Tag Archives: U.S. Department of Transportation

Bakken Crude, Crude By Rail, DOT-111, Federal Regulation (U.S.), Rail inspection, Tank car retirement, Tank car retrofit, U.S. Department of Transportation

Federal budget bill sets January deadline on safety rules for oil tanker cars

Repost from The Seattle Post Intelligencer (seattlepi.com)

Federal budget bill sets January deadline on safety rules for oil tanker cars

December 10, 2014 | By Joel Connelly
Tanker cars from a derailed CSX oil train burn after derailing in downtown Lynchburg, Virginia, last April. Increasing numbers of oil trains pass through Seattle and other Puget Sound cities en route to four refineries on northern Puget Sound. (AP Photo/City of Lynchburg, LuAnn Hunt)

Hidden away in Congress’ big spending bill, designed to fund the federal government through FY 2015, are stern marching orders to the U.S. Department of Transportation:

Deliver a final rule for new, safer oil tank car design standards by Jan. 15, 2015, and require that all rail carriers put in place comprehensive oil spill response plans.

The budget provisions, inserted by Sens. Patty Murray, D-Wash., and Susan Collins, R-Maine, are prompted by an oil train disaster in Quebec, and the rapid increase in trains carrying volatile Bakken crude oil from North Dakota to four refineries on northern Puget Sound.

“In Washington state, we’ve seen a startling increase in oil train traffic through communities of all sizes, from downtown Seattle to smaller, rural communities across the state,” said Murray, who has chaired the Senate Appropriations subcommittee on transportation.

“That’s why I worked to set a deadline for the Department of Transportation to issue new safety standards for tank cars next month and worked to fund a Shirt Line Railroad Safety Institute that will help protect smaller communities without sufficient resources to respond to oil trains.”

Oil tanker cars derailed under the Magnolia Bridge. No harm done, but not the case elsewhere.

An old adage applies to the oil train issue: There’s nothing like a hanging in the morning to focus the mind.

In July of 2013, brakes failed and an unmanned runaway train sped into the small town of Lac-Megantic, Quebec, just over the border from Maine. It blew up, killing 47 people and leveling downtown.

The train was using 1960′s-designed DOT-111 tank cars. Another train, using DOT-111 cars, exploded into mushroom-cloud flames last December outside Casselton, N.D.. It forced evacuation of more than 2,000 people from the small town.

While promising new safety measures, the Department of Transportation has been criticized for giving railroads too much wiggle room.

The DOT said last summer it is setting a two-year deadline for getting DOT-111 tank cars off the rails. In reading the fine print, however, the clock would begin ticking in September of 2015 — giving rail carriers more than three years to stop use of the explosion-prone tank cars.

The federal budget bill would make available $10 million in grants to improve safety at railroad grade crossings that handle crude oil or other hazardous flammable liquids.

The DOT gets resources to hire 15 new hazardous-materials and rail-safety inspectors and $3 million to expand the use of automated track inspections to make sure rail tracks are maintained on crude oil transportation routes.

In this Aug. 8, 2012 photo, a DOT-111 rail tanker passes through Council Bluffs, Iowa. DOT-111 rail cars being used to ship crude oil from North Dakota's Bakken region are an "unacceptable public risk," and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board said Wednesday, Feb. 16, 2014. The cars were involved in derailments of oil trains in Casselton, N.D., and Lac-Megantic, Quebec, just across the U.S. border, NTSB member Robert Sumwalt said at a House Transportation subcommittee hearing. (AP Photo/Nati Harnik, File)

Refiners and shippers have responded.

Tesoro has stopped use of DOT-111 tank cars to supply its Anacortes refinery. The Burlington Northern-Santa Fe Railroad has announced a purchase of new, safer tank cars.

But the railroads have continued to resist making full, up-to-date information on oil shipments available to state and local emergency responders. They are fearful the information will be made public.

While Murray is touting its oil train provisions, the $1.1 trillion spending bill has drawn some fire from the political left.

Republicans have secured concessions, loosening Wall Street regulation and letting wealthy donors give more to political campaigns. The bill has slightly weakened school lunch nutrition standards championed by first lady Michelle Obama.

Liberal Rep. Jim McDermott, D-Wash., is voting against the bill.

“It is inconceivable that Congress would cut crucial regulations in the Dodd-Frank Act, when risky derivatives trading was at the center of the 2008 financial crisis,” said McDermott.

