Tag Archives: Union Pacific

Oil Boom, Part II: How and why railroads keep oil train information from communities

Repost from Boulder Weekly
[Editor: A good summary on the various states’ responses to weak new federal emergency regulations, and the oil and rail industries’ resistance to same.  – RS]

Oil Boom, Part II: How and why railroads keep oil train information from communities

By Matt Cortina, Thursday, July 31,2014

Last week’s Boulder Weekly cover story “Oil Boom” covered the proliferation of trains carrying volatile crude oil in outdated oil tanks through the hearts of Longmont, Boulder and Louisville. With industry estimates of an oil boom in the nearby Niobrara shale formation, Boulder County residents can expect that the risk of a potential explosion from an oil train will increase over the next decade.

On the day that story was published, documents were leaked from the state of Washington’s Military Department that showed the U.S. Department of Transportation and U.S. railroad companies like Burlington Northern Santa Fe (BNSF) and Union Pacific pressured states to keep information about oil trains concealed from the public.

And so this brief part II to “Oil Boom” will take a look at why railroads are not required to tell citizens about oil trains, why this information needs to be a secret at all and how railroads are now working to enact soft oil transportation standards in order to save billions in revenue.

• • • •

Railroad companies have never been required to tell citizens, municipalities or states the contents of their train cars. Then, in May, the U.S. Department of Transportation ordered railroad companies to disclose to state emergency responders how many trains carrying one million gallons or more of crude oil from the Bakken shale region in North Dakota were coming through that state. This came after nine oil trains, many carrying Bakken crude oil, exploded or derailed in the last 12 months in the U.S. and Canada.

In response, railroad companies asked states to sign a confidentiality request form that would keep that information from being passed on to the public. Some states like California, New Jersey and Virginia signed the agreement. Colorado did not sign the agreement, but did ultimately decide to keep the information confidential.

Conversely, some states, such as Washington, North Dakota and Wisconsin, decided to make the information public. This was not without contention from the rail companies. When Montana said it would do the same, BNSF promptly wrote to the state that it would consider legal action to keep the information hidden.

And in Washington, one state official wrote in an email (obtained by DeSmogBlog), “looks like UP is trying to put the burden on us vis-à-vis information transfer on oil trains,” noting that Union Pacific’s confidentiality request claimed states were requesting information about Bakken crude oil shipments, instead of that railroads are now required to share that information.

All this fuss from railroad companies concerns just one mandate on one very large amount of oil from one of several drilling areas nationwide. And that information doesn’t need to be sent until 30 days after trains pass through the state.

This mandate is effectively irrele vant for Boulder County. Crude oil shipped through the county comes from the Niobrara in Northern Colorado. Transporting this crude, like everything that’s not one million gallons of Bakken crude, does not require notification even though it can still overheat and explode and it is still shipped in outdated, dangerous tanks.

What is relevant is that the Niobrara shale region has been deemed by the oil and gas industry as the “next Bakken” region, so legislation and precedent for that region will affect how crude oil is transported through Boulder County in the future.

Now, railroads can keep the majority of oil train information hidden from the public because they have help from federal and state officials.

For instance, in ordering railroads to share Bakken crude oil train information with local emergency responders, the U.S. Department of Transportation also encouraged states to keep that information from the public in a FAQ that accompanied the emergency order.

Mark Davis, Union Pacific regional media director, says the issue is that railroads could face “security” issues if conservative monthly data about crude oil transportation is made public.

“A lot of that is the historic security concerns that were started following 9/11,” says Davis. “I know that is something that on the security side, that from a federal standpoint, they’re taking a look at and reviewing that process.”

Davis added that he was “not sure” if any actual threats to Union Pacific oil trains have been recorded, but that the security detail on crude oil transport via rail is “massive” and involves national, state and local authorities.

According to Dave Hard, director of the Colorado Division of Emergency Management, the state of Colorado is keeping what little oil train information it does receive hidden from the public not because of security concerns but because it is “business confidential.”

“The original guidance we received from the Department of Transportation […] made it clear that at the time, the federal D.O.T. considered it security sensitive and business confidential,” Hard says.

Hard says his department and the Colorado Department of Public Health and Environment and the Colorado Department of Public Safety then reviewed the Colorado Open Records Act (CORA) standards and agreed that crude oil shipments were still “not subject to public disclosure.”

