Tag Archives: Derailment

Canadian regulation, Cleanup funding, Emergency Readiness & Response, Valero Energy Corporation

Valero Canada: ‘We don’t want to pay for cleanup’

[Editor: I received the following document from a volunteer for Benicians For a Safe and Healthy Community.  It is a letter from Valero of Canada, addressed to a consultation in Canada nearly a year after the disaster in Lac-Mégantic.  Participants were scratching their heads about who is liable and who pays when a billion-dollar cleanup is necessary after a bomb train blows up.  Valero wanted everyone to know: “No, uh-uh, not us!”   Our Benicia volunteer wrote, “I found a letter dated April 24,2014 from VALERO energy with a subject: Stakeholder consultation on federal rail  liability and compensation regime.  In the letter on paragraph 4 it intones clearly that the liability in a spill is to be with the transporter.  … I think it should be in the record as it clearly states… their intent of a lack of responsibility in the case of a derailment, explosion and spill.”  – RS]
Valero letter of 4-24-2014, addressing a Canadian Stakeholder consultation on federal rail liability and compensation regime

 

California Regulation, Crude By Rail, Emergency Readiness & Response, Federal Regulation (U.S.), Hazmat notification, Massive increase in crude-by-rail, Public Safety, Rail inspection

KQED: California’s Not Ready for Influx of Oil Trains, Says Report

Repost from KQED Science, NPR/PBS

California’s Not Ready for Influx of Oil Trains, Says Report

Molly Samuel, KQED Science | June 12, 2014

Trains carrying oil can pose serious risks to public safety and the environment, and California isn’t prepared, according to a report released by state agencies this week.

Crude-by-rail is a growing concern, as an oil boom in North Dakota has meant increasing amounts of crude traveling to refineries by rail. A series of fiery derailments in the past year, including one that killed 47 people in a Quebec town, has focused attention on the need to prevent accidents and be prepared for emergency response.

‘Even though we haven’t had an accident, which is great, we want to be able to respond to it when there is an accident.’– Kelly Huston, Office of Emergency Services

The report warns that a derailment in California could kill people, destroy neighborhoods, damage water supplies and threaten natural areas.

“Even though we haven’t had an accident, which is great, we want to be able to respond to it when there is an accident,” said Kelly Huston, a deputy director at the Governor’s Office of Emergency Services (OES). “With the increase in the amount of crude oil on rail coming through California’s cities and counties, we believe there should be some increased training for first responders.”

The report was released by an inter-agency group that includes the OES, the state Department of Fish and Wildlife and the California Public Utilities Commission (CPUC), among others. It recommends boosting funding for emergency responder training, and for equipment to handle hazardous material accidents. It also supports an item in Governor Jerry Brown’s proposed budget that would provide more money to the Office of Oil Spill Prevention and Response, which has focused on marine oil spills in the past, but is now preparing for the possibility of inland spills.

It’s not all about accident response; there are also recommendations for prevention. Most rail regulation is up to the federal government; the CPUC helps enforce safety rules with its own rail inspectors. There are 52 of them, responsible for monitoring more than 5,400 miles of track in the state. “This staffing level is seriously inadequate,” the report says.

Paul King, deputy director for the rail safety at the CPUC, said the Governor’s budget aims to help. “To meet the volume of trains and the magnitude of the risk that [crude-by-rail] presents,” King said, “the Governor has put in his budget for extra staffing.”

There are other gaps the state cannot fill alone. As the CPUC pointed out in a report released last year, there is only one federal railroad bridge inspector for 11 Western states.

The report also raised the need for more information. As of last weekend, railroads that are transporting large shipments of Bakken, the volatile crude oil from North Dakota, must notify states. Huston of the OES said he got the first batch of documents Monday, but he said they’re of limited use and not timely enough. He said the OES is following up with BNSF and the federal Department of Transportation, the agency that issued the notification order.

Huston said he’d also like to see a map that the public could access, showing where the oil train shipments are headed. The railroads are resisting releasing information about crude shipments to the public.

Most of California’s oil comes either from within the state or overseas, and travels to refineries here by pipeline or ship. And that’s still the case. According the the California Energy Commission, only about one percent of California’s crude came by train in 2013. But trains carrying oil are becoming more frequent, and the CEC projects that by 2016, trains could be bringing in about 23 percent of California’s crude.

