Tag Archives: Massive increase in crude-by-rail

New York Times: Where Oil and Politics Mix (Part 2)

Repost from The New York Times
[Editor:  Part 2 in a series (See Part 1).  This is an INCREDIBLE expose of political corruption and a masterful portrayal of the transformation taking place in North Dakota, where residents and business people are losing confidence in the oil boom promises they once embraced.  Due to it’s GORGEOUS and informative interactive imagery, the Benicia Independent can only repost the beginning of this lengthy and immersive article.  Get started here, then click on MORE.  – RS]

Where Oil and Politics Mix

After an unusual land deal, a giant spill and a tanker-train explosion, anxiety began to ripple across the North Dakota prairie.
By DEBORAH SONTAG, NOV. 23, 2014

NYT_Where-oil-and-politics-mix(675)TIOGA, N.D. — In late June, as black and gold balloons bobbed above black and gold tables with oil-rig centerpieces, the theme song from “Dallas” warmed up the crowd for the “One Million Barrels, One Million Thanks” celebration.

The mood was giddy. Halliburton served barbecued crawfish from Louisiana. A commemorative firearms dealer hawked a “one-million barrel” shotgun emblazoned with the slogan “Oil Can!” Mrs. North Dakota, in banner and crown, posed for pictures. The Texas Flying Legends performed an airshow backlit by a leaping flare of burning gas. And Gov. Jack Dalrymple was the featured guest.

Traveling through the “economically struggling” nation, Mr. Dalrymple told the crowd, he encountered many people who asked, “Jack, what the heck are you doing out there in North Dakota?” to create the fastest-growing economy, lowest unemployment rate and (according to one survey) happiest population.

Gov. Jack Dalrymple with Janelle Steinberg, Mrs. North Dakota, at a celebration in Tioga in June for reaching a milestone: one million daily barrels of oil. | Paul Flessland
 

“And I enjoy explaining to them, ‘Yes, the oil boom is a big, big help,’ ” he said.

Outsiders, he explained, simply need to be educated out of their fear of fracking: “There is a way to explain it that really relaxes people, that makes them understand this is not a dangerous thing that we’re doing out here, that it’s really very well managed and very safe and really the key to the future of not only North Dakota but really our entire nation.”

Tioga, population 3,000, welcomed North Dakota’s first well in 1951, more than a half-century before hydraulic fracturing liberated the “tight oil” trapped in the Bakken shale formation. So it was fitting that Tioga ring in the daily production milestone that had ushered the Bakken into the rarefied company of historic oil fields worldwide.

But Tioga also claims another record: what is considered the largest on-land oil spill in recent American history. And only Brenda Jorgenson, 61, who attended “to hear what does not get said,” mentioned that one, sotto voce.

The million-barrel bash was devoid of protesters save for Ms. Jorgenson, a tall, slender grandmother who has two wells at her driveway’s end and three jars in her refrigerator containing blackened water that she said came from her faucet during the fracking process. She did not, however, utter a contrary word.

“I’m not that brave (or stupid) to protest among that,” she said in an email afterward. “I’ve said it before: we’re outgunned, outnumbered and out-suited.”

North Dakotans do not like to make a fuss. Until recently, those few who dared to challenge the brisk pace of oil development, the perceived laxity of government oversight or the despoliation of farmland were treated as killjoys. They were ignored, ridiculed, threatened, and paid settlements in exchange for silence.

But over the past year and some, the dynamic seemed to be shifting.

Satellite photos of western North Dakota at night, aglitter like a metropolis with lighted rigs and burning flares, crystallized its rapid transformation from tight-knit agricultural society to semi-industrialized oil powerhouse. Proposals to drill near historic places generated heated opposition. The giant oil spill in Tioga in September 2013 frightened people, as did the explosion months later of a derailed oil train, which sent black smoke mushrooming over a snowy plain.

The engine of an oil train that derailed and exploded in a collision near the governor’s hometown, Casselton, in December 2013. | Jim Wilson/The New York Times

Then, this year, North Dakotans learned of discovery after discovery of illegally dumped oil filter socks, the “used condoms” of the oil industry, which contain radiation dislodged from deep underground.

Suddenly a percolating anxiety came uncorked. “The worm is turning,” Timothy Q. Purdon, the United States attorney, said in April.