“They still maintain business confidentiality viewpoints. The state is still honoring that [all oil train information] is not for public disclosure, it is for the purposes of preparing [emergency response personnel],” Hard says.

Railroads are also subject to the Emergency Planning and Community Right-to-Know Act, which requires them to report the transport of hazardous materials to local and state emergency responders. But, for some reason, petroleum products including crude oil are exempt from this mandate.

The bottom line is that railroads are privately owned and not required to notify anyone of the contents of their trains. They are, at least, required to make their transport of volatile materials safe.

The Department of Transportation recently issued safety recommendations for railroads carrying crude oil. These recommendations included updated tank cars, new routing systems and reducing the speed of oil tank cars.

But railroads like BNSF, Union Pacific and CSX said implementing these safety measures would be too costly.

In a presentation to the White House Office of Information and Regulatory Affairs, which will amend and codify the safety standards introduced by the Department of Transportation, presenters for the railroads laid out the costs of implementing moderate safety measures.

First, railroads would pay $2.8 billion for capital improvements to railways across the country. Reducing the speed of trains would call for oil companies to build more tankers to the tune of $1.5 billion in order to maintain supply quotas. Reducing train speed would also cost the railroads themselves about $630 million per year because they’d have to pay for additional crew, fuel costs and “lost productivity of track maintenance workers.”

Train speed and outdated tank cars are by far the most common cause of derailments and explosions. Tank cars are not built for modern crude oil and train speed has many times caused modern volatile crude oil to overheat and explode.

BNSF went on to say that implementing these safety measures would take about four years and would result in “the immediate loss of existing business” and growth would be stifled.

Railroad officials and lobbyists are currently working beside federal lawmakers to carve out the new safety and notification rules for crude oil by rail transport. Initial regulations could come as soon as this year.

 

Oil Boom, Part I: Boulder County’s growing risk from trains hauling undeclared explosive materials

Repost from Boulder Weekly
[Editor – Significant quote: “The library and the post office. A dozen schools. Hundreds of homes. Parks. Every brewery (oh god). Ten gas stations. The wastewater treatment facility. It can all go up in flames at any minute — and that’s just in Longmont. All you’ll hear is a whistle and a boom.”  Along with Part II, this article covers many of the most important issues on the crude by rail boom.  – RS]

Oil Boom, Part I: Boulder County’s growing risk from trains hauling undeclared explosive materials

By Matt Cortina, Thursday, July 24,2014
Wikimedia Commons/Albert Bridge – Many oil tankers are outdated and unsafe

The library and the post office. A dozen schools. Hundreds of homes. Parks. Every brewery (oh god). Ten gas stations. The wastewater treatment facility. It can all go up in flames at any minute — and that’s just in Longmont. All you’ll hear is a whistle and a boom.

The number of trains carrying crude oil and other volatile materials through Boulder County is increasing, and with it comes the increased risk of a catastrophic explosion — from derailments, from outdated storage tanks and from increased rail traffic.

Perhaps the most startling fact is this: The amount of crude oil on U.S. railways has increased 3,500 percent in the last five years — from 325 million gallons in 2009 to 12 billion gallons in 2013. This is because there is more crude oil to ship out of the Bakken shale formation in North Dakota and — more relevant to Boulder County — the Niobrara shale formation in northern Colorado and Wyoming. In order to meet this demand, railroads and oil distributors are using outdated tank cars (at least more than half of all oil is shipped in these cars) that are not built to carry the more volatile oil that is found in the region and that can explode — and have exploded — from simply overheating.

And yet railroad companies are not required to tell citizens, local or state governments the contents of their cars. It is proclaimed both a matter of national security and industry competitive secrets.

“Railroads are certainly a private industry,” says Greg Stasinos, of the Colorado Department of Public Health and Environment. “That’s something that they can keep within their rights” — even though those same trains are now affecting a much greater area than the rails they ride on.

In the last 12 months alone, nine trains carrying crude oil derailed or exploded in the U.S. and Canada, including a May 10 derailment outside of Greeley that spilled 65,000 gallons of oil. The worst incident by far was the July 6, 2013 derailment in Lac- Mégantic, Quebec. An unattended 72-car freight train carrying Bakken oil ran loose and exploded in the small town’s center. Forty-two people were killed and half the town’s buildings were destroyed.

