Tag Archives: North Dakota

Crude By Rail, Farming, Rail traffic

New reports on freight backlogs – railroads accused of oil favoritism

Repost from The Minneapolis StarTribune

New reports on backlogs bring renewed criticism of railroads

By: Tom Meersman and Jim Spencer, October 24, 2014
Critics say they prove oil favoritism; railroads say numbers are misleading.
Grain elevators seen from a passing train. With continued delays and backlogs for grain shipments, railroads have been accused of playing favorites. Photo: GLEN STUBBE , Star Tribune

Farming groups and other businesses blasted railroads for poor service and favoritism Thursday after seeing new reports about backlogs and waiting times for rail cars.

Rail critics say new data that the federal Surface Transportation Board has begun collecting suggests that the railroads are giving preference to oil shipments, creating long delays for other freight.

A table from BNSF Railway Co., the region’s dominant railway for grain shipments, reported 747 loaded grain cars that had not moved in more than five days during the week of Oct. 12-18, and only six crude oil cars that had delays of that length.

Gary Wertish, vice president of the Minnesota Farmers Union, said the numbers confirm what many farmers and grain elevators have witnessed all year: oil trains on the move constantly, and grain trains few and far between.

“This is the source of our complaints all along,” Wertish said. “Obviously they’re playing favorites with crude oil.”

The regulators early this month ordered the railroads to assemble and submit weekly reports about their performance, following months of complaints from grain shippers, coal suppliers and utilities, ethanol dealers, taconite processors, and Amtrak executives.

The businesses have claimed that delays in rail service over the past year have cost them and their customers hundreds of millions of dollars in lost time, late supplies and higher prices.

In submitting the first reports, railroads cautioned against drawing quick conclusions from the data.

Canadian Pacific Railway’s president and chief operating officer, Keith Creel, urged regulators in a letter “to step back and consult with all the stakeholders” before continuing the process.

The federal order “imposes a significant regulatory burden without articulating how providing this information will improve the overall rail supply chain in the United States,” Creel wrote. Canadian Pacific serves Minnesota, North Dakota and other northern states.

Sens. Al Franken and Amy Klobuchar of Minnesota and Sen. Heidi Heitkamp of North Dakota have followed the issue closely, and all three issued statements Thursday. Klobuchar said the railroad data are needed to understand the problems and “guide decisions” that will reduce delays.

“More transparency in rail operations hardly seems like a tough burden to bear considering what rail shippers in Minnesota are going through,” Franken said.

Canadian Pacific and other railroads filed the reports with the Surface Transportation Board, which regulates the industry. After months of complaints and several hearings, the Board issued an order on Oct. 8 for large railroads to report performance details each week.

The reports cover such things as train speeds, dwell times at terminals, weekly cars on line by car type, weekly total number of loaded and empty cars that have not moved in more than 5 days, coal unit train loadings, grain cars by state and cargo, and number of days late for all outstanding grain car orders.

Bob Zelenka, executive director of the Minnesota Grain and Feed Association, said the report is “unfortunate news” because BNSF pledged weeks ago that it would catch up with its backlogs before harvest, but has not done so.

“It looks like it’s business as usual,” Zelenka said. “The numbers seem to indicate that for whatever reason, the railroads have an easier time moving oil on this congested system than anything else, and I wonder why.”

A study last July estimated that transportation problems between March and May cost Minnesota corn, soybean and wheat farmers more than $100 million in increased freight rates, higher storage costs, lost sales and penalties for products not delivered on time.

Several utilities have also had trouble with delayed and irregular coal deliveries and some have dialed back their power plants and taken other steps to conserve coal stockpiles.

Xcel Energy’s director of fuel supply operations, Craig Romer, said Xcel’s power plants served by BNSF are far behind in the amount of coal they store on site. “Our inventories are in terrible shape,” he said, referring to Xcel’s large Sherco plant in Minnesota and four other coal-burning plants in Colorado and Texas.

“In July, August and September, the railroad actually performed worse than it did in the polar vortex in the middle of the winter,” Romer said. The winter rail problems were related to weather, he said, and the summer disruptions were caused by BNSF track maintenance.

