Tag Archives: North Dakota

Air Quality, Climate Change, Flaring, Oil Industry

Shale Oil Drillers Deliberately Wasted Nearly $1 Billion in Gas, Harming Climate

Repost from Desmogblog

Shale Oil Drillers Deliberately Wasted Nearly $1 Billion in Gas, Harming Climate

2014-09-04, by Sharon Kelly

In Texas and North Dakota, where an oil rush triggered by the development of new fracking methods has taken many towns by storm, drillers have run into a major problem.

While their shale wells extract valuable oil, natural gas also rises from the wells alongside that oil. That gas could be sold for use for electrical power plants or to heat homes, but it is harder to transport from the well to customers than oil. Oil can be shipped via truck, rail or pipe, but the only practical way to ship gas is by pipeline, and new pipelines are expensive, often costing more to construct than the gas itself can be sold for.

So, instead of losing money on pipeline construction, many shale oil drillers have decided to simply burn the gas from their wells off, a process known in the industry as “flaring.”

It’s a process so wasteful that it’s sparked class action lawsuits from landowners, who say they’ve lost millions of dollars worth of gas due to flaring. Some of the air emissions from flared wells can also be toxic or carcinogenic. It’s also destructive for the climate – natural gas is made primarily of methane, a potent greenhouse gas, and when methane burns, it produces more than half as much CO2 as burning coal.

Much of the research into the climate change impact the nation’s fracking rush – now over a decade long – has focused on methane leaks from shale gas wells, where drillers are deliberately aiming to produce natural gas. The climate change impacts of shale oil drilling have drawn less attention from researchers and regulators alike.

A new report from Earthworks finds that drillers in North Dakota alone have burned off over $854 million worth of gas at shale oil wells since 2010, generating 1.4 billion pounds of CO2 in 2013 alone. The 1.4 billion pounds of CO2 produced by flaring equal the emissions from 1.1 million cars or light trucks – roughly an extra 10 cars’ worth of emissions per year for every man, woman and child living in the state’s largest city, Fargo (population 113,000).

Flaring at shale oil wells is now so common that satellite images of the largely rural state at night are dotted with what appear at first to be major metropolises but are instead the flares burning round-the-clock in the Bakken shale drilling patch.

But while the highly visible flaring in North Dakota has drawn the most media attention, the practice is on the rise in Texas, particularly in the state’s Eagle Ford shale.

“The Eagle Ford produces considerably more natural gas than the Bakken,” Earthworks noted. “In June 2014, the Eagle Ford Shale produced seven billion cubic feet per day, while the Bakken produced 1.3 billion cubic feet per day.”

In 2013, nearly a third of the gas in North Dakota’s Bakken was flared – but the numbers coming from Texas seem a bit more murky, in part because unlike North Dakota, Texas does not tax flared gas and – according to a new four-part investigative report by the region’s newspaper – the state has failed to track or control flaring adequately.

The year-long investigation by the San Antionio Express-News recently uncovered striking problems with the regulation of flaring in Texas, including:

  • Texas law forbids drillers to flare past 10 days without a permit – but out of the twenty wells that had flared the most gas in the state, the paper discovered that 7 had never obtained required permits. State law calls for fines of up to $10,000 a day for flaring violations, but regulators have issued a total of less than $132,000 in fines in the Eagle Ford since the boom began, despite over 150 “possible flaring or venting violations” found by state inspectors in the region between 2010 and 2012.
  • Statewide, 33 billion cubic feet of natural gas were flared or vented in 2012 – a 400 percent rise from 2009, when the shale oil rush arrived. The Eagle Ford was responsible for two thirds of the state’s wasted gas in 2012, totaling 21 billion feet for the year. Eagle Ford drillers burned off gas at ten times the combined rate of drillers in the state’s other oil fields.
  • That much gas produces enormous amounts of airborne pollution. “In the early days of the boom, flaring released 427 tons of air pollution each year. By 2012, pollution levels shot up to 15,453 tons, a 3,500 percent increase that exceeds the total emissions of all six oil refineries in Corpus Christi,” the paper wrote. “Moreover, flaring and other oil industry activity in the Eagle Ford released more ozone-creating pollution in the summer of 2012 than two dozen Texas oil refineries.”
  • Despite concerns over how these emissions can affect human health, the state operates just seven air monitoring stations in the region. It can take regulators up to 10 days to arrive to take samples when citizens complain about potentially hazardous fumes.
  • Texas’s environmental agency, the Railroad Commission, is run by a 3-member panel of elected officials. “The three Railroad Commissioners have raised $11 million from campaign donors since 2010,” the paper found. “At least half that money came from employees, lobbyists and lawyers connected to the oil and gas industry, according to campaign finance records.”

Flaring has angered environmentalists, landowners and even many in the oil and gas industry itself.