In the U.S., a 90-car train derailed in western Alabama last November, shooting flames 300 feet into the sky and emptying nearly all of its 2.9 million gallons of crude oil into a swamp.

The area is still being cleaned.

Fortunately, most of those crashes occurred in unpopulated areas — the vast majority of track is located outside of city centers. However, increased output from the nearby Niobrara shale formation will send more oil trains through Boulder County in coming years — the Oil and Gas Journal (an industry magazine) says the Niobrara is emerging and “companies have been busy leasing land for future drilling. It has been compared by some to the Bakken shale formation farther to the north.”

Two rail companies operate the majority of railroads in Colorado: Union Pacific and Burlington Northern Santa Fe (BNSF). Union Pacific does not own rail in Boulder County; instead, they have track heading north out of Denver that bends east through Greeley and up to Cheyenne. BNSF, however, has track that runs northwest from Denver through downtown Louisville and Longmont (and east Boulder) before heading through Fort Collins on its way to Cheyenne.

If a drilling company contracts with BNSF, that cargo — if it’s headed through the Front Range — can only use BNSF rail; that is, it can only come through Boulder County.

Rick Bay

rick_bay_photo_longmont.jpg
Tracks running next to residential neighborhoods in Old Town Longmont.

Between four and 10 trains carrying Niobrara crude oil will pass through Colorado every week, says Andy Williams of BNSF. Many of those oil trains will pass along the track in Boulder County, according to Boulder Deputy Fire Chief Mike Calderazzo. (A map of Colorado track rights shows that the only full BNSF track in and out of the state runs north and south, including the stretch through Boulder County.) Routes vary greatly, Williams says, depending on where the shipper directs BNSF to deliver materials. Trains that carry crude oil, however, are likely coming from a Niobrara drilling site to a refinery on the Gulf Coast (Colorado is home to only one crude oil refinery, in Commerce City).

It should be noted that railroads, as common carriers, are required under federal law to ship hazardous materials like crude oil. They do not own many of the tank cars (less than 1 percent, according to the Association of American Railroads), or their contents, but they are responsible for its safetransport.

Williams says that BNSF does not make information available to the public about what trains are carrying and where they are going. They do, on occasion, notify local emergency responders like Calderazzo, the Boulder Fire Department and local hazardous materials teams when very large shipments of volatile materials are being transported through the county. Often these notifications come days or weeks after an oil train has passed through the area, or not at all.

“Railroads are very good at maintaining manifests so they know exactly what’s in each car, but I can’t say we receive any information letting us know what goes through each week,” says Mike Selan, Longmont Hazardous Materials Inspector.

“A lot of it is protected for national security reasons,” Calderazzo says. “They’re pretty powerful folks and they can withhold information from regular callers, but they do notify us that there are substantial amounts of crude oil coming through the county.”

In fact, railroads have only one requirement when it comes to notifying state and local government of the trans portation of hazardous materials. It’s a recent emergency order from the U.S. Department of Transportation that calls for railroads to notify state emergency response commissions when they are transporting more than one million gallons of Bakken crude oil. When other crude oil or hazardous materials are transported — as is mostly the case in Boulder County — emergency officials need not be told. And if they are told, that information is confidential and cannot be shared with the public.

“It is sensitive, confidential information,” says Amy Danzl, an emergency management specialist with the Boulder Office of Emergency Management. “We get them straight from BNSF or UP. They consider it trade secret stuff.”

The Colorado Department of Public Health and Environment, not the state emergency management office, manages those notifications. Stasinos, who serves as deputy director of the emergency response division at the state health department, says both Union Pacific and BNSF have sent notifications to the state saying they do not ship Bakken crude oil in Colorado yet.

So the main, and often only, resource that first responders have to prepare for the derailment of an oil train is something called a commodity flow study. These studies are provided by the railroad quarterly or annually upon request of local emergency response teams and list all the materials that have been transported by the company through a specific area in the last year.

Thus, emergency teams can prepare generally for the types of hazardous materials they might encounter in a spill or derailment, but they can’t know beforehand when a train carrying those materials is coming through town.

