Tag Archives: Union Pacific Railroad

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.

Washington State bill: Report volume, contents of oil trains

Repost from SeattlePI.com

State House bill: Report volume, contents of oil trains

By Joel Connelly, April 14, 2015

A bill that would require “comprehensive reporting” of the volume and specific contents of oil trains crossing Washington was passed on a bipartisan vote by the state House of Representatives on Tuesday.

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

The legislation goes to the Republican-run state Senate, where key committee chairs enjoy much closer relationships with railroads and oil refiners.

“The House has passed these urgently needed policies with bipartisan support, twice. Delay on the part of the Senate is unacceptable,” said Joan Crooks, CEO of the Washington Environmental Council and Washington Conservation Voters.

(Washington Conservation Voters tried in 2014 to defeat several oil industry allies in the Senate, but lost every high-profile race.)

The legislation, passed on a 58-40 vote, requires that shippers and receivers give cargo data to first responders, but goes further and establishes a website for members of the public to access the information.

Washington Fire Chiefs, in letters sent last month to railroads, asked BNSF, Union Pacific and Canadian National to supply “Comprehensive Emergency Response Plans” and “Worst Case Scenarios” on an oil train accident.

BNSF has responded by offering the chiefs a meeting.

If there is such a response plan or plans, “I haven’t seen it,” new Seattle Fire Chief Harold Skoggins told a news conference with Sen. Maria Cantwell and Seattle Mayor Ed Murray last week.

“It would be nice were there a system created where we would be notified when this material is traveling through our city,” Skoggins added.

The railroads have been reticent about releasing cargo information, citing national security concerns and privately voicing fear of protests.

A fire burns Monday, Feb. 16, 2015, after a train derailment near Charleston, W.Va. Nearby residents were told to evacuate as state emergency response and environmental officials headed to the scene. (AP Photo/The Register-Herald, Steve Keenan)
A fire burns Monday, Feb. 16, 2015, after a train derailment near Charleston, W.Va. Nearby residents were told to evacuate as state emergency response and environmental officials headed to the scene. (AP Photo/The Register-Herald, Steve Keenan)

BNSF has, however, released information on the upgrading of tracks and investment in newer, safer oil tanker cars.

The House legislation goes further, directing rule making for such measures as tug escorts when hazardous cargoes are transported by water.  It directs the state to inspect rail crossings and push for repairs.

And it would require oil companies to pay for increased oil spill prevention, preparedness and response.

Just two and a half years have passed since the first oil train, carrying Bakken crude oil from North Dakota, passed through Seattle en route to refineries in northern Puget Sound.

The state now sees about 19 oil trains a week.  At least a dozen pass along the Seattle waterfront, through a mile-long tunnel, and past the stadium homes of the Seattle Seahawks, Seattle Mariners and Seattle Sounders.

The BNSF has trained Seattle firefighters on oil tanker cars brought to a site in Interbay.  But any serious fire would require a major response from numerous fire departments.

The legislation in Olympia has been inspired, in part, by the long delay in getting new oil train safety rules — such as getting old, unsafe tanker cars off the tracks — out of the U.S. Department of Transportation.

The U.S. and Canada have seen a series of oil train fires in recent months.  A runaway train wiped out the center of Lac-Megantic, Quebec, killing 47 people.  A train blew up near New Casselton, North Dakota, luckily in an unpopulated area.  In February, there were major accidents and fires in West Virginia, Illinois and Ontario.

Sen. Cantwell is sponsoring federal legislation that would require railroads and oil companies to disclose routes and vapor content of trains to first responders.

Eventually, the senator warned last week, Puget Sound population centers could see up to 16 trains a day.

November train derailment in Feather River Canyon caused by broken rail

Repost from The Chico Enterprise-Record

November train derailment in Feather River Canyon caused by broken rail

By Ashley Gebb, 04/13/15, 5:11 PM PDT
Twelve rail cars full of corn derailed Nov. 25 in the Feather River Canyon. The accident was caused by a broken rail. Courtesy of Jake Miille
No railroad cars reached the Feather River after the Nov. 25 derailment, but corn did. Courtesy of Jake Miille

Belden >> A November train derailment in the Feather River Canyon was caused by a broken rail, the Enterprise-Record has learned.

As Union Pacific Railroad prepares to replace more than 36 miles of track between Keddie and Lake Oroville, spokesman Francisco Castillo has confirmed a detail fracture caused by cracks led to the derailment of 12 train cars that tumbled into the canyon Nov. 25. The repairs are unrelated and were planned before the accident, Castillo said, part of a greater effort to improve rail safety as transport of crude oil continues to rise.

“Though serious accidents are rare, we recognize that there are still risks associated with rail transportation, just as there are risks with any other mode of transportation. That’s why we follow strict safety practices and work tirelessly to achieve our goal of zero derailments,” he said in an email.

