Tag Archives: Derailment

Bakken Crude, DOT-111, Federal Regulation (U.S.), Oil Industry, Rail industry

Canada: 3-year phase out or retrofit of DOT-111 tank cars

Repost from Canada’s Financial Post

Canada to phase out in 3 years old rail tankers of type that exploded in Lac-Megantic disaster

Associated Press | April 23, 2014

Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac-Megantic, Que., July 6, 2013.

Canadian Press – Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac-Megantic, Que., July 6, 2013.

TORONTO  — Canada will require a three-year phase out or retrofit of the type of rail tankers involved in last summer’s massive explosion of an oil train that destroyed much of a Quebec town and incinerated 47 people, a government official told The Associated Press Wednesday.

Last July, a runaway oil train derailed and exploded in Lac-Megantic, Quebec, near the Maine border. Forty-seven people were incinerated and 30 buildings destroyed.

A government official confirmed the phase out of the DOT-111 tanker cars used to carry oil and other flammable liquids. The official spoke on condition of anonymity because the official was not authorized to speak publicly ahead of the plan’s official announcement.

Canada’s Transport Minister will announce new rules later Wednesday in response to recommendations by Canada’s Transportation Safety Board in the aftermath of the tragedy. U.S. officials will be watching closely as the rail industry is deeply integrated across North America and both nations’ accident investigators implored their governments earlier this year to impose new safety rules.

The DOT-111 tank car is considered the workhorse of the North American fleet and makes up about 70% of all tankers on the rails. But they are prone to rupture. The U.S. NTSB has been urging replacing or retrofitting the tank cars since 1991.

Canada’s safety board has said a long phase-out would not be good enough.

Safety experts have said the soda-can shaped car has a tendency to split open during derailments and other major accidents.

There’s been intense political and public pressure to make oil trains safer since a runaway train with 72 tank cars of North Dakota oil derailed and exploded in Lac-Megantic. The train was left unattended by its lone crew member while parked near the town. The train came loose and sped downhill into Lac-Megantic. More than 60 tank cars derailed and caught fire, and several exploded, destroying much of the downtown.

Oil trains also have exploded and burned in Alabama, North Dakota and New Brunswick in recent months.

The oil industry has been increasingly using trains to transport oil in part because of a lack of pipelines.

U.S. freight railroads transported about 415,000 carloads of crude in 2013, up from just 9,500 in 2008, according to government and industry figures.

The oil trains, some of which are 100 cars long, pass through or near scores of cities and towns.

Some companies have said they will voluntarily take the DOT-111 tank cars offline. Irving Oil Ltd., a large Canadian refiner, has said it will stop using the older DOT-111s by April 30. Canada’s two largest railways, Canadian National Railway and Canadian Pacific Railway, have already said they would move away from the DOT-111. But it is the oil companies or shippers that own or lease many of the cars.

Bakken Crude, DOT-111, Emergency Readiness & Response, Rail accidents, Rail industry, Rail tanker cars, Tank car design

All about the unsafe DOT-111 tank car

Repost from The News Tribune, Tacoma, OR
[Editor: This article is a good start, but it leaves much unsaid.  Information and disinformation abounds regarding the DOT-111 tank car, designed in 1964.  There are retrofitted (improved) versions of the DOT-111, but they are a small percentage of DOT-111’s currently in use, and are not REQUIRED BY LAW for transport of hazardous materials … and even these retrofitted cars are considered by many to be unsafe.  A place to begin learning more is Wikipedia.  Even better is this NTSB document,  or this by New York Senator Schumer  … and especially this technical publication by Turner, Mason & Company.   See also the authoritative and exhaustive American Association of Railroads’ Field Guide to Tank Cars.  The City of Benicia should condition Valero’s Crude By Rail proposal by requiring tank cars of the latest and safest designs for all deliveries, with stiff requirements for daily verification and harsh penalties for violations.  – RS]

Old oil tanker cars, old regulations, new danger

The News Tribune | April 22, 2014

Freight trains have an excellent overall safety record, which is why we don’t flee at the sight of them. But the growing numbers of oil trains rumbling through Washington ought to be making us nervous.

U.S. petroleum production – especially at the Bakken formation in North Dakota – has been expanding far more quickly than the nation’s pipeline capacity. As a result, the crude oil is getting carted across states by train and by truck. Let’s take a closer look at the tanker car that hauls much of that oil through Western Washington.

