Tag Archives: Volatility

Sen. Cantwell: Act now on oil trains

Repost from The Columbian
[Editor:  Significant quotes: 1) “BNSF Railway…has offered training to local responders. But that training “just scratches the surface,” said Nick Swinhart, chief of the Camas-Washougal Fire Dept.”  And  2) “About 88 percent of the cars now hauling crude oil in Washington are the CPC-1232 design, said BNSF spokesman Gus Melonas. The railroad plans to phase out all of its older DOT-111 cars from moving crude within the next year, he said. It also plans to retrofit its CPC-1232 cars with internal liners during the next three years, he added.”  – RS]

Cantwell: Act now on oil trains

Senator pushes for changes to improve safety of hauling crude by rail

By Eric Florip, April 8, 2015, 9:20 PM
U.S. Sen. Maria Cantwell, D-Wash., walks past a firefighting rig with Vancouver Fire Department Division Chief Steve Eldred during a visit to Vancouver on Wednesday. Cantwell and local leaders highlighted the risks of crude oil being transported by rail. (Steven Lane/The Columbian)

Now is the time to act to reduce the continued risk of crude oil moving through the region by rail, U.S. Sen. Maria Cantwell said during a visit to Vancouver on Wednesday.

The Washington Democrat and local leaders repeatedly stressed the volatility of the oil itself. Speaking inside Pacific Park Fire Station No. 10 in east Vancouver, the group noted that responders are ill-equipped to handle the kind of fiery derailments and huge explosions that have characterized a string of oil-train incidents across the country recently. In some cases, the fires burned for days after the actual derailment, Cantwell said.

“No amount of foam or fire equipment can put them out,” she said. “The best protection we can offer is prevention.”

Cantwell last month introduced legislation that would immediately ban the use of rail cars considered unsafe for hauling crude oil, and create new volatility standards for the oil itself. The bill would require federal regulators to develop new rules limiting the volatile gas contained in crude that is transported by rail — an important and somewhat overlooked facet of the larger debate over oil train safety, Cantwell said.

Much of the oil that now rolls through Clark County comes from the Bakken shale of North Dakota. Regulators there this month imposed new rules on the volatility of that oil, but critics argue they don’t go far enough. North Dakota, currently in the midst of a historic oil boom, lacks the infrastructure and facilities for more thorough oil stabilization that are commonplace elsewhere.

About two or three oil trains per day now travel through Vancouver on the way to other facilities. A proposal by Tesoro Corp. and Savage Companies to build the nation’s largest oil-by-rail terminal at the Port of Vancouver would more than double that number. The project, now under review, has fixed a spotlight firmly on Vancouver.

“Although crude-by-rail is a national issue, we firmly believe that Vancouver is the epicenter of the conversation,” said Vancouver Mayor Tim Leavitt.

Wednesday’s gathering also included two local fire chiefs, who said their crews don’t have the resources to respond to a major disaster involving an oil train. BNSF Railway, which carries crude oil through the Columbia River Gorge and Southwest Washington, has offered training to local responders. But that training “just scratches the surface,” said Nick Swinhart, chief of the Camas-Washougal Fire Department.

“No first responder is fully prepared for the threat posed by crude oil trains carrying highly volatile oil from North Dakota,” Swinhart said, noting his agency has 54 paid personnel. “The fire resulting from just one exploded oil train car, as you can imagine, would overwhelm our resources very rapidly.”

Concerns about oil train safety go far beyond the oil. Much of the discussion has centered around the tank cars carrying it. Cantwell’s bill would prohibit all DOT-111 and some CPC-1232 model tank cars from hauling crude oil. The move would affect tens of thousands of rail cars currently in use, phasing out older models many believe are inadequate for carrying crude.

About 88 percent of the cars now hauling crude oil in Washington are the CPC-1232 design, said BNSF spokesman Gus Melonas. The railroad plans to phase out all of its older DOT-111 cars from moving crude within the next year, he said. It also plans to retrofit its CPC-1232 cars with internal liners during the next three years, he added.

