Tag Archives: Massive increase in crude-by-rail

Bakken Crude, Crude By Rail, Emergency Readiness & Response, Federal Regulation (U.S.), Massive increase in crude-by-rail

Oil train risks push communities to prepare for worst – “Little Black Bullets”

Repost from Poughkeepsie Journal
[Editor: Significant quote: “The U.S. Department of Transportation acknowledged in its proposed rule that an another accident isn’t a question of if, but when.  “Absent this proposed rule, we predict about 15 mainline derailments for 2015, falling to a prediction of about 5 mainline derailments annually by 2034,” the department’s proposal stated. Reviews and lawsuits mean it could be years before the rule is implemented.”  – RS]

Oil train risks push communities to prepare for worst

Khurram Saeed   |   August 21, 2014
The home of Doris Quinones is less than 100 feet away from the CSX railroad track, on which as many as 4 oil trains pass by every day, not to mention freight trains carrying other hazardous chemicals. An oil train is seen passing from the yard of Doris Quinones, July 31, 2014 in Haverstraw.(Photo: Tania Savayan/The Journal News)

Little black bullets.

That’s what Doris Quinones calls the dozens of outdated tank cars filled with crude oil that rumble yards away from her Haverstraw home every day.

One train hauling oil can have up to 100 cars, and as many as 30 oil trains pass through Rockland each week on the way to refineries. That’s twice the number from just six months ago as demand continues to grow for the volatile crude oil drawn from the Bakken region in North Dakota.

Those trains also pass through Ulster County.

In Highland, the trains roll past a restaurant and a Hudson River waterfront park that is being outfitted with a new deep-water dock for tour boats.

Ulster County’s vulnerable infrastructure includes drinking water intakes for Port Ewen and the Town of Lloyd.

A 100-car oil train can carry 3 million gallons of crude oil, and because so many more are on the rails, the number of derailments and accidents is rising.

The oil trains, which do not travel on a set schedule, roll through four of Rockland’s five towns on CSX Railroad’s River Line. Fully loaded trains run north to south, less than a mile from Helen Hayes Hospital in West Haverstraw, Lake DeForest reservoir in Clarkstown, the Palisades Center in West Nyack and Dominican College in Blauvelt, not to mention dozens of neighborhoods, scores of schools and day care centers and right past key highways like the Thruway.

Given her proximity to the tracks, Quinones said a derailed train would “land in my living room.”

“We’re all realists,” Quinones said recently in her backyard, where she sometimes lounges in her swimming pool and tends to her cucumbers. “They got to get something somewhere. It’s got to go on the freight train but they got to take extra measures even if it costs them more money.”

The oil trains are hard to miss, and the safety issues surrounding them, particularly their tank cars, have become harder to ignore. There have been a number of fiery explosions and accidents since 2013 that have caused officials at all levels to look closer at the dangers of shipping oil by rail.

Just over a year ago, 47 people died when an unattended oil train derailed and exploded in Lac-Megantic, Quebec. Rockland had a close call in December when an oil train transporting 99 empty tank cars from Philadelphia to North Dakota hit a truck stuck on the crossing in West Nyack, sending the truck’s driver to the hospital.

Planning for worst

Peter Miller, chief of the Highland Fire District, said firefighters took part in a drill in Kingston on May 30, along with other fire departments. The drill was sponsored by the Ulster County Emergency Services Department and CSX.

He said the district’s response plans are constantly being updated, particularly now that the Bakken crude is rolling through.

“We upgrade our training and our response plans to cover what we would do, depending on where the incident is,” he said.

Even as federal transportation officials are proposing more stringent requirements for tank cars to make them safer, Rockland’s first responders are planning for nightmare scenarios and how to evacuate thousands of people quickly in a catastrophe or have them stay where they are.

“Our job is to really plan for the worst,” said Chris Jensen, Rockland County’s hazardous materials coordinator.

