Tag Archives: Volatility

Bakken Crude, Oil conditioning, Oil stabilization, State regulation, Volatility

Safety rules on oil trains burn critics

Repost from The Times Union, Albany NY

Safety rules on oil trains burn critics

Most N.D. loads to Albany now under new volatility limits
By Brian Nearing, December 10, 2014
FILE - This Nov. 6, 2013 file photo shows a warning placard on a tank car carrying crude oil near a loading terminal in Trenton, N.D. Thousands of older rail tank cars that carry crude oil would be phased out within two years under regulations proposed in response to a series of fiery train crashes over the past year. Transportation Secretary Anthony Foxx said the government's testing of crude oil from the Bakken region of North Dakota and Montana shows the oil is on the high end of a range of volatility compared with other crude oils, meaning it's more likely to ignite if spilled. (AP Photo/Matthew Brown, File) ORG XMIT: WX101 ORG XMIT: MER2014082212045022 Photo: Matthew Brown / AP
FILE – This Nov. 6, 2013 file photo shows a warning placard on a tank car carrying crude oil near a loading terminal in Trenton, N.D. Thousands of older rail tank cars that carry crude oil would be phased out within two years under regulations proposed in response to a series of fiery train crashes over the past year. Transportation Secretary Anthony Foxx said the government’s testing of crude oil from the Bakken region of North Dakota and Montana shows the oil is on the high end of a range of volatility compared with other crude oils, meaning it’s more likely to ignite if spilled. (AP Photo/Matthew Brown, File)

New safety rules on Bakken crude oil shipments imposed by North Dakota will not affect about 80 percent of oil arriving daily on massive tanker trains at the Port of Albany. Some oil opponents in the Capital Region are criticizing the limit as toothless.

Amid opposition from oil companies, the North Dakota Industrial Commission set a limit late Tuesday that is supposed to reduce the volatility of Bakken crude — or potential explosiveness — before it can be shipped out of state on trains. Officials in New York and other states along the routes of oil trains had been pushing for a limit in after major accidents in Canada, and states including Alabama and Pennsylvania.

The new North Dakota standard is well above volatility found in Bakken crude by Canadian safety officials after 47 people were killed in a massive explosion and fire when a crude oil train derailed in Quebec in July 2013.

North Dakota’s new measure was praised as “aggressive” in a joint news release by state Environmental Conservation Commissioner Joe Martens and Transportation Commissioner Joan McDonald.

“Reducing the volatility of Bakken crude at the source protects public health, protects the environment and provides an additional safeguard for New Yorkers and communities across the country,” according to the prepared statement. Attempts to obtain further comment Wednesday from DEC were not successful.

“This does not really provide much of a margin of safety for the public. It still does not address the (Bakken) flammability issue,” said Chris Amato, a staff attorney with Earthjustice, a Washington, D.C.-based environmental legal group and DEC deputy commissioner for natural resources from 2007 to 2011.

In October, Amato’s group filed a petition with DEC claiming the state has the power to immediately ban the most common type of oil tanker rail cars — called DOT-111s — from entering the port loaded with flammable Bakken oil. DEC disagreed that it had the power to take such a step, which would have made Albany the first place in the country to bar the aging tankers, which in derailments have been prone to rupture, leading to fires and explosions.

Amato called the North Dakota volatility standard “better than nothing,” adding that DEC “has its head in the sand on all crude-by-rail issues.”

“The new rule has no effect, zero,” said Sandy Steubing, a spokeswoman for the group People of Albany United for Safe Energy, which wants crude oil shipments into Albany halted. “It is like setting a speed limit of 100 miles an hour and saying we will catch the cars going 120,” she said. “I don’t know if North Dakota just did this for show.”

Assemblyman Phil Steck of Colonie and Albany County Executive Dan McCoy also questioned the effectiveness of the measure.

“Reducing the volatility of crude oil at the source before shipping is welcome news and is something for which I have been advocating. But North Dakota hasn’t set a standard that challenges the oil industry enough,” said McCoy. And Steck, a fellow Democrat, said North Dakota also failed to require removal of hydrofracking chemicals from the Bakken, which he said makes the crude more flammable.

