Tag Archives: Federal Regulation (U.S.)

Railroads use new oil shipment rule to fight transparency

Repost from McClatchy DC 

Railroads use new oil shipment rule to fight transparency

By Curtis Tate, McClatchy Washington Bureau, 6/25/15
A CSX oil train moves east through Selkirk Yard near Albany, N.Y., on May 26, 2015. The Albany area has become a hub for crude by rail shipments as East Coast refineries have replaced imported oil with mid-continent sources. CSX and other railroads continue their push to keep routing and volume information about the shipments from the public. CURTIS TATE — McClatchy

— Railroads may have found a new weapon in their fight to keep information about oil train shipments from the public: a federal rule that was supposed to increase transparency.

The U.S. Department of Transportation insists that its May 1 final rule on oil trains, which mostly addresses an outdated tank car design, does not support the railroads’ position, nor was it intended to leave anyone in the dark.

But in recent court filings in Maryland, two major oil haulers have cited the department’s new rule to justify their argument that no one except emergency responders should know what routes the trains use or how many travel through each state during a given week.

Those details have been publicly available in most states for a year, though some sided with the railroads and refused to release them. The periodic reports have helped state and local officials with risk assessments, emergency planning and firefighter training.

The department’s rule was expected to expand the existing disclosure requirements. In its 395-page rule, the department acknowledged an overwhelming volume of public comments supporting more transparency. But ultimately, it offered the opposite.

The final rule ends the existing disclosure requirements next March. Railroads no longer would be required to provide information to the states, leaving emergency responders to request details about oil train shipments on their own, and the public would be shut out entirely.

The switch floored those who submitted comments in favor of increased transparency.

“The justification was not consistent with the comments given,” said Denise Rucker Krepp, a former senior counsel for the House Homeland Security Committee and chief counsel for the U.S. Maritime administration. “They’re supposed to be the same.”

Facing push-back from Capitol Hill, Transportation Secretary Anthony Foxx assured lawmakers in a May 28 letter that “we fully support the public disclosure of this information to the extent allowed by applicable state, local and tribal laws.”

Foxx added that the department was not attempting to undermine transparency.

“That was certainly not the intent of the rule,” he wrote eight Senate Democrats.

But Foxx’s assurances differ sharply from the assertions of Norfolk Southern and CSX in court documents filed last month in Maryland. The documents are related to a case last summer when the railroads sued the state to block the release of oil train reports to McClatchy.

The final rule provides “clear and unequivocal guidance” that information about oil train routes and volumes are security- and commercially-sensitive, attorneys for the railroads wrote on May 5 to Judge Lawrence Fletcher-Hill of the Circuit Court for Baltimore City.

That classification would trigger an exemption from the state’s Public Information Act.

A trial is scheduled for August, though Fletcher-Hill could decide before then whether to dismiss the case in favor of the railroads or the state.

Both companies declined to comment on the case.

Last May, the Transportation Department issued an emergency order requiring railroads to notify states of large shipments of Bakken crude oil after a series of fiery derailments involving the light crude from shale formations in North Dakota. The worst of those derailments killed 47 people in Quebec in July 2013.

Railroads have insisted that the oil train details are sensitive from a security and business perspective and should be exempt from state open records laws. They attempted to shield the data from public view last year by asking states to sign nondisclosure agreements.

Some states initially agreed, but most declined. McClatchy sought oil train reports from 30 states through open records laws. All but half a dozen states released at least part of what McClatchy requested.

Last fall, two rail industry trade groups lobbied the Transportation Department to end the reporting requirement. In a notice published in the Federal Register in October, the department rebuffed the request.

“DOT finds no basis to conclude that the public disclosure of the information is detrimental to transportation safety,” the Federal Railroad Administration wrote, adding that the trade associations “do not document any actual harm that has occurred by the public release of the information.”

But when the department unveiled its final rule in May, the requirements more closely aligned with what the railroads sought.

“Under this approach,” the regulation states, “the transportation of crude oil by rail can . . . avoid the negative security and business implications of widespread public disclosure of routing and volume data.”

The Maryland Attorney General’s Office has cited the department’s October Federal Register notice to support its position that the state can release the oil train information.