“The Railroad Commission is statutorily required ‘to prevent waste of Texas’s natural resources’,” said Earthworks Texas organizer Sharon Wilson. “I don’t see how the Railroad Commission isn’t breaking the law by allowing drillers to waste natural gas by flaring it off rather than capturing it.”

“Nobody hates flaring more than the oil operator and the royalty owners,” Ron Ness of the North Dakota Petroleum Council, an industry trade group, told Reuters last year. “We all understand that the flaring is an economic waste.”

But the problem is projected to get worse not better. An environmental report from the Alamo Area Council of Governments predicted that by 2018, emissions of volatile organic compounds – which the EPA warns can have “short- and long-term adverse health effects” – could quadruple in the Eagle Ford.

Nonetheless, the EPA has decided to consider air emissions from each shale well, pipeline compressor or other piece of equipment individually when deciding whether there’s enough pollution for federal regulators to get involved – meaning that even though the Eagle Ford’s wells collectively pollute more than multiple oil refineries, the flaring escapes federal oversight.

New federal regulations, aimed at cutting down on the release of climate-changing carbon dioxide and methane from the wells and scheduled to go into effect in 2015, will require many drillers to use a process called a “green completion,” rather than flaring the gas or venting it to the atmosphere as raw unburned methane. Green completions can help reduce leaks by up to 99 percent, according to a study by the Environmental Defense Fund that has was heavily touted by the drilling industry and its advocates.

But those requirements only apply to wells whose purpose is to produce natural gas, not oil. This means the regulations will have little impact on shale wells in Texas’s Eagle Ford, the Express-News pointed out.

More than 1 million Texans live near the Eagle Ford, some of whom say they have suffered a litany of health effects that they suspect are tied to flaring.

“We went from nice, easy country living to living in a Petri dish,” Mike Cerny, who lives within a mile of 17 oil wells, told the Center for Public Integrity.  “This crap is killing me and my family.”

There’s a simple way to spot a poorly-performing flare. “If you see a smoking flare that’s not complete combustion,” Neil Carman, a former state scientist who now works with the Sierra Club, told the Express-News. “If it’s not completed, you get a smorgasbord of chemicals.”

At times, the gas is simply released unburned directly to the atmosphere – a practice labeled “venting” by the industry.

Texas state regulators fail to distinguish between flaring and venting in their public production database, the newspaper pointed out, making it impossible to know precisely how bad the impacts of the pollution might be.

Photo Credit: Flaring Natural Gas in North Dakota, via Shutterstock

Crude By Rail, Emergency Readiness & Response, Local Regulation

Seattle emergency planners: Oil train hazard in 100-year-old tunnel

Repost from The Columbian
[Editor: An important local study, calling for better disaster preparedness.  Significant quote – “…oil trains travel through three significant zones in Seattle: passing within blocks of two stadiums, through the downtown tunnel, and along the north end, which has limited access because of high banks along the waterfront.”  – RS]

Oil trains called hazard in old Seattle tunnel

Report says railroad, city must prepare to limit a catastrophe
By PHUONG LE, Associated Press, September 16, 2014
A long line of rail tanker cars sits on tracks south of Seattle, Tuesday, Sept. 16, 2014. In a report to the Seattle City Council, city emergency planners say more must be done to lower the risk of a possible oil train accident and improve the city’s ability to respond. (AP Photo/Ted S. Warren) (Ted S. Warren/AP)

SEATTLE — With increasing numbers of trains carrying volatile crude oil through Seattle’s “antiquated” downtown rail tunnel, city emergency planners say more must be done to lower the risk of an oil train accident and improve the city’s ability to respond.

In a report to the Seattle City Council, emergency managers warned that an oil train accident resulting in fire, explosion or spill “would be a catastrophe for our community in terms of risk to life, property and environment.”

BNSF Railway can make immediate safety improvements in the mile-long 100-year-old rail tunnel that runs under downtown Seattle, including installing radio communication, a fire suppression system to release water and foam, and a permanent ventilation system, according to the report written by Barb Graff, who directs the city’s office of emergency management, and Seattle assistant fire chief A.D. Vickery.

About one or two mile-long trains a day carrying shipments of crude oil from the Bakken region of North Dakota, Montana and Canada through the city of about 630,000 residents.

Several refineries in the state are receiving shipments of crude oil, and the others are upgrading facilities to accept oil trains. Once refineries are able to accommodate additional shipments, three or more trains could pass through Seattle each day, the city report said.

Oil trains currently enter Washington state near Spokane, and travel through the Tri-Cities and along the Columbia River before traversing Seattle to refineries to the north. In the state, as many as 17 trains carry about 1 million gallons of crude oil a week through several counties, including Spokane, Benton and Clark, BNSF reported to the state in July.

