By Capital Staff and Wire Reports, June 5, 2015 5:08 pm
ST. PAUL — The Minnesota Public Utilities Commission has approved a certificate of need for the proposed Sandpiper pipeline route through northern Minnesota as it goes from North Dakota’s Bakken oil fields to Superior, Wisconsin.
While the PUC agreed 5-0 Friday that the $2.6 billion, 610-mile pipeline – about 300 miles across Minnesota – is necessary, they didn’t foreclose the possibility of more changes on its proposed path, the Associated Press reported.
The PUC said it still might reroute Enbridge’s proposed route away from environmentally sensitive lakes, streams and wetlands in northern Minnesota. Enbridge Energy will still have to go through a lengthy review of its proposed route and a proposed alternative.
Enbridge says it would like to have it operating in 2017.
The proposed route goes from the oil field near Tioga, N.D., near Williston, to Superior, Wis., where ocean-going vessels can dock just below Duluth on Lake Superior. In North Dakota it follows fairly closely to U.S. Highway 2.
The Minnesota portion would go 75 miles from Grand Forks, N.D., east to the main Enbridge junction at Clearbrook, Minn., with 24-inch pipe with a capacity of 225,000 barrels per day.
Then for a 225-mile leg, it jogs south to Park Rapids, Minn. – which is on a line east of Fargo – and then east to Superior with a 30-inch pipeline with a capacity of 375,000 barrels per day, according to Enbridge.
At a capacity of 375,000 barrels a day across Minnesota, the Sandpiper would carry the equivalent of about 525 rail tanker cars, each holding 714 barrels, or about five trains of crude oil, every day.
Enbridge says Sandpiper is needed to move the growing supply of North Dakota crude safely and efficiently to market.
But environmentalists and tribal groups say the risk of leaks is too high.
North Dakota regulators have already approved Sandpiper.
North Dakota produces about 1.2 million barrels of oil per day, about 13 percent of U.S. production; roughly two-thirds of it leaves the state by train.
Recent explosive derailments of oil trains have informed the debate over building new pipelines.
Repost from WDAZ TV, Grand Forks ND [Editor: By announcing these measures, BNSF is trying to put a happy face on continuing potential for train catastrophes. These measures won’t help much, and notice they still are expecting an oil industry “phase-out” of DOT-111 cars rather than an immediate ban. – RS]
BNSF trains slow down: Railway announces plans to improve safety measures for oil shipments
By April Baumgarten / Forum News Service, Mar 29, 2015 at 11:32 a.m.
Bismarck, ND (Forum News Service) – One of the top rail companies in the U.S. has announced steps to improve rail safety in North Dakota.
BNSF Railway Executive Chairman Matt Rose outlined plans recently with Gov. Jack Dalrymple to implement additional measures throughout the company’s national rail system. BNSF also informed its customers on Friday about the safety measures, according to a news release.
“Railroad operations, equipment and maintenance are critical elements in our overall goal to improve rail safety, and I commend BNSF for taking these significant steps,” Dalrymple wrote in the release. “At the same time, we must move forward on other important aspects of rail safety including the need for new federal tank car standards and greater pipeline capacity.”
BNSF began a move Wednesday to have all of its oil trains reduce speeds to 35 mph through all municipalities with 100,000 or more residents. The speed reduction is temporarily in place until its customers phase out DOT-111 tanks cars from service, BNSF spokesman Mike Trevino said Saturday. Phasing out of the older cars, which will be replaced by CPC-1232 railcars to meet federal safety standards, is expected to begin in May, and BNSF hopes to complete the process by the end of the year. When that happens, BNSF will reconsider the speeds.
The shipping companies, not BNSF, own the cars, so the railway company has to wait on its customers to make the transition to the newer cars. The move was a voluntary part of an agreement with the U.S. Department of Transportation, Trevino said.
“What we want to do is do what we can to improve the safety of our operation,” he said. “What we can do is slow those trains down in larger communities.”
