Tag Archives: State regulation

All-Republican NY county unanimous in opposing Bakken oil trains and barges along Hudson River

Repost from the Philipstown.info, Cold Spring & Philipstown NY

Putnam Legislature Opposes Oil Trains, MTA Tax

By Liz Schevtchuk Armstrong, April 14, 2015

With little ado, the Putnam County Legislature last Wednesday (April 8) opposed two train-transit practices, one involving freight traffic — the unsafe shipping of incendiary crude oil along the Hudson River; and the other involving commuter lines — the levying of taxes to support the Metropolitan Transportation Authority, whose trains carry numerous county residents to work every day.

By 8-0 votes (with one member absent), the legislature urged New York State to revoke permits that allow volatile oil to travel on the Hudson and to reverse its finding that expanding an Albany oil transportation terminal raises no “significant” concerns. It likewise sought the repeal of the MTA taxes on payrolls and vehicles.

In other business at its formal monthly meeting, the legislature unanimously opted to legalize limited use of sparklers, popular Fourth of July “pyrotechnic” devices.

Barges and ‘bomb’ trains

In addressing the so-called “bomb” train question, the all-Republican legislature added its voice to a growing, bipartisan chorus of local governments in the Hudson Valley opposing the use of rail lines along the river, as well as barges, to move highly explosive oil without adequate safeguards. The legislature devoted much of a committee meeting in February to a background discussion of the issue. (See County Committee to Draft Call for Action on Bomb Trains.)

Its resolution, to be sent to Gov. Andrew Cuomo and state legislative officials, refers to use of “unacceptably dangerous” rail cars to move Bakken shale oil and heavy tar-sands oil, which originate in North Dakota and Alberta, Canada, and are more hazardous than other forms of fuel. The resolution says that daily two to three oil trains, each with 3 million gallons, travel down the western side of the Hudson, opposite Putnam. It points out that recent oil-train derailments in the United States and Canada caused “loss of property and significant environmental and economic damage” as well as, in one case, 47 deaths.

The resolution notes that one oil company, Global Partners LP, proposes to expand its oil terminals in Newburgh and New Windsor, across the Hudson from Putnam County, which could “double the number of trains and marine vessels” carrying such dangerous fuel along the Hudson, despite the presence of designated Significant Coastal Fish and Wildlife Habitats in the Hudson Highlands, Fishkill Creek and elsewhere. A similar expansion is proposed for an Albany facility, the legislature stated.

The resolution also declares that:

  • Under present laws, “no collaboration must take place between the railroads and the towns through which these rail cars [go].”
  • “There have been no spill-response drills in Putnam County waters.”
  • “Putnam County’s shorelines include private residences and businesses, public parks, and critical public infrastructure at significant risk in the case of a crude-oil spill” and that “tourism based on a clean environment is an important part of Putnam County’s economy.”

The legislature asked the state “to immediately revoke permits … allowing for the transport of up to 2.8 billion gallons per year of crude oil on the Hudson River [and] order full environmental impact studies, including the potential impacts of a crude oil spill in the Hudson River affecting Putnam County shoreline property, environmental resources, and drinking water.”

It similarly urged the state to rescind a “negative declaration of significance” on expansion of Albany oil operations and “order a full, integrated environmental impact study of the proposed expansion” of oil terminals in New Windsor and Newburgh, as well as Albany. Under present laws, “no collaboration must take place between the railroads and the towns through which these rail cars [go].”

“It’s not understood” how much risk the transport of volatile oil brings, said Carl Albano, the legislature’s chairman. “It’s a major, major issue in our backyard.”

Legislator Barbara Scuccimarra, who represents Philipstown, observed that the “bomb” trains run along the Hudson “over crumbling bridges and through towns and villages,” compounding the potential for devastation.

“There are really no safeguards in place and it’s scary. If we were to have an explosion, it would be catastrophic,” Legislator Dini LoBue added.

…(the article continues on other local business)…

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Repost from E&E Publishing

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Daniel Cusick, EnergyWire, April 10, 2015

MINNEAPOLIS — A Canadian company proposes a multibillion-dollar oil pipeline through some of the Midwest’s prized lakes and wetlands, igniting a firestorm among environmentalists, tribes and anti-fossil fuel activists who say the proposal is built on hollow promises of economic development and dubious claims of environmental protection.

