Tag Archives: Lac-Mégantic

North Dakota perspective on Bakken: ‘Getting it right’

From The Bismarck Tribune, Bakken Breakout
[An interesting analysis of the future of Bakken crude extraction from the perspective of an apparent oil industry advocate.  They’re listening!  – RS]

Getting it right

By Brian Kroshus, Publisher, September 17, 2014

Domestic oil production levels in the United States continue to rise – largely the result of the boom in shale oil drilling across the country. Notable plays like the Bakken shale in North Dakota and Permian and Eagle Ford shale in Texas, have been leading the way with more promising formations in different geographies, targeted for exploration and drilling in the years ahead.

Plays like the Bakken, Permian and Eagle Ford were actually in decline until only recently, having peaked decades ago when conventional, vertical wells were the only economically viable means of extracting crude. Now, those same plays are part of a drilling renaissance in key parts of the country. Geologists have known for years that more oil was present, trapped in source stone within the formations, but developing technology to profitably extract shale oil hasn’t come easy.

Today, oil production in the United States is surging thanks to advances in horizontal drilling and hydraulic fracturing techniques. Drillers are not only better understanding the geology of shale formations, but technology necessary to economically drill and produce oil. Increasingly, they’re becoming more efficient. Still, only a small percentage resource is making its way to the surface presently. Undoubtedly, more will continue to be learned in the years ahead, ultimately leading to higher extraction percentage and proven reserves.

From an energy independence standpoint, the outlook for the United States is certainly promising. In October 2013, for the first time in nearly two decades, the United States produced more oil than it imported. Predictably, while there are those including the current administration attempting to take partial credit, rising output has been the result of drilling on state and private lands. On federal lands, production has actually declined during Pres. Barack Obama’s time in office according to the American Petroleum Institute.

Despite declines on federal ground, experts still predict that the United States could be fully energy independent by the end of this decade. According the EIA, U.S. oil production will rise to 11.6 million barrels per day in 2020, from 9.2 million in 2012, overtaking Saudi Arabia and Russia and becoming the world’s largest oil producer. Over the same period, Saudi Arabia production levels are expected to decline from 11.7 million barrels to 10.6 million. Russia will also product less oil, falling from 10.7 million to 10.4 million barrels per day.

With a shale revolution and energy renaissance underway in the United States, there’s reason to be optimistic. Achieving energy independence appears to be within our grasp. Still, despite the prospect of becoming an energy independent nation, potential roadblocks loom.

In May, at the 2014 Williston Basin Petroleum Conference, Harold Hamm, CEO of Continental Resources told convention attendees that “we can’t have any more issues.” He also said “It has to be done in an absolute, safe manner. It’s going to take all of us.” He was referring to recent problems related to Bakken crude including pipeline ruptures and the fiery train derailment near Casselton, North Dakota this past December.

There’s a lot at stake. Companies like Continental Resources and others, are expected to invest billions in the years ahead to fully develop plays like the Bakken. Drillers are keenly aware that it’s their game to lose. Hamm stressed, “If we have anything, they’re going to shut us down. So many people want to stop fossil fuel use and production.”

Despite the positive macroeconomic effects rising domestic oil production and decreased imports have on the U.S. economy, job creation and economic growth alone won’t guarantee that shale oil production will continue, unless it is deemed safe and not a threat to public safety during transportation of Bakken crude in particular.

Volatility levels of Bakken crude and implication on public safety, continues to be heavily debated. The Lac-Megantic, Quebec, rail tragedy, where 47 people lost their lives when a runaway train carrying tanker cars filled with Bakken formation crude, derailed and exploded in the heart of town has been at the center of that debate. The explosions were so intense, that approximately one-half of the downtown area was destroyed.

Understandably, safely transporting Bakken crude by rail throughout North America, knowing freight rail routes frequently pass through residential areas on their way to final destinations, is a top industry priority. Much of the focus has been and remains on the DOT-111 tank car. On July 23 the U.S. Department of Transportation announced comprehensive proposed rulemaking for the safe transportation of crude oil and flammable materials, with Bakken crude being mentioned – in the form of a Notice of Proposed Rulemaking (NPRM) and a companion Advanced Notice of Proposed Rulemaking (ANPRM).