“We know they can explode. We’ve seen the tragedy in Canada. We know they can derail. That happened two months ago in our own city,” said Councilor Mike O’Brien, whose committee scheduled a special meeting Tuesday night to discuss the report. “We have to treat this as a real threat.”

Oil-train derailments have caused explosions in North Dakota, Virginia, Alabama and Oklahoma, as well as in Quebec, where 47 people were killed when a runaway train exploded in Lac-Megantic in July 2013.

Two months ago in Seattle, three tanker cars derailed as an oil train bound for a refinery in Anacortes pulled out of a rail yard in Seattle. BNSF officials noted at the time that nothing spilled, and a hazardous materials crew was on the scene in 5 minutes, but the incident raised new concerns.

BNSF spokesman Gus Melonas said the railway has improved tracks and roadbed to ensure that trains travel the tunnel safely. He said the concrete-lined tunnel is inspected regularly and is “structurally safe.”

“We’ll review the (city) report further,” he said. “We take safety extremely seriously and the operation of trains is a top priority, and we’ll continue to enhance our safety process.”

The railway plans to locate a safety trailer with foam equipment and extinguishers in the Seattle area, and plans to continue to train Seattle firefighters and responders.

Seattle’s report notes that oil trains travel through three significant zones in Seattle: passing within blocks of two stadiums, through the downtown tunnel, and along the north end, which has limited access because of high banks along the waterfront.

“The tunnel runs under all of downtown. What happens if something goes wrong there?” O’Brien said. “We’ve heard the fire department say we aren’t sure we can send firefighters to fight if it’s too dangerous.”

Oil trains typically move at about 10 mph through the tunnel, less than the maximum speed of 20 mph, and do not operate in the tunnel at the same time as a passenger train, BNSF’s Melonas said.

A derailment and fire involving Bakken oil tank cars could stress fire department resources, the report said. It recommends limiting track speeds in high-density urban areas, and that the railroad company help pay for specialized training, sponsor annual drills to respond to tank car emergencies and provide a foam response vehicle to use in case of an oil train accident.

Eric de Place, policy director for Sightline Institute, an environmental think tank, said other local governments should be doing similar reviews.

“Railroads don’t carry near the rail insurance they need,” he said. “If there’s a meaningful risk, the railroads should have to be insured against it and they should have to find private insurance.”

Bakken Crude, Crude By Rail, Federal Regulation (U.S.), Oil stabilization, Volatile gases

U.S. Mayors: oil trains must be drained of explosive gas

Repost from Reuters
[Editor: see also Safety of Citizens in Bomb Train Blast Zones in Hands of North Dakota Politicians and North Dakota seizes initiative in CBR degasification. – RS]

U.S. oil trains must be drained of explosive gas, mayors say

By Patrick Rucker. WASHINGTON, Sep 16, 2014

(Reuters) – Dangerous gas should be removed from oil train shipments to prevent a future disaster on the tracks, U.S. mayors and safety officials will tell regulators in comments on a sweeping federal safety plan.

The Department of Transportation in July proposed measures meant to end a string of fiery accidents as more trains carrying oil from North Dakota wind across the United States.

Tank cars carrying flammable cargoes would be toughened and forced to move at slower speeds under the plan. But critics say the failure to address vapor pressure, a measure of how much volatile gas is contained in the crude, is a major omission, and intend to drive their point home.

“That’s an oversight we’re going to push them to fix,” Elizabeth Harman, an official with the International Association of Fire Fighters, told Reuters.

Responses to the DOT’s plan are due by Sept. 30, and so far more than 100 comments have been received. Typically in a contentious rulemaking major stakeholders submit their views just before the deadline.

U.S. officials have studied vapor pressure since July 2013, when a runaway oil train derailed in the Quebec village of Lac-Megantic, killing 47 people in a fireball that shocked many with its explosive power.

Until recently, official findings on vapor pressure were in line with industry-funded studies: That the North Dakota fuel is similar to other U.S. light crude oil deemed safe to move in standard tank cars.

But the DOT said last week that it did not properly handle prior samples and that a precision device, a floating piston cylinder, is needed to reliably detect vapor pressure dangers.

Given that disclaimer, many officials simply want dangerous gas removed from crude oil before it is loaded onto rail cars.

“The technology exists so it boils down to costs,” said Mike Webb, a spokesman for Davis, California, who expects nearby cities will join a call for safer handling of Bakken crude from North Dakota.

Under one scenario, energy companies would siphon gas from crude oil and send the fuel to market via different channels. But building such infrastructure, like separators or processing towers, could cost billions of dollars.

The North Dakota Petroleum Council has sampled some Bakken fuel using a floating piston cylinder and the results have been inconclusive, said Kari Cutting, vice president for the trade group.

“But nothing we’ve seen supports the idea that Bakken crude is more volatile than other light crude oils or other flammable liquids,” said Cutting.

