Tag Archives: Ethanol

Bakken Crude, Crude By Rail, DOT-111, Oil Industry, Rail industry

Refiners’ Association sues railroad over fee on oil loaded in older tank cars

Repost from McClatchy DC
[Editor:  Incredible: The complaint says, “Despite BNSF’s distaste for the DOT-111 cars, (emphasis added) they are authorized bulk packaging for crude oil service.”  “Distaste?”  Really!  Oh, and … the BNSF surcharge would suggest that $1000/car will help exactly whom if/when the next explosion occurs?  Surely not those whose bodies and livelihoods are incinerated.  See this story also at Bloomberg Business News and Courthouse News Service.  – RS]

Refiners sue BNSF over fee on oil loaded in older tank cars

By Curtis Tate, McClatchy Washington Bureau, March 16, 2015

A trade group representing oil refiners has sued the nation’s largest hauler of crude oil in trains over a surcharge for oil loaded into older tank cars that have punctured and ruptured in numerous derailments.

The American Fuel & Petrochemical Manufacturers, a trade association for producers of gasoline, jet fuel, home heating oil and other refined products, sought an injunction last week in U.S. District Court in the Southern District of Texas to block BNSF Railway from imposing a $1,000 surcharge for every DOT-111 model tank car loaded with crude oil.

Tens of thousands of DOT-111 cars have carried a surge in domestic energy production, but their poor safety record in oil and ethanol train derailments has drawn fresh scrutiny from regulators, lawmakers and the National Transportation Safety Board.

BNSF hauls 600,000 barrels a day of crude oil, mostly from North Dakota’s Bakken region, to refineries on the east and west coasts. In October, the railroad announced it would impose a $1,000 surcharge on oil shipped in DOT-111 tank cars, effective Jan. 1.

But the trade group, which represents more than 400 companies, said in its complaint that BNSF asserted “unlawful regulatory authority” when it began imposing the surcharge.

The U.S. Department of Transportation regulates rail transportation, and until regulations require tank cars of a different design for oil shipments, the group’s complaint says that BNSF and other railroads are obligated by law to accept them in whatever cars the government currently allows.

“Despite BNSF’s distaste for the DOT-111 cars,” the complaint says, “they are authorized bulk packaging for crude oil service.”

One DOT-111 tank car holds about 30,000 gallons, or 700 barrels of oil. The complaint says the $1,000 surcharge adds $1.50 per barrel in rail transportation costs.

The trade group’s complaint says that BNSF’s surcharge causes “direct and substantial harm” to its clients and “breaches BNSF’s common carrier duty to ship hazardous materials.” By law, railroads must provide rail transportation on reasonable request.

The Pipeline and Hazardous Materials Safety Administration submitted a new design for tank cars to the White House Office of Management and Budget for review in January.

Four crude oil trains have derailed and caught fire across North America since mid-February. One of them was a BNSF train that derailed earlier this month near Galena, Ill.

In all four derailments, the tank cars were a modestly improved version of the DOT-111.

Bakken Crude, Crude By Rail, Derailment, Explosion, Federal Regulation (U.S.), Fire, Oil Industry, Rail industry, Tank car design, Tank car retrofit

Federal Railroad Admin: oil industry must do more to boost train safety

Repost from Reuters

Oil industry must join U.S. railroads to boost train safety – regulator

By Patrick Rucker, Mar 13, 2015 6:06pm EDT

WASHINGTON, March 13 (Reuters) – Rail operators are going to great lengths to prevent oil train derailments but the energy sector must do more to prevent accidents from becoming fiery disasters, the leading U.S. rail regulator said on Friday.

Oil train tankers have jumped the tracks in a string of mishaps in recent months that resulted in explosions and fires.

Several of those shipments originated from North Dakota’s Bakken energy fields. Officials have warned that fuel from the region is particularly light and volatile.

Sarah Feinberg, acting head of the Federal Railroad Administration, said the energy industry must do more to control the volatility of its cargo.

“(We) are running out of things that we can put on the railroads to do,” she said. “There have to be other industries that have skin in the game.”

A national safety plan for oil trains, due to be finalized in May, would require trains to have toughened tankers, advanced braking and other safety improvements.

The plan, however, would do nothing to mute the dangers of the fuel itself.

As officials try to prevent mishaps, they will also highlight the energy companies that supplied crude oil involved in accidents, Feinberg said.

Officials want to identify publicly “the owner of the product when we talk about these derailments,” she said.

The American Petroleum Institute said it hoped to work with the rail industry and other stakeholders to prevent mishap.

“Our safety goal, along with the railroads, is zero incidents,” said Brian Straessle, a spokesman for the trade group.

While U.S. officials have warned for more than 12 months that Bakken fuel can be volatile, the verdict is mixed on whether that contributes to the intensity of accidents.