But the final rule is the last word, attorneys for the railroads say. They wrote Fletcher-Hill on May 29 that the state “relies on non-final comments published by the Federal Railroad Administration” and “fails to acknowledge the highly persuasive guidance articulated in the final rule.”

Unlike other arguments put forth by the railroads and their trade groups that have swayed few state or federal officials – including speculative claims of terrorism, competitive harm and even insider trading – the final rule may prove more persuasive to a judge.

The eight Senate Democrats wrote to Foxx on May 6, the same day another oil train derailed and caught fire in North Dakota. It was the fifth such incident in North America this year. They asked the department to reconsider the rule.

“The onus for obtaining detailed crude-by-rail information should not be on the local jurisdiction,” they wrote, and they called on the department “to clarify that broader crude-by-rail information will remain accessible to the public.”

Apparently backing away from the final rule’s expiration date for the emergency order, Foxx replied that it would remain “in full force and effect until further notice” and that the department would be looking for ways to codify the disclosure requirement.

But Krepp said that’s exactly what everyone was expecting in the rule.

“If they wanted that,” she said, “they would have put that in the rule-making.”

Krepp said the department made its intentions clear in the final rule.

“They have the final rule now,” she said. “They have to live with it.”

NPR: Battle Over New Oil Train Standards Pits Safety Against Cost

Repost from National Public Radio (NPR)

Battle Over New Oil Train Standards Pits Safety Against Cost

By David Schaper, June 19, 2015 3:30 AM ET

A train carrying crude oil derailed in Mount Carbon, W.Va., in February, causing a large fire that forced hundreds of people to evacuate their homes.
A train carrying crude oil derailed in Mount Carbon, W.Va., in February, causing a large fire that forced hundreds of people to evacuate their homes. Steven Wayne Rotsch/Office of the Gov. of West Virginia/AP

The federal government’s new rules aimed at preventing explosive oil train derailments are sparking a backlash from all sides.

The railroads, oil producers and shippers say some of the new safety requirements are unproven and too costly, yet some safety advocates and environmental groups say the regulations aren’t strict enough and still leave too many people at risk.

Since February, five trains carrying North Dakota Bakken crude oil have derailed and exploded into flames in the U.S. and Canada. No one was hurt in the incidents in Mount Carbon, W.Va., and Northern Ontario in February; in Galena, Ill., and Northern Ontario in March, and in Heimdal, N.D., in May.

Stephanie Bilenko of La Grange, Ill. (from left), Paul Berland of suburban Elgin and Dr. Lora Chamberlain of Chicago, are members of a group urging more stringent rules for the oil-carrying trains.
Stephanie Bilenko of La Grange, Ill. (from left), Paul Berland of suburban Elgin and Dr. Lora Chamberlain of Chicago, are members of a group urging more stringent rules for the oil-carrying trains. David Schaper

But each of those fiery train wrecks occurred in lightly populated areas. Scores of oil trains also travel through dense cities, particularly Chicago, the nation’s railroad hub.

According to state records and published reports, about 40 or more trains carrying Bakken crude roll through the city each week on just the BNSF Railway’s tracks alone. Those trains pass right by apartment buildings, homes, businesses and even schools.

“Well just imagine the carnage,” said Christina Martinez. She was standing alongside the BNSF tracks in Chicago’s Pilsen neighborhood as a long train of black tank cars slowly rolled by, right across the street from St. Procopius, the Catholic elementary school her six-year-old attends.

“Just the other day they were playing soccer at my son’s school on Saturday and I saw the train go by and it had the ‘1267’, the red marking,” Martinez said, referring to the red, diamond-shaped placards on railroad tank cars that indicates their contents. The number 1267 signifies crude oil. “And I was like, ‘Oh my God.’ Can you imagine if it would derail and explode right here while these kids are playing soccer and all the people around there?”

New federal rules require stronger tank cars, with thicker shells and higher front and back safety shields for shipping crude oil and other flammable liquids. Older, weaker models that more easily rupture will have to be retrofitted or replaced within three to five years. But Martinez and others wanted rules limiting the volatility of what’s going into those tank cars, too.