Crude By Rail, Hazmat notification, Rail industry, Rail routing, Train speed

Railroads oppose some oil train safety measures

Repost from Politico

Documents: Railroads want to hit brakes on some oil train safeguards

By KATHRYN A. WOLFE | 6/13/14 5:08 AM EDT
A fireball goes up at the site of an oil train derailment in Casselton, North Dakota, on Dec. 20, 2013.
The report previews what the administration may be considering to stop crashes. | AP Photo: A fireball goes up at the site of an oil train derailment in Casselton, North Dakota, on Dec. 20, 2013.

The railroad industry is warning the White House against some potential safety rules for trains carrying explosive crude oil, saying freight and passenger rail traffic could be disrupted for years if companies must obey 30 mph speed limits, install more sophisticated brakes and keep the trains manned at all times.

The arguments, contained in documents posted after a meeting this week between railroad officials and the Office of Management and Budget, also offer a preview of what steps the Obama administration may be considering in response to oil train crashes that have struck the U.S. and Canada in the past year. Those include a disastrous July 6 explosion that killed 47 people in Lac-Mégantic, Quebec, after an engineer left a train packed with North Dakota crude oil parked on a steep incline with brakes that may not have been properly set.

The Department of Transportation declined to comment on the documents. DOT submitted a draft rule proposal to OMB in April but has offered no details about what’s in it.

Companies represented at Tuesday’s OMB meeting included the four major freight railroads — BNSF, Union Pacific, Norfolk Southern and CSX — as well as other industry groups and Amtrak, according to White House records.

While Amtrak doesn’t haul crude oil, a BNSF handout arguing against lower speed limits said the passenger rail’s travel schedules on one 1,815-mile route could be lengthened by two hours if oil trains’ top speeds are lowered to 30 mph from 50 mph. That route stretches between Aurora, Ill., and Spokane, Wash., which BNSF called its primary route for crude oil.

Slowdowns would cause “severe” impacts for the railroad’s operations, including both oil and grain shipments, BNSF said in the handout, calculating six-hour delays for freight trains along the same route. All told, the railroad said it would have to spend $2.8 billion to rebuild its lost shipping capacity during the next four years, while facing $630 million in additional annual expenses such as additional crew wages and lost productivity.

The Association of American Railroads, the freight railroad industry’s main trade group, offered a similar document on the speed limit issue.

None of the documents address the main issue people are expecting the DOT rule to address: increased safety requirements for the tanker cars that carry the oil.

Oil train traffic across the U.S. has increased 40-fold since 2008 because of booming production in places like North Dakota and western Canada. It’s also become an increasingly contentious issue for communities from California and Washington state to Albany, N.Y., and Lynchburg, Va.

The documents may not accurately reflect DOT’s undisclosed draft — the railroads may have been blindly making a case for what they don’t want to see happen. But they reveal that industry insiders have given thought to potential regulations that would go much further than the mostly voluntary measures DOT has imposed so far.

Earlier this year, DOT announced that railroads had voluntarily agreed to restrict some oil trains to 40 mph in certain populous areas.

But lowering the speed limit to 30 mph would harm “delivery capability” for BNSF’s oil customers, the railroad said in the document. To keep up with demand, it said, it would have to add an additional 11,280 tank cars to its crude oil fleet.

In the other documents posted on OMB’s website:

— A handout from CSX argues against requiring electronically controlled pneumatic braking systems, saying the technology is “expensive and only works if the entire train is equipped.” The company says the brakes would have “limited use and minimal safety impact.”

As part of an existing voluntary agreement between the industry and DOT, railroads agreed to equip all trains pulling 20 or more carloads of crude oil with other types of advanced braking systems — either distributed power or two-way telemetry end-of-train devices.

— And a final handout, whose authorship is unclear, argues against requiring that crude oil trains never be left unattended. It says “attending crude oil trains from origin to destination will increase congestion, require additional handling, and significantly drive up costs,” including $96 per hour for a two-person crew.

It also says that “appropriate securement and security measures are already in place to ensure safe movement of crude oil shipments.”

Bakken Crude, DOT-111, Federal Regulation (U.S.), Reid vapor pressure levels, Volatile gases

Oil field developer proposes to strip Bakken crude of volatile natural gas liquids

Repost from EnergyWire, E&E Publishing
[Editor: Two significant quotes: “We’re not really taking a position on the tank car rule.  All we’re saying is, in making the rule, please consider what’s going in the car in addition to the car itself.” and “‘Right now, they [American Petroleum Institute] are kind of the lone soldier among the players involved here saying volatility isn’t an issue.  Everyone else is saying, “We know it’s an issue — now we have to figure out how we solve it.”‘”  Well, one way to solve it is to leave the stuff in the ground and invest in renewable energy.  Duh.  – RS]

Oil groups line up at White House over tank car standards

Blake Sobczak  |  E&E News  |  Tuesday, June 10, 2014

Quantum Energy Inc. claims to have no position on proposed oil tank car standards — yet the oil field developer stopped by a White House office last week to discuss them anyway.

