Tag Archives: Oil Industry

Top 10 Questions About Oil Trains: Industry Lobbies for Weak Rules While Derailment Fire Rages

Repost from The Huffington Post

Top 10 Questions About Oil Trains: Industry Lobbies for Weak Rules While Derailment Fire Rages

By Todd Paglia, ForestEthics, 03/19/2015 1:59 pm EDT
DERAILMENT
DERAILMENT Marvin Beatty via Getty Images

On Friday, March 6, while an oil train explosion in Illinois was still sending flames and black smoke into the air, railroad agents were in Washington, DC lobbying to weaken new train safety standards. Safer brakes are “extremely costly…” they told White House officials, and explained in great detail why speed limits are impractical. Like the auto industry resisting seatbelts, the rail industry is on the wrong track when it comes to safety.

In the last month, there have been six derailments of crude oil trains in the U.S. and Canada — three of them ignited, sending flames and mushroom clouds hundreds of feet into the air. Luckily, these were in relatively remote locations and no one was killed.

These disasters are not an aberration — oil train traffic is skyrocketing, which means more derailments and more explosions. The oil and rail industries hope to increase further the amount of crude oil barreling down the tracks in the coming years. Before that happens, ForestEthics has some questions we’d like to see the Obama administration ask the army of lobbyists who are trying to push the bar on safety even lower than it already is:

When did trains start exploding?
Rail transportation of crude oil is growing rapidly and dangerously — from fewer than 10,000 carloads in 2008 to nearly half a million in 2014 — for two reasons: Bakken oil from North Dakota and Canadian tar sands. The North American boom means oil companies are trying to tails and mine more of this extreme oil, crude that is high in carbon, difficult and expensive to produce, and dangerous to transport.

Are cities and towns with rail lines safe?
With the exception of Capitol Hill (the rail industry seems to be sparing Washington, DC) most routing is done specifically throughout cities and towns. No, the oil and rail industries are probably not purposely targeting us, it’s just that the rails in populated places tend to be better maintained and rated for heavier cargoes. The sane thing to do would be to stop hauling crude oil if it can’t be transported safely. A far distant next best is to make these trains as safe as possible and require rerouting around cities and water supplies.

What is the government doing?
Not nearly enough. While 100-plus car trains full of an explosive crude roll through our towns, the U.S. government is barely moving, bogged down by nearly 100 of Washington’s most expensive K-Street lobbyists. In fall 2014, ForestEthics, Earthjustice, and the Sierra Club sued the Department of Transportation to speed up new safety standards on oil trains. We called the trains an imminent danger to public safety. The federal government responded by once again delaying their decision on new rules that have been in the works for years.

What is the slowest speed at which an oil explosion could happen?
An oil tank car can catch fire and explode in an accident at zero miles per hour. Assuming a slightly raised rail bed, an oil car that tips over while standing still (this can and has happened on poorly maintained rails) will strike the ground going approximately 16 miles per hour — more than fast enough to breach the tank, spark, and ignite if it hits a rock, a curb, any hard protrusion.

Do firefighters know when and where oil trains are moving?
First responders do not know when, where, how much oil, and what kind is coming through their town. The US Department of Transportation ordered that railroads and oil companies make this information public. But only for trains carrying more than a million gallons of Bakken crude, and even this information is not being made public on a consistent basis.

How do you extinguish oil train fire?
You don’t put out an oil train fire; nobody does. Oil fires require specialized foam, which fire departments do not have in nearly sufficient supply to fight the fire from even a single 30,000 gallon tank car. All firefighters can do is evacuate those in danger, move outside the one mile blast zone and let the fire burn out, which can take days. In Illinois, firefighters unloaded their equipment to fight an oil train fire, realized the danger and left behind $10,000 in equipment getting out of harm’s way. You can prevent these fires by banning oil trains — but you can’t fight these fires once they happen.

The older oil cars are definitely unsafe, what about the newer ones?
The antiquated DOT-111 tank cars make up 80 percent of the fleet in the U.S. — U.S. rail safety officials first called them “inadequate” to haul crude oil more than 20 years ago. The jury is now in on the newer CPC-1232 tank cars and they are not much safer. The derailments and explosions in West Virginia and Illinois were 1232s traveling at or below the speed limit. In fact, the former head of the federal rail safety agency said in a radio interview that the recent derailments and fires were “the last nail in the coffin” for the CPC-1232 as an alternative to DOT-111 for oil transport.

We know that Bakken crude explodes; does tar sands explode?
Ordinarily it might not, but to move tar sands by rail (or pipeline for that matter) you have to mix in highly flammable, toxic diluents (light petroleum products like propane.) So if it’s on a train or in a pipeline the flashpoint for tar sands crude is lower than for Bakken oil. The oil train explosion on February 16, 2015 in Ontario, Canada occurred in -40 degrees F weather — proving that this stuff can ignite even in arctic cold. So not only is tar sands the dirtiest oil on Earth, but also it may well be the most dangerous too.