Romer expects regular service to resume when rail construction projects end in a few weeks. “But there’s such a backlog of volume to deliver, it will be several months before they [BNSF] actually turn this thing around,” he said.

BNSF officials have said repeatedly that the company does not give preference to oil shipments over other commodities, and that the railroad is moving more agricultural products than ever before in the region. In a statement late Thursday, the company said that fewer oil cars have delays because oil is moved mainly in unit trains built for speed and efficiency and headed for a single destination.

About half of BNSF’s 27,000 rail cars are also used for 110-car unit trains, the statement said, but the other half are on trains that are broken up as they move across the country and put in rail yards where they are mixed with other cars with different cargoes and sent to various destinations.

“With such a large number of single cars in ag service, the number of cars held [waiting] will always be higher than a commodity traveling almost exclusively in unit trains,” the company said.

In its report, BNSF also noted that if a rail car is held “for more than 48 hours or even 120 hours, it does not necessarily mean that the car will not be delivered in a timely manner or even within the initial service plan.”

Because the weekly reporting system is new and needs to be refined, the company said, “we caution against drawing firm conclusions based upon the absolute values reported in BNSF’s report.”

Staff writer David Shaffer contributed to this report.
Bakken Crude, Derailment, Emergency Readiness & Response, Funding for emergency response

New Jersey firefighters warn county officials they don’t have staff, equipment, expertise; suggest the county buy equipment and bill CSX

Repost from NorthJersey.com

Firefighters want Bergen County plan for oil train accidents

October 21, 2014, By Scott Fallon
Lt. Matthew Tiedemann, the Bergen County Office of Emergency Management coordinator, talking about the newer cars that carry Bakken crude oil at the summit for first responders.
Lt. Matthew Tiedemann, the Bergen County Office of Emergency Management coordinator, talking about the newer cars that carry Bakken crude oil at the summit for first responders. | CHRIS PEDOTA/staff photographer

Local firefighters warned Bergen County officials on Monday that they don’t have the manpower, equipment or expertise required should there be an accident involving trains carrying millions of gallons of volatile Bakken crude oil that pass through their towns every day.

At a meeting of about 75 first responders in Hackensack, emergency officials said a coordinated countywide approach is the only way to deal with a potential derailment involving the enormous increase of trains carrying Bakken crude. The highly flammable oil has been involved in several fiery crashes throughout North America in the past year.

More than 60,000 tank cars, each containing as much as 3 million gallons of crude oil, are expected to be hauled on the CSX River Line through 11 Bergen County towns this year — almost triple the amount from last year, county emergency management officials said Monday.

“The rapid growth is going to be beyond anything we can contain,” said Bergenfield Fire Chief Jason Lanzilotti, who held a response drill to an oil train derailment over the summer. “Evacuation is a major problem. Fire suppression is out of the question. There has to be some kind of framework so that not every town is individually looking at what needs to be done.”

Over the past few years, Bergen County has become a major corridor for oil with 15 to 30 trains traveling every week on the CSX River Line from New York. They enter New Jersey in Northvale |and travel past thousands of homes and businesses in Norwood, Harrington Park, Closter, Haworth, Dumont, Bergenfield, Teaneck, Bogota, Ridgefield Park and Ridgefield. The trains eventually pass through the central part of the state, crossing the Delaware River near Trenton on their way to a refinery in Philadelphia.

The oil originates in a geological formation called the Bakken shale in a remote area of North Dakota where pipelines are scarce. About 33 million barrels were filled in August — seven 7 million barrels more than the same time last year, according to the latest government data.

Although there have been recent fiery accidents in North Dakota, Alabama and Virginia involving the oil trains, no one was severely injured. But one of the worst rail disasters in recent memory happened last summer when a train carrying 72 tanker cars full of Bakken crude derailed in the small town of Lac-Mégantic, Quebec. The crude ignited and exploded, killing 47 people and destroying most of the downtown.

“You could just picture if this were to happen in a densely populated area in Bergen County where the houses are almost next to the train tracks,” said Lt. Matthew Tiedemann, coordinator of Bergen County’s Office of Emergency Management.

Tiedemann led the meeting, which was also attended by Bergen County Executive Kathleen Donovan, county fire officials and several freeholders.