Oil from North Dakota has a highly combustible mix of natural gases including butane, methane and propane. The state requires the conditioning of the gas and oil at the wellhead so the vapor pressure is below 13.7 pounds per square inch before it’s shipped. But even at that level, oil from derailed tank cars has exploded into flames.

And many safety advocates had hoped federal regulators would require conditioning to lower the vapor pressure even more.

“We don’t want these bomb trains going through our neighborhood,” said Lora Chamberlain of the group Chicagoland Oil by Rail. “Degasify the stuff. And so we’re really, really upset at the feds, the Department of Transportation, for not addressing this in these new rules.”

Oil trains sit idle on the BNSF Railway's tracks in Chicago's Pilsen neighborhood.
Oil trains sit idle on the BNSF Railway’s tracks in Chicago’s Pilsen neighborhood. David Schaper/NPR

Others criticize the rules for giving shippers three to five years to either strengthen or replace the weakest tank cars.

“The rules won’t take effect for many years,” said Paul Berland, who lives near busy railroad tracks in suburban Elgin. “They’re still playing Russian roulette with our communities.”

A coalition of environmental groups — including Earthjustice, ForestEthics and the Sierra Club — sued, alleging that loopholes could allow some dangerous tank cars to remain on the tracks for up to a decade.

“I don’t think our federal regulators did the job that they needed to do here; I think they wimped out, as it were,” said Tom Weisner, mayor of Aurora, Ill., a city of 200,000 about 40 miles west of Chicago that has seen a dramatic increase in oil trains rumbling through it.

Weisner is upset the new rules provide exemptions to trains with fewer than 20 contiguous tank cars of a flammable liquid, such as oil, and for trains with fewer than 35 such tank cars in total.

“They’ve left a hole in the regulations that you could drive a freight train through,” Weisner said.

At the same time, an oil industry group is challenging the new regulations in court, too, arguing that manufacturers won’t be able to build and retrofit tank cars fast enough to meet the requirements.

The railroad industry is also taking action against the new crude-by-rail rules, filing an appeal of the new rules with the Department of Transportation.

In a statement, Association of American Railroads spokesman Ed Greenberg said: “It is the AAR’s position the rule, while a good start, does not sufficiently advance safety and fails to fully address ongoing concerns of the freight rail industry and the general public. The AAR is urging the DOT to close the gap in the rule that allows shippers to continue using tank cars not meeting new design specifications, to remove the ECP brake requirement, and to enhance thermal protection by requiring a thermal blanket as part of new tank car safety design standards.”

AAR’s President Ed Hamberger discussed the problems the railroads have with the new rules in an interview with NPR prior to filing the appeal. “The one that we have real problems with is requiring something called ECP brakes — electronically controlled pneumatic brakes,” he said, adding the new braking system that the federal government is mandating is unproven.

“[DOT does] not claim that ECP brakes would prevent one accident,” Hamberger said. “Their entire safety case is based on the fact that ECP brakes are applied a little bit more quickly than the current system.”

Acting Federal Railroad Administrator Sarah Feinberg disagreed. “It’s not unproven at all,” she said, noting that the railroads say ECP brakes could cost nearly $10,000 per tank car.

“I do understand that the railroad industry views it as costly,” Feinberg adds. “I don’t think it’s particularly costly, especially when you compare it to the cost of a really significant incident with a train carrying this product.”

“We’re talking about unit trains, 70 or more cars, that are transporting an incredibly volatile and flammable substance through towns like Chicago, Philadelphia,” Feinberg continues. “I want those trains to have a really good braking system. I don’t want to get into an argument with the rail industry that it’s too expensive. I want people along rail lines to be protected.”

Feinberg said her agency is still studying whether to regulate the volatility of crude, but some in Congress don’t think this safety matter can wait.

“The new DOT rule is just like saying let the oil trains roll,” U.S. Sen. Maria Cantwell, D-Wash., said in a statement. “It does nothing to address explosive volatility, very little to address the threat of rail car punctures, and is too slow on the removal of the most dangerous cars.”

Cantwell is sponsoring legislation to force oil producers to reduce the crude’s volatility to make it less explosive, before shipping it on the nation’s rails.