In the early morning of Nov. 25, a westbound train derailed near Virgilia, upstream of Belden, causing 12 loaded hoppers to slide down an embankment toward the North Fork Feather River below, stopping just before the water. No one was injured but the carloads of corn were spread across the hillside and into the river, causing $640,049 in equipment damage and $85,786 in damage to the track.

At the time, emergency officials said the incident underscored the risks associated with train transport in the canyon.

“It’s a concern for us because it shows there is still a history of derailments in the county, especially in the canyon,” Butte County Emergency Services Officer John Gulserian said Monday of the November derailment.

Though the incident occurred in Plumas County, the same railroad lines continue into Butte County, along with whatever the trains are hauling — be it corn or crude oil. The derailment of any such materials can have devastating implications for the water, the environment and wildlife, as well as create a fire danger, Gulserian said.

Because of the remote area and the nature of the spills, the county is not always equipped to deal with the accident and has to wait for other resources, he said.

The canyon area as a whole tends to see a derailment every three to five years, with most similar to the November incident, where only a few cars go off the tracks, he said. The last derailment Gulserian could remember spilled a load of neutralized alcohol near Storrie.

Track failures are linked to 31 percent of all train accidents, and even though such incidents are becoming less common, prevention remains critical, said Federal Railroad Administration spokesman Mike Booth. It’s especially important with a 400 percent increase in more volatile Bakken crude oil being shipped out of the North Dakota region.

“It travels to nearly every state and it travels long distances,” he said. “To prevent accidents due to increased traffic going longer distances, we have increased inspection on crude oil routes. … Since the Lac-Mégantic accident two years ago in Canada, it was a bit of a wake-up call for everyone.”

The 2013 incident occurred when a 74-car freight train carrying crude oil derailed, resulting in a fire and explosion of multiple tank cars. Forty-seven people were killed, and dozens of buildings were destroyed or critically contaminated.

Railroads are required by law to inspect and maintain their equipment in good repair, and the Federal Railroad Administration ensures that by auditing records and doing spot inspections, Booth said. It also works with the Department of Transportation and the Pipeline and Hazardous Material Safety Administration, which has taken more than two dozen actions to increase the safety of crude oil transport.

“And we are looking for more ways to make it even safer,” Booth said. “We don’t want to have a single derailment …”

In the past 10 years, Castillo said derailments have decreased 38 percent, largely in part to a derailment and risk reduction process, which includes using lasers and ultrasound to identify rail imperfections, tracking acoustic vibration on wheels to anticipate failures before they happen, and performing real-time analysis of every rail car via trackside sensors. Employees also participate in rigorous, regular safety training programs that include the identification and prevention of derailments, and Union Pacific trains first responders on ways to minimize the impact of derailment in their communities.

Track maintenance projects are part of Union Pacific’s annual maintenance work and scheduled three to five years in advance, Castillo said. From 2005-14, the railroad invested more than $31 billion in its network and operations to support the transportation infrastructure, and it is in the middle of $26.1 million in improvements in the Feather River Canyon area.

The first project is complete and included replacement of 15.2 miles of rail just east of Oroville. The second project, scheduled to begin next month and be complete in August, will replace 36.3 miles of rail at various locations between Keddie and Lake Oroville.

“The Feather River Canyon upgrades will enhance the safe transport of commodities we transport through the canyon,” Castillo said.

Union Pacific and other entities have been working with Butte County recently to improve safety, Gulserian said. That effort included an exercise March 11 with a simulated train derailment near Chico that provided the opportunity to practice alert notifications, areas of authority, staging materials and alerting the public. Another simulation has been scheduled.

Gulserian said it’s encouraging to hear news of rail replacement, as safety and security of hazardous materials is as much a priority for the county as it is for the railroad.

 

Benicia City Council to consider rail safety letter to Feds

Repost from The Benicia Herald
[Editor:  Original documents on the City of Benicia’s website:
      – Staff’s Agenda Report
      – Mayor Patterson’s draft letter of support
      – League of Cities letter requesting letters of support & sample letter]

City Council to mull rail safety missive

By Donna Beth Weilenman, April 2, 2015

Mayor Patterson seeks endorsement of letter calling for action to update federal policy on crude oil transport; no conflict seen with pending Valero request

Benicia, California

Mayor Elizabeth Patterson will ask the City Council on Tuesday to endorse a letter supporting the League of California Cities’ call for increased crude-by-rail safety measures.

Christopher McKenzie, the LCC’s executive director, already has sent a letter March 6 on behalf of its board of directors to U.S. Secretary of Transportation Anthony R. Foxx, asking that his department make LCC’s recommendations part of federal policy in governing rail safety.

“The continued increase in the transport of crude oil by rail, combined with recent rail rail accidents involving oil spills and resulting fires, have served to heighten concerns about rail safety among many of our member cities,” McKenzie wrote.

Rail safety, particularly in transport of crude oil from North Dakota’s Bakken fields, has become a growing concern nationwide and elsewhere.