BNSF expects tank cars to improve as designs evolve and federal rules change, Melonas said, and the company welcomes that trend.

“We are in favor of a stronger-designed tank car to move this product,” Melonas said. “In the meantime, we’re taking steps to make sure we’re moving it safely.”

As for whether BNSF supports Cantwell’s bill, Melonas said the company is still evaluating it.

Near the end of Wednesday’s event at the fire station, officials showed Cantwell a large rig equipped with foam tanks and other features. The Vancouver Fire Department acquired the vehicle as mitigation several years ago when Valero, a company operating at the Port of Vancouver, began handling methanol, said Division Chief Steve Eldred.

The Valero site later became NuStar Energy. NuStar has since applied for permits to handle crude oil at the same facility.

Rep. Garamendi and area leaders call for safer crude-by-rail transport

Repost from The Benicia Herald
[Editor:  Significant quote: “Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.”  – RS]

Rep. Garamendi to call for safer crude-by-rail transport

By Donna Beth Weilenman, April 7, 2015

U.S. Rep. John Garamendi, D-Fairfield, will join industry leaders in Davis on Wednesday in calling for the U.S. Department of Transportation to make rail delivery of crude oil safer.

“Crude oil is or has until very recently been transported by rail through several cities in Congressman Garamendi’s 3rd Congressional District, including Davis, Dixon, Fairfield, Suisun City and Marysville,” said his media specialists, Donald Lathbury and Matthew Kravitz, in a joint statement on the news conference.

“These routes are very close to residential communities, schools, parks, and businesses.”

Among those joining Garamendi will be Sarah Feinberg, acting administrator for the Federal Railroad Administration, and Paul W. King, deputy director of the Office of Rail Safety at the Safety and Enforcement Division of the California Public Utilities Commission.

Municipal and other leaders also are expected to attend, including Davis Mayor Dan Wolk, Marysville Mayor Ricky Samayoa, Yolo County Supervisor Don Saylor and Solano County Supervisor Skip Thomson.

Also expected to attend are Terry Bassett, Yolo County Transportation District executive director; Dana Carey, Yolo County office of Emergency Services manager; and Terry Schmidtbauer, assistant director of Resource Management in the Solano County Office of Emergency Services.

Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.

He said this is the maximum volatility permitted by the New York Mercantile Exchange (NYMEX) for crude oil futures contracts.

By comparison, he said, a recent literature review by Sandia Labs indicates that the North Dakota Petroleum Council’s study of 152 Bakken crude samples found an average RVP of 11.7 psi and a max of 14.4 psi. A rule going into effect in North Dakota this month sets the limit at 13.7 psi.

Garamendi and Congresswoman Doris Matsui, D-Sacramento, sent a letter March 3 to the Department of Transportation in which they suggested strengthening safety improvements and asked DOT to drop any plans for weakening regulations.

Instead, they called for stronger safety standards for crude-by-rail transportation.

“Families living near oil-by-rail shipping lines are rightfully concerned about the safety of the trains that pass through their communities,” Garamendi said. “For that reason, I have repeatedly called on the Department of Transportation to use all the tools at their disposal to ensure that these shipments are as safe and secure as possible.

“Every day that strong and effective rules are delayed is another day that millions of Americans, including many in my district, are put at greater risk.”

Garamendi’s announcement will be made at 11:30 a.m. Wednesday next to the Davis Train Depot, near the corner of Second and H streets, Davis.

Forbes: Senators Try To Stop The Coming Oil Train Wreck

Repost from Forbes
[Editor:  Significant quote: “And the returning empty trains are not quite empty. They have enough oil remaining in them to produce highly volatile vapors that make them even more prone to explosions than the full cars.”  – RS]

Senators Try To Stop The Coming Oil Train Wreck

By James Conca, 4/06/2015 @ 7:45AM

Spearheaded by the Senators from Washington State, legislation just introduced in the United States Senate will finally address the rash of crude oil train wrecks and explosions that have skyrocketed over the last two years in parallel with the steep rise in the amount of crude oil transported by rail (Tri-City Herald).

