Valero letter of 4-24-2014, addressing a Canadian Stakeholder consultation on federal rail liability and compensation regime
Repost from KQED Science, NPR/PBS
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.
Repost from Politico

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.”
Repost from ThinkProgress
Flanked by hundreds of concerned residents, the City Council of Vancouver in southwestern Washington State voted early Tuesday morning to formally oppose what would be the Pacific Northwest’s largest crude oil train terminal, saying the project poses “unacceptable risks” to the city’s population of 160,000.
The council’s decision came after six hours of testimony from more than 100 residents, most of them opposed to Tesoro Corp.’s plan to develop a large train terminal at the Port of Vancouver, which would receive up to 380,000 barrels of North Dakotan crude oil per day and transfer it to ships bound for West Coast refineries. That amount of oil, which would come through the city on four separate unit trains per day, is just less than half the daily amount that would be transported by the controversial Keystone XL pipeline.
“The Council’s opposition … [is] due to the unacceptable risks posed to the citizens of Vancouver by the terminal and the related transportation of Bakken crude oil through the city,” the resolution, passed 5-2, reads.
The broad, non-binding resolution opposing Tesoro’s proposal also included language that formally opposes any proposal that would result in an increase of crude oil from North Dakota’s Bakken shale being hauled through Clark County. Last July, 47 people were killed in Lac-Megantic, Quebec, when a train carrying Bakken crude derailed. The U.S. Pipeline and Hazardous Materials Safety Administration has warned Bakken crude could be more flammable than regular oil, due to either its unique properties or because of added chemicals from the hydraulic fracturing process used to extract it.
The National Transportation Safety Board (NTSB) also recently made recommendations that crude oil trains stay far away from urban population centers, citing the increasing rate of fiery accidents involving crude oil trains.
Vancouver Mayor Tim Leavitt and Councilor Bill Turlay were the two that voted no against the proposal, with Leavitt saying he didn’t want to make a “political statement” against a single project without having all the facts.
“It’s kind of like back in the Old West, [when] Judge Roy Bean said, ‘We’re going to have a fair trial and hang the guilty bastard’,” Turlay said, according to a report in the Columbian. “Now, that’s not exactly how I want to present this.”
Turlay and Leavitt did join the other councilors in voting for a resolution that would allow the city to actually have a say in the decision-making process over Tesoro’s proposed project. That resolution allowing intervention in the decision-making process gives Vancouver officials the right to present evidence against the project and appeal any decision, which will ultimately be made by the state’s sitting governor, currently Gov. Jay Inslee.