Rep. Corey Mock, D-Grand Forks, said it was good to see BNSF taking proactive action to address railroad and safety weaknesses, though there are other measures he would like to see rail companies consider.
“I think many of our rural communities would also argue that their lives are no less at risk,” he said.
The only city in North Dakota that would fall under the reduced-speed measure is Fargo. The state’s largest city had an estimated population of about 113,700 people in 2013, according to the U.S. Census. Bismarck, the second largest city, had 67,000. Grand Forks, which is a collector for train traffic at its switch station, was home to about 55,000 residents.
“That doesn’t do a whole lot to secure our other communities,” Mock said.
Slowing the trains down in all communities would reduce the amount of product BNSF could ship and would burn up time, Trevino said. It would also impact trains hauling other commodities, such as grain or anhydrous ammonia. He added the measures go beyond the federal standard.
“If you slow those trains all around the network, then that (network) becomes as fast as that train,” he said.
Residents in Grand Forks feel uneasy when they see the “iconic-black, cylindrical tanks,” Mock said. Fortunately, Grand Forks has a train junction for switching lines, and many trains are coming through at a slow speed, meaning risk of a derailment is greater in cities where trains are traveling at higher speeds.
Still, residents are still curious and ask, “what if.”
“When a person sees a train rolling through town that has those iconic-black tanks running a mile long, there is a little apprehension,” he said.
Rep. Andrew Maragos, R-Minot, said he was pleased when progress is made, adding he is comfortable with the governor’s response.
“If he feels the railroads are taking positive steps, that’s always good,” Maragos said.
Trevino said BNSF has also increased rail detection testing frequencies 2 ½ times federal standards, which tests the quality of the rail. It has also reduced tolerance for removing a car from a train for a potential defect, meaning the bar is set higher for a car’s quality and safety features.
For example, if a wheel is defective, it may be removed from the train immediately.
Both North Dakota and rail companies have come under fire after several oil trains have derailed across Northern America, the most infamous being the Lac-Megantic, Quebec, derailment in July 2013. A runaway Montreal, Maine and Atlantic Railway train carrying Bakken crude went off the tracks and exploded, killing 47 people and destroying the center of the city.
Closer to home, a BNSF train carrying crude hit a derailed grain train in December 2013 near Casselton, forcing it off the tracks and resulting in a fiery explosion. No injuries or deaths were reported, though a temporary evacuation was put into place. It was the fifth derailment near the city in 10 years, and another BNSF train with lumber and empty crude cars derailed in November.
Both trains used DOT-111 cars.
More recently, a CSX Corp. train derailed Feb. 16 near Mount Carbon, W. Va. Two Canadian National Railway Co. trains derailed in Ontario between February and March.
As a result, both Canada and the U.S. have looked into implementing measures to prevent disasters. The Pipeline and Hazardous Materials Safety Administration issued orders to phase out the DOT-111 cars. While that is not expected to occur until May, Dalrymple urged U.S. Transportation Secretary Anthony Foxx in a recent phone call to issue the new tank standards “as soon as possible,” according to the release. Dalrymple also told Foxx that pipelines offer the safest mode of transporting crude oil to market.
Action in North Dakota
North Dakota has also attempted to tame the flames. The state Industrial Commission unanimously approved a requirement for all oil producers to install and utilize oil-conditioning equipment to reduce the volatility of Bakken crude. The order would bring the vapor pressure of every barrel of oil produced in North Dakota under 13.7 pound per square inch before it is shipped. Crude producers must comply starting Wednesday.
Dalrymple and the Public Service Commission have also proposed a state-run railroad safety program and pipeline integrity program “that would complement federal oversight in North Dakota,” according to the release. The proposal would cost North Dakota $1.4 million for three position to inspect railroad tracks. Another three state employees would inspect pipelines that transport oil and other liquids to market.
