Tag Archives: Volatility

North Dakota will rely more on pipelines by 2018

Repost from UPI Business News
[Editor: Significant quote: “Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018”  – RS]

North Dakota reviews oil-train safety

About half of the oil produced in the state is delivered by rail.

By Daniel J. Graeber   |   March 19, 2015 at 9:40 AM
North Dakota Gov. Jack Dalrymple calls for tighter rules to ensure safe transport of crude oil from state’s Bakken shale reserve. Photo by Steven Frame/Shutterstock

BISMARCK, N.D., March 19 (UPI) — There’s no way to offer a single solution that would allay concerns about the safety of crude oil transit by rail, North Dakota Gov. Jack Dalrymple said.

Dalrymple spoke with U.S. Transportation Secretary Anthony Foxx to discuss efforts to improve the safe transport of crude oil by rail from the state. The Republican governor said he called on the secretary to adopt new standards for rail cars carrying crude oil as soon as possible.

“Secretary Foxx and I agree that there is no single solution to improving the safety of rail transportation,” Dalrymple said in a statement Wednesday.

North Dakota crude oil production is more than existing pipeline capacity can handle, forcing many in the industry to use rail as an alternative transit method. The increase in rail traffic has in turn led to an increase in derailments involving trains carrying crude oil, a situation compounded by federal reports showing oil from the Bakken reserve area in North Dakota may be less stable than other types of crude oil.

A 200-page proposal from the Department of Transportation last year called for the elimination of older rail cars designated DOT 111 for shipment of flammable liquid, “including most Bakken crude oil.”

A February derailment in West Virginia involved a train carrying Bakken oil. At least 40 people were killed in Lac-Megantic, Quebec, in the 2013 derailment of a train carrying tankers of crude oil from North Dakota to Canadian refineries.

Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018 and provide 895,000 barrels per day in new capacity.

North Dakota produces about 1.2 million bpd and about half of that is shipped by rail.

The state government in December approved a new measure that requires oil producers in North Dakota to install equipment at their facilities that would reduce the volatility of Bakken crude.

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

Repost from Bloomberg Business News

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

By Jim Snyder, March 13, 2015 1:15 PM PDT

(Bloomberg) — Lower speed limits for railroads may be ineffective at keeping oil trains on the tracks and preventing massive fireballs, such as those triggered in a series of recent derailments, the chief U.S. railroad regulator said.

“If you’re going to slow trains down, you’re going to have to slow them down to 12 miles an hour,” Sarah Feinberg, acting chief of the Federal Railroad Administration, told reporters in Washington Friday.

“And then you would just have other dangers. People queuing up at grade crossings while train car after train car of volatile product goes by,” she said. “That’s not good either.”

A surge in U.S. oil production has increased the amount of crude moved by rail 5,000 percent since 2009, much of it from North Dakota’s booming Bakken field. A corresponding jump in accidents, including a 2013 oil-train derailment and explosion that killed 47 people in Lac-Megantic, Quebec, have led U.S. and Canadian regulators to propose tougher standards for trains.

Speeds higher than 25 mph were “irresponsible” given the known weakness of the tank cars carrying the crude, Jim Hall, a former chairman of the National Transportation Safety Board, said in written comments to the Transportation Department.

Hall was responding to a proposed department rule that would require the current fleet of tank cars to be replaced. A draft is being reviewed at the White House Office of Management and Budget and is expected to be final in May.

Sloshing Effect

The Federal Railroad Administration also is studying whether slower speeds can cause a sloshing effect in tank cars, making it harder to prevent the rolling stock from wobbling off the tracks, Feinberg said.

Railroads have lobbied against new limits, saying they would result in costly delays for many of the goods hauled by rail.

Two oil-trains that derailed in the past four weeks, in West Virginia and Illinois, and created massive fireballs were traveling well below federal speed limits, Feinberg said.

Railroads last year agreed to slow trains to 40 mph from 50 mph when carrying crude through High Urban Threat Areas, a designation that covers more than three dozen U.S. communities.

“We are running out of things that I think we can ask for the railroads to do, and there have to be other industries that have skin in the game,” Feinberg said. “There also has to be attention placed on the product actually going into the railcar.”

In April, a regulation in North Dakota that requires oil to be kept at a vapor pressure below 13.7 pounds per square inch goes into effect. Feinberg said a process known as conditioning, which companies can use to meet that standard, is the “bare minimum” step to lower volatility.

Feinberg said the administration is considering further steps to reduce oil’s explosiveness before its loaded into tank cars, though the draft rule under review is silent on the issue.

NPR Interview: Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

Repost from WAMU, American University Radio – The Diane Rehm Show
[Editor: In this lengthy and informative audio, Diane Rehm interviews Anthony Swift, NRDC; Cynthia Quarterman, Atlantic Council (former Administrator of the Pipeline and Hazardous Materials Safety Administration); Dina Cappiello, Associated Press; and Edward Hamburger, Association of American Railroads. Unfortunately, I am unable to embed The Diane Rehm Show here.  To listen to this 51-minute interview, go to the Diane Rehm Show.  – RS]

Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

The Diane Rehm Show, Mon, Mar 09, 2015
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va.
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va. AP Photo/Steve Helber

Fueled by the shale oil boom in North Dakota and Montana, trains now carry more than 500,000 carloads of oil and ethanol to coastal refineries. Now, a series of fiery train derailments in the U.S. and Canada is raising public safety concerns. On Saturday, a train crashed in Ontario, leaking oil into a nearby waterway. Here in the U.S., another train derailed last week in Illinois, causing evacuations and fire damage. Safety advocates say rail cars carrying oil need to meet tougher design standards and lower speed limits. Shippers argue that stricter measures are costly and risks are exaggerated. We look at the rise in oil train derailments and what can be done to prevent them.

