Tag Archives: Rail safety

Union Pacific chief threatens action on oil train brake rules

Repost from Financial Times

Union Pacific chief threatens action on oil train brake rules

Robert Wright in New York, May 31, 2015 4:55 pm
In this photo from Aug. 8, 2012, a Union Pacific train travels in Council Bluffs, Iowa. Union Pacific said Thursday, Oct. 18, 2012, that its third-quarter profit climbed 15 percent because price increases and more automotive and chemical shipments helped the railroad offset a 12 percent drop in coal shipments. The railroad reported $1 billion in net income, or $2.19 per share. That's up from $904 million, or $1.85 per share, a year ago. (AP Photo/Nati Harnik)
In this photo from Aug. 8, 2012, a Union Pacific train travels in Council Bluffs, Iowa. Union Pacific said Thursday, Oct. 18, 2012, that its third-quarter profit climbed 15 percent because price increases and more automotive and chemical shipments helped the railroad offset a 12 percent drop in coal shipments. The railroad reported $1 billion in net income, or $2.19 per share. That’s up from $904 million, or $1.85 per share, a year ago. (AP Photo/Nati Harnik)

The chief executive of Union Pacific, the US’s largest rail network, has vowed legal action over a provision of new rules for oil trains that he says would cost billions of dollars and provide little benefit.

The pledge from Lance Fritz threatens further delay to rules that have already been years in preparation.

The Federal Railroad Administration and Canadian regulators jointly announced the rules less than a month ago to improve the safety of oil movements by rail, which have risen sharply following the surge in US oil and gas production in recent years.

The surge — from only about 1m tonnes of traffic in 2007 to roughly 40m in 2013, the last year for which full data are available — has exposed the shortcomings of existing safety rules for tank cars, with several trains exploding following derailments.

While Mr Fritz said that most of the new provisions were “great regulation”, he criticised provisions demanding that railways start controlling tank cars’ brakes via an electric signal either transmitted wirelessly from the lead locomotive or via electrical wires running along the train.

The new arrangement, known as electronically controlled pneumatic (ECP) braking, is intended to speed up the transmission of the braking command compared with current methods, which rely on pressure changes in a pipe running along the train. That should reduce the number of cars that derail in a crash.

Mr Fritz said, however, that virtually the same improvements could be gained by spacing locomotives out along a train, as Union Pacific frequently does, and the extra benefits of ECP did not justify the costs. The new equipment would cost about $75,000 for each of UP’s 6,500 locomotives, while there would also be substantial costs for fitting out tank cars, nearly all owned by oil shippers or leasing companies.

“The juice isn’t worth the press,” Mr Fritz said. “We think that’s very ill-considered. We provided that feedback and we will continue to provide that feedback.”

The industry could appeal against the rule both through administrative channels and in the courts, Mr Fritz said. “We as an industry are taking that path,” he added.

Railways have been pressing for improvements in tank car design to avoid a repetition of disasters like the Lac-Mégantic explosion in Canada in 2013, in which 47 people died when a poorly secured oil train broke lose, derailed and exploded in the centre of a small town.

Operators are barred from refusing to carry cargo that meets the minimum regulatory requirements but have been concerned that under existing regulations cars were excessively vulnerable in an explosion.

Mr Fritz also criticised the new rules’ standards for thermal protection for cars, meant to prevent their exploding in a fire, saying they were not strict enough.

The Federal Railroad Administration declined to comment publicly on Mr Fritz’s criticisms but looks determined to press ahead with the mandate for ECP brakes.

UP, which has a larger track network than any other US railway, has been a significant beneficiary of the surge in oil movements. Mr Fritz said he expected a strong continuing role for rail in transporting US-produced crude oil.

The sharp fall in the oil price in recent months has shifted traffic away from the routes that UP serves, however, pushing down crude oil movements on its network by 38 per cent in the first quarter compared with last year.

List of 13 links: recent widespread criticism of the new DOT rail safety rules

By Roger Straw, Editor, The Benicia Independent, May 29, 2015

It’s been a month now, and the hot news cycle has cooled off some on the U.S. Department of Transportation’s May 1 announcement of new safety rules governing rail transport of hazardous materials.