Growing oil train traffic is shrouded in secrecy

Repost from The Center for Investigative Reporting and KUOW.org
[Editor:  This is an important report.  State regulators can’t get accurate oil train data from the federally regulated railroads, so Washington officials are turning to the refineries: “Washington state lawmakers passed a law recently that requires oil refineries, which are state regulated, to give weekly notice of the train schedule to first responders.”  (See previous report.)  The story of Dean Smith’s Train Watch is inspiring – we should set up annual counts in all of our frontline refinery communities.  – RS]

Growing oil train traffic is shrouded in secrecy

By Ashley Ahearn / June 13, 2015
Dean Smith was frustrated with the lack of public information about oil train traffic so he organized 30 volunteers to count the trains coming through his community north of Seattle. Credit: Ashley Ahearn/EarthFix/KUOW

EVERETT, Wash. – Dean Smith, 72, sits in his car by the train tracks here north of Seattle.

It’s a dark, rainy Tuesday night, and Smith waits for an oil train to come through town. These trains are distinctive: A mile long, they haul 100 or so black, pill-shaped cars that each carry 30,000 gallons of crude oil.

Smith has been counting the trains for about a year, noting each one on a website he built. The former National Security Agency employee does it because the railroads share little information about oil train traffic with Washington state. They don’t have to because they’re federally regulated.

What is known: The railroads are moving 40 times more oil now than in 2008 due to an oil boom in the Bakken formation of North Dakota. Bakken crude oil contains high concentrations of volatile gas, with a flashpoint as low as 74 degrees Fahrenheit.

Derailments and explosions have occurred around North America since the oil boom began, including a 2013 catastrophe that killed 47 people in rural Quebec.

This has prompted emergency responders to call for more information from railroad companies about oil train traffic patterns and volumes. The railroads mostly have refused; they say that releasing that information could put them at a competitive disadvantage.

Which is why Smith decided to find out for himself. “It’s pretty hard to hide an oil train,” he said with a chuckle.

Last year, Smith launched the first Snohomish County Train Watch. He organized 30 volunteers to take shifts counting trains around the clock for a week.

In their first week of watching oil trains, the group collected more information about oil train traffic than the railroads had given Washington in the three years the trains have come here.

State officials say Smith’s data is helpful but insufficient. They say they shouldn’t have to rely on citizen volunteers to get critical information in case of disaster.

Dave Byers, the head of spill response for the state’s Department of Ecology, said his team needs the information to plan area-specific response plans to protect the public and keep oil from getting into the environment.

“It gives us an idea of what the risk is, the routes that are taken,” Byers said. “The frequency and volume of oil really gives us an idea of what level of preparedness we need to be ready for in Washington state.”

Oil train traffic shows no signs of slowing, which adds to the state’s sense of urgency. The oil industry wants to build five new terminals in Washington to move crude oil off trains and onto ships.

Meanwhile, Congress is considering legislation to lift a federal ban on exporting crude oil that’s been in place since 1975 – allowing American crude to be shipped around the world.

Close call in Seattle

Anyone who has attended a Mariners baseball game in downtown Seattle likely has seen or heard oil trains passing the ballpark. The trains continue north through the city to refineries on Puget Sound.

Seattle had a close call last year when an oil train derailed near downtown.

Byers and his team weren’t notified for one and a half hours and initially were not told there was oil in the derailed train cars.

No oil was spilled, but Byers is critical of how BNSF Railway, the company that moves most of the oil out of the Bakken oil fields, handled the situation.

BNSF did not tell the state there was highly flammable Bakken crude oil in the derailed train cars – that information came five hours later from the oil refinery waiting for the train. Additionally, Byers said that when his team arrived on the scene, no BNSF representative was present, but welders were working on the derailed cars. The welders said they did not know what was inside.

We became concerned because people were wandering off the street and taking selfies of themselves next to the rail cars,” Byers said. “There was no preparing for the potential that one of those cars could actually start leaking.”

BNSF spokeswoman Courtney Wallace said in an emailed statement that BNSF Railway had its hazardous materials team quickly in place to evaluate the situation. “This derailment did not cause a release at any point, nor was there a threat of a release,” she said.