The NPRM language includes “enhanced tank car standards, a classification and testing program for mined gases and liquids and new operational requirements for high-hazard flammable trains that includes braking controls and speed restrictions.” Within two years, it proposes to “phase out of the older DOT-111 tank cars for the shipment of flammable liquids including Bakken crude oil, unless the tank cars are retrofitted to comply with new tank car design standards.” It also seeks “Better classification and characterization of mined gases and liquids.”

The North Dakota Public Service Commission has set a special hearing for September 23rd, as a part of the discussion on the volatility of Bakken crude and potential oil conditioning requirements necessary to safely transport oil from the Williston Basin. Reducing the light hydrocarbons present in Bakken crude would not only provide greater safety, but the standardization of Bakken crude into a class of oil much like West Texas Intermediate, possibly creating premium pricing opportunities.

NDPSC involvement and recommendations in addition to oil conditioning include heightened rail inspection efforts at the state level in addition to the Federal Pipeline and Hazardous Materials Administration, and emergency response training. Working closely with federal officials and a heightened inspection process, will require additional resources moving forward.

Expanding pipeline capacity and reducing reliance on rail to transport Bakken crude will continue to be a growing need, playing a role in addressing public safety concerns. The North Dakota pipeline authority anticipates two new pipelines coming online before the end of 2016, with capacity for 545,000 barrels a day. Another third proposed pipeline, capable of handling an additional 200,000 barrels, could potentially be in operation by late 2016 or early 2017.

With daily production expected to reach 1.5 million barrels in 2017, and 1.7 million barrels in early 2020, diversifying how Bakken crude is moved to market will be necessary not only from a public safety standpoint, but in order to address logistically challenges that continue to surface as production levels increase.

Extracting domestic oil and gas, moving it to market and properly disposing of or using byproducts created during the production process in a safe and efficient manner will be necessary in order for plays like the Bakken to be fully capitalized on. Those opposed to fossil fuel production will continue to watch and patiently wait for any opportunity to pressure elected officials and sway public opinion.

Ensuring both public and environmental safety to ensure the future of domestic oil production – will require a cooperative effort on the part of both industry and the state. As Harold Hamm alludes to, it truly is industries game to lose.

Crude-by-rail: One federal inspector oversees all California’s railroad bridges, no state oversight

Repost from The Contra Costa Times
[Editor:  The issue of bridge safety is important here in Benicia for two reasons.  Locally, we understand that Valero’s proposed oil trains would roll PAST the refinery in order to back into the offloading racks, thus coming to a stop near enough to the Benicia-Martinez bridge that, in the event of an explosion, the bridge itself could be severely impacted if not destroyed.  Beyond Benicia, our little City’s decision would impact rail lines all the way from Alberta and North Dakota, including bridges of questionable security all along the way.  – RS]

Crude-by-rail: One federal inspector oversees all California’s railroad bridges, no state oversight

By Matthias Gafni, 09/12/2014
View of the underside of the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)
View of the underside of the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)

As concerns grow over aging rail infrastructure, earthquake readiness and a dramatic increase in crude oil shipments by train, state railroad regulators are scrambling to hire their first-ever railroad bridge inspectors — two of them.

Once they are hired, the California Public Utilities Commission plans to create a state railroad bridge inventory to determine which are most at risk. That’s right — neither the state nor federal government has a list of railroad bridges for California or the rest of the country. Until that happens, the safety of California’s thousands of railroad bridges — key conduits that carry people and hazardous materials over environmentally sensitive ecosystems and near urban areas — is left up to rail line owners and a single federal inspector who splits his time among 11 states.

An Amtrak train crosses the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)
An Amtrak train crosses the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)

“Two more inspectors is better than none, but it’s really a Band-Aid,” said Suma Peesapati, attorney with Earthjustice, an environmental group fighting the oil rail influx. “I think there should be no crude by rail over those bridges until there’s a comprehensive look at all of them.”