“We make sure our hazmat teams monitor those so they know generally what comes through,” Danzl says. “So it’s not a day-to-day, here’s what’s coming through the county, but it is, here’s what happened over the last 12 months and that allows us to analyze that and plan accordingly so we can make sure our response capabilities are adequate.”

Those commodity flow studies have indicated to Boulder and Longmont emergency response personnel that crude oil and the cars they’re transported in, although not from the Bakken region, are still major concerns.

“The worst thing that could happen is a crude oil leak and a fire in a derailment,” Calderazzo says. “Then we have to figure out what we do with the smoke, people would have real problems with that, then we need to worry about where the leak is going.

“We look at the county and we look at sensitive environmental areas and sensitive population areas. We haven’t had any incidents in the county [so far] and I don’t really believe we’re under any additional risk other than if it’s true that crude is flowing in greater quantities.”

If the 3,500 percent increase in oil shipments nationally since 2009 and the industry quotes of gold rush-like Niobrara output aren’t enough, Union Pacific’s Mark Davis says of the possibility of increase in northern Colorado oil transportation: “Oh, definitely.” (Then, less succinctly, “We have Niobrara crude moving on us. There’s a couple plants or production facilities that are looking to come online in your neck of the woods.”) The dangerous part of all of this does not lay solely in the fact that the greatest ever quantity of crude oil is now being shipped throughout the country. Instead, perhaps the greatest reason for concern is what this oil is being shipped in.

When you see a train come through town, you’re likely to see one of several car types: crates used to ship commercial goods, racks used to transport cars and big industrial parts, empty beds, etc. Crude oil and other hazardous materials are shipped in a big pressurized black cylinder that dips slightly in the middle, on the top, where the release valve is.

Newer models of this tank are built to carry crude oil, specifically oil from the Bakken and emerging regions like our Niobrara crude, which has been said to be more volatile than oil that was transported in the past. The problem is, the majority of tanks used are the old models (called the DOT- 111), and many people (even the railroad companies) are not confident it is safe to transport this newer breed of crude oil in them.

“The older crude oil tanks were designed for crude oil that did not have a lot of pressure — a lot of vapor dissolved in it,” Calderazzo says. “And I’m told the newer crude, the stuff that’s coming out from fracking, has dissolved gas in it, so the real problem is over-pressurization of tanks. They go down the tracks and overheat.” And then explode.

Eddie Scher, communications director for nonprofit group Forest Ethics, says communities ultimately bear the risk for rail and oil companies who make money sending crude oil in unsafe tanks through population zones.

“If the practice is too dangerous to do then don’t do it,” Scher says. “[The DOT-111] is an antiquated design, it doesn’t protect in derailment, it’s likely to puncture, it doesn’t hold pressure so it releases into the atmosphere. These things are unsafe and shouldn’t be carrying oil of any kind.”

The Department of Transportation urged carriers and oil companies to stop use of DOT-111 cars immediately in May. Out of a total 335,000 tank cars in use across the country, about 228,000 — or two out of every three — are DOT-111 cars, according to the Association of American Railroads.

Williams says that although BNSF does not own the current tanks, they are working to build new, safer tanks to transport crude oil or to retrofit the dangerous old tanks. Every new tank car built since late 2011 has new design features like thicker walls, a high capacity pressure release valve and thermal protection.

But outdated tanks are not the only way in which a train carrying crude oil can cause significant damage to communities. Unprompted derailments, improper exchanges of tanks at depots, leaks, and collisions with other trains and structures have all led to serious explosions within the last 12 months. The issue is also not just the potential harm to people, but previous oil train derailments have caused negative environmental impacts, long-term damage to local infastructure and structural damage. And so adding more oil trains to the rails, specifically in Boulder County where track is narrow and frequently passes through population zones, is cause for concern.

Derailments, spills, leaks and explosions have a much wider impact area than just the immediate vicinity of the railroad (of which, unfortunately, the Quebec derailment was proof). Forest Ethics even put together a map of zones that would be impacted by a derailment and explosion (available at www.explosive-crude-by-rail.org). The map combines data from research, information from railroads and eyewitness accounts with Department of Transportation evacuation areas to create a “blast zone,” or a one-mile area on either side of a track that could experience significant damage from an oil train catastrophe.