Tiedemann talked about different methods firefighters may take in dealing with an oil train fire. He said it may be more dangerous to try to put a fire out immediately since the oil could flow away from the wreckage and reignite elsewhere.

“If you put that fire out and there are still 15,000 gallons of Bakken oil in that car, where is that Bakken oil going to flow?” he said. “How are you going to keep that car cool enough so it doesn’t spontaneously combust again? And how are you going to clean that all up once it flows out of the cars?”

Several first responders said they need equipment like booms, large quantities of foam retardant and absorbent materials to deal with a potential fire and spill, saying it would take the county time to move that equipment if a crisis occurred.

One particular area of concern is that the oil trains cross a small bridge over the upper reaches of the Oradell Reservoir, which supplies drinking water to 750,000 people. Harrington Park Fire Marshall Tom Simpson said there was no way his volunteer fire department nor any of the ones in surrounding towns could stop thousands of gallons of oil from going into the reservoir.

“Any spill above the reservoir is going to contaminate the reservoir,” said Simpson who suggested that the county buy the equipment for local towns and then bill CSX. “We don’t have the equipment to contain that much flow into the reservoir.”

Bergenfield fire Capt.ain Jim Kirsch said putting the equipment near the rail line could be a bad idea. “I walk out my [firehouse] door, I walk 20 feet and I’m on the track bed,” he said. “A derailment in Bergenfield means I’m probably going to have a tank car in my firehouse.

“It’s a countywide problem and it has to be dealt with on a countywide scale,” he said.

Bakken Crude, Derailment, Disclosure of tank car contents, Explosion, Hazardous cargo transparency, Hazmat notification, Pacific Northwest

Report shows increase in Central Oregon oil trains

Repost from The Bulletin (Serving Central Oregon)
[Editor: Significant quote: “The company’s (BNSF) most recent report shows a change in data format.  In the first two reports, BNSF reported the actual number of trains passing through Central Oregon during a specific week. While the new report still focuses on a specific week, the company is now giving a estimated number of oil trains.”  – RS]

Report shows increase in Central Oregon oil trains

BNSF: 100-car Bakken trains passing through Bend

By Dylan J. Darling / The Bulletin / Oct 14, 2014 

While a state-released report by BNSF Railway about the number of large Bakken crude oil trains passing through Central Oregon shows a potential notable increase, a company spokesman said Monday the actual number of trains is less than detailed in the report.

Following relatively new federal rules about reporting oil trains, BNSF Railway Co . sent a Sept. 30 report to the Oregon Office of the State Fire Marshal showing that an estimated zero to three oil trains carrying more than 1 million gallons of crude oil each pass through Deschutes and Jefferson counties per week.

A report earlier this year showed one such train passed through Central Oregon weekly.

“The real number is one every 12 days,” said Gus Melonas, spokesman for BNSF. That works out to three or four of the trains per month going through Redmond, Bend and beyond. He said the trains are carrying the oil to refineries in California.

The trains going through Central Oregon and the Columbia River carry crude oil from the Bakken region of North Dakota, oil that has proved to be more volatile than other crude oil. Bakken oil train derailments have led to dramatic explosions in Canada and North Dakota. Last May, the U.S. Department of Transportation issued an emergency order requiring railroads to provide information to state emergency responders about large train shipments of Bakken oil.

The BNSF rail route through the Gorge, bringing crude oil to refineries near Portland and in Washington, sees two to three oil trains per day, Melonas said. He said the route through Bend is “not a high volume line.”

The reporting rules pertain to trains carrying 1 million or more gallons of crude oil, the equivalent of about a 35-car train.

“If they have a train carrying less than a million crude, they don’t have to report it at all,” Rich Hoover, community liaison for the Office of State Fire Marshal, said Monday.

Melonas declined to give details on whether there are trains carrying less than a million gallons of crude oil rolling through Central Oregon, citing security and customer information concerns. If there were, he said, the oil cars would be hauled with cars carrying other commodities.

“We don’t put out specifics,” he said.

Each time a railroad company has an increase or decrease of 25 percent or more in the number of trains passing through an area, the rules require it to send a report to the state. Since May, BNSF has sent three reports to Oregon.