No California rail bridges have failed in recent memory, but the 6.0 earthquake that rattled the Napa area on Aug. 24 provided a reminder that California must monitor its aging rail infrastructure.

Following the quake, the Federal Railroad Administration worked with Caltrans to contact railroads within a 100-mile radius and ensure bridges and tracks were inspected for damage before resuming normal operations. The Napa Valley Wine Train, which was closed for two days after the quake, had its own private inspector go over the tracks and numerous bridges, including one traversing Highway 29. The inspector gave the green light to continue running Aug. 26.

Caltrans employs 120 inspectors and 80 specialty personnel to inspect the state’s public automobile highway bridges to ensure the integrity of the elevated structures, in comparison to the one federal inspector for all of California’s rail bridges, most of which are privately owned.

Those railroad bridges are inspected, maintained and regulated by company personnel, but watchdogs say that’s far from adequate.

In its annual Railroad Safety Activity Report to the state Legislature in November, the CPUC identified the state’s railroad bridges as a “potential significant rail safety risk.”

“There are many unknown questions regarding bridge integrity that need to be answered to ensure public safety,” the report found.

The Benicia-Martinez Rail Drawbridge, built in 1930 and tucked between the automobile spans, carries hazardous material shipments across the Carquinez Strait to East Bay refineries, along with 30 Amtrak Capitol Corridor passenger trains each weekday. The bridge is owned by Union Pacific and is safe, the company’s spokesman said.

“We regularly inspect all of our bridges in California,” said Union Pacific’s Aaron Hunt. “We perform necessary maintenance required to assure the safe use of our bridges. Bridges and culverts are a critical part of our 32,000-mile network.”

Union Pacific has spent more than $42 billion on infrastructure, Hunt said, not specifying what portion of that was devoted to bridges, including $4.1 billion scheduled for this year. “These are private investments, not taxpayer dollars,” he said.

However, the state report found many bridges are owned by smaller short-line railroads that “may not be willing or able to acquire the amount of capital needed to repair or replace degrading bridges.”

Crude by rail

Concern has grown about bridge safety and rail safety in general with the increase of crude oil shipments by rail. They’ve jumped 158 percent in California from just September to December 2013, according to the state energy commission.

This year, the CPUC created the Crude Oil Reconnaissance Team to monitor the oil-by-train boom to ensure federal and state safety laws are followed.

In June, federal rail chief Joseph Szabo spoke to an Indiana newspaper about the crude-by-rail boom: “The movement of this product is a game changer. We have to rethink everything we’ve done and known in the past about safety.”

In response to the increase and some deadly accidents, including a derailment last summer in Quebec, Canada, that killed 47 people, the U.S. Department of Transportation proposed tank car safety upgrades.

As of now, about 100 rail cars of crude roll through populated areas of the East Bay each week along the BNSF line from Stockton to Kinder Morgan’s rail depot in Richmond. The route traverses the 1,690-foot-long, 80-foot-high Muir Trestle, above Alhambra Avenue in Martinez. The trestle was constructed in 1899 and rebuilt 30 years later. Those rail cars rumble through Antioch, Pittsburg, Bay Point, Martinez, and Hercules, said Contra Costa Hazardous Materials chief Randy Sawyer.

Aging

Based on total track miles and federal estimates of a bridge occurring every 1.25 miles of track, the CPUC estimates there are about 5,000 California railroad bridges.

Most are old steel and timber structures built more than 100 years ago, and “actual railroad bridge plans or records are either absent or unreliable,” the CPUC report found.

“It’s part of the infrastructure that’s dilapidated, not only in California, but across the country,” Peesapati said. “Bridges are really an example of the problem.”

American Society of Civil Engineers past President Andy Herrmann, a bridge consultant, said companies balk at releasing bridge data for competitive reasons, but he believes bridges are maintained safely.

“There’s a very strong profit motive to keep the bridges open,” Herrmann said. “Detours will cost them a fortune.”