Sound familiar? It should. But the pipeline isn’t Keystone XL, and its developer is not TransCanada Corp., purveyor of the most polarizing energy project since the Yucca Mountain Nuclear Waste Repository.

It is called Sandpiper, and its developer is Enbridge Corp., another Calgary, Alberta-based conglomerate whose extensive oil and gas pipeline network plunges deep into the U.S. interior.

The $2.6 billion Sandpiper project, which would move 225,000 barrels of crude per day roughly 610 miles from the Bakken oil fields of North Dakota to an Enbridge hub in Superior, Wis., has been approved by North Dakota regulators. But it remains under administrative review in Minnesota, where developers are seeking a certificate of need to ship the oil and a route permit to build the pipeline across 300 miles of the state’s Lakes Belt.

An administrative law judge in St. Paul next week is expected to issue an advisory opinion that the Minnesota Public Utilities Commission will use to resolve some thorny questions around Sandpiper, including whether the line is necessary and what route it should follow to move Bakken crude across Minnesota to Wisconsin, where it would flow to other Enbridge lines serving refineries in Michigan, Illinois and Ohio.

Marathon’s president and CEO, Gary Heminger, has said the Sandpiper investment will give Marathon a 27 percent stake in Enbridge’s North Dakota pipeline system once the line is completed and provide “additional access to growing crude oil production from the Bakken Shale play and Canada, and direct participation in the transportation of these crudes into our markets.”

The opening of a new corridor through Minnesota will also help Enbridge manage aging infrastructure along its existing pipeline route through the Upper Great Lakes, known as the Lakehead System. Currently, six existing pipelines, some built as early as the 1950s, follow the Lakehead System route from a key Enbridge oil terminal in Clearbrook, in northwest Minnesota, to the cities of Bemidji and Grand Rapids before dipping south to Duluth and Superior.

Clearbrook is also the primary U.S. hub on Enbridge’s system for delivering Canadian tar sands oil from Alberta into the United States, and Enbridge has invested heavily in recent years to upgrade those lines, including adding new pump stations in Minnesota that will push up to 800,000 barrels per day of heavy Canadian crude to U.S. refineries.

Moreover, if Sandpiper is approved, Enbridge has said it will pursue another set of state permits to relocate one of its key Lakehead pipelines, known as Line 3, that was built in 1968 and is in need of retirement. Rather than rebuild Line 3 in its existing corridor, Enbridge has said it would prefer to relocate the line along the Sandpiper route at a cost of roughly $2.3 billion.

But environmental opposition, combined with lengthy regulatory proceedings, sagging oil prices and a troubling history of spills, including an 840,000-gallon contamination of Michigan’s Kalamazoo River in 2010, have created considerable hurdles for Enbridge as it tries to push through one of its most ambitious U.S. pipeline expansions in recent memory.

The stakes — for Enbridge, for its U.S. customers, and for residents and tribes in North Dakota and Minnesota — are high. If the Sandpiper line is built, the company says, millions of barrels of Bakken crude will be moved more safely and cheaply across northern Minnesota, while at the same time alleviating rail corridor congestion and reducing the risk of rail accidents like the Dec. 30, 2013, fiery collision between a derailed grain train and 108-car oil train near Casselton, N.D., resulting in 400,000 gallons of spilled crude and the evacuation of 1,400 residents.

Dealing with the ‘Keystone effect’

Currently, more than two-thirds of the North Dakota’s oil exports are shipped by rail using tanker cars, according to federal estimates, many of which lack the kind of safety features that have been proposed by the U.S. Department of Transportation and could become law later this year. More recent rail accidents, including oil train derailments in West Virginia and Illinois, have further pressured the oil and gas industry, railroads and government officials to find alternatives to shipping oil across long distances by rail and truck.

But if shipping crude by rail has come under tough scrutiny from the public and regulators, pipelines have fared little better, as evidenced by the industry’s track record of spills — estimated at 1,400 “significant incidents” since 1986 — and the deep political fissure over Keystone XL, which after years of languishing under a State Department review succumbed to a presidential veto in February after Republicans in Congress sought to approve the line legislatively.

The “Keystone effect,” as some have called it, goes beyond concerns about pipeline safety and routing to incorporate a broad suite of environmental issues, among them fossil fuel dependency and oil consumption’s contribution to greenhouse gases that drive climate change.

Al Monaco, Enbridge’s president and CEO, addressed some of those challenges in a speech to business executives in Minneapolis late last month.

