Tag Archives: North Dakota

California lawmakers assail Feds for timid handling of rail oil shipments

Repost from The Ames Tribune, Ames, Iowa
[Editor:  The 3-hour California Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail  can be viewed here.  – RS]

State lawmakers assail Feds for timid handling of rail oil shipments

By Timm Herdt, Ventura County Star, June 20, 2014

SACRAMENTO — State lawmakers, concerned about the safety risks associated with a sixfold increase in crude oil shipments by rail into California, hoped on Thursday to get an update on what the federal government is doing.

But a regional official of the Federal Railroad Administration who had been scheduled to testify before a joint committee hearing regarding crude oil rail transport was a last-minute no-show.

Sen. Fran Pavley, D-Agoura Hills, said she received a call on the eve of the hearing from a high-level federal administrator in Washington, D.C., informing her that no one from the agency would testify.

It will take coordination between the state and federal governments to protect California from a spike in accidents that has led to fiery derailments and oil spills elsewhere, Pavley noted.

“We don’t have that cooperation yet,” she said. “There are a lot of things they can do. They need to step up to the plate.”

Other lawmakers — who are mostly powerless to act because they are pre-empted by federal law — shared her view.

A point of contention is the belief of many state and local officials that information about upcoming shipments of carloads of highly flammable crude oil should be publicly available. But railroads, citing national security concerns, have released that information only to emergency-response agencies, which must agree not to publicly disclose it.

“We’ve seen what happens when they explode,” said Sen. Hannah-Beth Jackson, D-Santa Barbara, chairwoman of the Joint Legislative Committee on Emergency Management. “It sure seems like in California our hands are tied. There’s so little we can do.”

Jackson asserted that security concerns should dictate public disclosure.

“National security means the security of people who live in the nation,” she said.

Under pressure from state officials in Montana, it appears federal officials may have decided to relent on that issue.

The Associated Press reported Wednesday that the U.S. Department of Transportation has ordered railroads to give state officials specifics on oil-train routes, and Montana officials intend to publicly release that information next week.

Rail-oil shipments have skyrocketed across the United States and Canada in recent months because there are no pipelines from which to ship oil extracted from the Bakken shale fields in North Dakota.

In the last year, derailments have resulted in fiery explosions in three Canadian provinces and in Virginia, and there have been more rail accidents involving oil spills than over the previous 30 years combined.

In Northern California, the issue has become front-page news in recent weeks, as city officials in the East San Francisco Bay city of Benicia are considering a permit application from a Valero oil refinery that would enable the refinery to accept two, 50-car trains every day.

If that refinery expansion is approved, the trains would wind through a narrow mountain pass in the Feather River Valley, and then pass through the populated corridor from Sacramento to Benicia, passing within a quarter mile of 27 schools.

Similar scenarios could unfold elsewhere around the state, testified Gordon Schremp of the state Energy Commission. He said six refinery projects have been proposed to accommodate rail shipments — two in Bakersfield, and one each in Benicia, Pittsburg, Santa Maria and the Port of Stockton.

As those projects come on line, Schremp said the commission expects the percentage of oil coming into California by rail to increase from 1 percent today to 23 percent by 2016. Most imported oil now arrives in the state either via marine tankers or by pipeline from Alaska.

A report issued last week by the state’s Interagency Rail Safety Task Force lists thousands of miles of track it identifies as “areas of concern.”

The new state budget that Gov. Jerry Brown is expected to sign Friday includes a 6.5 cent per-barrel fee on refineries to fund an expansion of the state Office of Oil Spills and Prevention and also hire new rail, bridge and railcar inspectors at the state Public Utilities Commission.

State lawmakers, who are pre-empted from taking such steps as requiring trains to take specific routes and imposing state-based safety standards on tanker cars, agreed their primary focus needs to be on preparing emergency agencies to respond to rail accidents involving toxic materials such as crude oil.

“This is an unusually fast-growing development,” said Sen. Lois Wolk, D-Davis. “It’s really important to have emergency procedures in place.”

Woodland Democrat: Senator Lois Wolk responds to draft environmental report on crude shipments

Repost from the Woodland Democrat

Senator Lois Wolk responds to draft environmental report on crude shipments

By DigitalFirst, 06/20/2014

Environmental documents released this week report that there are “significant and unavoidable” air quality impacts if a project from a local refinery to move crude-by-rail moves forward.

