agreement.

And officials at both major PA railroads have said they’ve helped train local emergency responders across the state.

Reach Natasha Khan at 412-315-0261 or at nkhan@publicsource.org.

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PublicSource is an investigative news group in Western Pennsylvania. Learn more at publicsource.org.

NBC report: If Keystone Pipeline is not built: more oil by rail

Repost from NBC News

What Happens if the Keystone XL Pipeline Isn’t Built?

By Lisa Riordan Seville

After five years, it appears the Obama administration will soon issue a decision on whether to build the long-delayed and controversial Keystone XL oil pipeline, which would cross an environmentally sensitive area of the Great Plains and move nearly a million barrels of oil a day to Gulf Coast refineries.

Backers of the project say it would stimulate the U.S. economy and enhance energy security, stressing that a new pipeline is the cheapest, safest way to transport dirty tar-sands crude from Canada’s booming oil fields to U.S. refineries.

Environmentalists, who earlier this month chained themselves to the White House fence in protest, counter that it would endanger the water supply in several states and exacerbate climate change. They want to stop or slow the exploitation of an energy source the Sierra Club calls “the most toxic fossil fuel on the planet.”

Graphic: TransCanada's Keystone pipelines  
Reuters

But what happens if, after all the shouting, the pipeline isn’t built? NBC News consulted with experts on both sides of the debate to provide some possible answers about the impact on the environment, the economy and the global oil supply.

“We don’t think there’s any way that the oil will stay in the ground,” said Matt Letourneau, a spokesperson for the U.S. Chamber of Commerce’s Institute for 21st Century Energy. “Certainly the market will find a way.”

More oil moves by rail. Will more spill?

As oil production has surged in North Dakota’s Bakken region and Alberta’s oil patch, the volume of oil moved by rail has increased exponentially. With the rapid growth of “crude by rail” has come a series of derailments, some involving explosions and one, in Lac Megantic, Que., resulting in nearly 50 fatalities.

The crude from Canada, far less flammable than that from the Bakken, is unlikely to explode. But the tar-like oil does present major cleanup problems if it spills, particularly in water.

Without Keystone XL, more crude will likely move by rail both to Canada’s Atlantic and Pacific coasts and down into the U.S.

Last month the State Department released an environmental impact statement predicting three possible scenarios if the President decides to block the pipeline. All three point to more crude by rail. The oil would either 1) move to Oklahoma by train before being shipped by existing pipelines, 2) ship by rail to British Columbia before being loaded on tankers, or 3) travel directly by rail from Alberta to the Gulf.

In addition to the potential for derailments, shipping oil by rail is more expensive than moving it via pipeline, which could add to the end cost for consumers. Regardless, some companies are already moving forward with rail transport expansion, independent of Keystone’s fate. About 16 different rail terminal projects have been announced in Canada and the U.S., with the potential to move about 1.5 times as much oil as the projected volume for Keystone XL.

So far, rail shipment of Canadian crude isn’t expanding as quickly as expected. A recent analysis by Reuters found rail shipments of Canadian crude to the Gulf Coast were 40,000 barrels per day in 2013, far below industry projections of 200,000 barrels per day by the end of 2013. Statistics obtained by Reuters from Canada’s National Energy Board indicated deliveries to the Gulf Coast may have now reached 57,000 barrels per day, still short of projections.

Image: The proposed termination point for the Enbridge Northern Gateway Project  
Darryl Dyck / AP file 
The Douglas Channel, the proposed termination point for an oil pipeline in the Enbridge Northern Gateway Project at Kitamaat, British Columbia, Canada, Jan. 2012. The fear of oil spills is especially acute in this pristine corner of northwest British Columbia, with its snowcapped mountains and deep ocean inlets.

New Pipelines – But Not in the U.S.

As the Keystone XL project has languished, pipeline companies have proposed a number of other projects to move oil out of Alberta, most of them entirely on Canadian soil.

TransCanada, the company that wants to build Keystone XL, recently took the first step in the approval process for a different pipeline, a massive project that would snake nearly 2,800 miles from Alberta to Eastern Canada. “Energy East” would transport a whopping 1.1 million barrels of crude a day to refineries in Quebec and terminals on the Atlantic coast.