It’s called the DOT-111, a 1964 design. The Bakken oil that exploded catastrophically in Quebec last July, killing 47 people, was being carried in DOT-111 cars.

Five years ago, the National Transportation Safety Board investigated a low-speed train crash in Illinois in which 15 DOT-111 cars carrying fuel-grade ethanol went off the rails. Thirteen of the cars ruptured; the resulting explosion killed a motorist waiting at the crossing.

The NTSB did the math: 13 out of 15.

“This represents an overall failure rate of 87 percent,” it concluded, “and illustrates the continued inability of DOT-111 tank cars to withstand the forces of accidents, even when the train is traveling at 36 mph, as was the case in this accident.”

The NTSB noted that the basic DOT-111 lacks many puncture-resistance systems and has a thinner shell than cars designed to carry extremely hazardous liquids, such as chlorine. It reportedly is well-suited for things that don’t blow up, like corn syrup.

Bakken crude – as the Quebec disaster demonstrated – is turning out to be unexpectedly volatile and even explosive. It shouldn’t be in the older DOT-111 fleet – newer models are reputedly safer – if the cars aren’t retrofitted with heavier steel armor and other safety features.

The American petroleum boom caught regulators and railways with their pants down.

Railroad companies didn’t have enough modern, thick-walled tanker cars, so the DOT-111s were pressed into service. Spills and explosions have resulted. The U.S. Department of Transportation hasn’t come up with the tighter tank-car standards the new reality obviously demands.

Earlier this month, U.S. Sen. Patty Murray held a hearing that put Transportation Secretary Anthony Foxx on the hot seat. Sen. Susan Collins of Maine asked Foxx when the new oil train standards would be arriving.

“My target date is as soon as possible,” he said.

Four years ago – when North Dakota ran out of pipeline capacity – would have been better timing.

Emergency Readiness & Response, Federal Regulation (U.S.), National Transportation Safety Board, Rail industry, Rail Safety, Spill prevention and response

Federal Railroad Administration does not monitor or review railroad emergency response plans

Repost from Environment and Energy Publishing

Oil-by-rail loophole keeps U.S. emergency response plans in the dark

Blake Sobczak, E&E reporter | EnergyWire: Tuesday, April 22, 2014

U.S. transportation officials don’t review how railroads would handle worst-case oil train disasters like last summer’s derailment in Quebec, which killed 47 people in a fiery explosion.

While railroads must keep “basic” emergency response plans in their own files, the Federal Railroad Administration does not monitor or review those plans.

That’s because railroads are required to provide “comprehensive” oil spill response plans to the FRA only if they use tank cars that hold more than 42,000 gallons of crude. In an April 10 letter responding to a Freedom of Information Act request from EnergyWire, FOIA officer Denise Kollehlon said the FRA’s files “do not contain any records related to the active comprehensive ‘oil spill prevention and response plans’ for oil shipments.”

Safety experts and environmentalists say the 42,000-gallon threshold is too high. They stress that the 1996 rule that set the limit never applies in practice. Just five tank cars nationwide are designed to store that much oil in a single packaging, officials say, and the FOIA response confirms that none are hauling crude (EnergyWire, Feb. 19).

The threshold predates the recent surge in oil-by-rail transport, which has seen annual crude shipments jump from fewer than 10,000 carloads in 2008 to 415,000 carloads last year, according to industry data.

Tim Pellerin, fire chief of Rangeley, Maine, said “tangible, realistic” emergency response plans could help firefighters, who often reach remote disaster sites before railroads’ own hazardous materials crews.

“There’s got to be a system in place that checks this and oversees [railroads] to make sure that there are plans in place,” he said in an interview.

Pellerin led a group of U.S. firefighters 60 miles north into Canada after a 72-car oil train derailed and exploded in Lac-Mégantic, Quebec.

The disaster claimed 47 lives and put hazardous materials safety on the map for U.S. and Canadian transportation regulators.

Later derailments and fires in Alabama and North Dakota in the United States and New Brunswick in Canada kept the issue in the spotlight, although they injured no one. Earlier this month, Pellerin called on lawmakers to provide more funding for first responders at a Senate Appropriations subcommittee hearing.