In September, the FRA determined that Bakken crude oil may be no more explosion-prone than other fuels carried by rail.

Ethanol, a corn-based gasoline additive, “poses a similar, if not greater, risk as (Bakken) crude oil when released from a tank car failing catastrophically and resulting in a large fireball type fire,” according to a study from the agency.

On Friday, the FRA said that about 6,000 tankers had a top valve that allowed small amounts of oil to escape. The agency said it ordered the fitting to be replaced and said it would work with industry to identify and replace defective parts more quickly.

That defect was not believed to have played a role in any mishaps, the FRA said.

(Reporting by Patrick Rucker; Editing by Dan Grebler, Bernard Orr)
Bakken Crude, CPC-1232, Crude By Rail, Derailment, DOT-111, Explosion, Federal Regulation (U.S.), Fire, Rivers, Tank car design

EPA: Illinois oil train derailment threatens Mississippi River

Repost from McClatchy DC News
[Editor: In addition to breaking news about the EPA’s order of “imminent and substantial danger,” this article is an excellent summary of five recent hazmat derailments in as many weeks.  – RS]

EPA: Illinois oil train derailment threatens Mississippi River

By Curtis Tate, McClatchy Washington Bureau, March 7, 2015
Oil Train Derailment Illinois
Smoke and flames erupt when a train derailed Thursday, March 5, 2015, near where the Galena River meets the Mississippi in Illinois. On Saturday, March 7, the Environmental Protection Agency said the spill posed an environmental threat to the region. MIKE BURLEY — AP/Telegraph Herald

WASHINGTON — An oil train derailment and spill in northwest Illinois poses an “imminent and substantial danger” of contaminating the Mississippi River, the U.S. Environmental Protection Agency said Saturday.

The spill from the derailment, which occurred Thursday, also threatens the Galena River, a tributary of the Mississippi, and the Upper Mississippi National Wildlife and Fish Refuge, one of the most complex ecosystems in North America.

The EPA said it couldn’t estimate how much oil was spilled, but that the 21 cars of the 105-car BNSF Railway train that derailed contained 630,000 gallons of Bakken crude from North Dakota. Small fires from the wreckage continued to burn Saturday.

Earlier Saturday, another oil train derailed and caught fire near Gogama, Ontario, bringing to five the total number of fiery derailments in the U.S. and Canada in as many weeks.

The safety of trains carrying flammable materials has become an issue as the introduction of new drilling technology has allowed the development of crude oil deposits far from traditional pipelines, particularly in the so-called Bakken formation in North Dakota. Rail has become the preferred way to transport that crude to refineries, with railroads moving about 500,000 carloads of oil last year, according to industry estimates, up from 9,500 in 2008. One tank car holds 30,000 gallons.

But recent derailments have cast doubt on the effectiveness of safety efforts and suggest that no tank car currently in service on the North American rail system is tough enough to resist damage in relatively low-speed derailments.

According to the Federal Railroad Administration, which is investigating the Illinois derailment, the train was traveling at just 23 miles per hour when it left the tracks, well below the maximum speed allowed. The damaged tank cars were newer CPC-1232 tank cars, which are supposed to be safer than previous ones, but have failed in at least four derailments this year and at least two in 2014.

Saturday’s derailment of a Canadian National Railway train took place about 23 miles from where another oil train derailed on the same rail line three weeks ago. The railroad said on Twitter Saturday afternoon that five cars were in a local waterway, some of them on fire. About 264,000 gallons of oil were released in the Feb. 14 derailment. The Transportation Safety Board of Canada is investigating both accidents.

The Illinois derailment is the second in three weeks on U.S. rails. On Feb. 16, 28 cars of a 107-car CSX train derailed in Mount Carbon, W.Va., and 19 caught fire. One house was destroyed and more than 100 residents were evacuated for four days. Many residents and first responders witnessed columns of fire rising hundreds of feet in the air as several of the tank cars ruptured from heat exposure.

A Canadian Pacific train carrying ethanol derailed on Feb. 4 along the Upper Mississippi north of Dubuque, Iowa. The EPA estimates about 55,000 gallons spilled, some of which burned and some of which was recovered from the icy river.

In a statement Saturday, BNSF said a temporary road was being built to the Illinois site, about four miles south of Galena, to help extinguish remaining fires and remove damaged cars. The railroad said it “sincerely regrets” the impact of the derailment.

“Protection of the communities we serve, the safety of our employees and protection of the environment are our highest priorities,” the railroad said.

The role of the newer CPC-1232 tank cars in recent derailments and fires raises new worries about the risk shipments of oil pose to the cities and towns through which they travel. The rail industry adopted the CPC-1232 tank cars as standard in 2011 for oil shipments, saying they were an improvement over the DOT-111 tank car, which had been in use for decades to haul a variety of commodities, including ethanol and crude.