Albany Mayor Kathy Sheehan said “any step that makes our community safer is a step in the right direction.”

Starting April 1, Bakken crude shipped out of the shale oil fields of North Dakota can have a vapor pressure of no more than 13.7 pounds per square inch (psi), slightly below a federal hazardous materials stability standard of 14.7 psi.

Bakken crude above this new standard would have to be treated with heat or pressure at the wells to remove its most volatile components.

North Dakota Mineral Resources Director Lynn Helms has said about 80 percent of Bakken crude being shipped already falls below this standard. But he also told the Associated Press that the change would “significantly change the characteristics of crude oil that’s going into market.”

A vapor pressure rating is a measurement of how rapidly a liquid evaporates into a gas and spreads into the air, making it more volatile and prone to explosion. The Bakken crude that caused the massive fireball in Lac-Megantic, Quebec, that killed 47 people had a psi of between 9 and 9.3, which is well below the new North Dakota safety standard.

In a report after the tragedy, the Canadian Transportation Safety Board found the Bakken crude involved was as volatile as gasoline. The volatility, combined with “large quantities of spilled crude oil, the rapid rate of release, and the oil’s … low viscosity were likely the major contributors to the large post-derailment fireball and pool fire,” the board found.

By comparison, crude oil pumped from beneath the Gulf of Mexico has a psi of about 3, making it much less likely to explode in an accident, according to figures reported this spring in the Wall Street Journal. In Texas, crude oil produced in the Eagle Ford shale formation has a psi of about 8.

According to the North Dakota Petroleum Council, the average Bakken crude has a psi of between 11.5 and 11.8, again below the new state safety standard.

The North Dakota standard is “far from a solution that the communities that are dealing with oil trains on a daily basis are looking for,” said Connor Bambrick, an analyst with Environmental Advocates of New York.

Bakken Crude, Crude By Rail, Oil stabilization, State regulation, Volatility

Small North Dakota town editorial calls for strong oil safety standards

Repost from The Jamestown Sun, Jamestown, ND
[Editor: Significant quote: “An oil conditioning standard must be framed in the broad context of public safety, not what might or might not inconvenience the industry. The ‘winners’ must be homeowners, businesspeople and others who live near oil train rail lines.”  – RS

Flexibility in oil rule has limits

By Forum Editorial Board on Nov 5, 2014 

“Flexibility” has emerged as the operative word in a proposed crude oil conditioning standard being developed by the North Dakota Department of Mineral Resources. Director Lynn Helms said he is summarizing some 1,200 pages of comment and testimony about how best to prepare volatile Bakken crude for transport. All well and good, but just how flexible “flexibility” will be should be a primary concern.

The drive to “condition” Bakken crude that is transported in rail tank cars accelerated following several derailments and explosions of oil trains, including a spectacular collision/derailment and explosion near Casselton, N.D., last December. Three reports about characteristics of Bakken crude are in the public record and will play a part in Helms’ work.

The aim is to remove certain volatile components of North Dakota’s light crude oil, thus making it less likely to flash to flame and explode in a train accident. Helms said his department will propose a standard to the Industrial Commission next month. The means by which the industry meets the standard likely will include various operating practices. The commission imposes the rule. Good, as far as it goes.

Helms added that his department’s flexibility approach is the best way to go because, “We certainly don’t want at this point … to pick a winner or loser in that discussion.” Really?

Once again, Helms and company are so focused on the industry’s priorities that his view of “winner or loser” is constricted. An oil conditioning standard must be framed in the broad context of public safety, not what might or might not inconvenience the industry. The “winners” must be homeowners, businesspeople and others who live near oil train rail lines. The means to achieve a meaningful oil safety standard could be flexible, but only if procedures can achieve the standard.

Transporting oil by rail can never be 100 percent safe. By its nature, oil on the rails entails risk. But if rail oil traffic is to be as safe as possible, anything that compromises that goal is unacceptable. North Dakota’s standard must be written with that in mind.

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.

Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Federal Regulation (U.S.), Oil stabilization, State regulation, Volatility

National Public Radio: Fiery Oil-Train Derailments Prompt Calls For Less Flammable Oil

Repost from National Public Radio
[Editor: An excellent overview of efforts to regulate the volatility of Bakken Crude.  Audio appears first below, followed by text version.  Significant quote: “Energy economist Philip Verleger, says the resistance is about money. ‘The industry never wants to take steps which increase the cost of production, even if it’s in the best interests of everybody,’ he says. Verleger says the opposition to proposed safety rules is short-sighted, and that the industry could actually hurt itself if there’s another serious incident. ‘I think the movement of crude oil by rail is one accident away from being terminated,’ Verleger says.”  – RS]

Fiery Oil-Train Derailments Prompt Calls For Less Flammable Oil

by Emily Guerin,

A fireball goes up at the site of an oil train derailment in Casselton, N.D., in this Dec. 30 photo. The fiery crash left an ominous cloud over the town and led some residents to evacuate.
A fireball goes up at the site of an oil train derailment in Casselton, N.D., in this Dec. 30 photo. The fiery crash left an ominous cloud over the town and led some residents to evacuate. Bruce Crummy/AP

Once a day, a train carrying crude oil from North Dakota’s Bakken oil fields rumbles through Bismarck, N.D., just a stone’s throw from a downtown park.

The Bakken fields produce more than 1 million barrels of oil a day, making the state the nation’s second-largest oil producer after Texas. But a dearth of pipelines means that most of that oil leaves the state by train — trains that run next to homes and through downtowns.

After several fiery accidents, oil companies are under pressure to make their oil less explosive before loading it onto rail cars. But oil companies say rules requiring those modifications will create more problems than they solve.

The trains passing through Bismarck worry Lynn Wolff, an activist with the environmental group Dakota Resource Council. “Last December we got the wake-up call,” he says. “That was the explosion and derailment of an oil train in Casselton, N.D.”

Wolff is referring to a crash in farmland just outside the small town of Casselton. No one was hurt, but the crash could have been deadly had it happened in town.

This summer, Bismarck officials ran through a simulated oil train derailment, with responders operating on the assumption that some of the town’s buildings would be devastated or destroyed, says Gary Stockert, Bismarck’s emergency manager. “We exercised with the assumption that we had over 60 or 70 casualties.”

Around the country, other cities and towns with oil train traffic are preparing for similar disasters.

In neighboring Minnesota, Gov. Mark Dayton “is concerned primarily about the safety of people along oil train routes, and in particular about the fact that this is a very volatile oil,” says Dave Christianson, an official with the Minnesota Department of Transportation.

Dayton has joined activists in asking North Dakota to force oil companies to “stabilize” the oil — to make it less explosive by separating out the flammable liquids.

Last month, North Dakota Gov. Jack Dalrymple convened a public hearing on the idea. Keith Lilie, an operations and maintenance manager for Statoil, which has a big presence in the Bakken, testified in front of a room full of oilmen in suits and cowboy boots who came to the hearing from places like Oklahoma City and Houston.

Lilie said he opposes having to build expensive tanks to heat the oil and separate out flammable liquids, like butane.

“Statoil believes the current conditioning of crude oil is sufficient for safely transporting Bakken crude oil by truck, rail and pipeline,” he said.

Eric Bayes, general manager of Oasis Petroleum’s operations in the Bakken, also testified. He asked what companies are supposed to do with those explosive liquids once they’re separated from the oil.

The stabilization process, he says, would “create another product stream you have no infrastructure in place for.”

But energy economist Philip Verleger, says the resistance is about money. “The industry never wants to take steps which increase the cost of production, even if it’s in the best interests of everybody,” he says.

Verleger says the opposition to proposed safety rules is short-sighted, and that the industry could actually hurt itself if there’s another serious incident. “I think the movement of crude oil by rail is one accident away from being terminated,” Verleger says.

Activist Lynn Wolff supports new rules that would make the oil less explosive, and says such regulation would protect people beyond North Dakota. “These bomb trains have been in Virginia and Alabama and blown up there as well,” he says.

Federal officials in Washington are also considering ways to make oil trains safer, such as strengthening tank cars.

As for making the oil leaving the Bakken less flammable, officials in North Dakota say they’ll make a decision by the end of the year.

This story was reported with Inside Energy, a public media collaboration focusing on America’s energy issues.