It was against this backdrop that on a brisk spring day David Schwalbe, a retired rancher, and his wife, Ellen Chaffee, a former university president, walked headlong into the wind on their way to an F.B.I. office in Fargo….  [Editor:  MORE – click here to continue – GREAT INTERACTIVE GRAPHICS, DON’T MISS THIS – RS]

Washington Governor Inslee says state will act on oil trains

Repost from The Olympian, Olympia Washington

Inslee says state will act on oil trains

By Andy Hobbs, November 21, 2014
Representatives from Washington and Oregon gather at Olympia City Hall for the Safe Energy Leadership Alliance summit on Friday, Nov. 21, 2014. TONY OVERMAN

The number of oil trains running across Washington is unacceptable, and the Legislature will consider bills in the upcoming session that mandate advance notification of oil shipments by rail as well as more funding for railroad crossings and emergency response training, Gov. Jay Inslee said Friday.

King County Executive Dow Constantine added that oil companies are raking in profits while “the rest of us are picking up the costs.”

“Those who are profiting should shoulder the financial burden,” Constantine said.

They were speaking to the Safe Energy Leadership Alliance that met Friday at Olympia City Hall to address the surge of oil and coal trains passing through Washington.

The alliance is a coalition of local, state and tribal leaders from the Northwest who say the trains threaten the environment, economy and public safety.

As shipments of oil increase in the Puget Sound region, so does the likelihood for spills and accidents. The Department of Ecology reports that 19 fully loaded oil trains crisscross the state every week, with the number expected to reach 59 oil trains if current refinery proposals are approved. Each train hauls about 3 million gallons of crude oil in 100 tanker cars. Between 11 and 16 trains pass through rural and suburban areas of Thurston and Pierce counties every week, according to reports from BNSF Railway.

Participants in Friday’s meeting included elected officials from across the state along with Oregon and Canada.

“It is clear that we have to take significant action including being better prepared to handle an oil train explosion or large scale spill,” Inslee said.

Although the federal government is the main regulator of the railroads, Inslee said there are some actions the state can take now, such as lowering speed limits of the trains.

“We don’t want vehicles speeding through school zones, and we shouldn’t let oil trains speed through Washington cities,” said Inslee, noting that changes in state permits are at least a year away.

Friday’s meeting included a detailed report on the coal industry by Tom Sanzillo, finance director of the Institute for Energy Economic and Financial Analysis. Sanzillo encouraged states and cities to keep putting pressure on the coal industry, which has seen demand and prices decline worldwide in the past few years.

“The U.S. coal industry is shrinking,” said Sanzillo, adding that the industry needs “robust growth” to meet its potential and compete in the global market despite record demand for coal by nations like China. “Hooking your wagon to the coal industry is not a particularly promising outlook right now.”

At the local level, Olympia Mayor Stephen Buxbaum said the City Council will seek a resolution next week to add Olympia to the list of cities that oppose the increase in crude oil transport.

“We are at a crossroads,” Buxbaum said Friday. “We could see up to 60 trains a day and 4,000 supertankers in our waters.”

As for the coal issue, Buxbaum recently co-authored a guest column titled “You might be surprised by Puget Sound Energy’s coal power supply” that ran Nov. 19 in The Seattle Times. Also signing the article were Bainbridge Island Mayor Anne Blair and Mercer Island Mayor Bruce Bassett, and all three mayors’ respective city councils endorsed it.

The article urges Puget Sound Energy to take immediate action and plan for a “post-coal future.” About one-third of PSE’s power supply comes from coal that’s shipped from out of state, according to the article. The mayors also cite Gov. Inslee’s recent executive order to reduce pollution and transition away from coal power.

“The bottom line is that we don’t need coal,” the article states. “The potential is there for Washington to meet its energy needs with efficiency programs, wind, solar and other technologies. We just need to rise to the occasion.”

 

KTVU News: Safety concerns over trains carrying volatile crude oil to Bay Area

Repost from KTVU 2 News, Oakland, CA
[Editor: an excellent investigative report, much of which was filmed here in Benicia.  Apologies for the video’s commercial ad.  – RS]

 2 Investigates: Safety concerns over trains carrying volatile crude oil to Bay Area

By Simone Aponte, Nov 17, 2014

RICHMOND, Calif. – California used to receive all of its crude oil imports by ship and pipeline, but trains loaded with tanker cars full of oil are rolling through Bay Area neighborhoods with increasing frequency. And it’s a growing safety concern among experts who say rail imports will become much more common in the next few years, bringing millions of gallons of crude to local refineries.  Much of that crude is a more volatile type of oil that has been linked to multiple derailments, fires, and deadly accidents.

2 Investigates followed trains rolling through neighborhoods in Richmond carrying millions of gallons of crude oil, in tanker cars that have been deemed unsafe by the federal government. And the railroad is not required to tell local officials how many of those cars are carrying a more volatile oil from the Bakken shale formation, which stretches from North Dakota and Montana into Canada.

