By Dan Gunderson, Mar 29, 2015 at 6:37 p.m.
Oil containers sat at a train depot outside Williston, North Dakota. Andrew Burton | Getty Images 2013
MOORHEAD, Minn. — North Dakota environmentalists want oil companies to reduce volatile gasses in Bakken crude. Regulators, however, say they’re taking a different tack that’s cheaper for the industry and still improves safety.
The gasses remain a flashpoint for producers, environmental and safety groups concerned about transporting the highly flammable Bakken crude. Oil train shipments from the Bakken have skyrocketed in recent years, heightening the worries.
Environmental groups have been pushing the state to require that producers install equipment to stabilize the crude using a process that heats the oil to a higher temperature to release more gasses.
North Dakota officials, however, say the more stringent heating requirement would cost oil companies as much as $2 per barrel.
Instead, state inspectors starting April 1 will check oil at well sites to make sure the vapor pressure runs no greater than 13.7 pounds per square inch of Reid Vapor Pressure, the measurement standard of volatile gases in crude oil. Oil involved in a recent West Virginia derailment and explosion had a vapor pressure slightly higher, 13.9 psi.
The North Dakota standard is tougher than the 14.7 psi federal standard for crude oil, although it’s still more volatile than gasoline sold in Minnesota in the summer, which has a maximum vapor pressure of 9.
Regulators say their method will maintain safety but cost an estimated 10 cents a barrel, compared to the $2 per barrel for the stabilization gas removal process. Companies found violating the new regulation can be fined $12,500 per day.
The industry disputes that Bakken crude is more volatile, but says most North Dakota crude meets the new standard already.
“I think a lot of people have wondered, well, is this going to cure the problem. And our answer is that by itself, it is not the cure,” said Lynn Helms, director of North Dakota’s Department of Mineral Resources.
The new, lower vapor standard is a step in the right direction but safer rail cars are also a critical part of the solution, Helms added. The federal government is considering new rules for safer tank cars that might include thicker steel shells and larger pressure relief valves.
“If you combine our lower vapor pressure standard with the these high capacity relief valves we should be able to get away from these boiling liquid explosive vapor incidents which create the large explosions if and when we have a derailment,” Helms added.
Larger relief valves could allow rapidly expanding gases to escape, preventing rail tank cars from exploding. But critics point out those volatile gases could still catch fire. A newer tank car with improved safety features, the CPC 1232, has been involved in at least two recent oil train derailment and explosion incidents.
Environmentalists argue North Dakota could make the oil much safer.
“The bottom line profitability of the oil industry is trumping all the rest of us, our safety,” said Don Morrison with the North Dakota environmental group Dakota Resource Council.
Much of the light crude oil in Texas is stabilized before it’s shipped, he added. “To stabilize the oil so it is safer like they do in Texas, oil companies are going to have to spend some money. That is true. But isn’t that the cost of doing business?”
The North Dakota Petroleum Council, which represents the oil industry, did not respond to an interview request.
In December 2013, the potential for disaster became very real after train cars of Bakken oil derailed, caught fire and exploded outside Casselton, N.D., near the Minnesota state line. Derailments and fires involving Bakken crude since then have heightened the worry.
Fred Millar, a Washington-based lobbyist and consultant on hazardous materials transportation, contends the new North Dakota standards would not have changed the outcome of a deadly 2013 oil train explosion in Lac Megantic, Quebec in Canada.
Train cars of Bakken crude involved in the Lac Megantic explosion and fire had a vapor pressure of about 9 psi, according to Canadian investigators.
A search of public records and news reports identified 14 derailments involving crude oil trains in the past two years in North America. Fire was involved in nine of the accidents.
New regulations are unlikely to stop crude oil train accidents, Millar said.
“Anybody who’s kind of hoping that somehow there’s going to be this magic bullet or some new set of federal regulations that’s going to make this situation safe,” he said, “I have bridge in Brooklyn I’d like to sell you.”
