Tag Archives: Massive increase in crude-by-rail

Bakken Crude, California Regulation, Crude By Rail, Derailment, DOT-111, Emergency Readiness & Response, Explosion, Federal pre-emption, Federal Regulation (U.S.), Hazmat notification, Local Regulation, Massive increase in crude-by-rail, Positive Train Control, Rail routing, Rail Safety, Tank car design, Train braking systems, Train speed, Valero Benicia Refinery, Valero Crude By Rail

Western Cities Magazine: A Growing Risk – Oil Trains Raise Safety and Environmental Concerns

Repost from Western City Magazine

A Growing Risk: Oil Trains Raise Safety and Environmental Concerns

By Cory Golden, in the February 2015 issue of Western City
George Spade/Shutterstock.com
George Spade/Shutterstock.com

More and more often, trains snake down through California from its northern borders, with locomotives leading long lines of tank cars brimming with volatile crude oil.

Rail remains among the safest modes of transport, but the growing volume of crude being hauled to California refineries — coupled with televised images of fiery oil train accidents elsewhere — have ratcheted up the safety and environmental concerns of city officials and the residents they serve.

Local and state lawmakers have found that their hands are largely tied by federal laws and court rulings pre-empting new state and local regulation of rail traffic.

Growing Volume and an Increasing Number of Accidents

Until recently, California’s refineries were served almost entirely through ports. An oil boom in North Dakota and Canada from the Bakken shale formation and a lack of pipeline infrastructure have led to a dramatic increase in oil-by-rail shipments nationwide.

Oil imports to California by rail shot up 506 percent to 6.3 million barrels in 2013 (one barrel equals 42 gallons). That number will climb to 150 million barrels by 2016, according to the California Energy Commission.

The surge represents an “unanticipated, unacceptable risk posed to California,” said Paul King, deputy director for the California Public Utilities Commission’s Office of Oil Rail Safety, during a Senate hearing last year.

As the volume of oil being transported by rail has swelled, derailments in the United States and Canada have also increased. Despite $5 billion in industry spending on infrastructure and safety measures — with half of that for maintenance — railroads spilled more crude in the United States during 2013 than in the previous four decades combined, according to an analysis of federal data by McClatchy DC News.

Railroads continue to boast a better than 99 percent safety record, and most spills have been small, but with each tank car holding more than 25,000 gallons of oil, the exceptions — including eight mishaps in 2013 and early 2014 — have been dramatic and devastating, none more so than an accident in July 2013. That’s when 63 cars from a runaway train exploded, leveling much of Lac-Mégantic, Quebec, and killing 47 people.

So far, California has been spared a major crude oil accident, but the number of spills here is climbing: from 98 in 2010 to 182 in 2013, according to the California Office of Emergency Services (OES).

Trains carrying Bakken crude travel south through Northern California, turning from the western slope of the Sierra Nevada and rumbling through the hearts of cities large and small. The trains pass within blocks of the state Capitol, hospitals and schools and through sensitive ecological areas such as the Feather River Canyon and Suisun Marsh.

Lethal Accidents Spur a Push for Increased Safety Measures

The Lac-Mégantic accident and others that have followed have led to a push for change at the federal level. Two agencies of the U.S. Department of Transportation (DOT), the Federal Railroad Administration and Pipeline and Hazardous Materials Safety Administration, shoulder responsibility for writing and enforcing railroad safety regulations.

In early 2014, the DOT and railroad industry announced a series of voluntary steps to increase safety. The DOT released a comprehensive rule-making proposal in July 2014, calling for structurally stronger tank cars, new operating requirements, speed restrictions, enhanced braking controls and route risk assessments, and a classification and testing program for mined gases and liquids.

The DOT proposal calls for phasing out within two years older model tank cars, called DOT-111s, long known to be vulnerable to rupturing in a crash. The National Transportation Safety Board, which investigates accidents, first urged replacing or retrofitting them in 1991.

In September 2014, the American Petroleum Institute and Association of American Railroads jointly asked the DOT for more time — up to seven years to retrofit tank cars.

Another safety measure, called positive train control (PTC), makes use of global positioning systems. It is intended to prevent collisions, derailments due to high speeds and other movements that could cause accidents, like a train using track where maintenance is under way. PTC can alert train crews to danger and even stop a train remotely.

