Tag Archives: Federal Regulation (U.S.)

Bloomberg: California AG Rejects Trade-Secret Claims for Crude-by-Rail

Repost from Bloomberg News

California AG Rejects Trade-Secret Claims for Crude-by-Rail

By Victoria Slind-Flor, Oct 22, 2014

California Attorney General Kamala Harris expressed reservations about the trade-secret provisions in a proposal for a crude-by-rail project in Benicia, California.

In a letter to the city’s Community Development Department, she said the draft environmental impact report for San Antonio-based Valero Energy Corp. (VLO)’s project “frustrates” the California Environmental Quality Act by not disclosing information about which particular crude oil feedstocks would be delivered in as many as 100 tank cars a day.

She said the missing information includes the weight, sulfur content, vapor pressure and acidity of the crude oil feedstocks, information she said is “critical for an adequate analysis” of the effects of the project on public safety and air quality.

Harris said the California governor’s Office of Emergency Services and the state Transportation Department determined that information about the specific characteristics of the crude moved by rail “are not protected trade secrets and should be publicly released.”

The attorney general said these issues “must be addressed and corrected” before the City Council of Benicia takes action on the draft environmental impact report.

Benicia, a city of about 27,000, is on the edge of the Carquinez Strait emptying into San Francisco Bay.

Fed Measures on Crude Oil Fall Short, Put Protected Estuaries and Heritage Areas at Risk

Repost from HuffPost GREEN, The Blog
[Editor: Note reference near the end on federally designated National Heritage Areas and Estuaries of National Significance which “require special protection from potential explosions and spills. Rerouting bomb trains away from such specially designated regions would avert a disaster-waiting-to-happen to prime assets along their rail lines.”   The San Francisco Estuary Partnership is one of 28 Estuaries of National Significance.  (I am trying to confirm that the Sacramento-San Joaquin Delta is a National Heritage Area – their website is out of date.)  How might these agencies be brought into the discussion on Valero Crude By Rail?    – RS] 

Fed Measures on Crude Oil Fall Short, Put Hudson River at Risk

By Ned Sullivan, President, Scenic Hudson and Paul Gallay, President, Hudson Riverkeeper, 10/21/2014

Last May, we wrote about how the Hudson River Valley has become a virtual pipeline for the transport of highly flammable Bakken crude oil in unsafe DOT-111 railcars–the same tankers whose derailment has caused numerous explosions across the U.S. and the death of 47 people in Lac-Megantic, Canada.

Since then, very little has changed, which means the situation has just gotten worse.

Each day, more than 320 of these oil-laden cars continue to pass through our communities and along the shores of the Hudson River, one of the world’s most biologically diverse tidal estuaries. To date, we’ve escaped disaster, although three trains pulling empty DOT-111s have derailed in the Hudson Valley. Each time a rail accident occurs in the region, as it did just last week, the environmental community holds its breath, expecting the worst.

What will happen if cars full of Bakken crude do go off the tracks? The federal Pipeline and Hazardous Material Safety Administration (PHMSA), quoting the National Transportation Safety Board (NTSB), recently provided the answer: They “can almost always be expected to breach,” making them “vulnerable to fire.” The result would be catastrophic to the public health, vital natural and historic resources, and drinking water supplies of a region stretching from Albany to New York Harbor. It would cause long-lasting, if not permanent, damage to the estuary’s entire ecosystem and the foundation of a vibrant, $4.75-billion tourism economy.

Both Scenic Hudson and Riverkeeper have been advocating vigorously for increased federal protections, including an immediate ban on the use of DOT-111s for transporting crude. Therefore, we were bitterly disappointed and frankly frustrated by new draft regulations proposed by the PHMSA regarding tanker redesign and other measures for reducing the risks of explosions and spills from these “bomb trains.” They just don’t go far enough fast enough, meaning our communities remain at grave risk. It also means the proposed rules don’t comply with federal law, which requires strict safety upgrades that will protect the public.

In formal comments on the regulations our organizations submitted jointly, we outline how the PHMSA’s rules are replete with loopholes and weak safety proposals.