Rockland emergency officials are finishing the evacuation map for residents and businesses within a mile of the River Line.

It covers a mile on either side of the rail line, broken into half-mile sections, from Bear Mountain to the New Jersey border.

Gordon Wren Jr., director of Rockland’s Office of Fire and Emergency Services, said the map “allows us to make the decisions quicker, faster.”

“Do you evacuate or not? If so, how far?” Wren said.

The map identifies schools, day care centers, nursing homes and senior housing, among other landmarks.

“(A police officer) can look at that and say, ‘Let’s get the people out of here,’ ” said Dan Greeley, assistant director of the county Office of Fire and Emergency Services. “It happens instantaneously.”

The U.S. Department of Transportation acknowledged in its proposed rule that an another accident isn’t a question of if, but when.

“Absent this proposed rule, we predict about 15 mainline derailments for 2015, falling to a prediction of about 5 mainline derailments annually by 2034,” the department’s proposal stated. Reviews and lawsuits mean it could be years before the rule is implemented.

In 2008, just 9,500 carloads of crude oil moved by rail. Last year, the figure exceeded 400,000, the Association of American Railroads said.

Rail industry officials note that 99.9 percent of all hazardous rail shipments reach their destinations safely and that only rail has afforded the nation the flexibility to move large volumes of oil so quickly and freely, letting the United States wean itself off foreign oil.

Susan Christopherson, chair of Cornell University’s city and regional planning department, said though pipelines are safer, oil shippers from western Canada and the Bakken shale region prefer trains because they provide flexibility from different points of origin to refineries nationwide.

The problem, she said, is the Federal Railroad Administration has “little capacity” to regulate the rail industry or monitor rail infrastructure safety.

“Costs for emergency preparedness have to be absorbed by state and local government,” Christopherson wrote in an email. “There is little or no compensation for these costs, which can be significant.”

Under Gov. Andrew Cuomo, the state has become increasingly proactive, carrying out inspection blitzes of rail yards and leveling fines.

‘Witches’ brew’

The River Line, part of CSX’s rail network, runs from outside Albany. In February, the railroad told The Journal News that two oil trains used the line daily, or 14 a week. By June, the railroad fixed the number of trains hauling 1 million gallons or more of Bakken crude at 15 to 30, or up to four each day, according to documents it had to file with the state.

CSX spokesman Gary Sease said there have been incremental increases in crude oil volume over the past several weeks with likely more to come. The railroad recently completed double-tracking work in north Rockland to increase capacity on the track.

“It is a result of market conditions and can fluctuate,” Sease wrote in an email.

“We see customers investing in additional crude oil terminals over the next couple of years.”

Bakken crude oil is just the latest dangerous substance to travel the line, Jensen said. Toxic substances such as chlorine, ethanol, propane and vinyl chloride have moved on the former West Shore line for decades.

“It’s a witches’ brew of stuff,” Jensen said.

But one big difference is the amount of Bakken crude that passes through Ulster, Rockland and, for that matter, 15 other counties in New York.

Aside from CSX, Canadian Pacific Railway hauls Bakken crude from the Midwest to Albany, with an average of one train a day with a million-plus gallons.

In May, CSX began a first responders training program by bringing equipment and experts to communities to teach them about incidents involving crude oil. More than 1,000 people have been trained, he said.

That’s a good start but more needs to be done, said Jerry DeLuca, executive director and CEO of the New York State Association of Fire Chiefs.

“You don’t fight an oil fire with water. We need to have foam and a lot of it,” said DeLuca, whose group represents more than 11,000 professional and volunteer fire chiefs. “It’s not something we utilize every day, so you have to be trained.”