This “blast zone” follows the BNSF track in Boulder County. The track parallels Main Street in Longmont before hooking southwest along Foothills Parkway toward Boulder. It breaks sharply east when it gets to about 28th and Arapahoe in

Boulder, then slowly crooks south through downtown Louisville, just scraping the edge of Lafayette. Again, the Department of Transportation views anything within a mile on either side of that route as a hazardous area should a derailment occur.

Planning to deal with an unknown material at an unknown time that could affect an unknown amount of people with an unknown amount of state or rail support cannot be easy. Boulder County, City of Boulder and City of Longmont officials all say they have been trained on how to deal with a variety of hazmat situations, but that they can’t prepare for everything. In fact, many local officials were still unclear about who would notify them in the case of a crude oil disaster and if crude oil was even being transported in the area.

“We can’t plan for every single [situation],” Calderazzo says.

“One tank car, depending on the product, can be a pretty big deal. Take chlorine. Chlorine, if it’s the anhydrous kind, can take just one tank car [to create major damage]. So we look at what are the most cars coming through — we only need [that information] on an annual basis. We try to go with, well, if crude oil is the big commodity then what would we do in terms of a risk assessment of crude oil?” There are regulations on what can and cannot be transported via rail and how rail companies must mark cars that contain hazardous materials. For instance, train cars carrying crude oil will have the number 1267, called a UN number (based on UN standards) on all four sides of the car and a diamond shaped warning label. Cars containing chlorine will have the number 1017, while those with liquefied petroleum gas will have the number 1075. Other hazardous materials that are transported in the area like molten sulfur, ethanol, propionic acid and diesel also have corresponding numbers available on the Department of Transportation website. (Williams says BNSF “typically [does] not operate ethanol trains in Colorado.”) Stasinos says that, at the state emergency level, training for spills with Bakken or Niobrara crude oil is the same as it is for other types of oil spills, even though it is likely more volatile than other crude oil. This training has been in place for more than two decades, he says.

That training includes a hazmat certification program run by the state that all local emergency personnel in Boulder County are required to take. Emergency personnel are drilled on how to treat all types of rail cars, learning what to do if there’s a leak, how to contain it, what to do if there’s a fire, projection modeling and how to protect people in the “blast zone.”

Oil train safety is also on the mind of state and national officials — the U.S. Fire Administration sent out a one-sheet “Coffee Break Training” entitled “Bakken Crude in Transportation” last month, while the EPA’s latest newsletter outlines the rise and risk of transporting crude oil. The newsletter heralds the recent Department of Transportation notification requirement as a step to improved community safety and encourages rail carriers to test all crude oil to determine its volatility class before shipping it.

Even BNSF is now offering three-day classes to local emergency responders on how to deal with crude oil disasters. BNSF runs free railroad hazmat response training to about 4,000 local emergency responders every year in communities across their network.

Still, advocates seeking to bring attention to the danger of oil trains say communities shouldn’t have to deal with the risk of catastrophe from a derailment. Scher says the choice of transporting oil via train or via pipeline — of which both have significant safety issues — or via any other method is a “false choice.”

“The idea that the oil has to be moved and so somebody needs to be forced to take the risk is wrongheaded,” Scher says. “It’s not something we should have to accept. We should not be accepting this massive rise of dangerous trains through our population centers. There are regulations under review at the White House; we want those to be strong. And one thing we believe is communities should have the right to say no to these trains.”

New map shows California emergency teams not in best position for oil train response

Repost from The Sacramento Bee
[Editor: This interactive OES map, “Rail Risk and Response” is an incredibly detailed resource – as you zoom in, additional features appear.  Hazards shown on the map include geologically unstable areas, proximity to dense population centers, proximity to waterways, schools and hospitals, pipelines, sensitive species or habitat, etc.  The story in the Sacramento Bee does not contain a link to the map.   Here’s the intro page for the interactive map.   And here’s the map itself.  – RS]

New map shows California emergency teams not in best position for oil train response

By Curtis Tate, McClatchy Newspapers, Jul. 4, 2014

A map put together by multiple state agencies in California shows that the location and capability of emergency response teams don’t always align with the biggest risks presented by an expected increase in crude oil shipments by rail in the coming years.