Following a 2008 Metrolink crash in Los Angeles that killed 25 people — caused when an engineer missed a stop signal and collided with a Union Pacific freight train — Congress mandated PTC implementation on 60,000 miles of track nationwide. Large railroads have spent $4.5 billion to implement the technology, but the industry says it cannot meet its 2015 deadline.

Among the members of California’s congressional delegation demanding stricter regulations are Senators Dianne Feinstein and Barbara Boxer, who have called for more information to be released to first responders on train movements.

Sen. Feinstein also wrote a letter that urged the DOT to include pneumatic brakes, which can greatly reduce stopping distances, in its planned review of tank car design, and to extend the PTC requirement to any route used by trains carrying flammable liquids near population centers or sensitive habitat.

Meanwhile, Industry Continues to Grow

The growth in domestic crude oil is reflected in projects that include seven proposed, completed or under-construction expansions that together would have a maximum oil-by-rail capacity of 561,000 barrels per day at Bakersfield, Benicia, Pittsburg, Santa Maria, Stockton and Desert Hot Springs (see “Increasing Refinery Capacity” below).

As of December 2014, the Kinder Morgan Inc. facility in Richmond was the only refinery that could receive unit trains, which are trains with 100 or more tank cars carrying a single commodity and bound for the same destination.

InterState Oil Co. had its permit to offload crude at McClellan Park, in Sacramento County, revoked in November 2014 by the Sacramento Metropolitan Air Quality Management District. The district said it had issued the permit in error and that it required a full review under the California Environmental Quality Act.

Refineries in Bakersfield, Vernon, Carson and Long Beach were receiving crude deliveries from manifest trains, which carry a mix of cargo.

Safety Efforts Focus on Planning, Preparedness and Response

The Federal Rail Safety Act of 1970 authorized the U.S. secretary of transportation to create uniform national safety regulations. States are allowed to adopt additional, compatible rules if they do not hinder interstate commerce and address a local safety hazard. Courts have consistently ruled against almost all attempts by states to use the local safety hazard exception, however.

Thus, unable to regulate train movements, California lawmakers and agencies have pursued three main courses of action: planning, preparedness and response.

In the Golden State, the California Public Utilities Commission (CPUC) shares authority with the federal government to enforce federal safety requirements, and OES and local agencies lead emergency response. In 2014, Gov. Jerry Brown expanded the Department of Fish and Wildlife’s Office of Spill Prevention and Response to include inland areas.

The Legislature approved a Senate Joint Resolution, SJR 27 (Padilla), urging the DOT to safeguard communities and habitat, strengthen the tank car fleet, mandate the earlier voluntary safety agreement with railroads and prioritize safety over cost effectiveness.

Recent legislation includes AB 380 (Dickinson, Chapter 533, Statutes of 2014), which calls for increased spill-response planning for state and local agencies and requires carriers to submit commodity flow data to OES, and SB 1064 (Hill, Chapter 557, Statutes of 2014), which seeks to improve accountability and transparency regarding CPUC’s responses to federal safety recommendations.

The FY 2014–15 state budget also allocated $10 million to the CPUC, which planned to add seven more track inspectors, and authorized the state oil spill prevention fund to be used for spills in inland areas. In addition, the budget expanded the 6.5 cent per-barrel fee to include all crude oil entering the state.

The 10 state agencies that have some hand in rail safety and accident response have formed the Interagency Rail Safety Working Group. It issued a report last June that called for, among other things, older tank cars to be removed from service, stronger cars, improved braking, PTC and better markings on cars so that firefighters know how to proceed in an accident.

Speaking to Richmond residents in December 2014, Gordon Schremp, senior fuels specialist for the California Energy Commission, welcomed the moves to increase safety at the federal level. All indications were that railroads were complying with new measures like lower speed limits, he said.

“Does it mean there will be zero derailments? No, but the goal is to get there,” said Schremp.

Local government officials face a daunting challenge when it comes to disaster response.

The Interagency Rail Safety Working Group also found that, as of June 2014, there were no hazardous materials response teams in rural areas of Northern California and units in other areas of the state lacked the training and equipment needed to take a lead role. Forty percent of the state’s firefighters are volunteers.

“Training is of the utmost importance,” said Deputy Chief Thomas Campbell, who oversees the Cal OES Hazardous Materials Programs. “We understand that local governments are limited in finances and that it’s difficult to get firefighters out of rural communities to train because they are volunteers.”

Some Local Communities Oppose Expansion

At the local level the proposed expansion of California refineries sometimes has run into heated opposition.

