Tag Archives: Volatility

Bakken Crude, Benicia CA, Bridge safety, California, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Fire, Hazmat notification, Massive increase in crude-by-rail, Oil Industry, Oil prices, Rail inspection, Valero Benicia Refinery, Valero Crude By Rail, Volatility

Crude oil train shipments dwindle in California, for now

Repost from The Sacramento Bee

Crude oil train shipments dwindle in California, for now

By Tony Bizjak, 03/11/2015 9:47 PM
A BNSF train carries Bakken crude oil in the hills outside the Feather River Canyon last June.
A BNSF train carries Bakken crude oil in the hills outside the Feather River Canyon last June. Jake Miille / Special to The Bee

A year ago, California officials nervously braced for an influx of milelong trains carrying volatile crude oil to refineries in the Valley and on the coast – trains similar to the one that exploded two years ago in Canada, killing 47 people.

The trains never arrived. Although tank cars full of oil now roll daily through cities in the Midwest and East, provoking fears of crashes and fires, the number of oil trains entering California has remained surprisingly low, state safety regulators say, no more than a handful a month. In recent weeks, they appear to have dwindled to almost nothing.

The reasons appear to be mainly economic.

“Crude oil shipments from out of state have virtually stopped,” said Paul King, rail safety chief at the California Public Utilities Commission. “Our information is that no crude oil trains are expected for the rest of this month.”

Most notably, the BNSF Railway recently stopped running a 100-car train of volatile oil from the Bakken region of North Dakota through the Feather River Canyon and midtown Sacramento to the Bay Area. The trains, several a month, carried an estimated 3 million gallons of fuel each.

Bakken oil, a lighter type of crude, similar to gasoline, has gained a fearsome reputation since it entered the national scene a few years ago. A string of Bakken train explosions around the country prompted the federal government to issue a warning last year about the oil’s unusual volatility and launch efforts to write stiffer regulations on rail transport, including a proposal to require sturdier tank cars for oil.

Two more Bakken train derailments and explosive fires recently in West Virginia and Illinois triggered a new round of complaints that the federal government is dragging its heels in finalizing those regulations.

The BNSF train through Sacramento was believed to be the only train in California carrying 100 cars of Bakken oil. PUC rail safety deputy director King said his commission’s rail monitors have been told by owners of a Richmond oil transfer station in the Bay Area that refiners stopped the shipments in November as global oil prices dropped.

California Energy Commission fuels specialist Gordon Schremp said lower prices for other types of oil have made Bakken marginally less marketable in California, although that could easily change in the future.

Other projects, like a Valero Refining Co. plan to run two 50-car oil trains daily through Sacramento beginning this spring to its Benicia plant, have not yet gotten off the ground, in part because of political opposition. Under pressure from state officials, including Attorney General Kamala Harris, Benicia recently announced it is redoing part of its environmental and risk analysis of the Valero rail project. Valero has said it intends to ship lighter fuels, but has declined to say whether those will be Bakken.

State safety officials said the slowdown provides a bit more time to provide hazardous-materials training for more firefighters, as well as to put together a state rail-bridge inspection program and to upgrade disaster and waterway spill preparedness. But state officials said they still feel like they’re playing catch-up as they prepare for existing and future potential rail hazards.

“This apparent reprieve may seem helpful, but we still have substantial amounts of … hazardous materials traveling across California’s rail lines,” said Kelly Huston, deputy director of the state Office of Emergency Services. “It only takes one train to create a major disaster.”

Oil prices have begun rising again, and state officials say they expect Bakken shipments to Richmond and potentially elsewhere to be back on track at some point. “We don’t have any concrete info about when it will resume,” the PUC’s King said. “When prices come up, it is likely to resume, and that could be in months.”

Federal emergency rules require railroads to report to states when they run trains carrying more than 1 million gallons of Bakken crude, and then again when that amount changes by 25 percent or more. BNSF sent the state Office of Emergency Services a brief notice on Wednesday acknowledging it had not shipped more than 1 million gallons of Bakken on any train in the last week. The notice does not say how long ago the shipments stopped or when they may resume.

BNSF officials have contended in letters to the state that shipping information is proprietary and should be kept secret. A BNSF spokeswoman declined this week to discuss shipments with The Sacramento Bee, writing in an email, “Information regarding hazardous material shipments is only provided to emergency responders.”