The map shows that the state’s largest population centers, including Sacramento, the Bay Area and Los Angeles, have the most robust emergency response capabilities.

But rural stretches of California’s rail network, including locations with a history of derailments, have the least equipped and least trained emergency response teams, according to the map produced by the Interagency Working Group on Oil by Rail Safety.

The map shows large concentrations of hospitals, schools and neighborhoods around many rail lines through California cities. Additionally, it shows that the state’s rail network frequently intersects with fault lines, rivers and streams and sensitive wildlife habitats.

California has some of the best-trained and best-equipped emergency response teams in the country, according to some experts, but they’re not always where they’re needed.

“Proximity matters,” said Kelly Huston, a spokesman for the state Office of Emergency Services.

Since Gov. Jerry Brown proposed a shift in state oil spill and prevention resources in his budget in January, members of the California Legislature have held hearings and offered legislation to improve the state’s preparedness.

“Everyone recognizes this is a critical need throughout the state,” said state Sen. Fran Pavley, D-Agoura Hills.

Starting next year, California will begin imposing a 6.5-cent-a-barrel fee on oil transported to the state by rail to fund oil spill response and prevention efforts. State lawmakers have introduced another bill to levy an additional fee to train and equip firefighters who may be called to respond to a rail incident.

California officials soon expect the state to receive as much as a quarter of its oil supply by rail, which means more frequent train movements through the state’s highest-risk areas.

“It makes what we’re doing that much more important,” said state Sen. Jerry Hill, D-San Mateo.

The map was presented last week by the state Environmental Protection Agency at a workshop on crude oil trends at Berkeley City College. It shows a dearth of response capability in locations where derailments have occurred more frequently, according to the California Public Utilities Commission.

These include the Cantara Loop on the upper Sacramento River, the site of a 1991 train derailment that released thousands of gallons of pesticide, killing fish along a 40-mile stretch of the river.

They also include the Feather River Canyon, which according to documents released last week by OES, is the route of a twice-monthly train of Bakken crude oil. The trains, operated by BNSF, pass through Sacramento on their way to a rail terminal in Richmond.

“A spill into these sources of water makes it even more problematic,” Pavley said.

Another vulnerable site: Cuesta Grade, a steep, serpentine stretch of track north of San Luis Obispo. A proposed crude-by-rail terminal at the Phillips 66 refinery in Santa Maria, south of San Luis Obispo, would bring five 80-car oil trains a week over the line, operated by Union Pacific.

Aaron Hunt, a spokesman for Union Pacific, said that the railroad had reached out to fire departments across California in the communities where it operates and has offered “comprehensive” hazardous materials training to first responders around the state.

“We annually train local, state and federal first-responders on protocols to minimize the impact of a derailment in their communities,” he said.

BNSF, the railroad that hauls more crude oil than any in North America, is offering hazardous materials training for hundreds of firefighters, including some in Sacramento, according to spokeswoman Lena Kent.

Trains transporting crude oil are not new in California. From 1983 to 1997, Southern Pacific Railroad operated one such train every day between Bakersfield and South Los Angeles over the Tehachapi Pass.

But that oil was thicker California crude that doesn’t ignite easily, and it was also transported in specially designed tank cars. Much of the crude oil coming into the state today is lighter and more flammable, and it’s loaded into a fleet of tank cars with a long record of failure in derailments.

“In light of new risks, it’s essential for first responders to have the right training and equipment to prepare for and respond to accidents,” said Curtis Brundage, a hazardous materials specialist with the San Bernardino Fire Department, in a state Senate hearing last month.

The worst accident occurred a year ago, in Lac-Megantic, Quebec. An unmanned Bakken crude oil train broke loose and derailed in the center of town. Massive fires and explosions killed 47 people and leveled entire blocks of buildings.

More derailments followed, though none fatal, as the railroads and the federal government initiated a series of safety improvements. Emergency response officials from all over the country have testified in Washington in the past few months that local fire departments lack the resources to confront large fires from trains carrying 3 million gallons of oil.

In a report last month, OES made a dozen recommendations to improve the safety of California communities, including increased track inspections, stronger tank cars, more funding for emergency response and better notification of hazardous shipments from the railroads.