The state and BNSF Railway have sparred over the railroad company’s reports of hazardous materials spills. Earlier this year, state regulators released an investigation and recommended that BNSF be fined up to $700,000 for not quickly reporting these spills. The company has disputed the state’s findings. A final decision is expected next year.

Concern in Anacortes

Workers prepare oil trains for unloading at the Tesoro refinery north of Seattle. The train that derailed in Seattle on July 24, 2014, was bound for the refinery.

This spring, several hundred people packed into the Anacortes City Hall for information from oil companies and BNSF Railway about the oil trains moving through their community. Just that morning, a BNSF oil train had derailed and caught fire in North Dakota.

In northern Puget Sound, Anacortes is home to two refineries that receive oil by rail from North Dakota. Its residents, like others in small communities along the tracks in Washington state, have voiced concern about oil trains. Congestion woes are among their complaints; unlike Seattle, where the trains mostly pass through tunnels and over bridges, trains here disrupt traffic.

Audience members were allowed to submit written questions only. Oil refineries’ representatives told them about safety precautions at their facilities to prevent and respond to spills. They also talked about their commitment to getting newer oil train cars.

Courtney Wallace is a spokeswoman for BNSF Railway. The company believes that every derailment or accident is avoidable. On the day this photo was taken, a train had derailed and caught fire in North Dakota. It was carrying the same type of crude oil that is currently moving through Washington state.

Wallace, the BNSF spokeswoman, gave a presentation about the company’s commitment to safety. She said BNSF believes that every accident is preventable.

When pressed by a reporter about how much information BNSF shares with local emergency responders, Wallace said BNSF has “always provided information to first responders, emergency managers about what historically has moved through their towns.”

She cautioned that sharing regular updates or notifications of oil train movements could put the public at risk.

“We’re always cognizant of what information is shared, because we don’t want to see an incident that involves terrorism or anyone else who might have that kind of frame of mind,” Wallace said.

Fight for information

A federal emergency order demands that railroads share limited information with states – but state officials want more.

Washington state lawmakers passed a law recently that requires oil refineries, which are state regulated, to give weekly notice of the train schedule to first responders. 

Washington state Rep. Jessyn Farrell is a Democrat who has fought for legislation that would force oil refineries to share information about how much oil is arriving by rail.

State Rep. Jessyn Farrell, a Seattle Democrat who sponsored the bill, said BNSF and the oil industry opposed the legislation from the beginning.

“We’re going to get the information,” she said. “I don’t really care who gives it to us as long as it’s good information and it stands in court, because we need that information now.”

BNSF Railway spent more than $300,000 on lobbyists and political contributions in Washington state in 2014.

“I think they’re absolutely on the wrong side of this,” Farrell said. “In the public mind, and morally, they are absolutely wrong.”

BNSF’s Wallace said the company still is reviewing the law to see how federal regulatory authority will interact with state authority.

Back in Everett, Dean Smith said he isn’t waiting for politicians or lawyers to duke this one out.

Instead, he’ll wait for trains, he said, and he’ll continue gathering information about them.

Four hours into a recent train-watching shift, Smith perked up.

“There’s something coming,” he said. He opened the door of his Chevy Volt and stepped into the rain. An orange BNSF engine emerged from the tunnel. Behind it were oil cars – about 100 of them, black as night.

The streetlight reflected off Smith’s glasses and shadows gathered in the furrow of his brow as he stood by the tracks, shoulders hunched.

“Sometimes I wonder, why fight it? Why not just move? That’d be the easiest thing to do,” he said. “But I think we have to fight. And I would like to see citizens groups acting like this all over the country. That’s the form of checks and balances we can create. All it takes is a few people.”

Most Commuter Rails Won’t Meet Deadline For Mandated Safety Systems

Repost from National Public Radio

Most Commuter Rails Won’t Meet Deadline For Mandated Safety Systems

By David Schaper, June 03, 2015 3:48 AM ET
Despite Congress mandating all railroads be equipped with a Positive Train Control system by the end of the year, Chicago's Metra system isn't expected to reach that goal until 2019. Most commuter trains won't meet the deadline.
Despite Congress mandating all railroads be equipped with a Positive Train Control system by the end of the year, Chicago’s Metra system isn’t expected to reach that goal until 2019. Most commuter trains won’t meet the deadline. M. Spencer Green/AP

Many investigators say Positive Train Control (PTC), an automated safety system, could have prevented last month’s Amtrak train derailment. Amtrak officials have said they will have PTC installed throughout the northeast corridor by the end of this year, which is the deadline mandated by Congress.