“Why is Congress giving Wall Street a massive Christmas present, when so many hard-working Americans are struggling to make ends meet?”

Bakken Crude, Crude By Rail, Federal Regulation (U.S.), Hazmat notification, Rail routing, Tank car design

What it’s like to live 50 feet from the oil-train tracks

Repost from WAVY-TV, Portsmouth, VA
[Editor: An excellent news video report.  Apologies for the commercial ad.  – RS]

The risk rolling on Hampton Roads rails

By Chris Horne, November 24, 2014


NEWPORT NEWS, Va. (WAVY) – The mother of 21-month-old Lily Murphy is concerned about her daughter’s safety whenever she plays in their back yard. That’s because CSX trains pass about fifty feet from their back fence, as often as five times a week.

“Nothing like that ever even crossed my mind that it could be carrying hazardous, dangerous material so it’s good that you brought that to light,” said mother Christina Murphy.

The trains haul Bakken crude oil from North Dakota to Yorktown. It was a Bakken train derailment that caused a fatal inferno last year in Lac Megantic, Quebec, when nearly fifty people were killed in the explosion and fire. Another Bakken train derailed in Lynchburg last April and caused a major fire along the James River — that train was headed for Yorktown.

Photos: Train catches fire, derails in Lynchburg

Pat Calvert is a river keeper for the James River Association. His Lynchburg office is within a block of where the Lynchburg derailment occurred.

“Today, that same risk that existed on April 30, over six months later, is right here along the James River,” Calvert said. “That’s our concern: that we need to ensure that this doesn’t happen again.”

Experts say Bakken is more flammable than other types of crude oil.

“A lot of people think about the Beverly Hillbillies and the bubbling crude oil, it’s not that kind of crude oil,” said Gregory Britt, director of the Technological Hazards Division of the Virginia Department of Emergency Management. “It’s probably a lot closer to gasoline, as far as the flammability.”

CSX filed paperwork with the Commonwealth detailing the shipments. The railroad confirmed to 10 On Your Side it runs two to five Bakken oil trains a week across Virginia. Each train is about a hundred cars in length, with a total payload of about three million gallons of oil.

Document: Paperwork filed by CSX

The route includes Richmond and eventually passes through Williamsburg, Newport News and York County.

“It’s highly volatile, with a low flash point, and it’s going right through highly populated areas,” Calvert said. “People don’t realize this is happening every day.”

What makes the shipments even more dangerous is the design of many of the older tank cars that haul it. Federal regulators, railroads and rail car makers agree the older cars, known as legacy DOT 111s, need safety upgrades. This specific aspect of rail transportation is regulated by the Pipeline and Hazardous Materials Safety Administration (PHMSA). It’s up to PHMSA to create the rules for the modifications. PHMSA is part of the U.S. Department of Transportation.

Document: PHMSA’s proposed rule for flammable trains

“My industry likes the certainty of rule-making and has urged the Department of Transportation to move quickly on issuing a final rule,” said Tom Simpson, president of the Railway Supply Institute, the trade association that represents firms that make and service railroad tank cars.

CSX supports the safety modifications as well.

“The railroad industry supports to improve the tank car standards, to make sure that we’re moving the safest cars that we possibly can,” said CSX vice president Bryan Rhode, whose region includes Virginia.

PHMSA told WAVY News in an email that it is currently evaluating nearly 4,000 comments regarding safety upgrades for the older tank cars. A spokesman said the agency has a target date of March 31, 2015 to determine what upgrades are needed and make them mandatory.

Related link: Public comments regarding safety upgrades

Among several options, PHMSA is considering an extra jacket surrounding the cars to create a double wall, and protective guards on the top, ends and bottom. The measures would help prevent against ruptures and oil spillage.

The Quebec derailment involved about 1.3 million gallons of Bakken crude oil; the Lynchburg train leaked about 29,000 gallons.

“Lynchburg contributed to the larger discussion, nationally, about how we enhance safety for these types of trains,” Rhode said of CSX.

According to data from the US Department of Transportation, the amount of Bakken crude transported by rail has soared in recent years. In 2008, railroads hauled about 9,500 carloads. By 2013, the amount was 415,000 carloads, a 43-fold increase.

VDEM holds ongoing training for first responders to handle a potential incident involving Bakken crude.

“If there’s an event dealing with a spill, they should be able to dam it, dike it, they should be able to hold it in place for further assistance,” said Britt, who runs the training at key locations, including the York County safety services complex on Back Creek Road. “Then specialists can come in and environmental companies can clean it up.”