Repost from Vindi.com, Youngstown OH [Editor: Quoting Ed Greenberg, spokesperson for the Association of American Railroads: “We believe that every tank car moving crude oil today should be phased out or built to a higher standard.” – RS]
1.4M at risk in Ohio for crude-oil derailment, study finds
March 30, 2015 @ 12:05 a.m.
Almost 1.4 million Ohioans live within a half-mile of railroad lines where some of the most-volatile crude oil in North America rolls by each week, a Columbus Dispatch analysis has found.
Those people, about 12 percent of the state’s population, are at risk of being forced from their homes should a train hauling crude oil from the Bakken shale fields of North Dakota run off the tracks.
Most trains that transport crude oil stay on their tracks, but derailments can be catastrophic.
A Bakken train that derailed in 2013 burst into flames, killing 47 people and destroying most of downtown Lac- Megantic, Quebec. Trains have wrecked in Ontario, as well as in Alabama, Illinois, Minnesota, North Dakota, Pennsylvania and Virginia, sending trains up in flames, prompting mass evacuations and, in some cases, obliterating homes.
A Bakken train derailed in West Virginia last month, forcing hundreds of people to evacuate their homes and spilling oil into the Kanawha River.
Teresa Mills, program director of the Buckeye Forest Council, said that both rail officials and the oil and gas industry should do more to keep people safe.
“Before they leave the fields, before they pump that oil into a train, they should be required to make that oil less explosive,” Mills said. “And if they can’t transport it without its being so explosive — if the Bakken is so volatile that it can’t be transported without being explosive — then they should leave it in the ground.”
The Bakken shale field stretches over northwestern North Dakota and into Montana and produces some of the most-desirable crude oil in the United States. It’s often less expensive than imported crude. It also requires less refining than other shale oils to be turned into diesel fuel or gasoline.
But the same things that make Bakken crude such a good fuel source also make it highly flammable.
Ohio, with its more than 5,300 miles of tracks, is a key junction between the Bakken region and East Coast oil refineries.
Millions of gallons of Bakken crude come through Ohio each week on trains, according to the reports that railroad companies submit to the state. Those reports show that from 45 million to 137 million gallons of Bakken are moving on Ohio’s railroad tracks every week.
That volume, combined with high-profile derailments, has prompted federal regulators, lawmakers, industrial lobbying groups and environmental nonprofit organizations to pay closer attention to how oil moves on rail lines throughout the country.
“If it could happen in these other places. It could surely happen right here in Ohio,” said Melanie Houston, director of water policy and environmental health for the Ohio Environmental Council, an environmental advocacy group. “It could happen in a rural area, but it could also happen in a highly populated metropolitan area like Columbus.”
The U.S. Department of Transportation estimates that trains carrying crude oil or ethanol will derail an average of 10 times a year for the next 20 years. Property damage could top $4 billion, the DOT analysis, completed last summer, found.
The department is preparing new rules on how crude oil is transported on tracks throughout the country. Last year, railroad companies voluntarily agreed to limit oil-train speeds to 40 mph in cities.
Ed Greenberg, a spokesman for the Association of American Railroads, a trade group that represents railroad companies, said that organization has lobbied for tougher restrictions on the tanker cars that carry crude oil.
“We believe that every tank car moving crude oil today should be phased out or built to a higher standard,” Greenberg said.
But keeping people along crude-oil shipping lines safe will take a comprehensive approach, said Tom Simpson, president of the Railway Supply Institute, which represents tank-car owners and manufacturers.
“The tank car is not the silver bullet. You cannot really design a tank car to withstand the derailment forces in a derailment, and so you can’t get the risk down to zero,” Simpson said. “You’ve got to look at the other factors, and that includes derailment prevention and ensuring [that] the materials have the proper packaging, and also educating the emergency-response personnel in the cities and villages along the right of way.”
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.
Click to visit WDAZ for 30-second news clip
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.
Previous derailments
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.
Green Groups press for $100 million state Oil Spill Fund
Claim $40M proposed in state budget won’t cover cost of derailments
By Kim Smith Dedam, March 23, 2015
ELIZABETHTOWN — Environmental groups are pushing state lawmakers to bulk up the state’s Oil Spill Fund.
