Tag Archives: Illinois

Bakken Crude, Benicia CA, Bridge safety, California, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Fire, Hazmat notification, Massive increase in crude-by-rail, Oil Industry, Oil prices, Rail inspection, Valero Benicia Refinery, Valero Crude By Rail, Volatility

Crude oil train shipments dwindle in California, for now

Repost from The Sacramento Bee

Crude oil train shipments dwindle in California, for now

By Tony Bizjak, 03/11/2015 9:47 PM
A BNSF train carries Bakken crude oil in the hills outside the Feather River Canyon last June.
A BNSF train carries Bakken crude oil in the hills outside the Feather River Canyon last June. Jake Miille / Special to The Bee

A year ago, California officials nervously braced for an influx of milelong trains carrying volatile crude oil to refineries in the Valley and on the coast – trains similar to the one that exploded two years ago in Canada, killing 47 people.

The trains never arrived. Although tank cars full of oil now roll daily through cities in the Midwest and East, provoking fears of crashes and fires, the number of oil trains entering California has remained surprisingly low, state safety regulators say, no more than a handful a month. In recent weeks, they appear to have dwindled to almost nothing.

The reasons appear to be mainly economic.

“Crude oil shipments from out of state have virtually stopped,” said Paul King, rail safety chief at the California Public Utilities Commission. “Our information is that no crude oil trains are expected for the rest of this month.”

Most notably, the BNSF Railway recently stopped running a 100-car train of volatile oil from the Bakken region of North Dakota through the Feather River Canyon and midtown Sacramento to the Bay Area. The trains, several a month, carried an estimated 3 million gallons of fuel each.

Bakken oil, a lighter type of crude, similar to gasoline, has gained a fearsome reputation since it entered the national scene a few years ago. A string of Bakken train explosions around the country prompted the federal government to issue a warning last year about the oil’s unusual volatility and launch efforts to write stiffer regulations on rail transport, including a proposal to require sturdier tank cars for oil.

Two more Bakken train derailments and explosive fires recently in West Virginia and Illinois triggered a new round of complaints that the federal government is dragging its heels in finalizing those regulations.

The BNSF train through Sacramento was believed to be the only train in California carrying 100 cars of Bakken oil. PUC rail safety deputy director King said his commission’s rail monitors have been told by owners of a Richmond oil transfer station in the Bay Area that refiners stopped the shipments in November as global oil prices dropped.

California Energy Commission fuels specialist Gordon Schremp said lower prices for other types of oil have made Bakken marginally less marketable in California, although that could easily change in the future.

Other projects, like a Valero Refining Co. plan to run two 50-car oil trains daily through Sacramento beginning this spring to its Benicia plant, have not yet gotten off the ground, in part because of political opposition. Under pressure from state officials, including Attorney General Kamala Harris, Benicia recently announced it is redoing part of its environmental and risk analysis of the Valero rail project. Valero has said it intends to ship lighter fuels, but has declined to say whether those will be Bakken.

State safety officials said the slowdown provides a bit more time to provide hazardous-materials training for more firefighters, as well as to put together a state rail-bridge inspection program and to upgrade disaster and waterway spill preparedness. But state officials said they still feel like they’re playing catch-up as they prepare for existing and future potential rail hazards.

“This apparent reprieve may seem helpful, but we still have substantial amounts of … hazardous materials traveling across California’s rail lines,” said Kelly Huston, deputy director of the state Office of Emergency Services. “It only takes one train to create a major disaster.”

Oil prices have begun rising again, and state officials say they expect Bakken shipments to Richmond and potentially elsewhere to be back on track at some point. “We don’t have any concrete info about when it will resume,” the PUC’s King said. “When prices come up, it is likely to resume, and that could be in months.”

Federal emergency rules require railroads to report to states when they run trains carrying more than 1 million gallons of Bakken crude, and then again when that amount changes by 25 percent or more. BNSF sent the state Office of Emergency Services a brief notice on Wednesday acknowledging it had not shipped more than 1 million gallons of Bakken on any train in the last week. The notice does not say how long ago the shipments stopped or when they may resume.

BNSF officials have contended in letters to the state that shipping information is proprietary and should be kept secret. A BNSF spokeswoman declined this week to discuss shipments with The Sacramento Bee, writing in an email, “Information regarding hazardous material shipments is only provided to emergency responders.”