Dalrymple’s release also comes the same week the North Dakota House voted down legislation requiring the state Department of Transportation to report on rail safety issues to a legislative committee. Senate Bill 2293, sponsored by Sen. George B. Sinner, D-Fargo, proposed spending $6 million every two years to carry out committee recommendations, but was criticized by Republicans because was “an unnecessary, duplicative requirement” since DOT already conducts studies, Rep. Dan Ruby, R-Minot, told Forum News Service this week.
The House voted down the bill 34-55 on Monday. Mock was disappointed with the bill’s failure, stating it was “incredibly shortsighted for the Legislature to fail that measure.”
“The legislators owe it to the people back home to get these reports on a more timely basis — find out what companies, like BNSF, are doing and make sure we are updated on the progress of railroad safety enhancements.” he said.
Sinner said the release is likely a response to the press coverage of SB 2293’s failure, and voting the bill down was political. While North Dakota has started to address the issues, Sinner said the state needs to do more.
He pointed out that all the legislators that voted against the bill were Republican.
“(The Republicans) have not offered one bill on rail safety this Legislature,” he said. “We need to have a bipartisan effort on this issue. This issue is too important.”
Maragos, who also supported the bill, said the state is addressing safety issues as they come to light. While it was hard for him to say if what leaders are doing is enough, he feels the state is doing everything it can to prevent accidents.
“For some people, it is never enough,” he said. “For others, it’s pushing too hard.”
He added: “When we see that isn’t enough, we’ll just move in to improve or strengthen the policies.”
Making rail safety a priority
BNSF plans to invest more than $335 million in track maintenance and capital improvement projects in North Dakota this year, including in Dickinson, Jamestown, Devils Lake and Hillsboro.
There are many products that are shipped from the state across the continent, Mock said, and other states are looking to North Dakota for assurance that cargo is packaged correctly.
He pointed to a derailment in Minot, where a Canadian Pacific train carrying anhydrous ammonia derailed on Jan. 18, 2002. The incident released approximately 146,700 gallons of anhydrous, and a poisonous gas cloud hovered over the city, causing the death of at least one person and injuring more than 322 people, according to the National Transportation Safety Board report. The disaster also prompted an evacuation and caused more than $10 million in damages and environmental remediation.
Mock said had he not been allowed to leave work an hour early due to a slow night, he would have been caught in the fumes.
“Railroad safety is not just a Bakken crude issue,” he said. “The one state that should be taking railroad safety the most seriously is North Dakota, because our reputation is on the line.”
Like residents across the state, Mock would like to see more done. Railroad safety is a comprehensive issue that requires realistic standards, he said.
About 90 percent of North Dakota’s exports go out on rail, Sinner said. If a train carrying cargo from the state has an accident that could have been prevented, North Dakota’s industries will be affected, he added.
“The economic security of this state relies on the rail industry,” he said.
Maragos said the railroad companies are doing what they can to improve safety.
“With the amount of rail traffic and understanding that mechanical things break, even (BNSF), which is moving most of the oil, I think they are very sensitive to it, and I think they’re the best job they can in addressing safety concerns,” he said.
Trevino concurred, stating BNSF is doing everything it can to keep communities and its employees safe.
“We understand how to run our railroad,” he said. “We understand better than anyone the kinds of steps that can be taken to prevent loss, to mitigate potential loss, should an event occur, and respond to an event.”
Though Sinner is not sure to what extent, he said he plans to follow the issue closely and find ways to improve railroad safety.
“We need to do something with the increase in rail traffic and trains traveling around our state,” he said. “We need to make sure rail safety is a real priority.”
The Press was unable to contact Dalrymple on Saturday.
Repost from The Jamestown Sun, Jamestown, ND [Editor: The proposed ND vapor pressure standards seem rather lax to my inexpert eyes. See comparative Reid Vapor Pressure (RVP) levels mentioned in an August 9 posting here on BenIndy: “On June 2nd Quantum Energy met with OIRA and presented a simple three-page presentation. The presentation explains how regular crude oil has a Reid Vapor Pressure (RVP) of 5-7 psi and Bakken crude has an RVP between 8-16 psi. To put that in perspective, gasoline typically has a RVP of 9 psi.” The proposed new standard in North Dakota according to this article is a “vapor pressure limit of 13.7 pounds per square inch.” – RS]
Oil industry has ‘significant concerns’ about crude conditioning standards
By STATE/REGION on Nov 14, 2014
BISMARCK — North Dakota oil regulators said Thursday they want more input before approving new standards for removing volatile gases from crude oil before it’s shipped by rail, a proposal an industry representative warned could devalue Bakken crude and contribute to more flaring at well sites.