“Solving infrastructure problems at its base is not rocket science,” he told the Minnesota-Canada Business Council, stressing the advanced technologies and materials deployed by industry to site new oil pipelines, inspect existing lines, and detect problems early and respond quickly.

The bigger challenge, Monaco said, stems from organized opposition to traditional energy resources and even some renewable resources such as wind turbines, and “the elevation of regional energy projects to a national policy debate.”

“This isn’t just short-term noise,” Monaco said. “Today, our regulators, our political leaders, our employees and the public, they expect more of energy companies. They want to know what we’re doing to continually improve, to get better.”

Working around the ‘Lakes Belt’

For critics like Kathryn Hoffman, an attorney with the Minnesota Center for Environmental Advocacy, “getting better” means several things, including acknowledging mistakes and correcting operational problems that cast doubt on Enbridge’s safety track record, including the record 2010 spill in Michigan, where cleanup remains a work in progress after $1 billion spent.

Hoffman and her client, the nonprofit group Friends of the Headwaters, also want Enbridge to explore alternatives to its preferred Sandpiper route, which crosses northern Minnesota’s “Lakes Belt,” a region dense in lakes, streams, wetlands and forest. To date, the company has refused to look at alternatives, saying its chosen Sandpiper route offers the best conditions, both environmentally and economically, for the line to make its way from an existing oil terminal in Clearbrook to its terminus at Duluth-Superior.

Hoffman, who has petitioned the Minnesota Court of Appeals to force a more detailed environmental review of Sandpiper than what is required by the PUC, said her client is not seeking to simply block the Sandpiper line from being constructed. Rather, she wants Enbridge to more fully examine the preferred route’s impacts to natural areas and weigh those findings against alternative routes that run along more developed corridors.

“Our position is that the proposed route is probably one of the worst locations in the state of Minnesota to run a pipeline,” she said.

Similar concerns were raised by Minnesota’s two environmental agencies — the Department of Natural Resources and the Minnesota Pollution Control Agency — prompting the PUC last September to take an unprecedented step of asking for more information on alternative routes.

The Minnesota Department of Commerce provided a detailed report on six alternatives last December, but Enbridge maintains that none is viable because all are longer, are more expensive to build and do not pass through its terminal at Clearbrook, a critical element of the project.

“The fundamentals behind the project call for leveraging the existing infrastructure that’s already in place,” Paul Eberth, Enbridge’s Wisconsin-based Sandpiper project manager, said in a telephone interview. “By going to Clearbrook and then to Superior, we can make connections to customers without having to build a new line all the way down to the southern part of the state,” as most of the alternatives propose.

‘Oil companies are asking too much of our state’

But opponents of Sandpiper in its current configuration say southern Minnesota, where farming and urbanization have already altered much of the natural landscape, is exactly where new oil pipelines belong.

Among those pushing for a re-route are members of the state’s 40,000-person Ojibwe tribe, also known as the Chippewa or Anishinaabe, whose leaders maintain that the Sandpiper project threatens to foul northern Minnesota’s pristine waters with oil and disrupt traditional activities such as wild rice harvesting that are central to Native American life in the Great Lakes region.

Frank Bibeau, an attorney and member of the White Earth Nation of Ojibwe, whose reservation extends across three northern Minnesota counties, said in an interview that Enbridge has failed to examine such impacts in its Sandpiper routing decision. Moreover, the company continues to maintain that the pipeline does not physically cross tribal lands and therefore does not violate the tribe’s rights.

“We beg to differ with them on that point, and strongly,” said Bibeau, who maintains that the tribe’s treaty rights extend beyond reservation boundaries when dealing with traditional activities like wild rice harvesting.

Honor the Earth, a national activist group led by White Earth member Winona LaDuke, the former Green Party vice presidential candidate, has also pressed state officials, including Gov. Mark Dayton (D), to force a reconsideration of Sandpiper’s current route and issue a moratorium on any new pipeline development in the state’s lakes region.

“Oil companies are asking too much of our state,” LaDuke wrote in a letter to the governor. “While we remain a fossil fuel economy at present, sending one new pipeline … across the beautiful North Country is wrong and is not a good move for Minnesota.”

The group has taken its message public, too, with colorful roadside billboards and horseback rallies in hamlets like Backus, Minn., where the pipeline is proposed to cross an arterial highway just south of the Corner Store Restaurant & Gun Shop, a local gathering spot.