King of the PUC said his monitors estimate that eight or more non-Bakken crude oil trains had been entering the state monthly from Canadian and Colorado oil fields recently, headed to refineries or transfer stations. The Canadian oil, called tar sands, is not considered as explosive as Bakken, but two tar-sands trains derailed and exploded in recent weeks in Ontario, creating fires that lasted several days.

The national concern about crude oil rail shipments follows a boom in domestic oil production, notably in North Dakota, where hydraulic-fracturing advances have freed up immense deposits of shale oil. Lacking pipeline access, North Dakota companies have turned to trains to ship the oil mainly to East and Gulf Coast refineries and to Washington state. Crude by rail shipments in the United States skyrocketed from 9,500 carloads in 2008 to 436,000 in 2013, according to congressional data.

California continues to produce a sizable amount of its own oil in Kern County and receives marine shipments from Alaska and foreign sources. Still, a recent state energy-needs analysis estimates the state could receive as much as 23 percent of its oil via train or barge from continental sources, including North Dakota, Canada, Texas and other Western states, in the coming years. That estimate is based on plans by refineries in Benicia, San Luis Obispo and Kern County to build rail facilities that can accommodate large crude transports.

Bakken Crude, Derailment, Diluted bitumen (Dilbit), Emergency Readiness & Response, Evacuation zone, Explosion, Federal Regulation (U.S.), Fire, Massive increase in crude-by-rail, Moratorium, Rivers, Tar sands crude, Volatile gases, Wildlife

Fourth Oil Train Accident in Three Weeks Shows Need for Immediate Moratorium

Repost from The Center for Biological Diversity

Another Oil Train Derails and Catches Fire in Ontario

Fourth Oil Train Accident in Three Weeks Shows Need for Immediate Moratorium

Center for Biological DiversityGOGAMA, Ont.— An oil train derailed and caught fire early this morning in Ontario near the town of Gogama, the second such incident in Ontario in three weeks, and the fourth oil train wreck in North America in the same time period. Since Feb. 14, there have also been fiery oil train derailments in West Virginia and Illinois. The Illinois wreck occurred just two days ago, and the fire from that incident is still burning.

“Before one more derailment, fire, oil spill and one more life lost, we need a moratorium on oil trains and we need it now” said Mollie Matteson, a senior scientist with the Center for Biological Diversity. “The oil and railroad industries are playing Russian roulette with people’s lives and our environment, and the Obama administration needs to put a stop to it.”

In the United States, some 25 million people live within the one-mile “evacuation zone” of tracks carrying oil trains. In July 2013, a fiery oil train derailment in Quebec resulted in the loss of 47 lives and more than a million gallons of oil spilled into a nearby lake. A report recently released by the Center for Biological Diversity also found that oil trains threaten vital wildlife habitat; oil trains pass through 34 wildlife refuges and critical habitat for 57 endangered species.

Today’s Ontario accident joins an ever-growing list of devastating oil train derailments over the past two years. Oil transport has increased from virtually nothing in 2008 to more than 500,000 rail cars. Billions of gallons of oil pass through towns and cities ill-equipped to respond to the kinds of explosions and spills that have been occurring. Millions of gallons of crude oil have been spilled into waterways. In 2014, a record number of spills from oil trains occurred.

There has been a more than 40-fold increase in crude oil transport by rail since 2008, but no significant upgrade in federal safety requirements. The oil and rail industries have lobbied strongly against new safety regulations that would help lessen the danger of mile-long trains carrying highly flammable crude oils to refineries and ports around the continent. The Obama administration recently delayed for several months the approval of proposed safety rules for oil trains. The proposed rules fall short because they fail to require appropriate speed limitations, and it will be at least another two and a half years before the most dangerous tank cars are phased out of use for the most hazardous cargos. The oil and railroad industries have lobbied for weaker rules on tank car safety and brake requirements.