Hill gives the railroads credit for taking the issue seriously with stepped-up track inspections, new operating procedures, orders for stronger tank cars and offers to train emergency personnel. But he added that state lawmakers and agencies were right to push for more before a trickle of oil shipments by rail to California turned into a steady stream.

“We saw what happened elsewhere,” he said. “This is just to make sure California is prepared.”

Railroads oppose some oil train safety measures

Repost from Politico

Documents: Railroads want to hit brakes on some oil train safeguards

By KATHRYN A. WOLFE | 6/13/14 5:08 AM EDT
A fireball goes up at the site of an oil train derailment in Casselton, North Dakota, on Dec. 20, 2013.
The report previews what the administration may be considering to stop crashes. | AP Photo: A fireball goes up at the site of an oil train derailment in Casselton, North Dakota, on Dec. 20, 2013.

The railroad industry is warning the White House against some potential safety rules for trains carrying explosive crude oil, saying freight and passenger rail traffic could be disrupted for years if companies must obey 30 mph speed limits, install more sophisticated brakes and keep the trains manned at all times.

The arguments, contained in documents posted after a meeting this week between railroad officials and the Office of Management and Budget, also offer a preview of what steps the Obama administration may be considering in response to oil train crashes that have struck the U.S. and Canada in the past year. Those include a disastrous July 6 explosion that killed 47 people in Lac-Mégantic, Quebec, after an engineer left a train packed with North Dakota crude oil parked on a steep incline with brakes that may not have been properly set.

The Department of Transportation declined to comment on the documents. DOT submitted a draft rule proposal to OMB in April but has offered no details about what’s in it.

Companies represented at Tuesday’s OMB meeting included the four major freight railroads — BNSF, Union Pacific, Norfolk Southern and CSX — as well as other industry groups and Amtrak, according to White House records.

While Amtrak doesn’t haul crude oil, a BNSF handout arguing against lower speed limits said the passenger rail’s travel schedules on one 1,815-mile route could be lengthened by two hours if oil trains’ top speeds are lowered to 30 mph from 50 mph. That route stretches between Aurora, Ill., and Spokane, Wash., which BNSF called its primary route for crude oil.

Slowdowns would cause “severe” impacts for the railroad’s operations, including both oil and grain shipments, BNSF said in the handout, calculating six-hour delays for freight trains along the same route. All told, the railroad said it would have to spend $2.8 billion to rebuild its lost shipping capacity during the next four years, while facing $630 million in additional annual expenses such as additional crew wages and lost productivity.

The Association of American Railroads, the freight railroad industry’s main trade group, offered a similar document on the speed limit issue.

None of the documents address the main issue people are expecting the DOT rule to address: increased safety requirements for the tanker cars that carry the oil.

Oil train traffic across the U.S. has increased 40-fold since 2008 because of booming production in places like North Dakota and western Canada. It’s also become an increasingly contentious issue for communities from California and Washington state to Albany, N.Y., and Lynchburg, Va.

The documents may not accurately reflect DOT’s undisclosed draft — the railroads may have been blindly making a case for what they don’t want to see happen. But they reveal that industry insiders have given thought to potential regulations that would go much further than the mostly voluntary measures DOT has imposed so far.

Earlier this year, DOT announced that railroads had voluntarily agreed to restrict some oil trains to 40 mph in certain populous areas.

But lowering the speed limit to 30 mph would harm “delivery capability” for BNSF’s oil customers, the railroad said in the document. To keep up with demand, it said, it would have to add an additional 11,280 tank cars to its crude oil fleet.

In the other documents posted on OMB’s website:

— A handout from CSX argues against requiring electronically controlled pneumatic braking systems, saying the technology is “expensive and only works if the entire train is equipped.” The company says the brakes would have “limited use and minimal safety impact.”

As part of an existing voluntary agreement between the industry and DOT, railroads agreed to equip all trains pulling 20 or more carloads of crude oil with other types of advanced braking systems — either distributed power or two-way telemetry end-of-train devices.

— And a final handout, whose authorship is unclear, argues against requiring that crude oil trains never be left unattended. It says “attending crude oil trains from origin to destination will increase congestion, require additional handling, and significantly drive up costs,” including $96 per hour for a two-person crew.

It also says that “appropriate securement and security measures are already in place to ensure safe movement of crude oil shipments.”