King of the PUC said his monitors estimate that eight or more non-Bakken crude oil trains had been entering the state monthly from Canadian and Colorado oil fields recently, headed to refineries or transfer stations. The Canadian oil, called tar sands, is not considered as explosive as Bakken, but two tar-sands trains derailed and exploded in recent weeks in Ontario, creating fires that lasted several days.

The national concern about crude oil rail shipments follows a boom in domestic oil production, notably in North Dakota, where hydraulic-fracturing advances have freed up immense deposits of shale oil. Lacking pipeline access, North Dakota companies have turned to trains to ship the oil mainly to East and Gulf Coast refineries and to Washington state. Crude by rail shipments in the United States skyrocketed from 9,500 carloads in 2008 to 436,000 in 2013, according to congressional data.

California continues to produce a sizable amount of its own oil in Kern County and receives marine shipments from Alaska and foreign sources. Still, a recent state energy-needs analysis estimates the state could receive as much as 23 percent of its oil via train or barge from continental sources, including North Dakota, Canada, Texas and other Western states, in the coming years. That estimate is based on plans by refineries in Benicia, San Luis Obispo and Kern County to build rail facilities that can accommodate large crude transports.

Bakken Crude, CPC-1232, Crude By Rail, Derailment, Explosion, Fire, Insurance and liability, Massive increase in crude-by-rail, Rivers, Tar sands crude, Train braking systems, Volatility

WALL STREET JOURNAL: In Recent Derailments, Newer Tougher Railcars Failed to Prevent Rupture

Repost from The Wall Street Journal

Wrecks Hit Tougher Oil Railcars

Sturdier train cars built to carry crude oil have failed to prevent spills in recent derailments 

By Russell Gold, March 8, 2015 9:36 p.m. ET
Galena
Fire continued Friday after a train carrying 103 railcars loaded with crude oil from North Dakota’s Bakken Shale derailed south of Galena, Ill. Photo: Associated Press

In a string of recent oil train derailments in the U.S. and Canada, new and sturdier railroad tanker cars being built to carry a rising tide of crude oil across the continent have failed to prevent ruptures.

These tank cars, called CPC-1232s, are the new workhorses of the soaring crude-by-rail industry, carrying hundreds of thousands of barrels a day across the two countries.

But the four recent accidents are a sign that the new tanker cars are still prone to rupture in a derailment. The ruptures could increase momentum for rules aimed at further reducing the risk of shipping crude by rail.

In the last month, there have been significant derailments of crude-carrying trains in West Virginia and Illinois, plus two in Ontario, including one Saturday in a remote part of the Canadian province.

Each train was hauling the new tank cars, which weren’t able to prevent the crude from escaping, leaking into one river and exploding into several giant fireballs.

“These new type of cars were supposed to be safer, but it’s obvious these cars are not good enough or safe enough,” said Claude Gravelle, a Canadian lawmaker who represents the northern Ontario area where two recent derailments occurred.

On Sunday, emergency workers were still trying to extinguish fires in multiple tank cars after 30 cars of a 94-car Canadian National Railway Co. train laden with Alberta crude derailed Saturday near Gogoma, Ontario. Five cars landed in a waterway.

The energy industry began using rail to transport oil in 2008 because it was a fast and inexpensive way to move growing volumes largely from the Bakken Shale in North Dakota.

In addition, building new pipelines has been expensive and politically fraught. In February, President Barack Obama vetoed legislation to approve the Keystone XL pipeline, which has been under review by the Obama administration for more than six years.

The robustness of tanker cars has become a major focus of efforts to improve the safety of shipping crude by rail. Such shipments have soared from about 21,200 barrels a day in 2009 to 1.04 million barrels a day by the end of 2014, according to government statistics.

As the U.S. shale boom gathered speed, the safety of growing crude shipments by rail has attracted greater scrutiny in the U.S. and Canada, especially after a 2013 derailment in Lac-Mégantic, Quebec, that claimed 47 lives.

Speed limits have been adopted, and a new rule in North Dakota that will take effect next month requires crude from the state to be treated to make the crude less combustible.

The cars involved in the two Ontario derailments and the incidents in West Virginia and Illinois all met the standards introduced by the rail industry in 2011 as a significant upgrade over older models, and were built with thicker shells and pressure-relief devices.

Fiery_TracksThere are about 60,000 of the new CPC-1232 tanker cars in use hauling crude oil across North America, as well as about 100,000 of the older models, says the Association of American Railroads.