They see a need for $100 million set aside, not $40 million as is currently proposed in the executive and legislative budgets.
And they have asked Gov. Andrew Cuomo and legislators to leave the money within the purview of the State Comptroller’s Office and not move the fund to State Department of Environmental Conservation coffers.
“This is a backup fund, mainly because in other cases, where a spill has led to significant cleanup costs, some companies go out of business, including the company whose accident resulted in the explosion at Lac-Megantic in Quebec,” Adirondack Council spokesman John Sheehan said in an interview this week.
“At that point, there is little the state can do to get the money from the company other than to go to court.”
‘DOESN’T TAKE MUCH’
Total liabilities for the Lac-Mégantic, Quebec, rail disaster in July 2013 could easily reach $2.7 billion over the next decade, the coalition said in a news release.
The Adirondack Council joined forces with Environmental Advocates, the Sierra Club and Riverkeeper to press the Oil Spill Fund issue.
“Typically, the requirement for (accident) insurance has not been high enough to cover the cost of an accident that could take place as the result of an explosion,” Sheehan told the Press-Republican.
“And it doesn’t take much oil to contaminate thousands of gallons of water, especially when we’re talking about a drinking water supply for 188,000 people, which Lake Champlain is.”
The Canadian Pacific Railroad line runs the entire length of Lake Champlain’s western shore, and oil train trips have increased in recent months.
Many places where oil cars have spilled and exploded sustained permanent environmental damage, Sheehan said.
$60 MILLION MORE
The coalition is not trying to force funding contributions from oil transport companies or the railroads to bolster state Oil Spill Funds.
They do believe lawmakers in Albany are on the right track in looking to increase funding for next year.
“However, the $15 million increase to $40 million proposed by (Cuomo) and Assembly budgets could and should be increased.
“In today’s dollars, the $25 million fund created in 1977 would be a $96.4 million fund today,” the coalition said in a news release.
“Thus, we urge that the fund cap be increased to $100 million to bring it back to parity with the monetary protection it afforded nearly four decades ago.”
They also charge that the Oil Spill Fund should be indexed to keep pace with inflation.
10 WRECKS YEARLY
“Federal regulators have told us to expect at least 10 major derailments of crude oil trains a year. There have already been four in the last three weeks,” Kate Hudson, Riverkeeper’s Special Projects director, said in a news release.
“It’s no longer a matter of if, but when, a catastrophe will happen in a New York community. If we are without a robust spill fund, New York citizens could be left to shoulder the cost of the cleanup and damages, just as the citizens of Canada were a year and a half ago.”
SEPARATE ACCOUNTS
Environmental advocates also asked Albany to fund emergency response separately from oil spill response and environmental cleanup.
“We welcome proposed funding for emergency response equipment, supplies and training for state and local emergency services personnel,” the coalition said in a news release.
“We strongly support the Assembly’s proposed legislation, which would keep that funding separate from the account that pays for remediation costs, as well as the damages associated with loss of life and property damage and economic losses suffered by individuals and businesses in the event of a spill.”
If response and spill monies are kept in a joint account, they contend, emergency cleanup costs could deplete the response fund, leaving the state without resources to remediate a spill.
‘TREMENDOUS RISK’
Roger Downs, conservation director for the Sierra Club’s Atlantic Chapter, said New Yorkers assume “tremendous risk and little economic benefit” from the millions of gallons of explosive crude oil that “rumble through our cities and along our precious waterways every day.”
Inaction on the part of the federal government to adequately address the risks or improve oil-tank-car safety should not prevent state lawmakers from building the most robust spill fund possible, he said.
The joint call for heightened oil-spill resources came within a day of the release of reports from state inspections done at railroad yards in Albany and Buffalo.
State inspectors found 93 defects in tracks and crude oil cars, including seven critical safety defects that had to be fixed before cars could continue operation.
Inspections were done on tankers at a CSX rail yard in Buffalo and at the Canadian Pacific yard in Albany.
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