A recent local news story detailed the DOT rules without even mentioning the widespread criticisms of the new regulations.  The rules have come under heavy fire from legislators, health professionals, firefighters, emergency responders, environmentalists and communities where these trains are already running – and sometimes derailing.

What follows is a handy list of stories carried previously here on the Benicia Independent, all highly doubtful that the new safety regulations will bring a timely end to the horrific crashes and explosions we’ve seen in recent months and years.

  1. NY Times: U.S. Sets New Rules for Oil Trains – Sen. Schumer: DOT gave railroads too much time to remove unsafe cars
  2. New oil-train safety rules will put public back in the dark
  3. New rules for crude-by-rail transport fall short
  4. Senator Cantwell: “The new DOT rule is just like saying let the oil trains roll. It does nothing…”
  5. Expert comments on new DOT rules – Dr. Fred Millar
  6. New rules for rail tankers face years of debate, delay
  7. ForestEthics: Oil Trains Too Fast, New Safety Rules Too Slow
  8. 300 doctors call for denial of oil terminal permits
  9. New rules on oil trains draw flak from firefighters, too
  10. Groups Sue Obama Administration Over Weak Tank Car Standards
  11. NYU Institute for Policy Integrity: New oil train safety rules spell delay, leaving citizens at risk
  12. Riverkeeper sues U.S. DOT over oil train safety rules
  13. Benicia Herald covers Valero environmental delay

On a more encouraging note, see Responding to criticism, Feds won’t weaken oil-train public disclosure rules .

Responding to criticism, Feds won’t weaken oil-train public disclosure rules

Repost from the Philadelphia Inquirer

Feds won’t weaken oil-train public disclosure rules

By Paul Nussbaum, Inquirer Staff Writer, May 29, 2015, 5:20 PM
An oil train passes through Philadelphia on April 15, 2015. (Jon Snyder/Daily News)
An oil train passes through Philadelphia on April 15, 2015. (Jon Snyder/Daily News)

Responding to Congressional and public criticism, federal regulators said Friday they will not weaken rules requiring certain disclosures about trains transporting crude oil and other hazardous materials.

The Inquirer reported this week that new oil-train rules issued May 7 by the U.S. Department of Transportation would end a 2014 requirement for railroads to share information about large volumes of crude oil with state emergency-response commissions.

Instead, railroads were to share information directly with some emergency responders, but the information would be exempt from the Freedom of Information Act and state public records laws.

“Under this approach,” the new rule said, “the transportation of crude oil by rail . . . can avoid the negative security and business implications of widespread public disclosure of routing and volume data…”

But the federal Pipeline and Hazardous Materials Safety Administration, an arm of the transportation department, said Friday it will not make the change.

Instead, the existing rule “will remain in full force and effect until further notice while the agency considers options for codifying the May 2014 disclosure requirement on a permanent basis,” the agency said.

Saying that “transparency is a critical piece of the federal government’s comprehensive approach to safety,” the agency said it supports “the public disclosure of this information to the extent allowed by applicable state, local, and tribal laws.”

U.S. Sen. Robert Casey (D., Pa.) was one of nine senators who asked the agency to keep the existing rule in place.

Casey said Friday he was “pleased” by the agency’s decision.

“First responders who risk their lives when trains derail deserve to know what chemicals they could be dealing with when they get to the scene,” Casey said in a statement.

The disclosure rules about train routes and general numbers of trains apply to all trains carrying 1 million gallons or more of crude oil from the Baaken oil deposit in North Dakota.

Tesoro & Phillips 66 building crude railcars stronger than new US rules require

Repost from Reuters
[Editor:  These tank cars exceed the new standard, but still fail on several counts.  For instance, note the closing sentences here: “Hack said Tesoro is talking with Union Tank Car on possibly outfitting crude railcars to add enhanced brakes before the 2021 deadline.  ‘We have some time to make that decision,’ he said.”  You can be sure that every refinery seeking permits for crude by rail will crow that they, too, have ordered newer, safer tank cars.  Get ready, Benicia!   – RS]

EXCLUSIVE-Tesoro building crude railcars stronger than new US rules require

By Kristin Hayes, May 18, 2015 4:59pm BST

(Reuters) – U.S. refiner Tesoro Corp has ordered new crude oil railcars with features that surpass safety standards that federal regulators set this month, executives told Reuters.