Last year, the Transportation Department proposed additional new rules for tank cars carrying crude, presenting three main options. One would stick with the CPC-1232, but the other two would make new cars stronger and retrofit existing cars.

The White House is now reviewing these options and is expected to issue recommendations in May.

Ed Greenberg, a spokesman for the Association of American Railroads, said the railroad-industry trade group “wants all tank cars carrying crude oil, including the CPC-1232, to be upgraded by retrofitting or taken out of service. Railroads share the public’s deep concern regarding the safe movement of crude oil by rail.”

The American Petroleum Institute, the oil industry’s trade group, says it also supports upgrades to the tanker fleet to improve safety.

Cynthia Quarterman, a former director of the Pipeline and Hazardous Materials Safety Administration who stepped down last October, said the recent incidents “confirm that the CPC-1232 just doesn’t cut it.”

Tanker-car improvements alone won’t be enough to reduce overall risk, she added. “The crashworthiness of the tank cars does need to be raised, but that’s not enough. There needs to be a comprehensive solution, including better brakes to help minimize pileups.”

The four recent crashes also highlight some of the other risks of carrying crude by rail that seem to be persistent.

Two of the derailments involved Bakken crude from North Dakota, which contains a high level of gas, making it more volatile than other kinds of crude. In the Mount Carbon, W.Va., accident in February, nearly two dozen tankers full of crude derailed and were engulfed in flames, some exploding into fireballs that rose more than 100 feet in the air.

Tests on the crude showed that its vapor pressure, a measure of volatility, exceeded a new regulatory standard that will go into effect next month.

The recent derailments involved long trains that are essentially mobile pipelines as much as a mile long. The BNSF Railway Co. train that derailed and caught fire in Galena, Ill., 160 miles northwest of Chicago, was roughly a mile long and carrying 103 railcars loaded with crude from North Dakota’s Bakken Shale. BNSF is a unit of  Berkshire Hathaway Inc.

“We certainly believe that a stronger tank car is necessary and appropriate,” said Mike Treviño, a BNSF spokesman. A Canadian National spokesman said the company is in favor of stronger tank-car design standards.

The train in the Canadian National accident in Ontario over the weekend was 94 cars long, while the West Virginia train had 109 tankers full of North Dakota crude oil.

Canadian Transport Minister Lisa Raitt referred to “very long” unit trains last month when she proposed a new tax on crude shipments by rail aimed at building an insurance fund. “With that increased length of car, there’s an increased risk associated with it,” she said.

The number of derailments on long-haul tracks in the U.S. has declined 21% since 2009, according to the Federal Railroad Administration. But the number of train accidents related to “fire” or “violent rupture” climbed to 38 last year from 20 in 2009.

Bakken Crude, Blast zone, Bridge safety, Cleanup funding, CPC-1232, Derailment, DOT-111, Emergency Readiness & Response, Explosion, Fire, Flash point, Foam, Fracking, Let it burn, Massive increase in crude-by-rail, Oil spill, Rail crossings, Rail inspection, Risk Assessment, Tar sands crude, Volatility

Buffalo’s Bomb Trains

Repost from ArtVoice, Buffalo, NY
[Editor: Professor Niman has written a thorough examination of crude-by-rail issues.  The local (Buffalo NY) perspective is no drawback.  This is an excellent reference article no matter where you are.  For example, if/when Benicia approves a permit for Valero’s proposed Crude By Rail project, everyone uprail from here can expect to be the new Buffalo.  – RS]

Buffalo’s Bomb Trains

By Michael I. Niman, February 26, 2015
With one third of Buffalo’s population living in a disaster evacuation zone, the local media’s silence is deafening.

They span over a mile long containing up to 140 tank cars and as much as 4.5 million gallons of some of the nastiest forms of crude oil on earth, pumped from “extreme” extraction operations in North America’s new oil boomtowns. They cross rivers and transverse open plains, wilderness forest and some of the most densely populated urban areas in the country. Occasionally, with alarmingly increasing frequency, they careen off into rivers, catch fire and explode, or both. When spilled in water, their heavy oil exterminates river ecosystems. When they blow up, they release the fires of hell, with one oil train accident in 2013 wiping out most of the town of Lac-Mégantic, Quebec, killing 47 people and gutting its downtown. That’s when folks started referring to these explosive steel snakes as “Bomb Trains.”