After news reports revealed that Bakken crude was being transported into the City of Richmond, City Manager Bill Lindsay wrote a letter to the Bay Area Air Quality Management District in November 2014 calling for it to revoke energy company Kinder Morgan’s permit to offload the crude there. That followed a lawsuit filed by environmental groups to revoke the permit — a suit tossed out by the judge because it was filed too late.

Elsewhere, a proposal by Valero Energy Corp. would bring 1.4 million gallons of crude daily to its Benicia refinery. The proposal has been met with letters questioning the city’s environmental and safety analysis from senders that have included the CPUC, Office of Spill Prevention and Response, the Sacramento Area Council of Governments, the Capitol Corridor Joint Powers Authority and cities along the rail line, including Davis and Sacramento. The Union Pacific Railroad has responded by stressing federal pre-emption of rail traffic.

Even as those proposals played out, a pair of derailments in Northern California underscored the importance of the debate. While neither spill involved crude oil or hazardous materials, both served as a warning of the need for California to improve its emergency response capability. Eleven cars carrying freight derailed and spilled into the Feather River Canyon near Belden on Nov. 25, 2014. Three days later, one car tumbled off the tracks near Richmond. The cars were loaded with corn in the first instance and refrigerated pork in the second.

What’s Ahead

The League continues to closely monitor developments in oil by rail. In September 2014 the League made recommendations to the DOT on the federal rule-making governing rail safety. The recommendations included providing more information and training to first responders, mandating speed limits and stronger tank cars, and using all available data to assess the risks and consequences of crude oil transport. Two months later, the National League of Cities passed a resolution stressing many of the same safety measures.

League of California Cities staff conducted a series of webinars during fall 2014 to better acquaint members with the oil-by-rail issue, and its Public Safety and Transportation policy committees took up the subject in January 2015 meetings.

Increasing Refinery Capacity

The California Energy Commission is tracking the following projects, which would dramatically increase the oil-by-rail capacity of refineries:

  • Plains All American Pipeline LP in Bakersfield, which took its first delivery in November 2014, has a capacity of 65,000 barrels per day (bpd);
  • Alon USA Energy Inc. in Bakersfield, under construction, will be able to receive 150,000 bpd;
  • Valero Energy Corp. in Benicia, which is presently undergoing permit review, would have a 70,000 bpd capacity;
  • WesPac Energy-Pittsburg LLC in Pittsburg, undergoing permit review, could receive up 50,000 bpd by rail and 192,000 bpd through its marine terminal; and
  • Phillips 66 in Santa Maria, undergoing permit review, could accept 41,000 bpd.

In addition, Targa Resources Corp. at the Port of Stockton is planning an expansion that would enable it to receive 65,000 bpd. And Questar Gas Corp. is planning a project that could see it offload 120,000 bpd near Desert Hot Springs, then send it through a repurposed 96-mile pipeline to Los Angeles.

Photo credits: Ksb/Shutterstock.com; Steven Frame/Shutterstock.com.

This article appears in the February 2015 issue of Western City

 

Bakken Crude, Canadian regulation, Crude By Rail, Derailment, Explosion, Federal Regulation (U.S.), Fire, Massive increase in crude-by-rail, Oil stabilization, Sloshing effect, Train speed, Volatility

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

Repost from Bloomberg Business News

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

By Jim Snyder, March 13, 2015 1:15 PM PDT

(Bloomberg) — Lower speed limits for railroads may be ineffective at keeping oil trains on the tracks and preventing massive fireballs, such as those triggered in a series of recent derailments, the chief U.S. railroad regulator said.

“If you’re going to slow trains down, you’re going to have to slow them down to 12 miles an hour,” Sarah Feinberg, acting chief of the Federal Railroad Administration, told reporters in Washington Friday.

“And then you would just have other dangers. People queuing up at grade crossings while train car after train car of volatile product goes by,” she said. “That’s not good either.”

A surge in U.S. oil production has increased the amount of crude moved by rail 5,000 percent since 2009, much of it from North Dakota’s booming Bakken field. A corresponding jump in accidents, including a 2013 oil-train derailment and explosion that killed 47 people in Lac-Megantic, Quebec, have led U.S. and Canadian regulators to propose tougher standards for trains.

Speeds higher than 25 mph were “irresponsible” given the known weakness of the tank cars carrying the crude, Jim Hall, a former chairman of the National Transportation Safety Board, said in written comments to the Transportation Department.