Local fire departments can request hazardous materials shipping and emergency response information from railroads under voluntary industry standards. But picking out potential weak points in such plans “is an awful lot to expect from a small volunteer fire department with a $2,000-per-year budget,” Pellerin said, adding that his department lacks the specialized knowledge needed to gauge the adequacy of railroads’ response measures. “I’m not an expert in 10,000 things — I’m a fire chief,” he said.

The FRA, part of the Department of Transportation, did not respond to requests for comment, although it has previously said it is taking a “comprehensive approach to improving the safe transportation of crude oil by rail.” In February, the regulator reached a voluntary agreement with railroads to tighten oil train operating practices, lowering speed limits through urban areas and committing $5 million in industry funds to prepare first responders, among other measures.

Holly Arthur, spokeswoman for the Association of American Railroads, noted that railroads are also developing an inventory of oil spill emergency response resources under the terms of the agreement.

“This inventory will include locations for the staging of emergency response equipment and, where appropriate, contacts for the notification of communities,” Arthur said in an emailed statement yesterday. “When the inventory is completed [by July 1], railroads will provide DOT with information on the deployment of the resources and make the information available upon request to appropriate emergency responders.”

Emergency response ‘offloaded to local communities’

Safety officials have questioned whether voluntary arrangements go far enough to protect local communities.

Outgoing National Transportation Safety Board Chairwoman Deborah Hersman wrote in a Jan. 23 letter to FRA Administrator Joseph Szabo that without closely regulated response plans, “[rail] carriers have effectively placed the burden of remediating the environmental consequences of an accident on local communities along their routes.”

Hersman reiterated her crude-by-rail concerns yesterday in her farewell address at the National Press Club in Washington, D.C. Crude-by-rail “can be a worst-case-scenario event, and we don’t have provisions in place to deal with it, either on the industry side or for the first responders,” she said.

Experts at the NTSB and Canada’s Transportation Safety Board agree that the magnitude of the Lac-Mégantic disaster swamped the small railroad’s response resources, which can include hazardous materials crews and specialized firefighting foam. The railroad involved in the July 6 crash — Montreal, Maine & Atlantic Railway Ltd. — has since declared bankruptcy in the United States and Canada and is in the process of being taken over by the New York-based Fortress Investment Group (EnergyWire, Jan. 23).

“Railroads have for decades offloaded to local communities the responsibilities for emergency response,” said independent hazardous materials consultant Fred Millar, who has worked with environmental groups including Friends of the Earth.

Millar said he was not surprised by the fact that the FRA does not keep tabs on railroads’ oil spill response plans. “Nobody even has a measure of what would be an adequate emergency response capability,” he said.

By contrast, crude pipelines, storage facilities and waterborne oil tankers must comply with lengthier emergency response requirements laid out by the Pipeline and Hazardous Materials Safety Administration, U.S. EPA and U.S. Coast Guard, respectively.

The 1996 rules for oil-by-rail emergency response plans were crafted by the Research and Special Programs Administration, the precursor to PHMSA.

The agency said then that “on the basis of available information, no rail carrier is transporting oil in a quantity greater than 42,000 gallons in tank cars.”

NTSB has since questioned why the benchmark for comprehensive plans exists if it never actually applies. Officials at the Department of Transportation have until tomorrow to respond to NTSB’s criticisms.

“By limiting the comprehensive planning threshold for a single tank size that is greater than any currently in use, spill-planning regulations do not take into account the potential of a derailment of large numbers of 30,000-gallon tank cars, such as in Lac-Mégantic where 60 tank cars together released about 1.6 million gallons of crude oil,” NTSB’s Hersman wrote in her letter to PHMSA, also part of DOT.

In the wake of the Lac-Mégantic derailment, PHMSA has also faced pressure to update decades-old crude tank car rules. Critics say the outdated federal tank car standards and the FRA’s lack of oil spill emergency planning oversight point to the difficulty of keeping pace with the fast-growing crude-by-rail business.

The FRA and the railroad industry cite improving safety statistics, noting that more than 99.9 percent of all hazardous materials shipments reach their destination safely.

But despite declining accident rates over the past decade, regulatory consultant and attorney Paul Blackburn said, “citizens need to be concerned about … what happens over time.”