Do I live in the Blast Zone?
ForestEthics used oil rail routes from industry, Google maps, and census data to calculate that 25 million Americans live in the oil train blast zone — the dangerous evacuation zone in the case of an oil train derailment and fire. You can use the map to see if your home, office, school, or favorite natural area, landmark or sports stadium is in danger. Visit www.blast-zone.org.

What’s the solution?
The solution is to ban oil trains. If you can’t do something safely, you shouldn’t do it at all. This cargo is too dangerous to our families, our cities, our drinking water, our wildlife and our climate. The extreme crude carried on trains is only a tiny fraction of the oil we use each day as a nation. So while we transition our economy to clean energy and get beyond all oil, we should leave this extreme oil from Alberta and North Dakota in the ground.

See original post on ForestEthics.org and share your concern with President Obama on rail safety here.

North Dakota will rely more on pipelines by 2018

Repost from UPI Business News
[Editor: Significant quote: “Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018”  – RS]

North Dakota reviews oil-train safety

About half of the oil produced in the state is delivered by rail.

By Daniel J. Graeber   |   March 19, 2015 at 9:40 AM
North Dakota Gov. Jack Dalrymple calls for tighter rules to ensure safe transport of crude oil from state’s Bakken shale reserve. Photo by Steven Frame/Shutterstock

BISMARCK, N.D., March 19 (UPI) — There’s no way to offer a single solution that would allay concerns about the safety of crude oil transit by rail, North Dakota Gov. Jack Dalrymple said.

Dalrymple spoke with U.S. Transportation Secretary Anthony Foxx to discuss efforts to improve the safe transport of crude oil by rail from the state. The Republican governor said he called on the secretary to adopt new standards for rail cars carrying crude oil as soon as possible.

“Secretary Foxx and I agree that there is no single solution to improving the safety of rail transportation,” Dalrymple said in a statement Wednesday.

North Dakota crude oil production is more than existing pipeline capacity can handle, forcing many in the industry to use rail as an alternative transit method. The increase in rail traffic has in turn led to an increase in derailments involving trains carrying crude oil, a situation compounded by federal reports showing oil from the Bakken reserve area in North Dakota may be less stable than other types of crude oil.

A 200-page proposal from the Department of Transportation last year called for the elimination of older rail cars designated DOT 111 for shipment of flammable liquid, “including most Bakken crude oil.”

A February derailment in West Virginia involved a train carrying Bakken oil. At least 40 people were killed in Lac-Megantic, Quebec, in the 2013 derailment of a train carrying tankers of crude oil from North Dakota to Canadian refineries.

Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018 and provide 895,000 barrels per day in new capacity.

North Dakota produces about 1.2 million bpd and about half of that is shipped by rail.

The state government in December approved a new measure that requires oil producers in North Dakota to install equipment at their facilities that would reduce the volatility of Bakken crude.

Washington State rail regulators to Fine BNSF for not reporting leaks immediately

Repost from The Bellingham Herald

State rail regulators: Fine BNSF for not reporting leaks immediately

By Samantha Wohlfeil, March 19, 2015 
Ferndale Siding  PAD
BNSF rail cars on the railroad siding in Custer, Friday Aug. 22, 2014. The railroad is building a new siding from Ferndale to Custer. PHILIP A. DWYER — The Bellingham Herald

Washington state regulators have recommended BNSF Railway be fined up to $700,000 for failing to properly report more than a dozen hazardous materials spills in recent months despite the fact state staff had reminded the company how to do so last fall.

On Thursday, March 19, the state Utilities and Transportation Commission staff announced it found BNSF had failed to report 14 releases of hazardous materials, including crude oil leaks, within a half hour of learning about the leaks, as required by state law.

In one case, crews at BP Cherry Point refinery found crude oil had leaked onto the sides and wheels of a tank car, which was found to be 1,611 gallons short. That was on Nov. 5, but the UTC didn’t find out about it until Dec. 3, when it got a copy of the report BNSF sent to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. Railroads have 30 days to file that type of report.

When contacted about the incident by a McClatchy reporter in January, BNSF said the train was “not in transit, not on our property and not in our custody” when the spill was detected, and the company had submitted the required reports to state and federal regulators.

In another case from Jan. 12 and 13, a train hauling 100 cars of Bakken crude oil from North Dakota to the Tesoro refinery in Anacortes had more than a dozen leaking cars discovered in multiple stops as it crossed the state.