Department of Mineral Resources Director Lynn Helms presented the state Industrial Commission with the proposed standards, part of a national effort to improve oil-by-rail safety in the wake of several explosive oil train derailments.
Helms said the standards would result in Bakken crude “behaving even better than the unleaded gasoline that you put in your cars.”
Attorney General Wayne Stenehjem, who serves on the commission with Gov. Jack Dalrymple and Agriculture Commissioner Doug Goehring, said the department is “on the right track” with the proposed order. But he wanted more time to sort through it and allow for public comment.
Dalrymple agreed, called it “an excellent working draft” and a “very robust system of verification” for making sure Bakken crude falls within vapor pressure standards before it’s loaded onto the rails.
The commission said it would accept comment on the proposed order until 5 p.m. Wednesday and hold a special meeting by Dec. 11 to consider approving it so the standards can take effect Feb. 1.
Helms said the proposed order strengthens the existing rule by requiring well sites to use a gas-liquid separator and/or a heater-treater to remove so-called “light ends” like butane and propane from crude oil, and mandating the equipment be operated at certain temperatures and pressures.
He estimated 80 percent of existing wells in the Bakken and Three Forks formations would be able to produce oil within the proposed vapor pressure limit of 13.7 pounds per square inch.
National standards recognize oil with a vapor pressure of 14.7 psi or less to be stable, and winter blend gasoline has a vapor pressure of 13.5 psi, he said.
Helms said the average vapor pressure of Bakken crude across several recent studies was 11.8 psi, though “there were significant outliers.”
“We really believe that the vast majority of our Bakken crude oil will already fall well below the standard,” he said.
The roughly 15 percent of wells that operate outside of the temperature and pressure standards would have to hire a third party to test their crude for vapor pressure and submit the results to the state within 15 days. Operators looking to use alternative methods for conditioning or stabilizing their crude would need commission approval after a hearing process.
The proposed order also would ban the practice of blending crude oil with light ends or liquids recovered from gas pipelines before the oil is sold. Dalrymple noted violators can face fines as high as $12,500 per day.
“I think we want to be sure that that’s clear for everybody,” he said.
North Dakota Petroleum Council president Ron Ness cautioned that the standards could devalue Bakken crude by requiring it to be over-treated, at the same time contributing to natural gas flaring by removing more gas at the wellsite.
“I think we have some pretty significant concerns,” he said, adding the Industrial Commission is “getting into the nitty-gritty details of how companies manage their commodities.”
Helms said preliminary figures show 24 percent of the gas produced at North Dakota wells in September was burned off. Flaring reduction standards approved by the commission in July will lower the allowed flaring rate to 23 percent on Jan. 1, 15 percent by 2016 and 10 percent by Oct. 1, 2020.
The proposed oil conditioning standards will make it more challenging for producers to meet those flaring goals, Helms said.
“We’re pushing at both ends of the system, so we’re making life really difficult for these people right now. But it’s got to be safety first,” he said.
A Wall Street Journal article on Wednesday questioned the accuracy of the testing method used in a Petroleum Council-funded study of Bakken crude’s volatility, and Stenehjem asked Thursday whether the Industrial Commission should conduct its own study.
“It has been questioned, simply because it was the industry that conducted it,” he said.
Helms urged the commission to support an ongoing U.S. Department of Energy study that could involve the Energy & Environmental Research Center in Grand Forks.
Ness said it’s concerning that “the focus is all back on the commodity.”
“The root of the issue is the trains and the train tracks and the accidents,” he said.