The administration also declined to set national regulations on the level of volatile gases in crude oil transported by rail, instead deciding to leave that regulation to the state of North Dakota, where most of the so-called “Bakken” crude originates. Bakken crude oil has been shown to have extremely high levels of volatile components such as propane and butane but the oil industry has balked at stripping out these components because the process is expensive and these “light ends” in the oil bring a greater profit. The North Dakota rules, which go into effect next month, set the level of volatile gases allowed in Bakken crude at a higher level than was found in the crude that set the town of Lac Mégantic, Quebec on fire in 2013, or that blew up in the derailment that occurred last month in West Virginia.

The crude involved in today’s accident may be another form of flammable crude, called diluted bitumen, originating in Alberta’s tar sands region. The Feb. 14 derailment and fire in Ontario on the same rail line involved an oil train hauling bitumen, otherwise known as tar sands.

“Today we have another oil train wreck in Canada, while the derailed oil train in Illinois is still smoldering. Where’s it going to happen next? Chicago? Seattle?” said Matteson. “The Obama administration has the power to put an end to this madness and it needs to act now because quite literally, people’s lives are on the line.”

In addition to its report on oil trains, the Center has sued for updated oil spill response plans, petitioned for oil trains that include far fewer tank cars and for comprehensive oil spill response plans for railroads as well as other important federal reforms, and is also pushing to stop the expansion of projects that will facilitate further increases in crude by rail.

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 825,000 members and online activists dedicated to the protection of endangered species and wild places.

Bakken Crude, CPC-1232, Crude By Rail, Derailment, Explosion, Fire, Insurance and liability, Massive increase in crude-by-rail, Rivers, Tar sands crude, Train braking systems, Volatility

WALL STREET JOURNAL: In Recent Derailments, Newer Tougher Railcars Failed to Prevent Rupture

Repost from The Wall Street Journal

Wrecks Hit Tougher Oil Railcars

Sturdier train cars built to carry crude oil have failed to prevent spills in recent derailments 

By Russell Gold, March 8, 2015 9:36 p.m. ET
Galena
Fire continued Friday after a train carrying 103 railcars loaded with crude oil from North Dakota’s Bakken Shale derailed south of Galena, Ill. Photo: Associated Press

In a string of recent oil train derailments in the U.S. and Canada, new and sturdier railroad tanker cars being built to carry a rising tide of crude oil across the continent have failed to prevent ruptures.

These tank cars, called CPC-1232s, are the new workhorses of the soaring crude-by-rail industry, carrying hundreds of thousands of barrels a day across the two countries.

But the four recent accidents are a sign that the new tanker cars are still prone to rupture in a derailment. The ruptures could increase momentum for rules aimed at further reducing the risk of shipping crude by rail.

In the last month, there have been significant derailments of crude-carrying trains in West Virginia and Illinois, plus two in Ontario, including one Saturday in a remote part of the Canadian province.

Each train was hauling the new tank cars, which weren’t able to prevent the crude from escaping, leaking into one river and exploding into several giant fireballs.

“These new type of cars were supposed to be safer, but it’s obvious these cars are not good enough or safe enough,” said Claude Gravelle, a Canadian lawmaker who represents the northern Ontario area where two recent derailments occurred.

On Sunday, emergency workers were still trying to extinguish fires in multiple tank cars after 30 cars of a 94-car Canadian National Railway Co. train laden with Alberta crude derailed Saturday near Gogoma, Ontario. Five cars landed in a waterway.

The energy industry began using rail to transport oil in 2008 because it was a fast and inexpensive way to move growing volumes largely from the Bakken Shale in North Dakota.

In addition, building new pipelines has been expensive and politically fraught. In February, President Barack Obama vetoed legislation to approve the Keystone XL pipeline, which has been under review by the Obama administration for more than six years.

The robustness of tanker cars has become a major focus of efforts to improve the safety of shipping crude by rail. Such shipments have soared from about 21,200 barrels a day in 2009 to 1.04 million barrels a day by the end of 2014, according to government statistics.

As the U.S. shale boom gathered speed, the safety of growing crude shipments by rail has attracted greater scrutiny in the U.S. and Canada, especially after a 2013 derailment in Lac-Mégantic, Quebec, that claimed 47 lives.

Speed limits have been adopted, and a new rule in North Dakota that will take effect next month requires crude from the state to be treated to make the crude less combustible.