However, the 2007 Government Accountability Office report also found that “Because bridge and tunnel work is costly, railroads typically make other investments to improve mobility first.”

Are they safe?

In 1991, a freight train traversing steep switchbacks in Dunsmuir, Siskiyou County, derailed, sending rail cars tumbling off a bridge and resulting in 19,000 gallons of metam sodium, a concentrated herbicide, leaking into the upper Sacramento River. The accident killed all vegetation, fish and other aquatic animals 45 miles downstream, rendering some invertebrate species extinct. Several hundred people exposed to the contaminated water required medical treatment in what’s still considered the worst inland ecological disaster in the state.

Although the accident was not caused by bridge failure, it led the railroad to build a derailment barrier on the Cantara Loop bridge to prevent it happening again. And the Federal Railroad Administration expressed concern about the condition of bridges generally in a wide-ranging review after the crash.

“The review was prompted by the agency’s perception that the bridge population was aging, traffic density and loads were increasing on many routes, and the consequences of a bridge failure could be catastrophic,” according to a report published in 1991, the same year as the crash.

From 1982 to 2008, records show there were 58 train accidents nationwide caused by the structural failure of a railroad bridge, causing nine injuries and about $26.5 million in damages.

State hires

As of July 2010, new federal rules require rail companies prepare bridge management programs — including annual inspections, maintenance inventories and more — that are made available to federal inspectors when asked. The Federal Railroad Administration can levy fines up to $100,000 for failure to comply.

Federal inspectors audit railroad bridge inspections done by the companies and personally perform observations of 225 to 250 bridges each year. Based on those CPUC calculations, it would take the California inspector 20 years to visit and observe all of the state’s estimated 5,000 bridges, if that was all he had to do. But in reality, it would take much longer because California’s inspector splits his time among 11 states, leaving the CPUC to conclude in its 2013 report that the feds “cannot provide adequate oversight.”

That shortfall prompted state regulators to hire their own bridge inspectors, and they have already designed a bridge evaluation form and experimented with performing inspections.

“Railroad bridges carry thousands of cars of hazardous materials and thousands of passengers daily,” said CPUC spokesman Christopher Chow. “The Federal Railroad Administration (FRA) has new, general bridge regulations … but employs only five inspectors for the entire U.S. The CPUC’s bridge inspectors will be able to augment the FRA’s efforts.”

Groups sue over oil shipments in older rail cars

Repost from The Bismarck Tribune, Bismarck, ND

Groups sue over oil shipments in older rail cars

September 11, 2014

SEATTLE (AP) — Environmental groups sued the U.S. Department of Transportation on Thursday over the shipment of volatile crude oil in older railroad tank cars.

Accident investigators have complained for decades that the cars are too easily punctured or ruptured when derailed, leading to spills.

The lawsuit filed by the Sierra Club and ForestEthics says the agency failed to respond to a legal petition the groups filed in July. That petition sought an emergency order to prohibit crude oil from the Bakken region of North Dakota and Montana and elsewhere from being carried in older tank cars, known as DOT-111s.

A spokesman with the Department of Transportation, Kevin Thompson, declined to comment, citing the pending litigation.

Since 2008, there have been 10 significant derailments in the U.S. and Canada in which crude oil has spilled from ruptured tank cars. The worst was a runaway oil train that exploded in the Quebec town of Lac-Megantic a year ago, killing 47 people.

The federal government in late July proposed rules that would phase out tens of thousands of older tank cars that carry crude oil and other highly flammable liquids.

But that process could take several years, and in the meantime, shipments of crude oil in older rail cars are putting small towns and major cities along the rail lines at risk, the groups said.

“That’s just far too long given the risks,” said Patti Goldman, a lawyer with Earthjustice, which is representing the groups.

The groups had asked the 9th U.S. Circuit Court of Appeals to order the agency to respond to its July petition within 30 days.