Poughkeepsie Journal staff writer John Ferro contributed to this report.
Crude By Rail, Federal Rail Administration, Hazmat notification, Local Regulation, Massive increase in crude-by-rail, Rail accidents, Rail Safety, Surface Transportation Board, Tank car design, Traffic, Train speed

Chicago Area Mayors Meet with Feds, Call For Improved Safety Measures For Oil Trains

Repost from CBS2 Chicago

Mayors Call For Improved Safety Measures For Oil Trains

August 20, 2014
Firefighters douse a blaze after a freight train loaded with oil derailed in Lac Megantic in Canada's Quebec province on July 6, 2013, sparking explosions that engulfed about 30 buildings in fire. More than 40 people were killed as a result of the crash and fire. (Photo redit: François Laplante-Delagrave/AFP/Getty Images)
Firefighters douse a blaze after a freight train loaded with oil derailed in Lac Megantic in Canada’s Quebec province on July 6, 2013, sparking explosions that engulfed about 30 buildings in fire. More than 40 people were killed as a result of the crash and fire. (Photo redit: François Laplante-Delagrave/AFP/Getty Images)

CHICAGO (CBS) – Federal railroad officials got an earful Wednesday from the mayors of several Chicago area towns that have been affected by a growing number of increasingly long trains hauling crude oil and other volatile materials.

WBBM Newsradio’s John Cody reports the mayors expressed concerns about traffic congestion and public safety from freight trains that they said have been getting longer and more dangerous, due to larger amounts of flammable crude oil they haul in outdated tanker cars.

The mayors spoke directly to Federal Railroad Administrator Joe Szabo and Surface Transportation Board Chairman Dan Elliott III, at a meeting arranged by U.S. Sen. Dick Durbin.

The senator said approximately 25 percent of all freight train traffic travels through the Chicago area each day, including 40 trains hauling crude oil.

Barrington Village President Karen Darch said the village has seen a stark increase in the number of completely full freight trains hauling 100 or more carloads of crude oil or ethanol along the Elgin, Joliet and Eastern Railway.

“Before, half of the community didn’t even know where the EJ&E Line was. There were a couple of trains at night. Now, several times a day, traffic – all traffic – comes to a halt as the train passes through town, and these can be hundred-car trains,” she said.

quebec derailment 1 Mayors Call For Improved Safety Measures For Oil Trains

 

Darch and other Chicago area mayors said their constituents have been plagued by frequent traffic jams caused by long trains rolling through the area, and are constantly worried that a fire or worse could erupt on old tankers carrying volatile liquids.

They mayors expressed concerns about a repeat of a July 2013 freight train derailment in Quebec that killed 47 people and destroyed dozens of buildings when multiple tanker cars filled with crude oil caught fire and exploded.

Aurora Mayor Tom Weisner said safe passage is mandatory.

“About a third of the rail accidents that do occur are related to failures of the rail infrastructure itself, and so our position is basically twofold: one, improve the tank cars and get rid of the ones that aren’t safe; and second, make the rails safe.”

Durbin said the issue requires some time to address.

“I’ve talked to the tank car manufacturers, and they understand that they have two responsibilities: build a safer car, but in the meantime retrofit existing cars,” he said.

The senator said there is no way to immediately and completely ban older style oil tanker cars, but said federal railroad officials are aware of the danger they pose, and that they must be upgraded or replaced as soon as possible.

Darch urged federal authorities to institute increased safety controls and reduced speed limits for even small trains hauling crude oil.

“A huge concern for us is what about all the trains that come through that have 19 cars or less of hazmat,” she said.

Federal railroad officials said proposed federal regulations would require increased testing to keep crude oil out of older style tankers. Railroads also would be required to notify local officials when crude oil trains will roll through, and impose a 40 mph speed limit on such trains.