Russell Smith, Quantum’s executive vice president of public affairs, said he met with the small but influential Office of Information and Regulatory Affairs to make sure regulators knew about the company’s plans for “stabilizing” hot-to-handle crude from North Dakota’s Bakken Shale play.

Bakken crude has earned a volatile reputation after a string of oil train derailments and fires. A 72-car oil train jumped the tracks and exploded in downtown Lac-Mégantic, Quebec, last July, killing 47 people and prompting regulators to warn that Bakken crude may be less stable than other types.

The deadly crash also set the stage for the “comprehensive” oil-by-rail rulemaking package now weaving its way through OIRA, part of the Office of Management and Budget. White House records show several oil companies, refiners and industry groups have met with administration officials and transportation regulators to shape new standards for the type of DOT-111 tank car long faulted for its puncture-prone design.

“We’re not really taking a position on the tank car rule,” said Smith, who attended June 2’s meeting with lobbyists from FTI Consulting, OIRA representatives and Department of Transportation regulators. “All we’re saying is, in making the rule, please consider what’s going in the car in addition to the car itself.”

Smith’s company hopes to set up “21st-century energy centers” in North Dakota’s Williston Basin capable of stripping the most volatile natural gas liquids out of Bakken crude before the commodity is loaded onto rail cars.

Oil producers have contested claims that Bakken crude is more volatile than other types, and the North Dakota Petroleum Council has conducted tests that it says show the crude is safe (EnergyWire, May 21).

Last month the oil industry’s top lobbying group, the American Petroleum Institute, met with OIRA to air its views on tank car rules that could have a big impact in the Bakken, where well over 600,000 barrels of oil leaves the state daily by rail (EnergyWire, May 28). API said in a later statement that it is “critical” that the proposed rule should “achieve measurable safety improvements by using science and data to address accident prevention, mitigation and response.”

Since then, several refiners, chemical companies and trade groups, including the American Chemistry Council and the American Fuel & Petrochemical Manufacturers (AFPM), have also met with OIRA about the tank car rules.

AFPM has conducted its own study of Bakken crude volatility and concluded even older-model DOT-111 rail tank cars can safely handle the oil, although the refining group detected Reid vapor pressure levels as high as 15.4 pounds per square inch (absolute) in some samples.

Reid vapor pressure offers a good indication of flammable gas content in a liquid such as crude. While 15.4 psi is well within even the oldest DOT-111 tank cars’ safe pressure capacity, AFPM said in its survey of Bakken crude characteristics that vapor pressures of 10 psi or lower “are in the best interests of AFPM members.”

Smith said Quantum intends to strip Bakken crude down to a Reid vapor pressure of 6 psi or lower and sell the separated gas liquids. The Tempe, Ariz.-based holding company also hopes to set up five micro-refineries modeled after a new joint project run by MDU Resources Group Inc. and Calumet Specialty Products Partners (EnergyWire, April 11, 2013). Once completed, that diesel facility will mark the first new refinery built in the United States in nearly 40 years.

“Since we’re stabilizing [Bakken oil] upstream of our refineries, our refineries will actually be receiving ‘stripped’ crude,” Smith said. “With a reasonably small increase in investment, we could be capable of stripping every drop of oil coming out of the Bakken.”

The API said in a statement that “NGL removal is among the topics being considered by the experts who are developing with [the Pipeline and Hazardous Materials Safety Administration’s] participation the new standard for classifying, handling, and transporting crude by rail, and API intends to review their work on the issue before taking a position.”

API has repeatedly emphasized that Bakken crude poses no greater risk than other light oil varieties, a position Smith called “short-sighted.”

“Right now, they are kind of the lone soldier among the players involved here saying [volatility] isn’t an issue,” Smith said of API. “Everyone else is saying, ‘We know it’s an issue — now we have to figure out how we solve it.'”

Blake Sobczak

Reporter, EnergyWire

bsobczak@eenews.net

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About Quantum Energy, Inc.

QUANTUM ENERGY, INC. is a development stage, publicly traded, diversified holding company with offices in Williston, North Dakota. Quantum places an emphasis in refinery development, land holdings, oil and gas exploration, drilling, well completion and fuel distribution www.quantum-e.com.