Oil production is at an all-time high in America, great for our economy and energy independence, but bad for the people and places that lie along the shipping routes.

Just since February, there have been four fiery derailments of crude oil trains in North America (dot111) and many more simple spills.

More shale crude oil is being shipped by rail than ever before – every minute, shipments of more than two million gallons of crude are traveling distances of over a thousand miles in unit trains of more than a hundred tank cars (PHMSA.gov).

U.S. railroads delivered 7 million barrels of crude in 2008, 46 million in 2011, 163 million in 2012, and 262 million in 2013, almost as much as that anticipated by the Keystone XL Pipeline alone.

Diagram of a non-jacketed, non-pressure Rail Tank Car. According to the U.S. DOT regulations, “A tank car used for oil transport is roughly 60 feet long, about 11 feet wide, and 16 feet high. It weighs 80,000 pounds empty and 286,000 pounds when full. It can hold about 30,000 gallons or 715 barrels of oil, depending on the oil’s density. The tank is made of steel plate, 7/16 of an inch thick.” “The FRA and PHMSA have questioned whether Bakken crude oil, given its characteristics, would more properly be carried in tank cars that have additional safety features, such as those found on pressurized tank cars used for hauling explosive liquids. Pressurized tank cars have thicker shells and heads, metal jackets, strong protective housings for top fittings, and no bottom valves.” Source: U.S. CRS R43390

Amid a North American energy boom, our pipelines are at capacity and crude oil shipping on rail is dramatically increasing. The trains are getting bigger and towing more and more tanker cars. From 1975 to 2012, trains were short and spills were rare and small, with about half of those years having no spills above a few gallons (EarthJustice.org).

Crude is a nasty material, very destructive when it spills into the environment, and very toxic when it contacts humans or animals. It’s not even useful for energy, or anything else, until it’s chemically processed, or refined, into suitable products like naphtha, gasoline, heating oil, kerosene, asphaltics, mineral spirits, natural gas liquids, and a host of others.

But every crude oil has different properties, such as sulfur content (sweet to sour) or density (light to heavy), and requires a specific chemical processing facility to handle it (Permian Basin Oil&Gas). Different crudes produce different amounts and types of products, sometimes leading to a glut in one or more of them, like too much natural gas liquids that drops their price dramatically, or not enough heating oil that raises its price.

Thus, the push for more rail transport and pipelines to get it to the refineries along the Gulf Coast than can handle it.

Ensuring that these crude shipments are safe is the responsibility of the United States Department of Transportation, specifically the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Federal Railroad Administration (FRA).

Unfortunately, the shipments aren’t really that safe. We don’t have the correct train cars to carry this unusual freight. The United States now has 37,000 tank cars with thin-walls that puncture easily after which the vapors can cause massive explosions.

And the returning empty trains are not quite empty. They have enough oil remaining in them to produce highly volatile vapors that make them even more prone to explosions than the full cars.

A clear example of this danger came on July 6, 2013, when a train carrying 72 tank cars, and over 2,000,000 gallons of Bakken oil shale crude from the Williston Basin of North Dakota, derailed in the small town of Lac-Megantic, Quebec. Much of the town was destroyed and forty-seven people were killed.

This disaster brought the problem of rail transport of crude oil to the forefront of the news and of the State and Federal legislative bodies, and brought calls for safety reforms in the rail industry.

PHMSA undertook a series of unannounced inspections, testing, and analysis of the crude being transported (PHMSA.gov). While PHMSA found that Bakken crude is correctly classified chemically under transportation guidelines, the crude does have a higher gas content, higher vapor pressure, lower flash point and lower boiling point, so it has a higher degree of volatility than most other crudes in the United States. These properties cause increased ignitability and flammability.

PHMSA now requires extensive testing of crude for shipping, but the real problem remains – most of our tank cars are not safe to transport this stuff at all and should be taken out of service.