The next largest project, Kinder Morgan’s proposed TransMountain pipeline, would carry about 890,000 barrels a day in the other direction to the coast of British Columbia.

Enbridge, another major Canadian pipeline company, has two projects in the works — the Northern Gateway, which would send 520,000 barrels a day to the coast of British Columbia, and its Line 3 replacement, which could move 760,000 barrels a day from Canada into Wisconsin. Because Line 3 would replace an existing cross-border pipeline, the company argues it would not need the presidential permit that has held up Keystone XL.

If all the projects are approved, more than 4.1 million barrels of oil could flow through Canada by 2018. But the projects could be delayed by opposition from some of Canada’s aboriginal “First Nation” communities. Several proposed routes would cross aboriginal land. Canadian law gives them the leverage to block or redirect the projects, and some groups have already said they intend to fight.

Click here to see a map with all proposed pipelines to the Atlantic, Pacific, Gulf Coast and Great Lakes.

Oil Goes to China

If approved, the alternative pipelines could provide slower, more circuitous routes to America’s Gulf Coast refineries. They could also provide more direct routes to other markets, like those burgeoning in China and India.

Much of the crude that would have been refined in Gulf Coast refineries would have then been shipped to end users in Asia. But cutting out the U.S. middleman could mean more crude going straight to Asia – and new refineries in Asian countries to process it.

The threat of cheap crude slipping through America’s fingers to China has become a key talking point for pipeline advocates. Bill Day, a spokesman for the oil company Valero, which operates a Port Arthur, Tex. refinery that would receive oil via Keystone XL said that this could mean costs to the environment as well as the American economy.

“It’s going to come out of the ground, it’s going to get processed,” said Day. “We think it would probably be better to be processed here under our environmental rules rather than China.”

China’s state-owned companies have already invested heavily in Alberta’s oil sands. In 2012, Asian firms sunk nearly $30 billion in the area. Investments slowed last year after Canada changed some rules governing foreign investment, and after the Chinese companies already on the ground encountered roadblocks building pipelines. But investments are expect to climb again this year.

Image: A protest against the proposed Keystone XL oil pipeline  
Manuel Balce Ceneta / AP file 
Demonstrators lie down along Pennsylvania Ave. in front of the White House during a protest against the proposed Keystone XL oil pipeline, March 2. The protestors say the pipeline would contribute to global warming.

The Environmentalists Get What They Want – Sort of

Environmentalists want to delay or prevent the pipeline because doing so, they believe, will delay or prevent the extraction of Canadian tar-sands oil, estimated to be the world’s third-largest oil reserve. They’d prefer that the U.S. focus on alternative energies instead of searching for new sources of fossil fuel.

They also have a particular dislike for tar-sands oil, which is dirtier and heavier than other crude. When it spills it sinks in water and is hard to clean up. The Keystone XL pipeline would ship this dirty, heavy oil over one of the largest supplies of underground fresh water in America, Nebraska’s Ogallala Aquifer.

Opponents of Keystone are right, in part, to think that blocking it will slow down production. Without the pipeline, the supply of oil has so far exceeded the oil companies’ capacity to ship it out of land-locked Alberta to its largest market — the U.S.

The glut has driven down prices, making development in the region less attractive. A pipeline would not only make shipping faster and easier, it would lower the cost of transport, making the product still more attractive to customers.

“Industry plans to triple tar sands production over the next 20 years, and they simply will not be able to do it without pipeline capacity,” said Anthony Swift, an attorney with the National Resources Defense Council, a vocal opponent of the project. “We’re seeing projects begin to get cancelled as it becomes apparent that pipelines aren’t coming in as quickly as industry expected.”

But even without the pipeline, and with the cancelled projects, production is rising. A market assessment by Canada’s National Energy Board released in November estimated that Canadian crude production is on track to soar to nearly 6 million barrels per day — thanks in large part to oil coming from the sticky sands that have become the symbol of the debate over the energy future of North America.