The cars involved in the two Ontario derailments and the incidents in West Virginia and Illinois all met the standards introduced by the rail industry in 2011 as a significant upgrade over older models, and were built with thicker shells and pressure-relief devices.

Fiery_TracksThere are about 60,000 of the new CPC-1232 tanker cars in use hauling crude oil across North America, as well as about 100,000 of the older models, says the Association of American Railroads.

Last year, the Transportation Department proposed additional new rules for tank cars carrying crude, presenting three main options. One would stick with the CPC-1232, but the other two would make new cars stronger and retrofit existing cars.

The White House is now reviewing these options and is expected to issue recommendations in May.

Ed Greenberg, a spokesman for the Association of American Railroads, said the railroad-industry trade group “wants all tank cars carrying crude oil, including the CPC-1232, to be upgraded by retrofitting or taken out of service. Railroads share the public’s deep concern regarding the safe movement of crude oil by rail.”

The American Petroleum Institute, the oil industry’s trade group, says it also supports upgrades to the tanker fleet to improve safety.

Cynthia Quarterman, a former director of the Pipeline and Hazardous Materials Safety Administration who stepped down last October, said the recent incidents “confirm that the CPC-1232 just doesn’t cut it.”

Tanker-car improvements alone won’t be enough to reduce overall risk, she added. “The crashworthiness of the tank cars does need to be raised, but that’s not enough. There needs to be a comprehensive solution, including better brakes to help minimize pileups.”

The four recent crashes also highlight some of the other risks of carrying crude by rail that seem to be persistent.

Two of the derailments involved Bakken crude from North Dakota, which contains a high level of gas, making it more volatile than other kinds of crude. In the Mount Carbon, W.Va., accident in February, nearly two dozen tankers full of crude derailed and were engulfed in flames, some exploding into fireballs that rose more than 100 feet in the air.

Tests on the crude showed that its vapor pressure, a measure of volatility, exceeded a new regulatory standard that will go into effect next month.

The recent derailments involved long trains that are essentially mobile pipelines as much as a mile long. The BNSF Railway Co. train that derailed and caught fire in Galena, Ill., 160 miles northwest of Chicago, was roughly a mile long and carrying 103 railcars loaded with crude from North Dakota’s Bakken Shale. BNSF is a unit of  Berkshire Hathaway Inc.

“We certainly believe that a stronger tank car is necessary and appropriate,” said Mike Treviño, a BNSF spokesman. A Canadian National spokesman said the company is in favor of stronger tank-car design standards.

The train in the Canadian National accident in Ontario over the weekend was 94 cars long, while the West Virginia train had 109 tankers full of North Dakota crude oil.

Canadian Transport Minister Lisa Raitt referred to “very long” unit trains last month when she proposed a new tax on crude shipments by rail aimed at building an insurance fund. “With that increased length of car, there’s an increased risk associated with it,” she said.

The number of derailments on long-haul tracks in the U.S. has declined 21% since 2009, according to the Federal Railroad Administration. But the number of train accidents related to “fire” or “violent rupture” climbed to 38 last year from 20 in 2009.

Bakken Crude, Crude By Rail, Derailment, Explosion, Fire, Volatile gases

Crude Oil on Derailed Train Contained High Level of Gas

Repost from The Wall Street Journal
[Editor: This is a MUST READ.  Highly significant findings, with life-and-death implications for all regulators, first responders, rail and oil industry workers and executives, and for every town and country along the rails.  – RS]

Crude on Derailed Train Contained High Level of Gas

Cargo would have violated new vapor-pressure cap that goes into effect in April

By Russell Gold, March 2, 2015 6:54 p.m. ET
crude_oil_train_derailment_Mt.CarbonWVa
The scene of a CSX crude-oil train burning after derailment in Mount Carbon, W. Va. Photo: Marcus Constantino/Reuters

The crude oil aboard the train that derailed and exploded two weeks ago in West Virginia contained so much combustible gas that it would have been barred from rail transport under safety regulations set to go into effect next month.

Tests performed on the oil before the train left North Dakota showed it contained a high level of volatile gases, according to a lab report reviewed by The Wall Street Journal. The oil’s vapor pressure, a measure of volatility, was 13.9 pounds per square inch, according to the Feb. 10 report by Intertek Group PLC.