Hall was responding to a proposed department rule that would require the current fleet of tank cars to be replaced. A draft is being reviewed at the White House Office of Management and Budget and is expected to be final in May.

Sloshing Effect

The Federal Railroad Administration also is studying whether slower speeds can cause a sloshing effect in tank cars, making it harder to prevent the rolling stock from wobbling off the tracks, Feinberg said.

Railroads have lobbied against new limits, saying they would result in costly delays for many of the goods hauled by rail.

Two oil-trains that derailed in the past four weeks, in West Virginia and Illinois, and created massive fireballs were traveling well below federal speed limits, Feinberg said.

Railroads last year agreed to slow trains to 40 mph from 50 mph when carrying crude through High Urban Threat Areas, a designation that covers more than three dozen U.S. communities.

“We are running out of things that I think we can ask for the railroads to do, and there have to be other industries that have skin in the game,” Feinberg said. “There also has to be attention placed on the product actually going into the railcar.”

In April, a regulation in North Dakota that requires oil to be kept at a vapor pressure below 13.7 pounds per square inch goes into effect. Feinberg said a process known as conditioning, which companies can use to meet that standard, is the “bare minimum” step to lower volatility.

Feinberg said the administration is considering further steps to reduce oil’s explosiveness before its loaded into tank cars, though the draft rule under review is silent on the issue.

Bakken Crude, Crude By Rail, Derailment, Explosion, Federal Regulation (U.S.), Fire, Massive increase in crude-by-rail, Oil stabilization, Tank car design, Tar sands crude, Volatility

NPR Interview: Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

Repost from WAMU, American University Radio – The Diane Rehm Show
[Editor: In this lengthy and informative audio, Diane Rehm interviews Anthony Swift, NRDC; Cynthia Quarterman, Atlantic Council (former Administrator of the Pipeline and Hazardous Materials Safety Administration); Dina Cappiello, Associated Press; and Edward Hamburger, Association of American Railroads. Unfortunately, I am unable to embed The Diane Rehm Show here.  To listen to this 51-minute interview, go to the Diane Rehm Show.  – RS]

Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

The Diane Rehm Show, Mon, Mar 09, 2015
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va.
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va. AP Photo/Steve Helber

Fueled by the shale oil boom in North Dakota and Montana, trains now carry more than 500,000 carloads of oil and ethanol to coastal refineries. Now, a series of fiery train derailments in the U.S. and Canada is raising public safety concerns. On Saturday, a train crashed in Ontario, leaking oil into a nearby waterway. Here in the U.S., another train derailed last week in Illinois, causing evacuations and fire damage. Safety advocates say rail cars carrying oil need to meet tougher design standards and lower speed limits. Shippers argue that stricter measures are costly and risks are exaggerated. We look at the rise in oil train derailments and what can be done to prevent them.

Guests

  • Anthony Swift attorney with the Natural Resources Defense Council.
  • Cynthia Quarterman distinguished senior fellow, The Atlantic Council; former administrator of the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA)
  • Ed Hamberger president and CEO, Association of American Railroads.
  • Dina Cappiello national environment and energy reporter, The Associated Press.
Bridge safety, Crude By Rail, Derailment, Explosion, Fire, Massive increase in crude-by-rail, Rail infrastructure, Rail inspection, Tank car design, Volatility

NEW YORK TIMES: Dangerous Trains, Aging Rails

Repost from The New York Times
[Editor:  Another excellent investigative report by Marcus Stern.  New information here – another must-read for CBR opponents.  See his highly-acclaimed December report, Boom! North America’s Explosive Oil-by-Rail Problem.  – RS]

Dangerous Trains, Aging Rails

By Marcus Stern, March 12, 2015

A CSX freight train ran off the rails last month in rural Mount Carbon, W.Va. One after another, exploding rail cars sent hellish fireballs hundreds of feet into the clear winter sky. Gov. Earl Ray Tomblin declared a state of emergency, and the fires burned for several days.

The Feb. 16 accident was one of a series of recent fiery derailments highlighting the danger of using freight trains to ship crude oil from wellheads in North Dakota to refineries in congested regions along America’s coastlines. The most recent was last week, when a Burlington Northern Santa Fe oil train with roughly 100 cars derailed, causing at least two cars, each with about 30,000 gallons of crude oil, to explode, burn and leak near the Mississippi River, south of Galena, Ill.