But that may change. Senators Maria Cantwell (D-WA), Patty Murray (D-WA), Tammy Baldwin (D-WI) and Dianne Feinstein (D-CA CA+0.48%) introduced the Crude-By-Rail Safety Act of 2015.

It’s no coincidence that the first two Senators listed are from Washington State. Trains hauling this type of flammable crude pass through our state every day, right through population centers totaling over a million people (Cantwell.Senate).And the number of oil trains will double next year.

This is strange for WA State because it’s the least carbon emitting state in the union and has already satisfied any and all carbon goals one could reasonably think up for any other state. And the state is poised to go even further. So increased oil and coal shipments across its length has the people of Washington State a bit concerned.

The rail standards set by the proposed legislation would require thermal protection, full-height head shields, shells more than half an inch thick, pressure relief valves and electronically controlled pneumatic brakes.

The Senators’ legislation would also authorize $40 million for training programs and grants to communities to update emergency response and notification plans.

According to Cantwell, “Firefighters responding to derailments have said they could do little more than stand a half-mile back and let the fires burn” (Tri-City Herald).

Rail carriers would be required to develop comprehensive emergency response plans for large accidents involving fire or explosions, provide information on shipments to state and local officials along routes — including what is shipped and its level of volatility — and to work with federal and local officials on their response plans.

“We want to make sure that we are doing everything we can to protect our communities and give first responders the tools they need,” Cantwell said.

It’s certainly time for some decent regulations on this increasing risk.

THE BASICS: Why oil trains (don’t have to) explode: Everything you need to know

Repost from The Oregonian

Why oil trains (don’t have to) explode: Everything you need to know

By Rob Davis | April 02, 2015 at 1:22 PM
Oil Train Derailment Illinois
Smoke and flames erupt from the scene of an Illinois oil train derailment March 5, 2015. Safety experts say regulators have ignored steps that would make oil trains less likely to go off like a bomb when they derail. (AP/Jessica Reilly)

Crude oil was never supposed to explode.

Then a train pulling 72 cars of it derailed in a tiny town in Quebec in July 2013. The oil turned into a mushroom cloud of flame. It looked terrifying. Watch the first minute of this video:

Forty-seven people were killed that night.

Since then, eight more trains hauling oil have derailed and erupted in flames, drawing scrutiny to a new phenomenon: Crude oil, which once primarily moved in ships and pipelines, is being hauled around North America by rail in unprecedented volumes. More than a million barrels a day now move that way.

The federal government, which regulates train safety, has slowly moved to make oil trains more secure. Regulators are focusing on strengthening the tank cars carrying the oil.

But safety experts say regulators have ignored steps that would make oil trains less likely to go off like a bomb when they derail.

Depending on where it is produced, oil can be dark and thick or light and free flowing. Different amounts of highly flammable gases like propane and butane can be dissolved in it, affecting its volatility. (These are what your backyard gas grill uses.)

Much of the oil moving by rail comes from North Dakota. And what’s coming out of the ground there has been unusually volatile. North Dakota crude moving in Oregon contains far higher levels of propane than similar types of oil.

Some North Dakota crude has been more volatile than gasoline. So when the trains have derailed, the flammable gases within have fueled those sky-high fireballs.

That doesn’t have to happen.

Michael Eyer, a retired Oregon hazardous materials train inspector, said federal regulators could impose a cap on the amount of flammable gas allowed in the oil.

“You would have a fire,” Eyer said. “But you would not have the mushroom cloud in the sky.”

Producers can strip out those highly flammable gases before the oil is loaded for shipment. The process is called stabilization. North Dakota oil regulators estimate it would add $2 to the cost of every barrel.

Less volatile oil could still burn in a derailment, Eyer said. But nearby residents and firefighters responding to train accidents would be safer: Those fireballs don’t just shoot up. They spread, too.

State regulators in North Dakota have set the first ever limit to tame the most volatile crude. It went into effect April 1. It requires a less-intense treatment process that North Dakota regulators estimate will cost 10 cents per barrel.