That exceeds the limit of 13.7 psi that North Dakota is set to impose in April on oil moving by truck or rail from the Bakken Shale. Oil producers that don’t treat their crude to remove excess gas face fines and possible civil or criminal penalties, said Alison Ritter, a spokeswoman for the North Dakota Industrial Commission.

The state introduced new rules on shipping oil in December, after a series of accidents in which trains carrying crude from the Bakken erupted into fireballs after derailing. As the Journal has reported, oil from shale formations contains far more combustible gas than traditional crude oil, which has a vapor pressure of about 6 psi; gasoline has a maximum psi of about 13.5.

The company that shipped the oil,  Plains All American Pipeline LP, said it follows all regulations governing the shipping and testing of crude. “We believe our sampling and testing procedures and results are in compliance with applicable regulatory requirements,” said Plains spokesman Brad Leone.

New information about the West Virginia accident is likely to increase regulators’ focus on the makeup of oil being shipped by train. Federal emergency rules adopted last year imposed new safety requirements on railroad operators but not on energy companies.

“The type of product the train is transporting is also important,” said Sarah Feinberg, the acting head of the Federal Railroad Administration. “The reality is that we know this product is volatile and explosive.”

Ms. Feinberg has supported requiring the energy industry to strip out more gases from the crude oil before shipping it to make the cargo less dangerous, but such measures aren’t currently included in current or proposed federal rules.

In the wake of the West Virginia accident, members of Congress have called on the White House to expedite its review of pending safety rules developed by the U.S. Transportation Department. Timothy Butters, the acting administrator of the department’s Pipeline and Hazardous Materials Safety Administration, said the new regulations were being vetted as quickly as was practical, given what he called their complexity.

Some critics are calling for lower limits on the vapor pressure of oil moving by rail.

crude_oil_train_derailment_Mt.CarbonWVa02
The train that derailed in Mount Carbon, W.Va., in mid-February included 109 tanker cars loaded with about 70,000 barrels of Bakken crude. PHOTO: ASSOCIATED PRESS

The lower the vapor pressure, the less explosive the oil and “the less chance of it blowing up—that should be the common goal here,” said Daniel McCoy, the chief executive of Albany County, N.Y., which has become a transit hub for Bakken crude heading to East Coast refineries.

The train that exploded in West Virginia included 109 tanker cars loaded with about 70,000 barrels of crude. It traveled from Western North Dakota across Minnesota, Illinois and Ohio before derailing in Mount Carbon, W. Va. Nearly two dozen tanker cars full of crude oil were engulfed in flames, some exploding into enormous fireballs that towered over the small community and burned a house to the ground.

The cause of the derailment remains under investigation. State and federal officials have said the train was traveling well under speed limits imposed last year on trains carrying crude oil. The train was made up of relatively new tanker cars built to withstand accidents better than older models.

A couple hours after the derailment, CSX and Plains All American Pipeline turned over paperwork about the crude to first responders and state and federal investigators. The testing document was included; the Journal reviewed it after making an open-records request.

A spokesman for  CSX Corp. , the railroad that carried the oil at the time of the crash, said it had stepped up its inspections of the track along this route, a procedure that railroads voluntarily agreed to last year.

Related

“Documentation provided to CSX indicated that the shipments on the train that derailed were in compliance with regulations necessary for transportation,” said Gary Sease, a CSX spokesman. “We support additional measures to enhance the safety of oil shipments, and continue to work cooperatively with regulators, oil producers, tank car manufacturers and others to achieve ever higher safety performance.”

A spokesman for BNSF Railway Co., which hauled the crude oil from North Dakota to Illinois, where it was handed off to CSX, declined to comment on the derailment.

Intertek, the testing company, said it is abreast of the regulatory changes and “working closely with authorities and our clients to assure compliance.”

The U.S. Transportation Department is testing samples of crude that didn’t spill or burn and says it plans to compare its findings with the North Dakota test.

The fire burned for three and a half days. “If it is burning hard, you can’t put it out,” said Benny Filiaggi, the deputy chief of the Montgomery Fire Department, who responded to the West Virginia derailment. He said he received training from CSX about oil-train fires in October.

“We concentrated on evacuating everyone nearby before the first explosion,” Mr. Filiaggi said.