These explosions have generally been attributed to the design of the rail cars — they’re notoriously puncture-prone — and the volatility of the oil; it tends to blow up. Less attention has been paid to questions surrounding the safety and regulation of the nation’s aging network of 140,000 miles of freight rails, which carry their explosive cargo through urban corridors, sensitive ecological zones and populous suburbs.

Case in point: The wooden trestles that flank the Mobile and Ohio railroad bridge, built in 1898, as it traverses Alabama’s Black Warrior River between the cities of Northport and Tuscaloosa. Oil trains rumble roughly 40 feet aloft, while joggers and baby strollers pass underneath. One of the trestles runs past the Tuscaloosa Amphitheater. Yet when I visited last May, many of the trestles’ supports were rotted and some of its cross braces were dangling or missing.

The public has only one hope of finding out if such centenarian bridges are still sturdy enough to carry these oil trains. Ask the railroads. That’s because the federal government doesn’t routinely inspect rail bridges. In fact, the government lacks any engineering standards whatsoever for rail bridges. Nor does it have an inventory of them.

The only significant government intrusion into the railroads’ self-regulation of the nation’s 70,000 to 100,000 railroad bridges is a requirement that the companies inspect them each year. But the Federal Railroad Administration, which employed only 76 track inspectors as of last year, does not routinely review the inspection reports and allows each railroad to decide for itself whether or not to make repairs.

The railroad that operates the Tuscaloosa bridge, Watco Companies, and the Federal Railroad Administration assured me it was safe. But shortly after my reporting was published on the websites of InsideClimate News and The Weather Channel, Watco announced that it would make $2.5 million in repairs. And the Department of Transportation’s inspector general said it would begin a review of the F.R.A.’s oversight of rail bridges.

Even where federal engineering standards do exist, it’s unclear how much safety they provide. For instance, federal track safety standards allow 19 out of 24 crossties to be defective along any 39-foot stretch of the lowest grade of track, where the speed limit is 10 m.p.h. These crossties stabilize the rails. On the best of tracks, which have a speed limit of 80 m.p.h., the standards allow half of the crossties to be decayed or missing.

Five oil trains have exploded in the United States in the last 16 months. Miraculously, there have been no deaths. Canada, however, hasn’t been so lucky. In July 2013, an oil train carrying North Dakota oil burst into flames in the Quebec town of Lac-Mégantic, about 10 miles from the Maine border, killing 47 people.

After that accident, federal officials promised to develop sweeping new regulations to make sure nothing like it happens in the United States. In the interim, the Department of Transportation issued an emergency order requiring railroads to get federal permission before leaving trains unattended with their engines running, a major factor in the Lac-Mégantic explosion. And the railroads agreed to a number of voluntary steps, including keeping oil trains under 50 m.p.h.

But more than a year and a half after Lac-Mégantic, new regulations have yet to be finalized as the railroad and oil industries argue about various proposed provisions. The emergency order didn’t end the practice of railroads’ leaving oil trains on tracks with their engines running; it simply required companies to have a written plan for doing so. And without regulations, reporting or penalties, the public has only the railroads’ word they are complying with the 50 m.p.h. speed limit.

For trackside communities, the stakes are obviously high. New hydraulic fracturing technology has allowed oil developers to tap vast amounts of deeply buried oil in parts of North Dakota, Montana and Canada. Without significant new pipeline capacity, the only way to get the oil to refineries is by train. Rail car shipments of crude oil rose from 9,500 in 2008 to more than 400,000 last year.

To protect communities and the environment, the Transportation Department needs to act quickly to require more resilient rail cars, improve the safety of rail infrastructure and operations, and reduce the volatility of oil at the wellhead, before it is loaded onto trains.

Instead, the debate over regulations inches along as oil trains continue to roll through downtown Philadelphia, suburban Chicago and along the Hudson River in New York and the Schuylkill in eastern Pennsylvania, passing close to a nuclear power plant.

Before leaving office last year, Deborah A. P. Hersman, the chairwoman of the National Transportation Safety Board, questioned whether industry representatives and regulators had a tombstone mentality when it came to oil trains. If nobody dies, she suggested, there’s no pressure to act. So far, the tombstones have all been in Canada.

Marcus Stern has examined the hazards of shipping oil by rail for InsideClimate News, the Weather Channel and the Investigative Fund. He reports for a San Diego-based writers group, Hashtag30.