The transport of Bakken crude by rail has been at the center of federal investigations and calls for increased safety standards. It’s delivered to the Kinder Morgan rail yard in Richmond, but local officials complain that they receive no notification of which trains are carrying Bakken crude.

Increased deliveries and increased danger

“These are trains that have up to 100 tank cars and those are filled with Bakken crude,” said Kelly Huston, Deputy Director with the Governor’s Office of Emergency Services (OES). “That’s an entire train full of a much more volatile type of crude oil than we typically see on rail.”

In January, the U.S. Department of Transportation issued a warning that Bakken’s light, sweet crude oil is prone to ignite at a lower temperature than traditional crude oils. Experts say lighter crudes contain more natural gas, and the vapors given off by the oil can ignite at much lower temperatures.

But the oil industry pushed back with its own study that disputed the government warning. The North Dakota Petroleum Council, which represents more than 500 oil companies operating in North Dakota and Montana, commissioned a $400,000 study of Bakken crude. It determined the oil’s characteristics are within the safety margin for the current fleet of rail tankers.

However, the state’s Rail Safety Working Group –convened by the Governor’s Office of Emergency Services (OES) – wasn’t convinced. It released a report that warns about the dangers of increasing the shipments of Bakken crude to California refineries. The report points to at least eight major train accidents involving Bakken crude trains in 2013 and 2014 alone.

Smoke rises from railway cars carrying crude oil after derailing in downtown Lac-Mégantic, Quebec, in 2013. Credit: Paul Chiasson / The Canadian Press / AP“Incidents involving crude oil from the Bakken shale formation have been particularly devastating,” the authors warn.

Some of the most notable accidents include a derailment in Lac-Mégantic, Quebec on July 6, 2013. Sixty-three tank cars of crude oil exploded, killing 42 people. Five other people were also presumed to be dead, but were never recovered.

In 2012, about one million barrels of crude oil were delivered to California by rail. But by 2013 that number had jumped to about 6.3 million barrels.  The California Energy Commission estimates that volume could increase by up to 150 million barrels, or 25% of total crude imports, by 2016.

According to the California Public Utilities Commission (CPUC), the primary source of the crude oil coming into California was from North Dakota, in early 2013. But by the end of that year, the state was receiving a dramatic increase in imports from Canada.

Old tanker cars

For more than twenty years, the federal government has been aware of major flaws in one of the most common tanker car designs used to transport crude oil across America.

According to a 1991 safety study from the National Transportation Safety Board (NTSB), the DOT-111 tanker has a steel shell that is too thin to resist puncture during an accident, is vulnerable to tearing, and has exposed fittings and valves that can easily snap off during a rollover.

Torn DOT-111 Tanker Car And DOT-111s make up nearly 70 percent of oil tanker cars currently in use in the U.S., according to the NTSB. Critics say that shipping volatile Bakken crude in these tankers poses an “unacceptable risk” to public safety.

In his Congressional testimony in February, NTSB board member Robert L. Sumwalt cited multiple train accidents and derailments involving Bakken crude transported in DOT-111 tanker cars.

“The NTSB continues to find that accidents involving the rupture of DOT-111 tank cars carrying hazardous materials often have violent and destructive results,” Sumwalt said.

“Federal requirements simply have not kept pace with evolving demands placed on the railroad industry and evolving technology and knowledge about hazardous materials and accidents.”

This past summer, the DOT announced that it would propose stricter rules for transporting flammable materials by rail car, including Bakken crude. The plan calls for DOT-111 tanker cars to be phased out, unless they can be retrofitted to meet the new standards.

Last month, Jack Gerard, president of the American Petroleum Institute, said that his group and the Association of American Railroads would jointly ask the DOT for six to 12 months for rail tank car manufacturers to prepare to overhaul tens of thousands of cars, and another three years to retrofit older cars.

But critics say the government’s plan doesn’t act swiftly enough.
Devora Ancel, a staff attorney with the Sierra Club, said the group has multiple concerns about Bakken crude trains coming into California, in particular in regards to the age of DOT-111 fleet.

“It is extremely alarming and the public should be concerned,” said Ancel. “It’s being carried in rail cars that are unsafe. They were designed in the 1960’s. They were not meant to transport highly volatile crude.”

The Sierra Club and Earthjustice submitted a petition to the DOT seeking an emergency order to ban the transportation of Bakken crude in DOT-111 tank cars. The petition acknowledges that the DOT’s proposal for stricter rules is a step in the right direction, but stresses that two years is too long to phase out the DOT-111 cars.

