Tag Archives: Lac-Mégantic

Canadian regulation, Crude By Rail, Tank car design, Train braking systems

Canada may require new electronically controlled brakes (and other measures) for oil trains … by 2020

Repost from the Globe and Mail, Ottawa, Canada
[Editor: Significant quote: “Electronically controlled air brakes are favoured by some rail-safety advocates because they allow an engineer to apply the brakes on all of a train’s cars at the same time – regardless of how close they are to the locomotive.  In contrast, traditional air brakes rely on a signal that begins from the locomotive and moves car by car toward the back of the train. On longer unit trains such as those typically used to haul crude oil, rail cars near the back of the train won’t receive the signal as quickly, increasing the risk of a derailment when the brakes are applied suddenly.”  – RS]

Putting the brakes on train derailment

By Kim Mackrael, Aug. 15 2014

The federal government is mulling a plan to require new electronically controlled air brakes for rail cars that haul dangerous goods such as crude oil and ethanol after a series of explosive oil-train derailments in Canada and the United States.

A consultation document sent to the railway transportation industry last month laid out Transport Canada’s proposal for a new class of tank car, including the new air brake system and full head shields to prevent punctures. Older-model DOT-111 tank cars have been heavily criticized as prone to puncture and corrosion.

Electronically controlled air brakes are favoured by some rail-safety advocates because they allow an engineer to apply the brakes on all of a train’s cars at the same time – regardless of how close they are to the locomotive.

In contrast, traditional air brakes rely on a signal that begins from the locomotive and moves car by car toward the back of the train. On longer unit trains such as those typically used to haul crude oil, rail cars near the back of the train won’t receive the signal as quickly, increasing the risk of a derailment when the brakes are applied suddenly.

Don Ross, who led the Transportation Safety Board’s investigation into last year’s rail disaster in Lac-Mégantic, Que., said the agency generally supports the use of the electronically controlled brakes because they can improve rail safety, particularly on longer trains. “It’s encouraging, now, that they’ve got out for discussion a very good standard,” Mr. Ross said in a recent interview.

“We would be very happy to see the industry adopt that.”

Transport Minister Lisa Raitt told The Globe and Mail on Friday that she had already begun consultations on the matter, but has so far heard that the industry does not believe electronically controlled air brakes are necessary. “The ones that I’ve been speaking to say it’s too difficult to implement in the North American market,” Ms. Raitt said, adding, “That’s the consultation so far, but we’re still gathering information right now.”

One concern with electronically controlled brakes is that the system would need to be installed on all of a train’s cars for it to function properly, a factor that would limit railways’ flexibility in assembling longer or mixed trains.

In addition to the new air brake system, the proposed new standard includes full head shields to prevent puncture, improved top-fitting protection for the pressure release valve, mandatory thermal jackets to prevent overheating, and new standards for bottom outlet valves to prevent leaks during an accident.

The standard goes beyond requirements announced in April for a three-year phaseout or retrofit of pre-2011 tank cars used to haul crude oil. Those rules included half-head shields, top-fitting protection and thicker steel.

The new proposal would give industry until May, 2020, to start using the next-generation cars to move the most dangerous flammable liquids, classified as Packing Group 1. New or retrofitted cars would be required for moderately dangerous flammable liquids by May, 2022, and for all flammable liquids by May, 2025.

A spokesperson for Canadian Pacific said on Friday that the company is evaluating Transport Canada’s proposal, but did not comment on any specific aspect of the proposed change. Canadian National said it is reviewing the proposal and would provide comments to the regulator as part of the consultation process.

Last month, U.S. regulators issued three possible requirements for next-generation DOT-111 tank cars.

The toughest standards proposed by the U.S. are similar to the Transport Canada proposal and include electronically controlled air brakes.