  • Despite acknowledging the safety hazards of DOT-111s, the proposed regulations would very slowly phase out their use for transporting Bakken crude and allow 23,000 of these outdated, dangerous cars to remain on the rails for shipping heavy Canadian tar sands crude, which presents different but equally serious safety and environmental risks.
  • The regulations fail to require full disclosure of rail traffic information to first responders, and instead ask the industry if it would prefer to keep this information confidential.
  • The regulations fail to require the most protective braking improvements or speed restrictions, and fail to even consider limits on the length of trains that could reduce accident risks and impacts of a derailment.
  • The regulations would allow railroads to continue operating 120-car trains of Bakken crude oil without requiring any train-specific spill response plans–despite the fact that a 120-car train carries as much oil as an oil barge or tanker, both of which must have spill response plans approved by the Coast Guard.

Put simply, these rules defer to the rail and oil industries at every turn–and they won’t stop the next bomb train disaster. As the NTSB warned in its official comments on these proposed rules, “Each delay in implementing a new design requirement allows the construction of more insufficiently protected tank cars that will both increase the immediate risks to communities and require costly modification later.” Further, the NTSB concludes that the government’s proposed standards for new and existing tank cars offer options that “do not achieve an acceptable level of safety and protection.”

We deserve real protection for our communities and the environment. And we deserve it now.

For these reasons, Riverkeeper and Scenic Hudson have called on the PHMSA to issue an emergency order requiring immediate adoption of the most stringent tank car standards, speed restrictions and use of electronic controlled pneumatic braking in all trains carrying crude, as well as closing loopholes in the rule that leave heavy tar sands crude and trains carrying fewer than 20 cars of Bakken crude completely unaddressed. (Scenic Hudson also has called for rules requiring Bakken crude to be processed at its source in North Dakota, making it much less volatile for shipment. This is done at many Texas oil fields.)

In addition, we are calling on federal rail regulators to designate the Hudson River Valley, as well as other similarly situated regions, highly important natural and cultural resources under PHMSA routing regulations. This means that the natural and cultural resources within this federally designated National Heritage Area (one of only 49) and Estuary of National Significance (one of 28) require special protection from potential explosions and spills. Rerouting bomb trains away from such specially designated regions would avert a disaster-waiting-to-happen to prime assets along their rail lines. In the Hudson Valley, those assets include six drinking water intakes; 91 state, county and municipal parks; 40 Significant Coastal Fish and Wildlife Areas; nine colleges; 69 public schools and 80 medical facilities.

The federal government has the responsibility to ensure the public’s safety. Until Washington steps up and fulfills this obligation, we’ll have to keep on holding our breath.

National Public Radio: Fiery Oil-Train Derailments Prompt Calls For Less Flammable Oil

Repost from National Public Radio
[Editor: An excellent overview of efforts to regulate the volatility of Bakken Crude.  Audio appears first below, followed by text version.  Significant quote: “Energy economist Philip Verleger, says the resistance is about money. ‘The industry never wants to take steps which increase the cost of production, even if it’s in the best interests of everybody,’ he says. Verleger says the opposition to proposed safety rules is short-sighted, and that the industry could actually hurt itself if there’s another serious incident. ‘I think the movement of crude oil by rail is one accident away from being terminated,’ Verleger says.”  – RS]

Fiery Oil-Train Derailments Prompt Calls For Less Flammable Oil

A fireball goes up at the site of an oil train derailment in Casselton, N.D., in this Dec. 30 photo. The fiery crash left an ominous cloud over the town and led some residents to evacuate.
A fireball goes up at the site of an oil train derailment in Casselton, N.D., in this Dec. 30 photo. The fiery crash left an ominous cloud over the town and led some residents to evacuate. Bruce Crummy/AP

Once a day, a train carrying crude oil from North Dakota’s Bakken oil fields rumbles through Bismarck, N.D., just a stone’s throw from a downtown park.

The Bakken fields produce more than 1 million barrels of oil a day, making the state the nation’s second-largest oil producer after Texas. But a dearth of pipelines means that most of that oil leaves the state by train — trains that run next to homes and through downtowns.

After several fiery accidents, oil companies are under pressure to make their oil less explosive before loading it onto rail cars. But oil companies say rules requiring those modifications will create more problems than they solve.

The trains passing through Bismarck worry Lynn Wolff, an activist with the environmental group Dakota Resource Council. “Last December we got the wake-up call,” he says. “That was the explosion and derailment of an oil train in Casselton, N.D.”

Wolff is referring to a crash in farmland just outside the small town of Casselton. No one was hurt, but the crash could have been deadly had it happened in town.

This summer, Bismarck officials ran through a simulated oil train derailment, with responders operating on the assumption that some of the town’s buildings would be devastated or destroyed, says Gary Stockert, Bismarck’s emergency manager. “We exercised with the assumption that we had over 60 or 70 casualties.”