New Jersey town council presses for moratorium on use of older tank cars

Repost from NORTHJERSEY.COM
[Editor: Significant quote by Teaneck Town Councilman Mark Schwarz: “‘If we’re all going to sit here and wait for our [Legislative] District 37 leadership and Congress’ to act, ‘then we’re going to die of old age.'”  – RS]

Teaneck Council presses for moratorium on use of older tank cars on oil trains through town

SEPTEMBER 11, 2014, BY AARON MORRISON

TEANECK — Local officials are pushing for a moratorium on the use of old tankers to carry millions of gallons of highly explosive materials on rail tracks through town.

Tank cars lining the CSX tracks near Cedar Lane in Teaneck in May. Fifteen to 30 oil trains pass each week through 11 Bergen County towns.
Tank cars lining the CSX tracks near Cedar Lane in Teaneck in May. Fifteen to 30 oil trains pass each week through 11 Bergen County towns. | CHRIS PEDOTA/STAFF PHOTOGRAPHER

Residents and members of the Township Council have expressed concern about the safety risks posed by crude oil traveling in substandard railcars that federal regulators have cautioned against.

The Record has reported that at least 7 million gallons per day of highly combustible Bakken crude oil comes through 11 Bergen County towns — Northvale, Norwood, Harrington Park, Closter, Haworth, Dumont, Bergenfield, Teaneck, Bogota, Ridgefield Park and Ridgefield – on the CSX River Line.

Concerns over the crude on the railways have mounted in recent months after a series of fiery accidents and derailments in North Dakota, Alabama and Virginia. Last summer, 47 people were killed when a train carrying Bakken crude derailed in a small Quebec town.

The Teaneck Council passed a resolution Tuesday night calling for the temporary ban until federal regulators have deemed the tankers adequate. Though ceremonial, the council hopes neighboring North Jersey communities will join in amplifying the message.

“The transportation of this material in such close proximity to homes, businesses and our water supply, raises serious public safety concerns and requires that we take immediate action to eliminate this hazard,” the resolution states.

Mayor Lizette Parker on Tuesday night said the township should hold federal lawmakers accountable, while other members of the council asked for development of a township emergency response plan, in the event of a derailment.

“This is a safety issue that needs to be important to them,” Parker said. “We do have the power of influence. And I don’t mean the seven of us” on the council. “I mean the 39,000 of us.”

Councilman Jason Castle urged his colleagues to consider an emergency management plan he said he circulated “two sessions ago.”

“My daughter just started school at the Rodda Center — she’s at the preschool there and the tracks run right by the Rodda Center,” he said.

Councilmen Henry Pruitt and Mark Schwartz said the township should find other strategies that don’t rely on action from officials in Trenton and Washington.

“If we’re all going to sit here and wait for our [Legislative] District 37 leadership and Congress” to act, “then we’re going to die of old age,” Schwartz said.

Enlisting other towns

While New Jersey officials declined to reveal the number of trains that travel on the rail line, citing security risks, documents provided by New York State officials showed between 15 and 30 oil trains are entering Bergen County from Rockland County each week. The trains also travel through Hudson, Essex, Union, Middlesex, Somerset and Mercer counties, according to a map on CSX’s website.

Rail executives this year agreed to more track inspections and a reduction in train speeds in highly populated areas, but they haven’t been swapping out their fleet of old tanker cars. Even though the National Transportation Safety Board has called the tankers inadequate for transporting such flammable materials, federal officials are only recommending that railway companies stop shipping crude in the old cars.

Two weeks ago, the Teaneck Council asked Township Manager William Broughton to send letters to the other Bergen County municipalities along the CSX line. Broughton told the council he had not received any responses as of Tuesday.

The manager also said the township is already working with CSX “on this issue of preparedness and response.” This week, CSX paid for one of the township’s deputy fire chiefs to attend safety training in Pueblo, Colo. The course deals specifically with fires from crude oil, Broughton said.

Residents at Tuesday’s meeting praised the council’s attention to the issue. Some even vowed to take drastic measures to stop the trains from coming past their homes and businesses and force federal reforms.

“I will personally sit on those tracks, and anyone else who wants to can join me,” said Paula Rogovin, who organized a protest at one of the railway bridges in town.