That’s not going far enough, however, according to Senator Lois Wolk, D-Davis.

The Valero Benicia Refinery is seeking approval to bring two 50-tanker car trains of crude oil in and out of Benicia every day, replacing crude shipments by boat. A draft environmental impact report on the plan was released earlier this week.

Valero officials have said the project is necessary to remain competitive on the West Coast. Opponents, however, have raised concerns about the type of crude that could be coming in those tanker cars, such as highly flammable oil from the Bakken oil fields in North Dakota, or Canadian tars sands oil, regarded as more polluting than other crude stocks.

Wolk, who has authored a bill to provide funding for cities to adequately respond to rail emergencies, weighed in on the Draft Environmental Impact Report Thursday.

“The community was wise to demand an EIR for this project,” Wolk said in a prepared statement. “Now that we have one, I seriously question whether the EIR has adequately evaluated the true risk of an accident or a spill involved with this project. In the past year there have been six major incidents across North America where rail accidents resulted in millions of gallons of spilled crude oil. Yet the EIR estimates the risk of oil train spills between Roseville and Benicia would be about only once per 111 years? That defies logic and is a risky assumption based on recent experience. It only takes one minor mishap to cause a major accident or spill and potentially catastrophic impacts to the heavily populated communities through which these trains will run.”

Wolk said the risk requires more action.

“Given the risk from possible spills and accidents involving this hazardous cargo and the project’s anticipated effect on air quality, I urge the City of Benicia, Valero, and Union Pacific to work with the community to implement extraordinary safety measures to guarantee public safety if this project moves forward,” she said.

Wolk, along with Senator Jerry Hill, D-San Mateo, authored Senate Bill 506 to provide funding to help communities like Benicia provide adequate emergency response to accidents and spills involving rail transports of crude oil and other hazardous materials.

“California needs to keep in step with the significant increase in shipments of these dangerous materials in order to respond to the growing risk to California’s citizens,” she said.

The EIR also noted that the project would result in “no impact” or “less-than-significant” impacts locally to biological resources, cultural resources, energy conservation, geology and soils, greenhouse gas emissions, hazards and hazardous materials, water quality, land use and planning and noise.

The roughly 1,500-page report will be circulated for a 45-day public comment period ending on Aug. 1, city officials said.

NRDC – It Could Happen Here: The Exploding Threat of Crude by Rail in California

Repost from Natural Resources Defense Council
[Editor: Excellent resources….  Be sure to see the downloadable fact sheet and blast zone maps for Bakersfield, Benicia, Davis, Martinez, Pittsburg, Richmond and Sacramento that follow below this article.  – RS]

It Could Happen Here: The Exploding Threat of Crude by Rail in California

Diane Bailey  |  June 18, 2014

Key Points

  • More crude oil was transported by rail in North America in 2013 than in the past five years combined. Millions of Californians live near crude-by-rail routes and could face extreme safety risks.
  • Federal regulators have few safeguards in place to protect communities and the environment from accidents, spills and explosions resulting from the race to move millions of barrels of crude by rail.
  • NRDC calls on lawmakers to expedite rules mandating commonsense practices, including removal of defective tank cars, rerouting around sensitive areas, and requiring disclosure regarding the content of all shipments and relevant risks to local residents.
  • Nearly four million Bay Area and Central/San Joaquin Valley residents are at increased risk from oil train accidents occurring with the proliferation of new crude by rail terminal proposals. But dangerous crude oil train derailments are preventable if the mandatory safety measures NRDC recommends are enacted.

Soda cans on wheels. That’s what some call the dangerous rail tank cars that have suddenly become ubiquitous across the American landscape. In the rush to transport land-locked unconventional new crude oil sources, old rail lines running through communities across America are now rattling with thousands of cars filled with crude oil. Neither the cars nor the railroads were built for this purpose. Worse, federal regulators have few safeguards in place to protect communities and the environment from accidents, spills and explosions resulting from the race to move millions of barrels of crude by rail.

More crude oil was transported by rail in North America in 2013 than in the past five years combined, most of it extracted from the Bakken shale of North Dakota and Montana. In California, the increase in crude by rail has been particularly dramatic, from 45,000 barrels in 2009 to 6 million barrels in 2013. As “rolling pipelines” of more than 100 rail cars haul millions of gallons of crude oil through our communities, derailments, oil spills and explosions are becoming all too common. Between March 2013 and May 2014, there were 12 significant oil train derailments in the United States and Canada. As oil companies profit, communities bear the cost.