“After a big event like the Lac-Mégantic disaster, you’d expect the industry to be more cautious,” he said of recent voluntary safety measures. But “as these events fade from memory, there’s nothing to stop the industry from backing off on its commitment to improve spill response” barring federal action.

Reporter Mike Soraghan contributed.

Derailment, Explosion, Lac-Mégantic, Victim compensation

The legal quagmire of Lac-Mégantic

Repost from The Montreal Gazette

Plans are finally taking shape for financial compensation of derailment victims

By Monique Beaudin, Gazette environment reporter April 20, 2014
The legal quagmire of Lac-Mégantic
The light fades over the Appalachian Mountains in Lac-Mégantic a couple of weeks after the train derailment in July 2013. Eight months later, plans for compensation are coming together. Photograph by: Allen McInnis , Montreal Gazette

Nine months after a runaway oil train derailed in Lac-Mégantic, killing 47 people and destroying a large chunk of the town, a plan for financially compensating disaster victims is taking shape.

Judges in Quebec and Maine have approved a joint cross-border process for victims of the accident to file claims against Montreal, Maine and Atlantic Railway and its Canadian operations, Montreal, Maine and Atlantic Canada. The two companies have been under bankruptcy protection since August.

Thousands of claims related to the derailment are expected to be filed against MMA. Public information meetings on the financial-claims process are to begin in Lac-Mégantic next week. Claims must be filed by the middle of June.

People who lost family members, homes and businesses have turned to Canadian and American courts for financial compensation, but the process has been slow. The estates of several of the 47 people killed on July 6 have filed wrongful-death lawsuits in the U.S. Lawyers have also begun proceedings to bring a class action in Quebec. Quebec has already ordered six companies to clean up and decontaminate the town, a move that is facing a legal challenge.

The American lawyer overseeing MMA’s U.S. bankruptcy proceedings himself admits figuring out how victims will be compensated is “quite complicated”.

One of the biggest questions is who has the money to pay for the accident — compensating victims and secured creditors, covering cleanup costs and paying damages that several companies are claiming as a result of the derailment.

MMA was sold in January to New York-based Railway Acquisitions Holdings, for $14.25 million, less than what it owes its secured creditors.

That leaves a $25-million insurance policy and the possibility of a settlement fund composed of contributions from several companies targeted by legal action after the accident, said Robert Keach, MMA’s U.S. Chapter 11 trustee.

Another possible source of financial compensation for victims could come from a lawsuit Keach filed against World Fuel Services, Western Petroleum and Petroleum Transport Solutions, the companies that arranged for the shipment of the crude oil on the train. Keach argued they were to blame for the accident since the oil had been mislabelled as being less volatile than it actually was.

New York-based lawyer Luc Despins is counsel to a victims’ committee made up of residents, the town of Lac-Mégantic and the Quebec government. The committee represents victims’ interests in MMA’s American bankruptcy proceedings, offering input on issues like the compensation process, he said.

Despins said the committee’s goal is to get as much money as possible to the Lac-Mégantic victims as quickly as possible. But, he cautioned, not all claims filed may be accepted.

“If someone agrees their house was worth $600,000 and they got the full $600,000 from their insurance company, and that’s their only claim, they should not be recovering twice, this is not a lottery,” he said. “They may have other claims, but as far as the house I gave as an example is concerned, they can’t recover twice.” The courts will decide who has a valid claim, Despins said.

LOGISTICS: WHAT’S NEXT FOR VICTIMS OF THE DISASTER

Victims of the accident have until June 13 at 5 p.m. to file a proof of claim against Montreal, Maine and Atlantic.

Public information meetings on the claims process are to be held in Lac-Mégantic between April 22 and May 5, and assistance will be provided to help people complete the claims forms, according to an order issued by Quebec Superior Court. Victims who do not file a claims form by June 13 will not be permitted to participate in the Canadian or U.S. bankruptcy proceedings or receive any payment made available in those proceedings.

Claims forms and information about the claims process are posted on the website of Montreal-based Richter Advisory Group, the company’s Canadian bankruptcy monitor, at www.richter.ca under “Insolvency Cases” or  http://bit.ly/mmamonitor.

LEGAL ACTIONS INVOLVING VICTIMS OF LAC-MÉGANTIC

A request has been filed to approve a class-action lawsuit in Quebec against MMA, World Fuel services, Irving Oil, Canadian Pacific, the federal government and others. More than 1,550 people have registered with the class action so far.

