Tag Archives: Federal Regulation (U.S.)

Sacramento leaders question Benicia’s crude oil rail project

Repost from The Sacramento Bee
[Editor: The SACOG letter can be viewed here.  (Note that this download is in draft form, but the letter was approved as is.)  Of interest also is this 10-page Union Pacific letter addressed TO the SACOG Board, encouraging no action.  A recording of the Board meeting  is available here.  – RS]

Sacramento leaders question Benicia’s crude oil rail project

By Tony Bizjak, Aug. 28, 2014
Tracks lead to Benicia’s Valero refinery. Sacramento area leaders have drafted a letter saying a Benicia report doesn’t take major oil train risks into account. | Manny Crisostomo

Sacramento leaders will send a letter to Benicia today formally challenging the Bay Area city to do a better job of studying train derailment risks before it approves an oil company’s plans to ship crude oil on daily trains through Sacramento-area downtowns to a Benicia refinery.

Acting collectively through the Sacramento Area Council of Governments, which represents 22 cities and six counties, Sacramento representatives say they are protecting the region’s interests in the face of a proposal by Valero Refining Co. to transport an estimated 2.7 million gallons of crude oil daily on trains through Roseville, Sacramento, West Sacramento and Davis. Valero officials say the oil will be refined into gas for cars in California, as well as diesel fuel and jet fuel.

“We are not taking a position on whether the project should proceed,” said Don Saylor, a Yolo County supervisor and SACOG member. “We are pointing out, as we have the responsibility to do, the public safety issues in our region. There are ways those issues can be identified and mitigated.”

Benicia officials have been collecting public comments and questions about their environmental review of the Valero project plans, and said they will respond to all comments after the comment period closes Sept. 15.

The SACOG group also is drafting a letter to federal regulators, encouraging them to make hazardous materials transport on rail safer, particularly shipments of volatile crude oil produced in North Dakota’s Bakken region. Crude oil train shipments have increased dramatically in recent years, leading to several derailments and explosions, including one that killed 47 in a Canadian town last year.

Railroad officials nationally say derailments are very infrequent. A study commissioned by Benicia determined that a derailment and spill would be a rare occurrence on the line between Roseville and Benicia. But Sacramento leaders contend Benicia has underplayed derailment possibilities, and has not adequately studied the consequences of a spill and fire.

“We think there are serious safety concerns that should be addressed by Benicia, not downplayed,” said Sacramento Councilman Steve Cohn, chairman of the SACOG board.

The Benicia trains would travel on tracks just north of downtown, through the downtown Sacramento railyard, and over the I Street Bridge.

Elk Grove Mayor Gary Davis was one of two SACOG members who voted to oppose sending the letter. “I thought it is a little outside our scope. It’s a slippery slope,” he said.

SACOG’s main role is to serve as the region’s transportation planning agency and to administer a portion of the region’s federal transportation funding allotment.

Sutter County Supervisor James Gallagher also voted against sending the letter, saying many safety issues are in the federal government’s purview, not Benicia’s. He said he doesn’t want to discourage production of domestic oil that creates jobs and reduces reliance on foreign oil.

Sac Bee: More Information

Concerns Raised About Oil Trains In The Adirondacks

Repost from Vermont Public Radio

Concerns Raised About Oil Trains In The Adirondacks

By Mitch Wertlieb & Melody Bodette, August 28, 2014
Government offices, track-side warehouses and Monitor Bay Park campground surround the tracks on the south end of Crown Point, New York. The Adirondack Council has raised concerns about oil trains in the Adirondacks. | Adirondack Council

Ever since the train disaster last summer at Lac Megantic, Quebec, people in our region have been taking more notice of the oil trains traversing our rails.

Concerns have been raised on the New York side of Lake Champlain, where the Canadian Pacific railroad tracks run close to the water.

“In some places they are literally right next to the water,” said Mollie Matteson, a senior scientist for the Center for Biological Diversity. “They run through towns like Plattsburgh, Essex, and Westport, and then eventually they end up down in Albany. From there they go on down south either to refineries or to other places by ship.”

The shipments are relatively new, having begun in the past two years.  Matteson said the trains were brought to the attention of more people by the disaster in Lac Megantic.  The unit trains, as they are sometimes called, are trains entirely of tank cars of crude oil.

“What’s unique is this cargo and this new phenomenon of carrying crude oil by rail. And it’s something that’s been happening all around the country, but only just in the last couple years we’ve seen tremendous growth around the country,” Matteson said. “What’s happening here locally is that we have this new cargo, that has proven to be highly dangerous explosive and obviously if there’s a derailment and a spill it could severely damage our aquatic ecosystems and drinking water for thousands and thousands of people.”

A demonstration was held in Plattsburgh in July and some protestors expressed concern about whether the local emergency services are prepared to deal with a potential derailment and disaster.

Matteson said a starting point would be to make sure the transportation is safer. “These tank cars have been known for 20 years to be very puncture prone in any kind of derailment, even a low speed derailment. We need to get the oil off the rails. It’s simply not a sensible way to be transporting a hazardous material through thousands of small towns and cities around the country, exposing millions of people to this risk.”

The bigger question, Matteson said is should we be extracting more fossil fuels from the ground?

“Really what we need to be looking at is transitioning to a different energy regime.”

There are proposed rules to require upgrades to safer tank cars, but they would be phased in over a number of years and Matteson said, the Center for Biological Diversity believes the trains need to be off the rails immediately until there are safer cars in place, and there needs to be adequate oil spill response plans.