This is one of the dark sides of North America’s fossil energy boom—the backstory on cheap fuel. The uptick in oil production comes from using extreme means to recklessly drill oil, using carbon-intensive methods like fracking to extract environmentally dangerous low grade oils such as Bakken crude from Montana and North Dakota. This oil, pumped from the dolomite layer of the Bakken geological formation, which also underlies portions of the Canadian provinces of Saskatchewan and Manitoba, is more volatile than conventional oils, with a lower flashpoint for explosion. When rail cars started to blow in Lac-Mégantic, The National Post reported a blast radius of over one half mile.

The United States National Transportation Safety Board estimates that about 400,000 barrels a day of this oil make the trip to Atlantic Coast refineries, with 20 to 25 percent moving through the port of Albany. Much of this Albany-bound oil moves across New York utilizing rail lines passing though the hearts of Buffalo, Rochester, Syracuse and Utica. Oil from Canada crosses the Niagara river, entering the US both in Niagara Falls, and via Buffalo’s 142 year old International Railroad Bridge, as well as taking a northern route, dropping down from Quebec on tracks passing through the Adirondack Park, including about 100 miles of Lake Champlain watershed shoreline. Non Albany-bound oil, such as some shipments from Buford, North Dakota to Houston, Texas, also take an unlikely route through Buffalo.

Though much of this oil winds up moving through New York State, federal law limits the state’s authority to regulate it. While crude oil can be stabilized to make it less volatile in transit, whether or not it receives such treatment is up to the discretion of regulators in the state that produces it—not necessarily the states through whose cities it will roll. Most of the explosive Bakken crude coming our way originates in North Dakota, where the energy industry all but owns the legislature, fertilizing the state’s anti-regulatory zeitgeist with a healthy dose of cash. The end result is, whatever passes for a state government in North Dakota fails to meet even Texas’s modest safety standards for anti-explosive fuel stabilization.

The Association of American Railroads reports that, thanks to the Bakken and Tar Sands oil booms, the amount of oil moving across the country by train has increased 45 fold (4,500 percent) from 2008 through 2013, with the volume continuing to increase through 2014 and 2015. As a result, more oil spilled from oil trains in the U.S. in 2013 than in the preceding 37 years. The number of accidents increased in 2014, and seems to be steadily increasing this year, with oil trains derailing and blowing up last week in West Virginia and northern Ontario. The Associated Press reports that the U.S. Department of Transportation now predicts an average of ten derailment accidents a year involving crude oil or ethanol tank cars over the next twenty years, “causing more than $4 billion in damage and possibly killing hundreds of people if an accident happens in a densely populated part of the U.S.” It’s no longer a matter of “if” there will a catastrophic oil train derailment.

Both the New York State Office of Fire Prevention and Control, and the United States Department of Transportation recommend evacuating a one half mile perimeter around accidents involving railroad tanker cars carrying flammable liquids. Karen Edelstein, a researcher and the New York Program Director for the FracTracker Alliance, mapped oil train routes across the state, adding overlays for this evacuation zone, and for schools and hospitals. Her data shows that statewide, there are 502 public schools situated within potential evacuation zones. In Buffalo, about one third of the population live within one half mile of these bomb train routes, and 27 public schools and eight private schools lie within potential evacuation perimeters as well. This includes PS 42, which serves students with disabilities, and is located adjacent to the track. Sister’s Hospital and the Buffalo Zoo are well within this perimeter, which skirts the Buffalo State and Erie County Medical Center campuses. If we freak out when it snows, how well are we going to handle what appear to be atomic fireballs, should one of these trains blow up?

While the profits from this oil boom have been privatized, much of the cost associated with reckless extraction have been externalized, meaning dumped on the public. Aside from the obvious environmental costs that we and future generation will have to bear, are the less visible emergency preparation costs that every school, hospital and municipality within a half mile of bomb train routes must now cover. In Buffalo, this means 35 schools need to work with local emergency services providers to develop plans to quickly evacuate students not just from buildings, but from neighborhoods, all with a possible backdrop of explosions, sirens and billowing smoke.

While it’s not statistically likely that a train will explode in Buffalo or any other specific place, it is a certainty that trains will keep exploding with increasing frequency across the U.S. and Canada. This means that cash strapped municipalities across the continent will have to develop plans to address a catastrophe we know for certain will befall some of our communities.