“The last few years have witnessed a surge in shipments of highly flammable crude from the Bakken region, mostly in unit trains with dozens and often more than 100 tank cars carrying explosive cargo. The growth in the number and length of trains carrying crude oil is staggering,” the petition said.

Modified DOT-111 Tanker Car in RichmondTwo trainloads of Bakken crude roll into the Richmond Rail Terminal every month, according to the city’s fire department. But the fire officials tells KTVU that they’ve been reassured by Kinder-Morgan that the DOT-111 tank cars that make deliveries to Richmond have undergone additional safety modifications. Every individual tanker car carries more than 28,000 gallons of crude oil.

Tracking routes

Trains entering the Bay Area carrying crude oil from Canada and North Dakota must pass through parts of California that are considered hazardous routes, according to Huston.  In the California Public Utilities Commission’s (CPUC) annual railroad safety report, released in July, the agency said California has had 58 train derailments in the last five years, and primary cause has been a problem with the track at so-called “hazard sites.”

MAP: Rain Lines and Hazardous Areas in California

The state’s OES report on rail safety also voiced concerns about risky routes being used to transport Bakken crude.  The Rail Safety Working Group complained that crude oil rail transportation is not regulated adequately.

The report states that crude oil is “not transported with the level of protection mandated for the degree of hazard posed,” and also stressed there are “inadequacies in route planning to avoid population centers and environmentally sensitive areas, and a need for auditing rail carriers to ensure adequate response.”

One of OES’s biggest concerns is that it receives very little information about the Bakken crude trains’ schedules, and none of the data it does receive is in real time.

“Just like you would know where an Amtrak train is and whether is late to a station or not,” said Huston. “We should be able to know that about volatile substances like Bakken crude coming across our rail lines.”

Emergency response

The growing worries over the volatility of Bakken crude are particularly important for firefighters and other emergency responders who have to deal with derailments and possible fires.
According to the OES, the biggest areas of concern lie in the rural areas of Northern California, where emergency response crews are far from remote rail lines and wouldn’t be able to respond to a spill or fire quickly.

The OES report states that while there are emergency crews prepared to handle a crude tanker disaster in urban areas, “none are located near the high hazard areas in rural Northern California.” And HazMat teams that are located in more remote regions “are equipped to perform only in a support rather than lead role during a major chemical or oil incident.”

“If you get one of those trains derail and that stuff goes into the river that could affect an entire population’s water supply, which is, in some cases, worse than having a derailment in a population center,” said Huston.

Valero-Benicia refinery firefighters simulate a leak on an oil tanker car and practice using foam to quell the vapors.Last month, the Valero-Benicia refinery Fire Chief Joe Bateman led a training session with local fire departments that focused on tanker car fires. They simulated a leak on an oil tanker car and practiced using foam to quell the vapors. A small group of Richmond firefighters will attend a similar training in December, according to the Richmond Fire Marshall.

The Valero-Benicia refinery is seeking a permit to bring in crude-by-rail shipments. They would join Richmond and a planned refinery in San Luis Obispo that would also be supplied with crude carried by train through the Bay Area.

But the idea is meeting resistance from worried neighbors.
Benicia’s city council must decide whether to approve a draft environmental impact report on the proposal. The $70 million terminal would receive two 50-car trainloads, carrying a total of about 70,000 barrels of crude oil, every day. The company has said that it will use newer tanker cars instead of the aging DOT-111s that have been involved in past accidents.

Chief Bateman insists that his crews are prepared if the worst should happen with a trainload of Bakken crude traveling through the Bay Area.

“I understand that it’s a big increase. I understand the public is concerned by that,” Chief Bateman said. “If you look at some of the other rail cars that are already on the tracks today… we’ve been shipping commodities for a long time.” Bateman points out that some of those other substances are more volatile than crude oil, such as liquefied petroleum gas.

Placard 1267 Signifies Crude OilWhen first responders arrive at chaotic train accident scene, all the black tanker cars essentially look the same. The contents are distinguished by a red, diamond-shaped placard on the side of the car that displays a four-digit code. The code for crude is 1267, but there is no way for emergency crews to tell if the oil inside is the volatile Bakken variety.

In April, Canada banned the older tanker cars and ordered the controversial design be phased out within three years. Last month, another train carrying crude oil derailed in Saskatchewan, involving the same kind of rail cars. There were no casualties in that accident.

Des Moines, Iowa: Action must be taken to reduce the hazards from railroad shipments of Bakken oil

Repost from The Des Moines Register

Action must be taken to reduce the hazards from railroad shipments of Bakken oil

By Carolyn Heising, November 15, 2014
Train3.jpg
(Photo: CANADIAN PRESS )

Now is the time to ask: Is the growing practice of using trains to carry highly-flammable crude oil from North Dakota’s Bakken shale field through communities in Iowa safe and even necessary?