Christina Murphy hopes that training never has to be utilized, as she enjoys time in her yard with Lily in Newport News.

“I guess we should think about what we would do here, if something like that would happen, that’s pretty scary,” she said.

Canadian regulation, Crude By Rail, DOT-111, Federal Regulation (U.S.), Oil Industry, Rail industry, Tank car design, Tank car retrofit

National Geographic series on Energy: New Oil Train Safety Rules Divide Rail Industry

Repost from The National Geographic

New Oil Train Safety Rules Divide Rail Industry

Many railroad companies want more time to retrofit cars in the U.S. and Canada, but some are forging ahead.
By Joe Eaton for National Geographic, October 31, 2014
Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac Megantic, Quebec, Canada, Saturday, July 6, 2013.
Smoke rises from railway cars that were carrying crude oil and derailed in downtown Lac-Megantic, Quebec, in 2013. Regulators in Canada and the United States have been working on new standards for trains that carry flammable fuel. – Photograph by Paul Chiasson, Associated Press

Three days after an oil train derailed and exploded in 2013 in Lac-Mégantic, Quebec, killing 47 people, Greg Saxton wandered through the disaster site inspecting tank cars.

For Saxton, the damage was personal. Some of the tank cars were built by Greenbrier, an Oregon-based manufacturer where he’s chief engineer. Almost every car that derailed was punctured, some in multiple places. Crude oil flowed from the gashes, fueling the flames, covering the ground, and running off into nearby waterways.

Each day, as Saxton returned to the disaster zone, he passed a Roman Catholic church. “We never came and went when there wasn’t a funeral going on,” he said.

In the wake of this and other recent accidents as energy production soars in North America, Canadian and U.S. regulators are proposing new safety rules for tank cars that carry oil, ethanol, and other flammable liquids. Saxton and Greenbrier have pushed for swift changes, but others in the industry are asking for more time to retrofit cars like the type that exploded at Lac-Mégantic. (See related stories: “Oil Train Derails in Lynchburg, Virginia” and “North Dakota Oil Train Fire Spotlights Risks of Transporting Crude“)

“If you don’t set an aggressive time line, you won’t see improvements as quickly as the current safety demands require,” Jack Isselmann, a Greenbrier spokesman, said. “We’ve been frankly just perplexed and confused by the resistance.”

Industry Pushes for More Time

The tank cars that derailed at Lac-Mégantic were built before October 2011, when the American Railway Association mandated safety enhancements to the oil and ethanol tankers known in the industry as DOT-111 cars. The cars lacked puncture-resistant steel jackets, thermal insulation, and heavy steel shields, all of which could have lessened the destruction, experts say.

In July, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed rules that, if finalized, would require higher safety standards for new oil cars. The rules also require owners to retrofit older cars or remove them from the rails by October 2017.

Canadian regulators in July mandated that DOT-111 tank cars built before 2014 be retrofitted or phased out by May 2017. Transport Canada, which regulates rail safety, has also proposed aggressive safety standards for new tank cars and will seek industry comment this fall before finalizing its rules.

Saxton and others at Greenbrier support the proposed regulations, which could be tremendously lucrative to the company. However, others in the rail supply industry say the proposed retrofit time line cannot be met.

The Railway Supply Institute—a trade organization that represents the rail industry—has asked DOT to allow legacy cars in the oil and ethanol fleet to remain on the rails until 2020.

Thomas Simpson, the institute’s president, said a survey of rail maintenance and repair shops found that only 15,000 of the roughly 50,000 non-jacketed legacy tank cars in the crude oil and ethanol fleet can be modified by the proposed 2017 deadline.

For many cars, the retrofit process would include adding thermal protection systems, thick steel plates at the ends, and outer steel jackets, as well as reconfiguring the bottom outlet valve to ensure it does not break off and release oil during a derailment.

That’s too much work to complete before the deadline, and the regulations have not yet been finalized, Simpson said.

The proposed deadline, he said, will “idle cars waiting for shop capacity and adversely affect the movement of crude and ethanol.”

Tying in the Keystone XL Debate

The American Petroleum Institute, which represents the oil and natural gas industry, also says the 2017 deadline to retrofit tank cars is too aggressive and could slow oil and gas production. (See related story: “Blocked on Keystone XL, Oil-Sands Industry Looks East“)

In comments to U.S. regulators and the press, API tied the safety upgrades to approval of the proposed Keystone XL pipeline, which would transport Alberta’s tar sands oil through the Midwest to Texas refineries.