Alon USA Energy, Bakersfield CA, Crude By Rail

Oil-by-rail project for shut California refinery near approval

Repost from Reuters
[Editor: Significant quote: “…proposals have faced lengthy delays for comprehensive environmental reviews, public input, and revisions.  Valero Energy Corp, the largest U.S. refiner, postponed its plans to send crude by rail to its San Francisco-area refinery because of such delays, and withdrew permit applications for a similar project at its Los Angeles plant….’I think Bakersfield is probably the best place to build a rail facility in California, because it’s not sitting in San Francisco or LA, and it has access to pipes going north and south. It just seems like it’s going to be a struggle to develop rail in other locations,’ Plains’ Chief Operating Officer Harry Pefanis told analysts in May.”  – RS]

Oil-by-rail project for shut California refinery near approval

Kristen Hays, August 15 2014

(Reuters) – The first new crude-by-rail project at a California refinery is likely to win approval next month after more than a year of scrutiny, the head of the Kern County planning division told Reuters, and it could help reopen the shuttered plant.

The facility at independent refiner Alon USA Energy Inc’s Bakersfield plant would increase crude offloading capacity to 140,000 barrels per day from its current 13,000 bpd and open up significant access to cheaper inland U.S. and Canadian crudes.

Alon’s Bakersfield plant is in Kern County, home to about 65 percent of all California oil production, where crude has been produced for more than a century.

Alon shut the 70,000 bpd Bakersfield refinery in late 2012 because its reliance on more expensive imports and lack of access to other crudes without significant rail rendered the plant unprofitable.

Other California refiners also struggle with profitability because of reliance on expensive imported crude and costly fuel manufacturing regulations in the biggest gasoline market in the country.

“We’re supportive of what Alon is doing with this refinery,” said Lorelei Oviatt, director of the county’s planning and community development department. “This refinery is not operating at full capacity. We would like to see this refinery operating at full capacity.”

Alon didn’t respond to requests for comment.

The Alon project is among several proposed at California refineries, some of which face growing opposition in light of a spate of crude train crashes in the past year as the U.S. oil boom sent amounts of crude moving by train soaring.

The worst by far was in Quebec in July last year when a runaway crude train exploded in the town of Lac-Megantic, killing 47 people.

Several California refiners, largely isolated by the Rocky Mountains from the growing cheap bounty from oilfields in Texas, North Dakota and Canada, want to tap those sources via rail because no major pipelines carry crude from those areas into the Golden State, nor are any planned.

More than half of the 1.7 million barrels of crude processed by California refiners each day is imported.

But proposals have faced lengthy delays for comprehensive environmental reviews, public input, and revisions.

Valero Energy Corp, the largest U.S. refiner, postponed its plans to send crude by rail to its San Francisco-area refinery because of such delays, and withdrew permit applications for a similar project at its Los Angeles plant.

Kinder Morgan Energy Partners operates the state’s most substantial oil-by-rail facility at a terminal in Richmond, which handles up to 72,000 bpd. Local planners last year approved, without an environmental review, a revised ethanol offloading permit to allow the terminal to handle crude. But opponents are suing to temporarily shut it down and force that kind of review.

Tesoro Corp faces similar growing opposition for a 360,000-bpd railport project in southwest Washington state that could ship crude to California refineries by tanker.

That could let California refiners – which includes Tesoro’s Los Angeles-area plant – replace more than 40 percent of more expensive imported oil with North American crudes if all of it were shipped to the state.

Alon is considering possibly leaving the Bakersfield refinery shut and running the facility as a rail and logistics terminal.

If the refinery remains shut, the rail operation would be similar to a separate 70,000-bpd oil-by-rail facility Plains All American plans to open in October and eventually expand to 140,000 bpd. That project was approved two years ago before it was acquired by Plains.

Alon bought the Bakersfield plant out of bankruptcy in 2010 from Flying J Inc, which had shut it in early 2009 shortly after seeking bankruptcy protection. Alon restarted the hydrocracker in the summer of 2011, but operational problems led to more shutdowns and startups.

David Hackett, president of Stillwater Associates, a refining consultancy in Irvine, California, said the refinery’s spotty operational history may better support a future as a rail hub.

“They haven’t run it as a refinery in a long time. I don’t think they’ll restart Bakersfield, and I don’t understand why they didn’t pull this off two years ago,” he said.