Bakken Crude, DOT-111, Federal Regulation (U.S.), Light sweet crude, Oil stabilization, Volatility

Transp. secretary says ‘risk level is higher’ for Bakken crude transport

Repost from Dakota Resource Council
[Editor: Fascinating quotes from a variety of industry reps and North Dakota elected representatives, all scrambling to protect commercial interests.  They would like everyone to stop using the word “Bakken” to describe Bakken crude.  Wow, that should help a lot!  Secretary Foxx dances around the subject while maintaining the DOT’s finding that Bakken crude is more volatile and a higher risk.  – RS]

Transportation secretary says ‘risk level is higher’ for Bakken crude transport

By: Mike Nowatzki, Forum News Service, August 8, 2014

BISMARCK – U.S. Transportation Secretary Anthony Foxx said Friday that crude oil from North Dakota’s Bakken shale formation isn’t being singled out from other crudes in proposed new tank car standards, but he didn’t say definitively whether the Department of Transportation believes it’s more volatile than other light, sweet crudes.“

We’re seeing some light ends in the Bakken crude that suggests a higher level of volatility than we would see in typical crude,” Foxx said in a press conference after Friday’s meeting in Bismarck on national energy policy. “Of course, typical crude is a wide range of different, other types of crude.”

Earlier this week, industry representatives and members of the North Dakota Industrial Commission, including Gov. Jack Dalrymple, questioned why an analysis by the DOT’s Pipeline and Hazardous Materials Safety Administration singled out Bakken crude as being more volatile and riskier to transport than other U.S. crudes. A North Dakota Petroleum Council-commissioned study released Monday yielded similar data as the PHMSA study but found Bakken crude to be consistent with other types of light, sweet crude.

Dalrymple had said he planned to ask Foxx to explain, and the governor dove right into the topic when he took to the podium before Foxx during Friday’s Quadrennial Energy Review meeting at Bismarck State College.

“We are curious why the recent studies from the federal government have referred specifically to Bakken crude oil,” Dalrymple said to the crowd of more than 200 people at the National Energy Center of Excellence. “We think it’s important to classify crude oil by measurable characteristics” like vapor pressure and boiling point, “and not simply classify it by geographic source.”

Foxx told the audience that increased oil production in North Dakota — which now tops 1 million barrels per day — has led to a lot of DOT work on crude transportation. That work includes its crude testing program, Operation Classification, “which has showed us that the particular crude oil here finds itself on the higher end of volatility compared to other crude oils.”

“In addition to that, what we’re also finding is that because the oil is being transported over long distances, and in some cases in high numbers of trains back to back to back, that the risk level is higher than we have seen in some other parts of the country,” he said.

Last month, the DOT proposed enhanced tank car standards that would phase out the use of older DOT-111 tank cars for shipment of most crude oil within two years, Foxx said.

“And let me say specifically that we don’t single out Bakken oil from other oil,” he said.

Foxx said the DOT will continue researching crude characteristics.

Dalrymple said “we need to stop going around in this little circle about the word ‘Bakken,’” and noted the Industrial Commission will call a hearing, probably within the next month, to seek input on conditioning Bakken crude before storage and loading to try to lower its volatility.

Rep. Kevin Cramer, R-N.D., said a House oversight hearing is set for Sept. 9 in Washington, D.C., to review the industry report and “see just where Bakken crude falls in terms of characteristics.”

U.S. Energy Secretary Ernest Moniz also attended Friday’s meeting, the ninth of 11 meetings being held to help the Obama administration develop a national policy for energy infrastructure.

The administration is committed to an all-of-the-above energy strategy, and “North Dakota exemplifies that in so many ways,” Moniz said, noting he’d be driving by a wind-turbine farm on his way to tour the Great Plains Synfuels coal gasification plant near Beulah later in the day.

Moniz said it’s somewhat ironic that the nation is in an era of “energy plenty,” yet it’s developed so rapidly that infrastructure hasn’t had time to adjust, citing oil-by-rail challenges as one example.

U.S. Sen. John Hoeven, R-N.D., who sits on the Senate Committee on Energy and Natural Resources, said companies need regulatory certainty if they’re to invest in infrastructure such as pipelines and rail. He said U.S. oil production since 2009 is up 60 percent on private lands but down 7 percent on public lands.

“We’ve got to cut through these bottlenecks, the red tape,” he said, citing his proposed legislation to simplify regulations and give states primary responsibility to manage hydraulic fracturing, or fracking.

But among those who submitted public comments Friday were Dakota Resource Council members who called for a slowdown of oil permitting to allow natural gas gathering infrastructure to catch up and reduce flaring. North Dakota burned off 28 percent of its natural gas produced in May, according to a DOE memo.

Linda Weiss of Belfield, who serves as DRC board chairwoman and can see a gas flare about a quarter-mile from her home, said members also want more consideration given to landowners and planning to determine the best routes for pipelines and other infrastructure.