But the vast majority of other commuter railroad systems, which provided nearly 500 million rides in 2014, won’t be able to fully implement positive train control for several more years.

On the southern edge of downtown Chicago, a few dozen commuter trains idle as they prepare to take thousands of people from their jobs downtown to their homes in city neighborhoods, and suburbs both near and far. Just behind the tracks is a nondescript, two-story brick building that houses the control center for all these rail lines, and the brains of what will be Metra’s positive train control system.

“Out of this building, we control the Metra electric district, the Rock Island,” Sal Cuevas, chief dispatcher of the control facility. “Over 300, 350, maybe 400 trains out of this facility that we control.”

That’s about half of the commuter trains Metra moves into and out of Chicago each day. Cuevas is tracking their movement, their speed and any potential problems or delays they might encounter, from bad weather to maintenance crews. It’s done in coordination with the 500 freight trains that move through Chicago every day.

Getting positive train control on line won’t make his job any easier, but Cuevas says it will make the movement of all those trains safer.

“Integrating that system with our current train control system will hopefully minimize incidents,” he says.

But that won’t be happening for some time.

Positive Train Control is a system that integrates computer, satellite and radio technologies to slow down or stop a train if the engineer becomes incapacitated or makes a mistake, such as missing a stop signal or going too fast around a curve.

Seven years ago, Congress mandated all freight and passenger railroads implement positive train control by the end of this year. But Metra’s executive director Don Orseno says Chicago’s commuter trains won’t make the deadline, and it won’t even be close.

“Our expectation for Metra to be fully operational is in 2019,” he says. “There’s a lot of reasons why its taking so long. Number one: it wasn’t invented.”

Orseno says railroads have had to develop PTC from scratch and it’s a very complicated system. Information about track conditions, speed limits, the movement of other trains and all kinds of other data has to be downloaded into computers in the railroads’ control centers and in the locomotives.

Those computers have to be able to communicate with every track signal and every other train. So there’s new signaling equipment to install, new radios, new computer hardware and new software to run it all, because these positive train control systems have to be fully inter-operable between all the railroads and all their equipment.

In Chicago, the nation’s busiest rail hub, that’s 1,300 and passenger trains a day.

“We operate the most complex system in the country, there’s no question about that,” Orseno says.

He adds that in mandating positive train control and imposing the December 2015 deadline, Congress provided almost no funding for it.

“The system comes at a very expensive cost,” he says. “We’re looking anywhere from about $350 million for this system, and you’re talking about commuter rail service. There’s not that kind of money out there.”

And it’s not just Chicago’s commuter rail agency that’s struggling to build, fund and implement positive train control. Most commuter trains across the country won’t have it by the end of this year.

“About 29 percent of our systems anticipate they’ll be able to make the goal this year, about seven systems in the country,” says Michael Melaniphy, president and CEO of the American Public Transportation Association.

Melaniphy says some commuter rail agencies will need another three to five years to complete PTC installations because of the scale and complexity of the systems and the resources needed.

“There are only so many people that are experts in this area,” he says. “They can only produce so many of the radio sets that are needed and the spectrum that’s needed to run those radios in a given time.”

Acquiring that radio spectrum for PTC has been especially difficult for commuter railroads.

“Many of the operators will be able to obtain in some segments but maybe not along the entire corridor,” Melaniphy says. “They have to figure out who owns the spectrum in a given corridor and negotiate with them to either sell it or lease it.”

Melaniphy is hoping Congress will allow the FCC to provide commuter railroads with the radio spectrum they need for free. He’s also asking Congress to pay at least some of the estimated $3.5 billion cost of PTC, and extend the deadline to give commuter and freight railroads more time to implement a safety system they all agree they want and need to implement.