The company’s most recent report shows a change in data format. In the first two reports, BNSF reported the actual number of trains passing through Central Oregon during a specific week. While the new report still focuses on a specific week, the company is now giving a estimated number of oil trains.

Hoover said the state goes by what the company states in its reports , which the Office of State Fire Marshal posts to its website.

“What you see and read is exactly how much we know,” he said.

Melonas described the trains traveling through the region as “unit trains,” meaning they haul one commodity, and each train has about 100 tanker cars. The trains hold 70,000 to 80,000 barrels of crude oil each, or about 2.94 million to 3.36 million gallons of crude oil.

Concerned about the possible catastrophic results of an oil train derailment, Sally Russell, Bend city councilor, said it is a good thing the railroad is having to supply information to the state.

“Knowledge and the ability to response and react are critical,” she said.

If the number of large oil trains passing through Central Oregon is going up, it means the potential for a situation necessitating an emergency response is increasing, Bill Boos, deputy chief of fire operations for the Bend Fire Department, said Monday.

He said he’d like to have information on oil trains, large and small, rolling through Bend.

“It would be nice to know if there were smaller quantities coming through and if that was increasing,” he said.

While concerned about the dangers of train derailment and fire in towns, Michael Lang, conservation director for Portland-based Friends of the Columbia Gorge, also worries about the risks of an oil spill into the Deschutes River. The rail line through Central Oregon follows the river north of Bend. Along with towns, the large oil trains pass through a section of designated Wild and Scenic River.

“It’s not safe,” Lang said. “It endangers our communities, it endangers our environment. … And we are really concerned about it.”

BNSF Railway, California Regulation, Crude By Rail, Federal Regulation (U.S.), Union Pacific Railroad, Valero Benicia Refinery

Vallejo Times-Herald: Railroads sue California over oil train safety rules

Repost from The Vallejo Times-Herald

Railroads sue California over oil train safety rules

Union Pacific, BNSF Railway argue federal law pre-empts state regulations
By Tony Burchyns, October 9, 2014

California’s two major railroad companies filed a lawsuit this week to argue that the state lacks authority to impose its own safety requirements on federally regulated crude oil train traffic.

The lawsuit follows a new state law imposing regulations on the transportation of crude oil by rail in California. Union Pacific and BNSF Railway filed the case Tuesday in U.S. District Court in Sacramento to argue that federal law pre-empts California and other states from enforcing such regulatory regimes.

“The new state law requires railroads to take a broad range of steps to prevent and respond to oil spills, on top of their myriad federal obligations concerning precisely the same subject matter,” the railroads argue. “UP, BNSF and other members of (the American Association of Railroads) will be barred from operating within California unless a California regulator approves oil spill prevention and response plans that they will have to create, pursuant to a panoply of California-specific requirements.”

The railroads also will be required to obtain a “certificate of financial responsibility” from the state, indicating they are able to cover damages resulting from an oil spill. Failure to comply with the new state rules will expose railroad employees to jail time and fines, according to the lawsuit.

The California Office of Spill Prevention and Response, which was named as a defendant in the lawsuit, has declined to comment on the pending litigation.

The state law was passed in June following a sharp rise in crude-by-rail shipments in California from 2012 to 2013 and several high-profile oil train derailments in other states as well as Canada. In the Bay Area, crude-by-rail projects in Benicia, Richmond, Pittsburg, Martinez and Stockton have drawn local attention to the prospect of mile-long oil trains snaking through neighborhoods, mountain passes and sensitive habitats such as the Suisun Marsh.

Last week, California Attorney General Kamala Harris sent a letter to Benicia challenging plans to ship 70,000 barrels of crude daily by train to the city’s Valero refinery. Valero is seeking city approval to build a rail terminal to receive two 50-car oil trains daily from Roseville. The train shipments would originate in North Dakota or possibly Canada.

Harris, the state’s top law enforcement officer, criticized the city for underestimating the project’s safety and environmental risks. The letter was among hundreds received by the city in response to its initial environmental impact report. City officials say they are in the process of responding to all of the comments, and plan to do so before the project’s next, yet-to-be-scheduled public hearing is held.