But in spite of special reinforcement of exposed areas, the new cars are still prone to spilling their contents, even at relatively low speeds.

On Jan. 30, the U.S. Department of Transportation sent new regulations for oil and ethanol trains to the White House Office of Management and Budget for review. The rule-making package is expected to include a new tank car design that exceeds the CPC-1232 standard.

According to the department’s February report on significant rule-makings, the final rule is scheduled for publication on May 12.

 

Bakken Crude, Crude By Rail, Derailment, Evacuation zone, Explosion, Federal Regulation (U.S.), Fire

Third Fiery Accident in Three Weeks Shows Need for Immediate New Federal Regulations

Repost from The Center for Biological Diversity

Center for Biological DiversityYet Another Oil Train Derails, Catches Fire, This Time in Illinois

Third Fiery Accident in Three Weeks Shows Need for Immediate Major Safety Upgrades for Shipments of Crude by Rail

GALENA, Ill.— An oil train transporting more than 100 cars of highly volatile crude oil derailed and caught fire today in northwest Illinois near the Mississippi River — the third explosive oil train accident in three weeks. Billowing columns of dark smoke and fireballs shooting hundreds of feet into the air were visible this afternoon as at least two tank cars caught fire. Early reports are that first responders had to pull back from the fire due to the heat and ongoing danger of more tank cars catching fire and exploding. The incident follows in close succession fiery oil train derailments in Ontario and West Virginia.

“The only thing more mind-boggling than three such accidents in three weeks is the continued lack of action by the Obama administration to protect us from these dangerous oil trains,” said Mollie Matteson, a senior scientist at the Center for Biological Diversity. “The government has the authority to take immediate action to address this crisis — which puts homes, waters and wildlife at risk – and yet it has sat back and watched.”

The Center for Biological Diversity recently released a report on the danger of oil trains traveling tracks throughout the United States. Among the findings were that some 25 million people live within the one-mile “evacuation zone” of tracks carrying oil trains and that the trains pass through 34 wildlife refuges and critical habitat for 57 endangered species.

The Illinois accident joins a growing list of devastating oil train derailments over the past two years. There has been a more than 40-fold increase in crude oil transport by rail since 2008, but no significant upgrade in federal safety requirements. Oil transport has increased from virtually nothing in 2008 to more than 500,000 rail cars of oil in 2014. Billions of gallons of oil pass through towns and cities ill-equipped to respond to the kinds of explosions and spills that have been occurring. Millions of gallons of crude oil have been spilled into waterways.

Today’s derailment happened where the Galena River meets the Mississippi River. There are no reports of injuries or fatalities, or of drinking water intake closures, although there are communities in the area that draw water from the Mississippi. The Burlington Northern Santa Fe train included 103 tank cars transporting volatile crude oil from the Bakken oil fields of North Dakota.

Loaded oil trains on this particular line first must pass through densely populated areas such as Minneapolis-St. Paul and La-Crosse. The trains also pass through the Upper Mississippi River National Wildlife Refuge, about 50 miles upstream of the derailment site. According to the U.S. Fish and Wildlife Service, the Mississippi River corridor “provides productive fish and wildlife habitat unmatched in the heart of America.”

“There are simply no excuses left for the Obama administration. The fact that these trains are still moving on the rails is a national travesty,” said Matteson. “The next explosive wreck — and there will be more, so long as nothing changes — may take lives, burn up a town or level a city business district, and pollute the drinking water of thousands of people. Enough is enough.”

A series of fiery oil-train derailments in the United States and Canada has resulted in life-threatening explosions and destructive oil spills. The worst was a derailment in Quebec in July 2013 that killed 47 people, forced the evacuation of 2,000 people, and incinerated portions of a popular tourist town.

Ethanol shipments by rail have also raised safety concerns. On Feb. 4, a train transporting ethanol derailed along the Mississippi River in Iowa, catching fire and sending an unknown amount of ethanol into the river.

In February the U.S. Department of Transportation sent new rules governing oil train safety to the White House for review, prior to public release. However, the proposed rules fail to require appropriate speed limitations, and it will be at least another two and a half years before the most dangerous tank cars are phased out of use for the most hazardous cargos. The oil and railroad industries have lobbied for weaker rules on tank car safety and brake requirements. The industries also want more time to comply with the new rules.

Yet, without regulations that will effectively prevent derailments and rupture of tank cars, oil trains will continue to threaten people, drinking water supplies and wildlife, including endangered species.

The Center has also petitioned for oil trains that include far fewer tank cars and for comprehensive oil spill response plans for railroads as well as other important federal reforms, and is also pushing to stop the expansion of projects that will facilitate further increases in crude by rail.

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 825,000 members and online activists dedicated to the protection of endangered species and wild places.