A committee of three Lac-Mégantic residents, a representative of the Quebec government and the town of Lac-Mégantic represents victims’ interests in MMA’s U.S. bankruptcy proceedings.

The estates of 19 people killed in the Lac-Mégantic train derailment filed wrongful-death lawsuits in Illinois, naming several defendants, including MMA, company chairman Edward Burkhardt, MMA’s parent company Rail World, and World Fuel Services, which arranged for the transportation of the crude oil on the train. All except two of those lawsuits have been withdrawn while American courts decide where they will be heard. A law firm representing the estates says it plans to appeal a recent decision from a U.S. federal judge ordering the cases transferred to Maine, where MMA’s bankruptcy proceedings are being held. One of the issues at play is the amount of money that could be awarded as damages. Illinois has no cap on such payments, while Maine limits them to $500,000 in wrongful-death cases.

POSSIBLE SOURCES OF FINANCIAL COMPENSATION

A $25-million insurance policy MMA has with XL Insurance. Many people and companies are interested in the insurance policy. They include:

– Victims of the Lac-Mégantic derailment, such as the families of people killed in the accident, those who were injured or those who suffered losses to their businesses or homes.

– CIT Group, a company that owned some of the locomotives and tank cars involved in the accident. CIT has said it plans to settle any claims against it from wrongful-death lawsuits tied to the derailment with the XL insurance policy.

– MMA chairman Edward Burkhardt, who has been named in several legal actions linked to the derailment, argued in U.S. bankruptcy court that he is covered by the policy.

Settlements from legal action taken by MMA’s bankruptcy trustee against World Fuel Services.

The creation of a settlement fund made up of financial contributions from companies that may be liable for the accident.

TIMELINE OF THE LEGAL FALLOUT

July 6, 2013: A 72-car oil train pulled by five locomotives unexpectedly rolls down railway tracks into the town of Lac-Mégantic. Most of the cars derail, leading to explosions and a fire that kills 47 people and destroys much of the downtown core. Nearly 6 million litres of crude oil spill in the accident.

July 15, 2013: Lac-Mégantic lawyer Daniel Larochelle and two other law firms file a request in Quebec Court to begin class action proceedings against MMA and 14 other companies and individuals.

July 22, 2013: Annick Roy files a wrongful-death lawsuit in Illinois court on behalf of the estate of Jean-Guy Veilleux and their daughter. Veilleux was killed July 6.

Aug. 7, 2013: MMA files for bankruptcy protection in Canada and the U.S.

Aug. 14, 2013: A total of 19 wrongful-death cases have been filed in Illinois court.

Aug. 22, 2013: The Quebec government announces the creation of a victims’ committee to represent Lac-Mégantic residents, the government and the town in the U.S. bankruptcy proceedings.

Jan 23, 2014: Bankruptcy judges in Canada and the U.S. approve the sale of MMA to Railway Acquisitions Holdings of New York for $14.25 million U.S.

Feb. 12, 2014: Lawyers for the proposed Quebec class action add Transport Canada to the list of more than 50 organizations and people it plans to sue.

Feb. 26, 2014: A joint Canada-U.S. bankruptcy meeting between creditors tries to speed up the pace of the claims process.

April 2014: The MMA sale to RAH is expected to be finalized.

June 13, 2014: This is the proposed deadline for victims and creditors to file claims against MMA in the Canadian and U.S. bankruptcy proceedings.

WHAT’S HAPPENING WITH MONTREAL, MAINE AND ATLANTIC

The railway company whose runaway oil train derailed in Lac-Mégantic on July 6, 2013. It is in the process of being sold to Railway Acquisition Holdings, a New York City -based company, for $14.25 million U.S. RAH plans to change the name of the company to Central Maine and Quebec Railway, and offer rail service on MMA’s 800 kilometres of tracks in the two countries.

RAH is acquiring two companies:

Montreal, Maine and Atlantic Railway

  • Parent company of Montreal, Maine and Atlantic Canada.
  • Operates a shortline railroad in Vermont and Maine.
  • Under Chapter 11 bankruptcy protection since August.

Montreal, Maine and Atlantic Canada

  • Railway operating in Quebec.
  • Under bankruptcy protection since August.