Workers stand before mangled tanker cars at the crash site of the train derailment and fire in Lac-Megantic, Quebec
The deadly oil train accident at Lac-Megantic, Quebec, raised awareness of the potential dangers of transporting crude by rail. – Photograph by Ryan Remiorz, Associated Press

If Keystone is not built, API president Jack Gerard said in September that the cost of the proposed oil tank rules would nearly double to $45 billion because demand for transporting crude by rail would be higher.  (See related story and map: “Keystone XL: 4 Animals and 3 Habitats in Its Path” and “Interactive Map: Mapping the Flow of Tar Sands Oil“)

Both API and the Rail Supply Institute have also warned regulators that a short time line for retrofitting oil cars could cause a spike in truck shipments of oil and ethanol.

But Anthony Swift, an attorney with the Natural Resources Defense Council, an environmental group opposed to Keystone XL, called these arguments misleading. Swift said Keystone XL would have little impact on retrofitting tank cars, because most train traffic from the Bakken oil fields in North Dakota moves to East Coast and West Coast refineries. He said that traffic would not be affected by the pipeline.

Keystone XL would have the capacity to carry 830,000 barrels of oil-sands crude a day, with up to 100,000 barrels a day set aside for crude from the Bakken. By 2016, the rail industry in Canada is expected to carry about as much oil as Keystone XL would. The U.S. rail industry is already there: Almost 760,000 barrels a day of crude had traveled by rail by August.

Swift said the costs to the oil industry are worthwhile if lives are saved. “The argument that we need to wait until the oil industry does not need tank cars until we can make them safe is ridiculous on its face,” he said.

Greenbrier Gears Up to Meet Demand

In February, Greenbrier introduced a beefed-up tanker with a 9/16-inch steel shell (1/8-inch thicker than many DOT-111 cars), 11-gauge steel jacket, removable bottom valve, and rollover protection for fittings along the top of the cars.

Greenbrier calls the tanker the “car of the future,” saying it’s eight times safer than the DOT-111. Isselmann said Greenbrier has received more than 3,000 orders for the new car and plans to double its manufacturing capacity by the end of the year.

In June, Greenbrier and Kansas rail-service company Watco joined forces to form GBW Railcar Services, creating the largest independent railcar repair-shop network in North America. Isselmann said the company plans to hire 400 workers and start second shifts at its factories to meet demand for retrofitting DOT-111 tank cars.

In comments to U.S. regulators, GBW said it currently has the capacity to retrofit more than 10 percent of the fleet of DOT-111 tank cars.

Isselmann said that number will grow as other companies take advantage of the market once regulators release final rules. For that reason, he said the industry’s current capacity to meet regulations is less important than its ability to ramp up quickly to capture the increased business that new safety standards could bring.

“This notion that the status quo is going to remain—it’s diversionary at best,” Isselmann said.

An oil tanker car at Lac-Megantic, Quebec
Almost every tanker in the Lac-Megantic accident was punctured. New standards would mandate stronger cars, among other measures. – Photograph by Ryan Remiorz, Associated Press

Some in the industry are responding to public concern before rules are finalized. In April, Irving Oil—the owner of Canada’s largest refinery, in Saint John, New Brunswick, where the Lac-Mégantic train was headed before the disaster—completed a voluntary conversion of its crude oil railcar fleet.

Also in April, Global Partners, one of the largest U.S. distributors of gasoline and other fuels, began requiring all crude oil unit trains making deliveries at its East and West Coast terminals to meet October 2011 safety standards for tank car design.

“As an industry, we have both an opportunity and a responsibility to maximize public confidence in the safety of the system that carries these products across the country,” Eric Slifka, Global Partners’ CEO, said in a press release.

A Push to Harmonize Regulations

As the U.S. and Canada consider train safety regulations, oil and rail companies are pushing to ensure that the same tank cars can be used to haul flammable liquids in both countries.

Regulators say they are working together to make that happen. Lauren Armstrong, a spokeswoman at Transport Canada, said the department is holding technical discussions on new tank car standards with the U.S. Department of Transportation and the Federal Railroad Administration.

However, coordinating tank car regulations between the two countries would have to overcome current gaps, industry representatives say.

In April, Transport Canada banned the use of the oldest and least crash-resistant DOT-111 tank cars, which lacked bottom reinforcement.  The U.S. so far has not banned the cars from carrying oil and ethanol.