ESTABLISHED OIL HUB

Bakersfield sits in the center of the state’s oil production where the oil industry is long established. Plains executives have said its crude-friendly climate and existing infrastructure make the area more attractive for such projects.

“I think Bakersfield is probably the best place to build a rail facility in California, because it’s not sitting in San Francisco or LA, and it has access to pipes going north and south. It just seems like it’s going to be a struggle to develop rail in other locations,” Plains’ Chief Operating Officer Harry Pefanis told analysts in May.

Alon had hoped to have its Bakersfield rail project up and running by the end of 2013, but it, like others in the state, underwent a lengthy environmental review and public comment.

Oviatt said the Kern County planning department had considered all issues during that review, including safety and spill preparedness.

Now the project is slated to go before the county’s board of supervisors for a vote at a Sept. 9 public hearing. Oviatt, who is not one of the five members of the board, said she expected a final decision at that time.

The planning department has signed off on it, and Oviatt said the board tended to be supportive of business.

“I can’t say how the board would vote, but I do believe that given their business-friendly attitude, they’re going to take all of this into serious consideration.”

(Reporting by Kristen Hays in Houston; Editing by Terry Wade, Lisa Shumaker, Jessica Resnick-Ault and Phil Berlowitz)
Bakken Crude, Crude By Rail, Lake Champlain, Massive increase in crude-by-rail

The risk to Lake Champlain

Repost from The Burlington Free Press
[Editor: What do pristine California waters and Lake Champlain (in upstate New York) have in common?  Would you believe oil trains?  – RS]

The risk to Lake Champlain

 Mike Winslow, August 15, 2014

The sound of trains clacking along the rails that abut Lake Champlain has become more common with the dramatic increase in freight traffic attributed to fossil fuel extraction.

Each week approximately 60 million gallons of oil travel along the lake carried by 20 trains with up to 100 cars each. Nearly half of these shipments carry the volatile Bakken crude.

The U.S. meets 66 percent of its crude oil demand from production in North America with tremendous growth in outputs from Canada and the Bakken oil fields of North Dakota. In October 2013, U.S. crude production exceeded imports for the first time since February 1995.

Oil produced from the Bakken fields is light. That means it flows easily, but it also means it is more volatile and flammable.

As a result, the potential property damage and loss of life associated with rail accidents involving Bakken oil is higher than oil from other sources.

In January, two federal agencies issued a safety alert warning of these risks.

The alert was triggered by a series of devastating accidents. Federal Railroad Administration statistics suggest that on average, at least one car slips off the tracks every day. There have been six major derailments since the beginning of 2013.

The most infamous occurred July 5, 2013, in Lac Megantic, Quebéc. An improperly secured train rolled on its own, and 63 cars derailed near the center of town, leading to multiple explosions and fires, evacuation of 2,000 people and 47 deaths.

There have been unsettling precedents:

• October 19, 2013: 13 tank cars derailed in Alberta leading to evacuation of 100 residents. Three cars carrying propane burned following an explosion.

• November 8, 2013: 30 cars derailed in a wetland near Aliceville, Alabama and about a dozen were decimated by fire.

• December 30, 2013: two trains, one carrying grain and one oil, collided in Casselton, North Dakota. Twenty of the oil train cars derailed and exploded leading to evacuation of 1,400 people.

• January 7, 2014: 17 cars derailed in New Brunswick and five exploded leading to evacuation of 45 people.

• January 20, 2014: Seven cars derailed on a bridge over the Schuylkill River in Philadelphia, though no oil leaked.

• More recently, 15-17 cars derailed in Lynchburg, Va., on April 30. Three fell into the James River and one burst into flames. There were no injuries, but 300-350 people had to be evacuated, and oil leaked into the James River. The state estimated 20,000 to 25,000 gallons escaped during the wreck.