Around the country, other cities and towns with oil train traffic are preparing for similar disasters.

In neighboring Minnesota, Gov. Mark Dayton “is concerned primarily about the safety of people along oil train routes, and in particular about the fact that this is a very volatile oil,” says Dave Christianson, an official with the Minnesota Department of Transportation.

Dayton has joined activists in asking North Dakota to force oil companies to “stabilize” the oil — to make it less explosive by separating out the flammable liquids.

Last month, North Dakota Gov. Jack Dalrymple convened a public hearing on the idea. Keith Lilie, an operations and maintenance manager for Statoil, which has a big presence in the Bakken, testified in front of a room full of oilmen in suits and cowboy boots who came to the hearing from places like Oklahoma City and Houston.

Lilie said he opposes having to build expensive tanks to heat the oil and separate out flammable liquids, like butane.

“Statoil believes the current conditioning of crude oil is sufficient for safely transporting Bakken crude oil by truck, rail and pipeline,” he said.

Eric Bayes, general manager of Oasis Petroleum’s operations in the Bakken, also testified. He asked what companies are supposed to do with those explosive liquids once they’re separated from the oil.

The stabilization process, he says, would “create another product stream you have no infrastructure in place for.”

But energy economist Philip Verleger, says the resistance is about money. “The industry never wants to take steps which increase the cost of production, even if it’s in the best interests of everybody,” he says.

Verleger says the opposition to proposed safety rules is short-sighted, and that the industry could actually hurt itself if there’s another serious incident. “I think the movement of crude oil by rail is one accident away from being terminated,” Verleger says.

Activist Lynn Wolff supports new rules that would make the oil less explosive, and says such regulation would protect people beyond North Dakota. “These bomb trains have been in Virginia and Alabama and blown up there as well,” he says.

Federal officials in Washington are also considering ways to make oil trains safer, such as strengthening tank cars.

As for making the oil leaving the Bakken less flammable, officials in North Dakota say they’ll make a decision by the end of the year.

This story was reported with Inside Energy, a public media collaboration focusing on America’s energy issues.

Vallejo Times-Herald: Railroads sue California over oil train safety rules

Repost from The Vallejo Times-Herald

Railroads sue California over oil train safety rules

Union Pacific, BNSF Railway argue federal law pre-empts state regulations
By Tony Burchyns, October 9, 2014

California’s two major railroad companies filed a lawsuit this week to argue that the state lacks authority to impose its own safety requirements on federally regulated crude oil train traffic.

The lawsuit follows a new state law imposing regulations on the transportation of crude oil by rail in California. Union Pacific and BNSF Railway filed the case Tuesday in U.S. District Court in Sacramento to argue that federal law pre-empts California and other states from enforcing such regulatory regimes.

“The new state law requires railroads to take a broad range of steps to prevent and respond to oil spills, on top of their myriad federal obligations concerning precisely the same subject matter,” the railroads argue. “UP, BNSF and other members of (the American Association of Railroads) will be barred from operating within California unless a California regulator approves oil spill prevention and response plans that they will have to create, pursuant to a panoply of California-specific requirements.”

The railroads also will be required to obtain a “certificate of financial responsibility” from the state, indicating they are able to cover damages resulting from an oil spill. Failure to comply with the new state rules will expose railroad employees to jail time and fines, according to the lawsuit.

The California Office of Spill Prevention and Response, which was named as a defendant in the lawsuit, has declined to comment on the pending litigation.

The state law was passed in June following a sharp rise in crude-by-rail shipments in California from 2012 to 2013 and several high-profile oil train derailments in other states as well as Canada. In the Bay Area, crude-by-rail projects in Benicia, Richmond, Pittsburg, Martinez and Stockton have drawn local attention to the prospect of mile-long oil trains snaking through neighborhoods, mountain passes and sensitive habitats such as the Suisun Marsh.

Last week, California Attorney General Kamala Harris sent a letter to Benicia challenging plans to ship 70,000 barrels of crude daily by train to the city’s Valero refinery. Valero is seeking city approval to build a rail terminal to receive two 50-car oil trains daily from Roseville. The train shipments would originate in North Dakota or possibly Canada.

Harris, the state’s top law enforcement officer, criticized the city for underestimating the project’s safety and environmental risks. The letter was among hundreds received by the city in response to its initial environmental impact report. City officials say they are in the process of responding to all of the comments, and plan to do so before the project’s next, yet-to-be-scheduled public hearing is held.