The California Environmental Protection Agency has been presenting a series of forums on the matter, one of which took place March 26 in Crockett, a meeting attended by several Benicia residents who oppose delivery of oil by train.

In another development this week, WesPac Midstream has dropped the crude-by-rail component of its intent to transform a Pacific Gas and Electric tank farm into a regional oil storage site.

In explaining the move Project Manager Art Diefenbach cited uncertainties about prospective changes in regulations of oil shipping by rail, a series of protests and falling crude prices that have made shipping by train less attractive. Should the project be completed, oil would arrive either by ship or pipeline, which Pittsburg Mayor Pete Longmire suggested would make the operation safer and less controversial.

League-of-CA-Cities-LogoIn his letter, McKenzie cited incidents that prompted the LCC to express its own safety concerns and to offer recommendations that might reduce the potential for accidents.

“Specifically, two derailments accompanied by fires involving unit trains (100 or more tank cars) carrying crude oil in West Virginia and in Ontario, Canada, earlier this month have greatly increased public anxiety about what steps the relevant federal regulatory agencies are taking to improve rail safety and on what timetable,” he wrote.

He said the LCC wanted to make three points: First, that improvements that are required of participating industries should be mandates, not recommendations; second, that the mandates should have a hard deadline for implementation; and third, that the Department of Transportation should include the LCC’s recommendations in the final rule for Safe Transportation of Crude Oil and Flammable Materials.

McKenzie wrote that the LCC wants all federal agencies involved in regulating crude-by-rail shipments to require electronically controlled braking systems on trains carrying the sweeter crude from the North Dakota Bakken oil fields, and to set a sooner date for phasing out or retrofitting the older DOT-111 tanks.

More federal money should be directed toward training and equipment for first responders who are sent to hazardous materials accidents, he wrote, and how the funding is to be distributed needs to be defined. In addition, trains should have maximum speed limits in all areas.

His letter said the LCC wants the number of tank cars that trigger a California Energy Commission and State Emergency Response Commission report lowered to 20 from 33, which in turn would lower the trigger point from shipments of 1.1 million gallons or more to those of 690,000 gallons or more.

Priority routes for positive train control, a technology that incorporates geopositioning tracking to slow or halt trains automatically to reduce collisions, should be identified, McKenzie wrote, and parking and storage of tank cards need regulating, too.

He further wrote that railroads should be forced to comply with their Individual Voluntary Agreements with the US-DOT, because currently there is no requirement for them to do so. Those pacts involve reducing speed limits for oil trains that use older tank cars and travel through urban areas; determining the safest rail route; increased track inspection; adding enhanced braking systems; improving emergency response plans and training; increasing track inspections; and working with cities and communities to address their concerns about oil transport by train.

“The League of California Cities understands that this area of regulation is largely preempted by federal law,” McKenzie wrote. “That is why we are urging specific and timely action by the federal agencies charged with regulatory oversight in this area. We do not expect that derailments and accidents will cease altogether, but we anticipate that stricter safety standards will reduce their numbers over time.”

The LCC also has supplied member cities with a sample letter patterned after McKenzie’s message, to customize before sending to Foxx.

In a report to Benicia City Council, City Manager Brad Kilger wrote, “The League Executive Director has requested that cities send letters to the appropriate federal rail safety rulemaking authority requesting that these measures be implemented.”

Since the preparation of the letter template, he wrote, the LCC has learned that any decisions on improved safety regulations would be made in the Office of Management and Budget.

“The mayor is requesting that the city send a letter on behalf of the Benicia City Council,” Kilger wrote.

Consideration of the letter won’t conflict with future consideration of a request by Valero Benicia Refinery to extend Union Pacific Railroad tracks onto its property and make other modifications so it can substitute rail delivery for tanker ship delivery of crude oil, a highly contentious proposition that is currently undergoing environmental review.

“In that the city is currently processing the use permit and EIR (environmental Impact Report) for the Valero Crude-by-Rail Project, I asked the city attorney to determine whether sending a letter requesting rail safety improvements would in any way create a due process issue for the city,” Kilger wrote.

He said City Attorney Heather McLaughlin informed him there would be no conflict because the letter doesn’t take any position on the Valero project or the adequacy of the ongoing environmental review.

“The letter simply urges the adoption of more stringent federal standards for the transportation of crude by rail,” Kilger wrote.

If the Council agrees the letter should be sent to Foxx, it would be signed by Patterson as mayor, and copies would be sent to California’s two U.S. senators, Dianne Feinstein and Barbara Boxer, all members of California’s delegation in the U.S. House of Representatives, the Federal Railroad Administration, the National Transportation Safety Board, the Solano County Board of Supervisors, the Solano Transportation Authority, Kilger, McLaughlin and members of the Council.

The Council will meet at 7 p.m. Tuesday in the Council Chamber of City Hall, 250 East L St.