Our region is no stranger to train derailments. In 2007, a northbound Vermont Railways freight train derailed in Middlebury, spilling gasoline into Otter Creek and leading to the evacuation of 30 streets in the vicinity.

Trains have also derailed along the Lake Champlain route. In 2007, 12 cars derailed near Route 22 in Essex, N.Y., the same stretch of tracks now carrying volatile oil.

Concern over the state of North American freight rail safety predates the increase in oil shipments.

In 2006 the Toronto Star ran a five-part series on rail safety. The newspaper noted, “Canadian freight trains are running off the rails in near record numbers and spilling toxic fluids at an alarming rate, but only a tiny fraction of the accidents are ever investigated.”

The greatly increased traffic in oil has further strained railroad infrastructure. According to an article in Pacific Standard Magazine, 85 percent of the 92,000 tank cars that haul flammable liquids around the nation are standard issue DOT-111s. They have been referred to as “Pepsi cans on wheels.”

These cars are built to carry liquids but lack specialized safety features found in pressurized tanks used for hauling explosive liquids. The industry has agreed to include additional safety features in any new cars put on the tracks, but since rail cars have an economic life of 30-40 years, conversion to the newer cars has been slow.

One relatively new risk is the predominance of “unit trains.” These are long series of cars all shipped from the same originating point to the same destination.

Often the cars will all carry the same product. It used to be that oil cars were mixed in with other freight cars bound for different locations. Unit trains are a greater risk in part because safety standards are based on the carrying capacity of a single car and don’t account for the greater volumes that unit trains can transport.

The National Transportation Safety Board, an independent federal agency charged with investigating accidents, has called on the Federal Railroad Administration to change this standard.

Recently, an oil company submitted plans to build an oil heating facility in Albany, N.Y. The facility would be used to heat oil shipped via rail. The oil would then be transferred to barges and floated to refineries.

If permitted, a heating facility would draw increased transport of Canadian tar sands, which needs to be diluted or heated for loading or unloading, through the Lake Champlain region.

In contrast to Bakken field oil, tar sands oil is heavy. Cleanup of tar sands oil following accidents is extremely challenging. The oil sinks rather than floating, making containment difficult.

When a pipeline carrying tar sands oil broke near Kalamazoo, Mich., 850,000 gallons spilled. The resulting cleanup cost more than $1 billion (yes, $1 billion), and costs were “substantially higher than the average cost of cleaning up a similar amount of conventional oil,” according to a report prepared by the Congressional Research Service.

In November 2013, the New York Department of Environmental Conservation declared the proposed facility would have no significant environmental impacts.

However, public outrage led the department to reconsider that declaration, expand the public comment period and seek additional information from the proponents.

Still, the additional requested information touches only the tip of the facility’s impacts on the region. The facility should undergo a full environmental impact review that includes potential impacts on freight shipping throughout the region including along Lake Champlain.

In July, the Department of Transportation proposed new rules on rail safety. They include a phase-out of DOT-111s during the next few years, tightened speed limits, improved brakes and permanent requirements for railroads to share data with state emergency managers.

The federal department is accepting comments on the proposed rules until Sept. 30 and hopes to finalize them by the end of the year.

It’s a step in the right direction, but way too slow on getting rid of these risky cars. Delays in updating standards puts people, communities, Lake Champlain and other waterways at risk. The administration needs to act before another disaster like what occurred in Lac Megantic occurs here or elsewhere.

Train whistles echoing off the waters of the lake should elicit wistful thoughts of faraway places, not shudders of dread.

Mike Winslow is the staff scientist at Burlington-based nonprofit Lake Champlain Committee.

Rail concerns

A forum on rail transportation of crude oil along the western shore of Lake Champlain is planned for 7 p.m. – 9 p.m. on Aug. 24 at Plattsburgh City Hall.

For more information, contact the Lake Champlain Committee at lcc@lakechamplaincommittee.org or (802) 658-1414.