On a recent afternoon, Dave Sheley, the Corner Store’s owner and proprietor for 18 years, said the Sandpiper project has been a regular topic of conversation, both pro and con, among patrons of his cafe.

He described Backus and surrounding Pine County as “a poor community in general with a rich sub-community of cabin owners,” many of whom trek north on weekends from the Twin Cities to fish, swim, boat, bicycle or hunt in the region that otherwise has little happening economically.

While some are encouraged by Enbridge’s promise of 1,500 construction jobs and an estimated $25 million in new annual tax revenue, others say such benefits are countered by the intrusion of a major oil pipeline and the long-term risk of an accident or spill.

Sheley said he has seen a smattering of new business from surveyors and consultants working along the corridor route, which parallels an electricity transmission line. But he also knows that any surge in business during the line’s construction would be temporary, and the greatest economic benefit will go to landowners who have cut deals with Enbridge to route the pipeline across their property.

“I don’t own any land where they want to build, so I don’t have skin in the game,” he said. “For the most part, I’d say those people tend to be the most positive about it. But I can also see why the cabin owners and naturalist groups are concerned. A spill would be a big bummer if it happened.”

 

Rail safety program stripped from North Dakota budget

Repost from InForum, Fargo ND
[Editor:  See also AP coverage in The Bismarck  Tribune.  – RS]

ND Democrats slam Republicans for stripping rail safety program from budget

By Mike Nowatzki, Apr 8, 2015 at 7:09 p.m.
A plume of smoke rises from scene of a derailed train near Casselton, North Dakota December 30, 2013. REUTERS / Michael Vosburg / Forum News Service

BISMARCK — Democrats slammed House Republican budget writers Wednesday for stripping a proposed state-run rail safety program from the Public Service Commission budget, calling it a broken promise that leaves residents at risk of more accidents like the fiery oil train derailment near Casselton in 2013.

The House Appropriations Committee voted 16-5 late Tuesday to approve a PSC budget that cuts about $970,000 for two rail safety inspectors and a rail safety manager to complement efforts by the Federal Railroad Administration in the next biennium.

The Senate approved the funding when it passed Senate Bill 2008 by a 46-0 vote in February.

Rep. Ron Guggisberg, D-Fargo, stressed the importance of the positions given the skyrocketing increase in crude-by-rail traffic in North Dakota and across the country.

Nationwide, crude-by-rail shipments increased from an average of 55,000 barrels per day in 2010 to more than 1 million barrels per day in 2014, with Bakken crude making up 70 percent of last year’s volume, according to the U.S. Energy Information Administration.

“This is where it’s coming from, so we need to set an example and make sure it’s safe,” Guggisberg said.

Rep. Roscoe Streyle, R-Minot, said a state rail safety program is unnecessary. He said the FRA has increased its presence in North Dakota in recent years, and BNSF Railway announced additional safety measures on March 27, including increased track inspections, better electronic monitoring of railcars and reduced speeds and other new operating procedures for trains carrying crude oil.

“I just don’t think having a couple of state inspectors running around out there is going to make a hill-of-beans difference,” he said.

The committee’s chairman, Rep. Jeff Delzer, R-Underwood, indicated he feels a state program would be duplicative.

“The feds are already doing it. We’re just expanding government,” he said.

Public Service Commissioner Julie Fedorchak, a Republican who touted the proposal during her successful election campaign last summer against Democratic state Sen. Tyler Axness of Fargo after he had advocated for a state-run inspection program, said she was disappointed the funding was stripped from Senate Bill 2008 but is hopeful it’ll be restored.

“I will continue to push for this,” she said.

Fedorchak said that while the FRA has 10 staffers in North Dakota, only two are rail inspectors, and they cover parts of South Dakota and Montana in addition to all of North Dakota — about 5,000 miles of track in total. A mechanical inspector also covers parts of Montana and Wyoming.

“The federal inspection program is spread too thin,” she said, adding the volume of hazardous materials moving on North Dakota rail lines demands the state step in and help the feds “on behalf of the citizens living next to this infrastructure.”

Streyle said some committee members also worried about a state-run program making the state liable in rail accidents, a concern Fedorchak said is unfounded and hasn’t been a problem in the 30 states that have their own rail inspection programs.