Californians Living Near Crude By Rail Routes

A new report from the State of California Interagency Rail Safety Working Group outlines serious vulnerabilities along California rail lines including close proximity to many population centers, numerous earthquake faults, a shortage of adequate emergency response capacity, many areas of vulnerable natural resources, and a number of “high hazard areas” for derailments, which are generally located along waterways and fragile natural resource areas. Millions of Californians live near crude by rail routes and could face extreme safety risks. Currently, there are five major new crude by rail terminals in the planning stages and two recently converted crude oil rail terminals that could collectively bring in up to seven or more mile long trains each day through metropolitan areas like Sacramento, putting up to 3.8 million people in harm’s way.

Explosions and Spills Threaten Lives

“Each tank car of crude holds the energy equivalent of 2 million sticks of dynamite or the fuel in a widebody jetliner,” write Russell Gold and Betsy Morris in the Wall Street Journal. In July 2013, an unattended oil train carrying 72 carloads of crude oil from North Dakota exploded in the center of Lac-Mégantic, Quebec, near the U.S. border. The resulting inferno killed 47 people and destroyed much of the town center. Some 1.6 million gallons of crude oil was spilled. In the months following this devastating event, several more North American oil train derailments illustrated the sobering recurring public safety and environmental threats of catastrophic derailments due to the virtually unregulated surge in crude by rail. In 2013, rail cars spilled more crude oil than nearly the previous four decades combined (1.14 million gallons in 2013 compared to 800,000 gallons from 1975 to 2012).

Communities Lack Information And Control Over Hazardous Rail Shipments

Municipalities across the country are demanding increased communication about rail shipments of crude oil through their communities. However, crude oil — and other hazardous materials shipped by rail — have been exempted from the disclosure requirement of the Emergency Planning and Community Right-to-Know Act (EPCRA). While the federal government finally directed rail companies to disclose this critical information to emergency responders, the general public remains in the dark about the nature of mile long tanker trains hurtling through their backyards at dangerous speed. Nobody has a choice about what gets transported through their community, how dangerous the cargo is, how frequently it goes through or whether it could be rerouted to more remote areas. Of the more than 3.8 million Californians who will be put at risk by proposed new crude by rail terminals, most are unlikely to even be aware of the significant new risks that they face.

Outdated and Dangerous Tank Cars Are Used to Carry Crude

Most of the rail tank cars used to carry flammable liquids, including crude oil are old “DOT-111s,” which are widely known to be unsafe. Speaking at a farewell address at the National Press Club in April 2014, outgoing National Transportation Safety Board (NTSB) chairwoman Deborah Hersman repeated a long-held NTSB position that unmodified DOT-111 tank cars — non-pressurized rail tank cars that accident investigators report are easily punctured or ruptured during a derailment — are not safe to carry hazardous liquids. “Carrying corn oil is fine, carrying crude oil is not,” she said.

Thus, in 2009, the NTSB recommended these tank cars be equipped with additional safety features. Since October 2011, new rail tank cars built for transporting crude oil have incorporated these features, such as the use of head shields, thicker tank material, and pressure-relief devices. Yet regulators have not eliminated the use of the older, unmodified DOT-111 cars for carrying oil — out of 39,000 DOT-111 tank cars now used to carry crude, two-thirds still do not meet these modern safety standards. The Department of Transportation, simply recommended that shippers stop using these cars to transport oil, but they do not require it.

Commonsense Safeguards for Crude-by-Rail Are Overdue

In the longer term, our health depends on cleaner, renewable energy and moving away from fossil fuels. In the immediate term, we must tighten safety regulations on the rail transport of crude oil, or run the risk of devastating consequences. NRDC calls on lawmakers to expedite rules mandating commonsense practices, including but not limited to the following:

  1. Remove Defective, Dangerous Tankers from Crude by Rail Service: The existing fleet of dangerous DOT-111 tank cars must be taken out of crude oil service immediately.
  2. Impose Safer Speed Limits: Crude oil unit trains must adhere to speed limits that significantly reduce the possibility of an explosion in the event of a derailment.
  3. Reroute Around Sensitive Areas: The National Transportation Safety Board recommendation that crude oil trains avoid heavily populated areas and otherwise sensitive areas must become mandatory.
  4. Require Disclosure: Information regarding the content of all shipments and relevant risks and emergency procedures should be made accessible to local residents.
  5. Provide Emergency Responder Resources: States should assess fees on shippers and carriers to fully cover the costs of providing emergency response services and safeguarding the public from oil trains, and ensure that there is adequate emergency response capacity.
  6. Make Additional Operational Safety and Oversight Improvements: Unit trains of crude oil and other hazardous materials should be placed in the highest risk category of Hazmat shipments; and many other operational improvements should be made. Additional inspections of crude oil trains are also critical, including the funding necessary for more rail safety personnel.
  7. Exercise Local Government Powers:
    • Local governments and states can require cumulative risk analysis of crude oil rail infrastructure and increased rail traffic.
    • Local governments should thoroughly evaluate all of the environmental and public health and safety risks of crude oil rail terminals that require land use permits or other forms of local approval.
    • Local governments should reject any new crude oil rail terminals within one mile of sensitive sites such as homes, schools, daycares, and hospitals.

Crude oil train accidents are preventable. All Californians should be calling for the crude oil and rail safety standards listed here.

Read More…

Fact Sheet (PDF)

portable document format

Maps: Crude Oil Train
Derailment Risk Zones
in California

Bloomberg News – Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

Repost from Bloomberg News

Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

By Lynn Doan Jun 17, 2014

Valero Energy Corp. (VLO)’s plan to unload as many as 70,000 barrels of oil a day from trains at its Benicia refinery will increase emissions across California in a “significant and unavoidable” way, a city report shows.

Valero has applied to build a rail-offloading rack at the plant northeast of San Francisco that would take oil from as many as 100 tanker cars a day. The San Antonio-based company delayed the project’s completion by a year to early 2015 as it awaits approval from the city.

“Project-related trains would generate locomotive emissions in the Bay Area Basin, the Sacramento Basin, and other locations in North America,” the city of Benicia said in an environmental assessment posted on its website today. “The city has no jurisdiction to impose any emission controls on the tanker car locomotives; therefore, there is no feasible mitigation available to reduce this significant impact to a less-than-significant level.”

Valero is proposing the rail spur as record volumes of oil are extracted from North American shale formations that the U.S. West Coast has little pipeline access to. California’s refiners are already bringing in the biggest-ever volumes of oil by rail as they seek to displace shrinking supplies of crude within the state and from Alaska.

A series of explosions and derailments of trains carrying crude, including one in Quebec that killed 47 people in July, touched off a flood of letters to the city of Benicia about Valero’s project and compelled the planning commission to put off a decision until an environmental study could be done.

New Rules

Regulators in both the U.S. and Canada are imposing new rules designed to improve the safety of trains carrying oil and a group of California agencies released a report June 10 recommending ways in which the state should respond.

Earlier this month, the city council in Vancouver, Washington, voted to oppose a proposal by Tesoro Corp. (TSO) and Savage Cos. to build a 360,000-barrel-a-day, rail-to-marine complex at the Port of Vancouver.

Valero’s Benicia project would probably result in a spill of more than 100 gallons once every 111 years, according to an analysis conducted as part of the city’s environmental report. The report was prepared by researchers at the University of Illinois’s Rail Transportation and Engineering Center in Urbana, Illinois.

California’s refiners received 557,315 barrels of oil by rail in April, the most ever for that month, state Energy Commission data show. Crude from Canada made up 45 percent of the state’s total rail receipts. Oil from North Dakota accounted for 22 percent.

’Challenged’ Market

Valero has described refining in the western U.S as “a challenged market” with margins close to break-even when all of the region’s plants are running normally. Profits from the 132,000-barrel-a-day Benicia refinery are particularly under pressure, Joe Gorder, the company’s president and chief executive officer, said in a presentation May 21.

The plant “produces a significant yield of gasoline, which, of course, we’ve seen the margins compressed on and demand not be the greatest on,” Gorder said at the UBS Global Oil and Gas Conference in Austin, Texas. Sourcing alternative crudes on the West Coast “would increase the economics out there for us substantially,” he said.

Spot California-grade diesel has traded about 3.5 cents a gallon above gasoline in Los Angeles this year and averaged an 8.75-cent premium in 2013, data compiled by Bloomberg show.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Charlotte Porter