Canada also set a 2017 deadline for retrofitting the cars. In the U.S., regulators are expected to release final rules by early 2015. The process, however, could continue much longer.

The strongest standards will carry the day, said Thomas Simpson, the president of the Railway Supply Institute. Given the large amount of oil that moves between the two countries, Simpson said it makes no business sense for companies to keep two different sets of cars to meet the two sets of rules.

Communities Concerned About Safety

But as final rules are being hammered out in the U.S., some train safety advocates and community groups worry they are being left out of the process.

Karen Darch, co-chair of TRAC, a coalition of Illinois communities concerned about train congestion and rail safety, said she is hopeful that final rules will include a fast deadline to retrofit old cars. (See related story: “Illinois Village Leads Charge for Tougher Train Rules“)

But she said rail and oil industry lobbyists have had much more access to policymakers than community advocates, and she’s concerned they will have a greater impact on final rules.

“The inside players, the guys in the industry,” she said, “they seem to be able to be in front of the decision-makers more than we have been.”

The story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.

Bakken Crude, Crude By Rail, Federal Regulation (U.S.), Volatility

Federal Inspector General to audit transport of volatile crude by rail cars

Repost from The Chicago Sun Times
[Editor: See the Inspector General’s audit announcement here and the PDF notice to the Federal Railroad Administrator here.  – RS]

Federal IG to audit transport of volatile crude by rail cars

Rosalind Rossi, October 29, 2014
A CSX train from Chicago carrying crude oil derailed in April in Lynchburg, Va., forcing the evacuation of hundred.
A CSX train from Chicago carrying crude oil derailed in April in Lynchburg, Va., forcing the evacuation of hundreds.

A federal inspector general is launching an audit of whether hazardous materials are being carried safely over the nation’s rails — including highly-volatile Bakken crude that travels through the Chicago area.

“Due to the public safety risk posed by increases in the transportation of hazardous materials by rail, we are initiating an audit assessing the Federal Railroad Administration’s (FRA) enforcement of hazardous materials regulations using inspections and other tools,” a memo on the website of the Office of Inspector General of the U.S. Department of Transportation said Wednesday.

The memo specifically cited a fatal July 2013 Bakken oil train derailment in Lac Megantic, Canada, that “highlighted the importance of oversight of hazardous materials being transported by rail.” The Lac Megantic blast decimated more than 30 downtown buildings in the Canadian town and killed 47 people.

At least eight rail lines carry Bakken crude through Illinois, according to the Illinois Emergency Management Agency. They are BNSF, Norfolk-Southern, Alton & Southern, CN, CSX, Indiana Harbor Belt, Union Pacific and Canadian Pacific. Maps provided by BNSF to the Illinois emergency agency indicated BNSF rails carry Bakken through Cook County.

A candlelight vigil about what protestors called “bomb trains” was held July 10 at the BNSF terminal at 16th Street and Western Ave out of fear that black tank cars observed there with  placards indicating they held flammable petroleum were actually carrying Bakken crude. The protest was among those waged nationally to observe the one-year anniversary of the Lac Megantic disaster.

“We saw 47 people killed in Lac Megantic,’’ Debra Michaud, an organizer of the Pilsen protest, said at the time. “A bomb train explosion in Pilsen or Little Village would be many times that.’’

In April, a CSX train traveling from Chicago and loaded with crude oil derailed and exploded in Lynchburg, Va.. The incident shut down roads and bridges and forced the evacuation of hundreds. No one was injured or killed.

The crash was among series of accidents across North America involving railroads’ crude oil shipments, which have surged dramatically as oil production rises in regions like North Dakota’s Bakken shale and western Canada.

Wednesday’s inspector general memo noted that crude oil shipments have increased from 9,500 carloads in 2008 to 407,761 in 2013 — a more than 4000 percent jump.

Mayors Karen Darch of Barrington and Tom Weisner of Aurora have been particularly vocal about the increasing transport of volatile crude and other dangerous products. They say their residents face frequent traffic jams caused by long trains carrying volatile liquids and worry about the sturdiness of tank cars holding such liquid.

Some volatile fluids are being transported in the equivalent of the “Ford Pinto” of rail cars and such tankers should be upgraded, Darch has contended.

Darch Wednesday welcomed the IG audit as a positive development.

“We are all concerned about public safety risk and hopefully this report will have suggestions for further enhancing public safety,” Darch said.