This oil is coming from the North Dakota Bakken oil fields to the terminal in Albany, a company called Global Partners. They are looking to expand their operations in the port. The Center for Biological Diversity has been involved in lawsuit against the company and the New York Department of Environmental Conservation over the proposed expansion plans.

Global Partners did not respond to a request for comment.

A community forum on the oil trains will be held on Thursday, August 28, from 7-9 p.m. at the Plattsburgh City Hall.

USA Today: Rail deliveries of U.S. oil continue to surge

Repost from USA Today
[Editor: Nothing new here, but good that mainstream publications are taking notice.  – RS]

Rail deliveries of U.S. oil continue to surge

Wendy Koch, August 28, 2014
oil trains
(Photo: Connor Lake AP)

Amid a boom in U.S. oil production, the amount of crude oil and refined petroleum products moved by rail continues to climb.

There were 459,550 carloads of oil and petroleum products transported during the first seven months of this year, up 9% from the same period in 2013, according to the Association of American Railroads.

More than half of these carloads carried oil, moving 759,000 barrels of crude per day and accounting for 8% of U.S. oil production.

The surge in oil trains began in mid-2011. At that time, weekly carloads of oil and petroleum products averaged about 7,000. In July, they reached nearly 16,000, according to the AAR.

“The increase in oil volumes transported by rail reflects rising U.S. crude oil production, which reached an estimated 8.5 million barrels per day in June for the first time since July 1986,” the U.S. Energy Information Administration reported Thursday.

The use of horizontal drilling and hydraulic fracturing or fracking has made it possible to extract huge amounts of oil from underground shale deposits. The Bakken Shale, mostly in North Dakota, accounts for much of the growth in U.S. oil production. One of every eight U.S.-produced barrels comes from North Dakota, now the second-largest oil producing state.

Between 60% and 70% of the state’s oil was moved by rail to refineries during the first half of 2014, according to the North Dakota Pipeline Authority.

Spurred by this surge in oil-carrying trains and several recent tragic accidents, the Obama administration proposed stricter rules last month for tank cars that transport flammable fuels.

The Department of Transportation proposal will require the phaseout, within two years, of tens of thousands of tank cars unless they are retrofitted to meet new safety standards. It will also require speed limits, better braking and testing of volatile liquids, including oil. It will require that cars constructed after October 2015 have thicker steel.

The DOT proposed rule, which will take months to finalize after a 60-day comment period, applies to shipments with at least 20 rail cars carrying flammable fuels, including ethanol.

In May, an oil-carrying freight train derailed in Lynchburg, Va., spilling 30,000 gallons of oil into the James River. Last year in Lac-Megantic, Quebec, an oil train exploded and killed 47 people.

 

Albany County enlists top legal firm for oil train fight

Repost from Capital Playbook, Albany, NY
[Editor: Significant quote: “The county has placed Mintz Levin on retainer….  The firm will help with a potential legal battle with Global Partners, which has threatened to sue after the county placed a moratorium on expanding crude-handling facilities at the Port of Albany.”  (emphasis added) – RS]

Albany County enlists top legal firm for oil train fight

By Scott Waldman  |  Aug. 22, 2014
albany-county-enlists-top-legal-firm-oil-train-fight
First responders are familiarized with tank cars on the CSX Safety Train next to the Hudson River in the Port of Albany. (AP Photo/Mike Groll)

ALBANY—Albany County has hired a high-powered Boston environmental law firm to help with its battle against a Fortune 500 company that’s bringing in millions of gallons of crude oil every day.

The county has placed Mintz Levin on retainer, county attorney Tom Marcelle said. The firm will help with a potential legal battle with Global Partners, which has threatened to sue after the county placed a moratorium on expanding crude-handling facilities at the Port of Albany. Marcelle said Albany County has subpeona power and Mintz Levin could be used to enforce the county’s right to question top Global officials if they withhold information the county is seeking.

“The county executive wanted to ensure the people of Albany County had the best to represent their health and safety,” he said.

The county will probably spend up to $100,000 with the firm, Marcelle said.

The firm, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, can also help the county submit comments to the federal Department of Transportation over its proposed new regulations for oil trains. Those federal regulations call for a phasing out of rail cars that transport a certain type of crude. Those cars are more likely to rupture and leak if they derail.

County officials are not happy with the federal proposal because it would still allow those older cars to transport the type of heavy crude Global Partners wants to bring to Albany. That crude from the oil sands of western Canada, also known as tar sands, is nearly impossible to clean up from waterways like the Hudson River because it sinks to the bottom.

The Boston law firm specializes in environmental law and employees about 500 attorneys. It has offices in London, Los Angeles, New York, San Francisco and elsewhere. Attorneys at Mintz Levin helped draft the state’s Brownfield pollution mitigation legislation and has defended enforcement actions in federal and state court, according to its website.

Global, which is based in Waltham, Massachusetts and is a Fortune 500 company, threatened legal action against the county shortly after the moratorium was issued, but has yet to file suit.

Albany County Executive Dan McCoy has taken a more aggressive approach to oil train enforcement than city and state officials and has also proposed a law that would fine oil train operators who fail to quickly report spills. McCoy has appointed a health and safety panel that is examining Global’s crude-handling facilities.

Global wants to build a series of boilers at the port that would allow it to bring in heavy crude oil, like from the oil sands of western Canada.

Albany has become one of the nation’s largest hubs from crude oil from the Bakken formation of North Dakota. The proposed boiler facility would effectively turn New York into a major oil-by-rail pipeline for another type of crude and has generated strong opposition.