The committee rejected Guggisberg’s amendment to restore the rail safety positions. He said he now plans to bring a minority report when the bill reaches the full House, which if approved would fund the rail safety positions and three hazardous liquid inspector positions cut by the Senate. Those inspectors would oversee intrastate oil pipelines.

House Majority Leader Al Carlson, R-Fargo, said the issue will be sorted out in a House-Senate conference committee.

“That’s just a long way from over,” he said.

New vapor pressure rule in North Dakota fails to account for additional explosion risks

Repost from Reuters
[Editor:  Reference below is to an important new Energy Department study on the volatility of Bakken crude.  – RS]

North Dakota’s new oil train safety checks seen missing risks

By Patrick Rucker, Mar 31, 2015 4:14pm EDT

WASHINGTON, March 31 (Reuters) – New regulations to cap vapor pressure of North Dakota crude fail to account for how it behaves in transit, according to industry experts, raising doubts about whether the state’s much-anticipated rules will make oil train shipments safer.

High vapor pressure has been identified as a possible factor in the fireball explosions witnessed after oil train derailments in Illinois and West Virginia in recent weeks.

For over a year, federal officials have warned that crude from North Dakota’s Bakken shale oilfields contains a cocktail of explosive gas – known in the industry as ‘light ends.’

The new rules, which take effect on April 1, aim to contain dangers by spot-checking the vapor pressure of crude before loading and capping it at 13.7 pounds per square inch (psi) – about normal atmospheric conditions.

The plan relies on a widely-used test for measuring pressure at the wellhead, but safety experts say gas levels can climb inside the nearly-full tankers, so the checks are a poor indicator of explosion risks for rail shipments.

It is “well-understood, basic physics” that crude oil will exert more pressure in a full container than in the test conditions North Dakota will use, said Dennis Sutton, executive director of the Crude Oil Quality Association, which studies how to safely handle fossil fuels.

Ametek Inc, a leading manufacturer of testing equipment, has detected vapor pressure climbing from about 9 psi to over 30 psi – more than twice the new limit – while an oil tank is filled to near-capacity.

About 70 percent of the roughly 1.2 million barrels of oil produced in North Dakota every day moves by rail to distant refineries and passes through hundreds of cities and towns along the way.

The state controls matter to those communities because there is no federal standard to curb explosive gases in oil trains.

North Dakota officials point out that the pressure limit is more stringent than the industry-accepted definition of “stable” crude oil. They also say that they lack jurisdiction over tank cars leaving the state and that the pressure tests are just one of the measures to make oil trains safer.

“We’re trying to achieve a set of operating practices that generates a safe, reliable crude oil,” Lynn Helms, director of the North Dakota Department of Mineral Resources, has said. Helms has also said that test readings for near-full containers were less reliable.

However, given different testing and transport conditions, industry officials say the pressure threshold may need to be lowered to reduce the risks.

Limiting vapor pressure to 13.7 psi in transit would require an operator to bring it to “something well below that” at the loading point, Sutton said.

The uncertainty about regulatory reach and safety has spurred calls for the White House to develop national standards to control explosive gas pressure.

“Let me be really clear,” Democratic Senator Maria Cantwell of Washington state told reporters last week. “They should set a standard on volatility.”

The National Transportation Safety Board, an independent safety agency, has already encouraged a federal standard for “setting vapor pressure thresholds” for oil trains citing Canadian findings linking such pressure and the size of explosions in train accidents.

Meanwhile, a leading voice for the oil industry is lobbying Congress to resist federal vapor pressure benchmarks.

Last week, the American Petroleum Institute urged lawmakers to oppose “a national volatility standard” and pointed to an Energy Department study that the severity of an oil train mishap may have more to do with the circumstances of the crash than the volatility of the cargo.

That same report said much more study was needed to understand volatility of crude oil from the Bakken. (For a link to the study: tinyurl.com/nvjqmxt)

The oil industry has said that wringing ‘light ends’ out of Bakken crude may keep a share of valuable fuel from reaching refineries.

Reuters reported early this month that Transportation Secretary Anthony Foxx took his concerns about Bakken oil volatility to the White House last summer and sought advice on what to do about the danger of explosive gases.

The administration decided that rather than assert federal authority it would allow the North Dakota rules to take root, according to sources familiar with the meeting.

(Reporting By Patrick Rucker; Additional reporting by Ernest Scheyder in North Dakota; Editing by Tomasz Janowski, Bernard Orr)