Although the UTC sent an investigator to look at the leaking cars as part of a Federal Railroad Administration investigation, BNSF didn’t report the incident to the state’s 24-hour hotline at the Emergency Management Division until two weeks later. The hotline duty officer is in charge of alerting the various state agencies that might need to respond to a spill.

When asked by The Bellingham Herald in February why the January incident was reported more than a week later, BNSF spokeswoman Courtney Wallace replied that BNSF staff members thought they were following proper protocols, and had amended their Washington reporting policy following discussions with the UTC in January.

But the investigation released by the UTC on Thursday shows that on Oct. 22, 2014, the UTC had emailed a copy of the state’s reporting requirements to Patrick Brady, BNSF’s director of hazardous materials and special operations, in an effort to make sure BNSF knew how to report accidents.

As copied into the body of the Oct. 22 email to Brady, the state law regulating accident reports ( WAC 480-62-310) lists the hotline number, which types of incidents must be reported, and states that railroad companies must call within 30 minutes of learning of the event.

On Dec. 3, Brady emailed the UTC again asking, “Can you send me the regulatory reference to spill notification to the UTC?” Staff members again emailed Brady the state law on reporting requirements, according to emails included in the investigation.

From Nov. 1, 2014, to Feb. 24, UTC staff found BNSF committed 700 violations of the reporting requirement. Every day an incident goes unreported counts as a separate violation, per state law.

In addition to the leaking crude oil incidents, the UTC announcement lists a variety of leaks that occurred throughout the state: a tank car dripping gas/oil from a bottom valve in Spokane Valley on Dec. 8, 2014; cars leaking “primary sludge” found in incidents in Seattle, Vancouver and Everett in December; two 100-gallon spills of lube oil from locomotives in December and January, among others.

The commission could opt to fine the company $1,000 per violation of the reporting law, but no fine has been issued yet. The commission will set a final penalty after BNSF gets the chance to have a hearing.

“When a company fails to notify the (state Emergency Operations Center) that a hazardous material incident has occurred, critical response resources may not be deployed, causing potential harm to the public and the environment,” the UTC announcement states.

BNSF was still reviewing the report when contacted for comment on Thursday.

“In regards to reporting releases in Washington state, we believed we were complying in good faith with the requirements from our agency partners,” BNSF’s Wallace wrote in a statement. “Following guidance from the UTC in January 2015, BNSF reviewed its reporting notification process and amended its practices to address concerns identified by the UTC. We will continue to work closely with the UTC moving forward on this issue.”

BNSF is the largest railroad company operating in Washington.

Crude oil joins rail industry staples as key revenue producer

Repost from Reuters

Crude oil joins rail industry staples as key revenue producer

By Jarrett Renshaw, Mar 16, 2015 2:05pm EDT

(Reuters) – U.S. railroads generated almost as much money last year hauling crude oil and sand, largely used in hydraulic fracturing, as they did moving industry staples like field crops and motor vehicles, according to a Reuters’ analysis of newly released federal data.

The previously unreported company data submitted to the U.S. Department of Transportation provides the latest piece of evidence of the blossoming marriage between the energy and rail industries, forged on the back of the U.S. shale oil boom.

Led by Berkshire Hathaway-owned BNSF Railways, the seven largest railroads operating in the United States generated $2.8 billion in gross revenue from hauling crude oil in 2014, up nearly 30 percent from 2013, according to company data filed with the federal government and released earlier this month.

The $2.8 billion figure puts crude oil in sixth place among similarly classified products, trailing industry standards like coal, field crops and motor vehicles, the analysis shows. Sand and gravel, an often overlooked winner in the shale boom, generated $2.7 billion last year in gross revenue.

Crude oil provides the biggest return on a per-carload basis, drawing $5,700 in gross revenue for each car that originated on the network, more than double than what coal brings.

The continuing financial success comes as the industry faces threats from a massive drop in oil prices and impending new U.S. regulations aimed at public safety that could impose additional costs.

“Will the major carriers go belly up? No,” said Barton Jennings, a professor of supply chain management at Western Illinois University. However, short-line cariers that rely upon crude for the bulk of their business may be exposed, he said.

Overall, the seven major carriers reported U.S. profits of $14.4 billion last year, led by Union Pacific and BNSF, which combined accounted for 67 percent of the industry’s U.S. profits, the analysis shows.

KING CRUDE

The biggest player in the U.S. crude rail business is BNSF, which dominates North Dakota, home to the Bakken shale.

BNSF’s gross revenue from crude oil rose to $1.48 billion from $63 million in 2010. Gross revenue from hauling sand and gravel climbed to $651 million last year, a more than 300 percent jump from 2010.

The growth in crude and sand hauling helped BNSF boost profits, which climbed from $2.6 billion in 2010 to $4.4 billion last year.

(Reporting By Jarrett Renshaw; Editing by Jessica Resnick-Ault and Jonathan Oatis)