But leaders of many railside towns say uncertainty demands the fuel only move under the most stringent safety measures.

“There is a way to haul dangerous cargo safely and that means using state-of-the-art tools,” said Karen Darch, mayor of the Chicago suburb of Barrington, where fuel-laden freight trains cross commuter tracks as many as 20 times a day.

North Dakota officials will next week hold a hearing to consider measures to de-gasify crude oil in the state.

(Reporting by Patrick Rucker, editing by Ros Krasny and Cynthia Osterman)
Crude By Rail, DOT-111, Local Regulation, Tank car design

New Jersey town council presses for moratorium on use of older tank cars

Repost from NORTHJERSEY.COM
[Editor: Significant quote by Teaneck Town Councilman Mark Schwarz: “‘If we’re all going to sit here and wait for our [Legislative] District 37 leadership and Congress’ to act, ‘then we’re going to die of old age.'”  – RS]

Teaneck Council presses for moratorium on use of older tank cars on oil trains through town

SEPTEMBER 11, 2014, BY AARON MORRISON

TEANECK — Local officials are pushing for a moratorium on the use of old tankers to carry millions of gallons of highly explosive materials on rail tracks through town.

Tank cars lining the CSX tracks near Cedar Lane in Teaneck in May. Fifteen to 30 oil trains pass each week through 11 Bergen County towns.
Tank cars lining the CSX tracks near Cedar Lane in Teaneck in May. Fifteen to 30 oil trains pass each week through 11 Bergen County towns. | CHRIS PEDOTA/STAFF PHOTOGRAPHER

Residents and members of the Township Council have expressed concern about the safety risks posed by crude oil traveling in substandard railcars that federal regulators have cautioned against.

The Record has reported that at least 7 million gallons per day of highly combustible Bakken crude oil comes through 11 Bergen County towns — Northvale, Norwood, Harrington Park, Closter, Haworth, Dumont, Bergenfield, Teaneck, Bogota, Ridgefield Park and Ridgefield – on the CSX River Line.

Concerns over the crude on the railways have mounted in recent months after a series of fiery accidents and derailments in North Dakota, Alabama and Virginia. Last summer, 47 people were killed when a train carrying Bakken crude derailed in a small Quebec town.

The Teaneck Council passed a resolution Tuesday night calling for the temporary ban until federal regulators have deemed the tankers adequate. Though ceremonial, the council hopes neighboring North Jersey communities will join in amplifying the message.

“The transportation of this material in such close proximity to homes, businesses and our water supply, raises serious public safety concerns and requires that we take immediate action to eliminate this hazard,” the resolution states.

Mayor Lizette Parker on Tuesday night said the township should hold federal lawmakers accountable, while other members of the council asked for development of a township emergency response plan, in the event of a derailment.

“This is a safety issue that needs to be important to them,” Parker said. “We do have the power of influence. And I don’t mean the seven of us” on the council. “I mean the 39,000 of us.”

Councilman Jason Castle urged his colleagues to consider an emergency management plan he said he circulated “two sessions ago.”

“My daughter just started school at the Rodda Center — she’s at the preschool there and the tracks run right by the Rodda Center,” he said.

Councilmen Henry Pruitt and Mark Schwartz said the township should find other strategies that don’t rely on action from officials in Trenton and Washington.

“If we’re all going to sit here and wait for our [Legislative] District 37 leadership and Congress” to act, “then we’re going to die of old age,” Schwartz said.

Enlisting other towns

While New Jersey officials declined to reveal the number of trains that travel on the rail line, citing security risks, documents provided by New York State officials showed between 15 and 30 oil trains are entering Bergen County from Rockland County each week. The trains also travel through Hudson, Essex, Union, Middlesex, Somerset and Mercer counties, according to a map on CSX’s website.

Rail executives this year agreed to more track inspections and a reduction in train speeds in highly populated areas, but they haven’t been swapping out their fleet of old tanker cars. Even though the National Transportation Safety Board has called the tankers inadequate for transporting such flammable materials, federal officials are only recommending that railway companies stop shipping crude in the old cars.

Two weeks ago, the Teaneck Council asked Township Manager William Broughton to send letters to the other Bergen County municipalities along the CSX line. Broughton told the council he had not received any responses as of Tuesday.

The manager also said the township is already working with CSX “on this issue of preparedness and response.” This week, CSX paid for one of the township’s deputy fire chiefs to attend safety training in Pueblo, Colo. The course deals specifically with fires from crude oil, Broughton said.

Residents at Tuesday’s meeting praised the council’s attention to the issue. Some even vowed to take drastic measures to stop the trains from coming past their homes and businesses and force federal reforms.

“I will personally sit on those tracks, and anyone else who wants to can join me,” said Paula Rogovin, who organized a protest at one of the railway bridges in town.