Guests

  • Anthony Swift attorney with the Natural Resources Defense Council.
  • Cynthia Quarterman distinguished senior fellow, The Atlantic Council; former administrator of the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA)
  • Ed Hamberger president and CEO, Association of American Railroads.
  • Dina Cappiello national environment and energy reporter, The Associated Press.

NEW YORK TIMES: Dangerous Trains, Aging Rails

Repost from The New York Times
[Editor:  Another excellent investigative report by Marcus Stern.  New information here – another must-read for CBR opponents.  See his highly-acclaimed December report, Boom! North America’s Explosive Oil-by-Rail Problem.  – RS]

Dangerous Trains, Aging Rails

By Marcus Stern, March 12, 2015

A CSX freight train ran off the rails last month in rural Mount Carbon, W.Va. One after another, exploding rail cars sent hellish fireballs hundreds of feet into the clear winter sky. Gov. Earl Ray Tomblin declared a state of emergency, and the fires burned for several days.

The Feb. 16 accident was one of a series of recent fiery derailments highlighting the danger of using freight trains to ship crude oil from wellheads in North Dakota to refineries in congested regions along America’s coastlines. The most recent was last week, when a Burlington Northern Santa Fe oil train with roughly 100 cars derailed, causing at least two cars, each with about 30,000 gallons of crude oil, to explode, burn and leak near the Mississippi River, south of Galena, Ill.

These explosions have generally been attributed to the design of the rail cars — they’re notoriously puncture-prone — and the volatility of the oil; it tends to blow up. Less attention has been paid to questions surrounding the safety and regulation of the nation’s aging network of 140,000 miles of freight rails, which carry their explosive cargo through urban corridors, sensitive ecological zones and populous suburbs.

Case in point: The wooden trestles that flank the Mobile and Ohio railroad bridge, built in 1898, as it traverses Alabama’s Black Warrior River between the cities of Northport and Tuscaloosa. Oil trains rumble roughly 40 feet aloft, while joggers and baby strollers pass underneath. One of the trestles runs past the Tuscaloosa Amphitheater. Yet when I visited last May, many of the trestles’ supports were rotted and some of its cross braces were dangling or missing.

The public has only one hope of finding out if such centenarian bridges are still sturdy enough to carry these oil trains. Ask the railroads. That’s because the federal government doesn’t routinely inspect rail bridges. In fact, the government lacks any engineering standards whatsoever for rail bridges. Nor does it have an inventory of them.

The only significant government intrusion into the railroads’ self-regulation of the nation’s 70,000 to 100,000 railroad bridges is a requirement that the companies inspect them each year. But the Federal Railroad Administration, which employed only 76 track inspectors as of last year, does not routinely review the inspection reports and allows each railroad to decide for itself whether or not to make repairs.

The railroad that operates the Tuscaloosa bridge, Watco Companies, and the Federal Railroad Administration assured me it was safe. But shortly after my reporting was published on the websites of InsideClimate News and The Weather Channel, Watco announced that it would make $2.5 million in repairs. And the Department of Transportation’s inspector general said it would begin a review of the F.R.A.’s oversight of rail bridges.

Even where federal engineering standards do exist, it’s unclear how much safety they provide. For instance, federal track safety standards allow 19 out of 24 crossties to be defective along any 39-foot stretch of the lowest grade of track, where the speed limit is 10 m.p.h. These crossties stabilize the rails. On the best of tracks, which have a speed limit of 80 m.p.h., the standards allow half of the crossties to be decayed or missing.

Five oil trains have exploded in the United States in the last 16 months. Miraculously, there have been no deaths. Canada, however, hasn’t been so lucky. In July 2013, an oil train carrying North Dakota oil burst into flames in the Quebec town of Lac-Mégantic, about 10 miles from the Maine border, killing 47 people.

After that accident, federal officials promised to develop sweeping new regulations to make sure nothing like it happens in the United States. In the interim, the Department of Transportation issued an emergency order requiring railroads to get federal permission before leaving trains unattended with their engines running, a major factor in the Lac-Mégantic explosion. And the railroads agreed to a number of voluntary steps, including keeping oil trains under 50 m.p.h.

But more than a year and a half after Lac-Mégantic, new regulations have yet to be finalized as the railroad and oil industries argue about various proposed provisions. The emergency order didn’t end the practice of railroads’ leaving oil trains on tracks with their engines running; it simply required companies to have a written plan for doing so. And without regulations, reporting or penalties, the public has only the railroads’ word they are complying with the 50 m.p.h. speed limit.

For trackside communities, the stakes are obviously high. New hydraulic fracturing technology has allowed oil developers to tap vast amounts of deeply buried oil in parts of North Dakota, Montana and Canada. Without significant new pipeline capacity, the only way to get the oil to refineries is by train. Rail car shipments of crude oil rose from 9,500 in 2008 to more than 400,000 last year.

To protect communities and the environment, the Transportation Department needs to act quickly to require more resilient rail cars, improve the safety of rail infrastructure and operations, and reduce the volatility of oil at the wellhead, before it is loaded onto trains.

Instead, the debate over regulations inches along as oil trains continue to roll through downtown Philadelphia, suburban Chicago and along the Hudson River in New York and the Schuylkill in eastern Pennsylvania, passing close to a nuclear power plant.

Before leaving office last year, Deborah A. P. Hersman, the chairwoman of the National Transportation Safety Board, questioned whether industry representatives and regulators had a tombstone mentality when it came to oil trains. If nobody dies, she suggested, there’s no pressure to act. So far, the tombstones have all been in Canada.

Marcus Stern has examined the hazards of shipping oil by rail for InsideClimate News, the Weather Channel and the Investigative Fund. He reports for a San Diego-based writers group, Hashtag30.