The 210 tank cars being built in northern Louisiana are so-called pressure cars, with the same design as those that carry liquid petroleum gases such as propane and butane, gas cargoes that are more flammable than crude oil.

They will be delivered in the coming months after being ordered in early 2014.

The new federal rules for all crude and ethanol railcars built after Oct. 1 of this year do not require strength to the level of a pressure car but are stronger than the standards adopted by the industry in 2011.

Tesoro, like other oil-by-rail players, knew the federal standards were coming and the basics of what they would likely be. But the company went further with a stronger car, “which is the primary thing we control,” C.J. Warner, Tesoro’s head of strategy and business development, told Reuters.

The order was a sign the refiner wanted to get ahead of the coming regulations and avoid potential capacity bottlenecks at companies that build tank cars as shippers must now renovate their fleets.

Booming North American onshore production spurred sharp growth in moving oil by rail, particularly for U.S. West and East coast refiners which otherwise must depend on more costly imports. No major crude pipelines move oil from the Midcontinent west across the Rocky Mountains or east through the Appalachians and densely populated northeastern states.

Fiery derailments, caused in some cases by track failures, have become more frequent as oil-by-rail and crude-only trains carrying 100 cars or more went from nearly nothing five years ago to more than 1 million barrels per day late last year.

Opposition to moving oil by rail spiked on safety concerns, prompting the U.S. Department of Transportation and Canada to impose new railcar safety standards.

Tesoro isn’t the only refiner that didn’t wait for word from the U.S. DOT to order stronger cars.

Phillips 66 confirmed to Reuters that it also last year ordered 350 non-pressurized new cars that mostly match the new DOT standard. Those cars will be delivered by year-end, the company said.

THICKER HULLS

Both sets of new cars have 9/16-inch-thick hulls, steel shields on the front and back and protections for valves and fittings where crude goes in on top and drains out the bottom, as the new rules require, company executives said. Tesoro’s design modifies those fittings to handle crude rather than just LPGs.

Tesoro’s cars also have test pressure specifications of 200 pounds per square inch of internal pressure, twice that for non-pressurized cars. A test pressure is typically 20 to 40 percent of how much pressure it would take for the railcar to burst.

That level of test pressure is standard for cars that transport LPGs or highly poisonous substances such as hydrogen cyanide, according to the Association of American Railroads.

“When we saw the design, we were very comfortable that it would meet the new standards that we anticipated,” John Hack, Tesoro’s head of rail operations, told Reuters.

For Tesoro, which hopes to build the largest oil-by-rail facility in the United States in Washington state, it’s an investment in safety and continued access to cheaper North American crudes.

“It’s very important to us to continue to transport North American crude and get it from the Midcontinent out to the West Coast where it competes very nicely with the foreign crudes,” Warner said.

RETROFITS?

By last year most refiners, including Tesoro and Phillips 66, no longer accepted shipments in older, weaker railcars such as those used on a runaway crude train that careened into the small Quebec town of Lac Megantic in mid-2013, killing 47 people.

Early last year Tesoro needed to replace the last of its older cars and worked with its builder, Berkshire Hathaway Inc’s Union Tank Car, to develop the new design, Warner said.

Tesoro and Phillips 66 aim to use their newest cars in crude trains before deciding whether to order more. Both companies’ fleets meet the 2011 industry standard for cars with 7/16-inch-thick hulls and reinforced valves.

Those 7/16-inch cars don’t have to be thrown out, but to move in crude-only trains, they will need added protections, including ‘jackets’, or an extra layer of steel around the tank, according to the DOT rules.

Neither Tesoro’s nor Phillips 66’s new cars are equipped with specialized brakes that the DOT said crude-only trains must have starting in 2021 or be held to 30 miles per hour. An oil industry trade group is challenging that provision in court.

Hack said Tesoro is talking with Union Tank Car on possibly outfitting crude railcars to add enhanced brakes before the 2021 deadline.

“We have some time to make that decision,” he said.

(Reporting by Kristen Hays; Editing by Terry Wade and James Dalgleish)