“They usually pit landowners against each other. They don’t do their due diligence to find the best route,” she said.

The volunteer ambulance service member also said more training is needed for emergency responders.

“What if something like Casselton or Quebec (happens)?” she said, referring to the derailment and explosion of train cars carrying Bakken crude that killed 47 people on July 6, 2013, in Lac-Megantic, Quebec, and the train derailment Dec. 30 near Casselton, N.D., that produced spectacular fireballs, but no injuries. “There is no way any of these small towns are prepared.”

Emergency Readiness & Response, Insurance Industry, Tank car design, Tank car retrofit

Ca-ching: Oil-by-rail surge to benefit three commercial sectors

Repost from Benzinga
[Editor: Quick & dirty on the 3 sectors: Freight Car Designers And Refitters, Insurance Providers, and Emergency Services And Safety Training.  UNLESS … if we stop crude by rail in its tracks, the only CA-CHING will be in the alternative energy fields.  – RS] 

3 Sectors Expected To Benefit From The Oil-By-Rail Surge

Bruce Kennedy, Benzinga Staff Writer, August 11, 2014

It’s been just over a year since a freight train carrying crude oil from the Bakken shale fields in North Dakota derailed and exploded in a Quebec town near the U.S.-Canadian border, killing 47 people.

That accident, along with several others in its wake, drew attention to the enormous increase in shale oil now being transported from North Dakota and Canada by rail – and the vulnerabilities of that form of transport.

“More crude oil is being shipped by rail than ever before, with much of it being transported out of North Dakota’s Bakken Shale Formation,” Department of Transportation Secretary Anthony Fox pointed out in a press conference last month. “In 2008, producers shipped 9,500 rail-carloads of oil in the U.S.; by just last year, that number skyrocketed to 415,000 rail-carloads — a jump of more than 4,300 percent.”

At that same press conference, Fox announced a rule-making proposal to improve the safe transportation of large quantities of flammable materials by rail – crude oil and ethanol in particular.

The increase in oil being transported by rail, as well as the new safety measures, might also be a windfall for companies in some related fields.

Freight Car Designers And Refitters

The proposed new safety rules for oil freight cars means a potential bonanza for firms like The Greenbrier Companies (NYSE: GBX). The Oregon-based group is a leading manufacturer and marketer of railroad freight car equipment in both North America and Europe.

Along with retro-fitting existing oil rail cars, Greenbrier is also designing a new genreration “Tank Car of the Future,”  with a thicker tank and bigger welds to ensure greater safety.

The new design, according to the Rigzone oil and gas industry web site, is “intended to meet anticipated new industry and government standards for tank cars transporting certain hazardous material.”

Insurance Providers

The Wall Street Journal reports that most, big North American railroads usually carry about $1.5 billion in liability insurance – but notes that accidents like last year’s deadly derailment and explosion in Lac-Mégantic, Quebec, can end up costing billions of dollars more in cost, especially if that accident happens in a populated area.

“Even if it happens outside of town, the massive damage to property and the environment — you’re stymied when you have these kind of crude oil fires burning hot and big for days,” Karen Darch, president of Barrington, Illinois, told the newspaper.

This could lead to an increase in the need for insurance.

“With experts predicting that oil spill derailments may increase in frequency over the next decade, the insurance industry must be prepared to address this new coverage threat,” says the law industry tracker web site Law360 earlier this year, “including the coverage issues and potential exposure which may arise from these disasters.”

Emergency Services And Safety Training

Earlier this year, Minnesota’s state legislature passed an oil transport law. The measure, reportedly worth more than $6 million, took fees generated in part from oil and railroad companies and put that funding towards tanker and pipeline disaster training, as well as more state transportation safety inspectors.

As former National Transportation Safety Board Chairwoman Deborah Hersman pointed out in a letter written this past January to the head of the Federal Railroad Administration, there is no mandate for the railroads to come up with comprehensive disaster response plans for oil train derailments

This means the rail carriers “have effectively placed the burden of remediating the environmental consequences of an accident on local communities along their routes,” the letter said.

According to the Association of American Railroads, the industry is providing $5 million to develop and fund specialized training for first responders handling a crude-by-rail accident, as well as developing “an inventory of emergency response resources and equipment for responding to the release of large amounts of crude oil along routes over which trains with 20 or more cars of crude oil operate.”