But Eyer and a crude oil expert say the limit is too high to have widespread impact. The oil that exploded in Quebec in 2013, for example, wouldn’t have been affected.

Harry Giles is a retired federal official who used to oversee crude oil quality for the country’s Strategic Petroleum Reserve. He said North Dakota’s limit should be set lower.

“It would increase the safety and lessen the risk,” Giles said. “Fires would be less intense.”

Compare this fire during a May 2011 derailment northwest of Portland near Scappoose. That’s ethanol — pure grain alcohol — burning. It’s far less volatile than North Dakota crude.

The fire was still dangerous. But firefighters were able to get close enough to put water on the cars. That’s a fire hose spraying at the top of the photo.

Now see what happened after a December 2013 derailment with crude oil in North Dakota.

Look close. That’s a train down there at the bottom.

Stricter limits would reduce the dangers faced by millions of people who live next to rail lines nationwide, Eyer said.

That includes Oregonians like Jamie Maygra, a retired ironworker who lives in Deer Island, along the state’s primary oil train route. He said he worries about the oil’s volatility every time he drives near an oil train with his 2- and 3-year-old granddaughters.

He said he’s frustrated that neither industry nor safety regulators have moved faster to keep people like his granddaughters safe.

“I think about that all the time,” Maygra said. “The chances of that happening are slim, but it’s a lot more with this oil. They don’t care about nothing but money. That’s what’s aggravating. They put profit before people.”

Federal safety regulators say they’re studying what makes the oil so flammable and what could be done. Tim Butters is the administrator of the Pipeline and Hazardous Materials Safety Administration, the federal agency with authority to set limits. He recently told a Congressional committee his agency, known as PHMSA, is looking at ways to remove flammable gases from crude.

But the methods for doing that are already well known. They’re currently used in Texas oil fields, where flammable gases are separated and piped to nearby plants.

Eyer said the agency should move faster.

“The industry needs to figure out what the hell this stuff is and regulators need to say ‘We’re going to act now,’ ” he said. “How many rivers on fire and deaths are needed? What is the price?”

If federal regulators forced North Dakota producers to emulate what happens in Texas, those producers would have to burn or ship the gases they stripped from the oil. Currently, though, North Dakota does not have enough pipelines to move those flammable gases nor a market for them.

Susan Lagana, a PHMSA spokeswoman, said her agency is concerned about the volatility of oil moving by rail. But research is needed to determine exactly what makes the explosions so severe, she said, and what could be done to minimize them.

Eyer and Giles agreed that North Dakota’s volatility limits were too high, but they didn’t agree about what the right level is.

“That’s what we need to know,” Lagana said. “We are willing to consider all options to address making the product safer in transportation.”

The relevant research, being done by the federal Energy Department, should be finished this summer, Butters told Congress. But he didn’t promise any next steps once it’s done.

In the meantime, allowing producers to leave those flammable gases in the oil gives them more profit, allowing them to slightly bulk up the volumes they ship. It’s one reason the oil industry is fighting suggestions to stabilize North Dakota oil.

Don’t blame the oil for explosions, the industry argues. Blame the derailing trains.

“Keeping the trains on the tracks is the only way to ensure that crude… will be transported in the safest possible manner,” Charles Drevna, president of American Fuel and Petrochemical Manufacturers recently wrote.

Solely focusing on tank cars and trains “is not enough,” Eyer said. “The starting point is always what are you putting into the car?”

A bill introduced recently in the U.S. Senate by Democratic Sens. Patty Murray, Maria Cantwell, Dianne Feinstein and Tammy Baldwin proposes limiting the volatility of oil moving by rail. They want the rules in place within two years.

It’s a sign that political leaders have realized the North Dakota oil poses unique risks that could be reduced. A spokeswoman for Sen. Ron Wyden, D-Oregon, said he is tracking the issue and continues talking to federal transportation officials to find ways to address it.