Is it free of the hazards that led to the railroad accident in Quebec last year that killed 47 people and destroyed half of the town of Lac-Megantic? Or is it adding to the stress on the rail system?

Iowa is one of a number of states that have become a corridor for the shipment of Bakken crude over the past three years. Canadian Pacific Railway ships heavy loads of oil south through five eastern Iowa counties. BNSF Railway ships crude through four western Iowa counties. The oil is transported to refineries on the Gulf Coast or to pipeline connections.

No question about it, U.S. oil production is booming. The shale revolution is the dominant economic and geopolitical event of the past decade. Its effects have been transformative.

The United States is on the verge of becoming the world’s leading oil producer. OPEC is no longer the threat it once was. The growth in the U.S. energy industry has more than doubled in the past 10 years and is now worth about $1.2 trillion in gross product each year, contributing about 30 percent of the job growth for the nation, according to a study by the Perryman Group.

And the oil boom is likely to continue unless a catastrophic event brings it to a halt.

One reason environmental groups seem relatively calm about railroad shipment of crude oil is that they know what a minor event it is amid the chaos of fossil-fuel production and the dangerous and destabilizing chaos of climate change. A big part of the problem is the paradoxically positive economic effect of shale-oil production, which is loading the atmosphere with an enormous amount of global-warming carbon dioxide and methane.

What’s the answer?

Long-term we need to reduce the amount of oil we use in transportation by shifting to electric cars with batteries powered by renewable energy sources and nuclear power. Right now, action must be taken to reduce the hazards from railroad shipments of Bakken oil, which is much more flammable than conventional crude oil.

Freight railroads have gone from being a relic of the past to being a key mode of transport for oil supplies. Currently about two-thirds of North Dakota’s Bakken oil production is transported by rail. And more than 10 percent of the nation’s total oil production travels by rail.

In the last quarter of 2013, more than 71 million barrels of crude oil were shipped by rail, more than 10 times the volume of oil shipped in 2008. Over the past six months, there have been at least 10 large crude oil spills in the United States and Canada because of railroad accidents.

The U.S. Department of Transportation has responded by proposing speed limits along with a system for classifying the oil and new safety design standards for rail tanker cars.

The railroads say there have been relatively few rail accidents and not much loss of oil, considering the huge quantities of oil being shipped around the country. However, oil companies — which own the oil rail cars — are shipping much of the crude in outdated tank cars called DOT-111s that are vulnerable to puncture in a derailment.

The trains have captured the attention of local emergency responders by the amount of oil they carry — 100-plus tanker cars carrying up to 30,000 gallons of highly flammable fuel are not uncommon. In New Jersey, a key rail route, the trains pass within a few feet of homes and schools in highly populated areas.

Those who believe that slower train speeds alone are the answer should think again. A train hauling Bakken crude derailed in downtown Lynchburg, Va., a bustling city of 75,000 people. Three tanker cars tumbled into the James River. One of the tanker cars ruptured, spilling 30,000 gallons of crude.

Fortunately, no one was killed or injured. But local fire officials, who are accustomed to dealing with oil accidents on a much smaller scale, said the train was traveling within the speed limit. After the Quebec disaster, major rail companies agreed to reduce the maximum speed of oil trains to 40 miles per hour when they are within 10 miles of a major city. Lynchburg set its own speed limit of 25 mph. The train was going slower than 25 mph when it derailed.

Because a lot is riding on rail safety, oil companies should consider what other industries that use trains to haul hazardous cargoes have done to prevent accidents. For example, the nuclear industry uses specially-built freight cars to transport used nuclear-fuel assemblies from one nuclear plant to another. Since the 1960s, there have been thousands of trips involving the rail transport of nuclear waste in the United States, without a single serious accident.

That’s a stellar safety record which bodes well for the rail shipment of nuclear waste to a deep-geologic repository — and nuclear power’s increased use for electricity production.

Admittedly, the number of oil trains and the amount of hazardous cargo they carry is far greater than it is for nuclear companies and most other industries. But if oil companies continue to use puncture-prone tanker cars to haul highly-flammable Bakken crude in 100-car trains traveling at dangerous speeds, the ultimate consequences could be dire, and we will wind up asking ourselves why something more wasn’t done to prevent it.

THE AUTHOR:
CAROLYN D. HEISING, Ph.D., is a professor of industrial, mechanical and nuclear engineering at Iowa State University. Contact: cheising@iastate.edu.