Addressing this risk involves not just planning to respond to it, and maintaining an emergency response network capable of responding, but also working to prevent such a catastrophe. A report from the Cornell University Community and Regional Development Institute points out that this involves a multitude of responsibilities, such as monitoring surface rail crossings to prevent vehicle train collisions that can lead to a derailment. Such responsibility, the report notes, usually falls to local police forces that often lack the personnel to do this. Likewise, federal regulators lack the personnel to inspect the nation’s rail infrastructure, and state Departments of Transportation lack the resources to adequately inspect bridges crossing railroad tracks. All of these costs fall not on the oil or railroad industries, but on government agencies, with much of this work not being done due to budget constraints.

What little planning there is to deal with an oil train explosion is alarming to read. A three car fire requires, according to the New York State Office of Fire Prevention and Control , 80,000 gallons of water for laying down a fire retardant foam blanket and cooling adjacent rail cars. Hence, the state recommends, if there is “NO life hazard and more than 3 tank cars are involved in fire OFPC recommends LETTING THE FIRE BURN unless the foam and water supply required to control is available” [sic.]. The wording here is ominous, with the availability of the required foam and water not being the default expectation, but instead, simply a possibility. This language is there for a reason, however. The Auburn Citizen, in central New York, quotes Cayuga County Emergency Management Office Director Brian Dahl, who, in response to a question about his county’s ability to respond to an oil train fire, unequivocally states, “The amount of foam and water you would need, there’s just not enough in central New York.”

While oddly inferring that maybe you should put the fire out if you have adequate foam and water, even if there is no “life hazard,” the state’s instructions don’t mention what to do if there is a life hazard, but no foam or water. Also troubling is their inference that if more than three cars are on fire you should just give up. Last week’s fires in Ontario and West Virginia saw seven and fourteen cars ablaze respectively, with each fire burning for over 24 hours. In all caps, the state’s instructions warn responders,

“All resources must be available prior to beginning suppression.”

It doesn’t give any suggestions as to what to do if you can’t move the water to the fire, or have the foam necessary to smother a dragon. None of the suggested responses are tolerable should an oil train explode in an urban environment.

See FracTracker’s map of Buffalo’s evacuation zone: tinyurl.com/NYS-derailment-risks.

Dr. Michael I. Niman is a professor of journalism and media studies at SUNY Buffalo State. His previous columns are at artvoice.com, archived at www.mediastudy.com, and available globally through syndication.
Bakken Crude, Climate Change, Derailment, DOT-111, Fossil fuels, Tank car design, Tank car retirement, Tank car retrofit, Volatility

DOT Ignores Congress’ Deadline for Upgrading Safety Rules to Prevent Oil Train Disasters

News Release from Center For Biological Diversity
[Editor: see this story also in INFORUM (Fargo ND), which shows an interesting photo of a cross section from a damaged oil tanker car.  – RS]

Department of Transportation Ignores Congressional Deadline for Upgrading Safety Rules to Prevent Oil Train Disasters

PORTLAND, Ore.— Ignoring a congressional stipulation in the 2015 budget bill calling for new safety rules for oil trains by Jan. 15, federal transportation officials now say they won’t update the rules until May. Amid mounting concerns over the unchecked rise in shipments of highly volatile crude oil by train that has resulted in several explosive derailments and dozens of fatalities in the past two years, the federal Department of Transportation has yet to enact any on-the-ground safety improvements.

“Every day of delay is another day of putting people and the environment at risk of great harm,” said Jared Margolis, an attorney at the Center who focuses on the impacts of energy development on endangered species. “Continuing to allow these bomb trains to operate under current regulations is simply rolling the dice as to where and when the next disaster will occur.”

While several explosive oil-train accidents have occurred since the rulemaking process began in September 2013, the agency has failed to take any immediate action to resolve well-established concerns, such as the use of unsafe, puncture-prone DOT-111 tank cars.

“DOT-111 tank cars were never intended to transport these hazardous products,” said Margolis. “Failing to ban them immediately is a failure of the government’s duty to protect us from harm.”

Congress, understanding that rapid action is essential to protect the public, put a requirement in the 2015 budget bill for federal transportation officials to issue new safety rules by Jan. 15; but the industry has been fighting to delay and chip away at any efforts that would make moving oil by rail more expensive, regardless of safety concerns.

“Bomb trains are just one of many dangers posed by our continued dependence on fossil fuels,” Margolis said. “Ultimately, if we’re going to avoid dangerous oil-train derailments, as well as avoid the climate catastrophe that is currently being caused by our emissions, we must move away from these dangerous fossil fuels.”

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The Center for Biological Diversity is a national, nonprofit conservation organization with more than 800,000 members and online activists dedicated to the protection of endangered species and wild places.