Category Archives: Bakken Crude

Oil industry recommends: use “highest-danger” labeling on bakken oil tank cars

Repost from Reuters
[Editor: The oil industry recommends highest-danger labeling on Bakken crude oil tank cars despite its misleading claim that Bakken is no different from other light sweet crudes.  This stance puts pressure on the rail industry to come up with stronger tank cars sooner.  Um… follow the money?  – RS]

Oil group wants highest-danger label for Bakken rail shipments

New York, Aug 5, 2014

Aug 5 (Reuters) – A U.S. oil industry group is recommending that all crude shipped by rail from North Dakota’s Bakken fields be labeled as the most-dangerous type of oil cargo, a designation that could hasten the use of new or upgraded tank cars.

On Monday, the North Dakota Petroleum Council (NDPC) released the final results of a wide-scale study on the quality characteristics of Bakken crude, which has been involved in several fiery oil-train derailments over the past year.

The study confirmed preliminary findings released in May suggesting that Bakken was little different from other forms of light, sweet U.S. crude and posed no greater threat versus other fuels when transported by rail.

The NDPC also issued a series of recommendations following the study, however, including one urging oil-by-rail shippers to classify all Bakken crude oil as “Packing Group I” hazardous materials.

That is the highest-risk level of a three-tiered danger assessment, and the NDPC said it was recommended “even though the majority of samples tested for the study would fall within specifications for PG (Packing Group) II.”

Current methods for testing boiling point, the key criteria for differentiating PG I and II classifications, can be inconsistent, the NDPC said. Because it typically contains a high proportion of very light hydrocarbons and petroleum gases, Bakken crude tends to boil at lower temperatures.

“The margin of error for the test methodology can result in different labs testing the same sample with values meeting both PGs. PG I has the more stringent standards and is therefore recommended to avoid further confusion,” said the NDPC report, which was prepared by industry consultants Turner, Mason & Co.

Historically the Packing Group label has made no material difference in how oil is handled on trains; its only purpose was to inform emergency responders about the cargo. The DOT-111 tank car, the model used almost exclusively to ship oil by rail, is able to transport any Packing Group. Many oil companies have been using PG I routinely simply to ensure they were compliant.

But under new regulations proposed last month by the U.S. Department of Transportation, the Packing Group determination could become a pivotal factor in determining how quickly shippers use new or upgraded tank cars that will gradually replace older-model DOT-111s long seen as flawed.

The NDPC represents major producers in the Bakken including Marathon Oil Corp, ConocoPhillips, Continental Resources and Hess.

Authorities had already begun to crack down on misclassified oil shipments after the Lac Megantic tragedy in Canada last year, when a runaway oil-train with cargo from the Bakken energy patch derailed and killed 47 people in the center of a Quebec town.

In February, the DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) fined three companies for using incorrect Packing Group labels for their Bakken cargoes. Two of them had mislabeled shipments as PG II, when in fact they should have been labeled PG I. A third company had used a PG III label rather than PG II.

The DOT rules last month said older model DOT-111 cars would not be allowed to carry Packing Group I crudes within two years, while less dangerous crudes that fall into PGs II and III could still be shipped in the older cars for three and five years.

The rules are open to public comment and may not be finalized for several months.

[Editor: To send a comment, see Two-month comment period starts for new federal oil train rules. -RS]

In its own study released last month, the PHMSA said most crude from the Bakken tested as PG I or II material – “with a predominance to PG I”. It also said the oil was “more volatile than most other types of crude,” a finding disputed by both the American Petroleum Institute and NDPC.

(Reporting by Jonathan Leff; Editing by Tom Brown)

Oil industry study: Don’t worry, be happy…

Repost from Prairie Business Magazine
[Editor: First the oil industry wants us to believe that Bakken crude oil is no more volatile than other light sweet crudes.  Then at the end of the report, they recommend “highest-risk” labeling on train cars carrying the stuff.  Go figure….  – RS]

Oil industry group study says Bakken, other light crude oils similar

By: Kathleen J. Bryan, August 5, 2014

BISMARCK – A final report on Bakken crude released Monday by the North Dakota Petroleum Council will be presented to the North Dakota Industrial Commission on Wednesday.

The study was done in response to two train derailments last year in which railcars carrying Bakken crude ended in violent explosions. One derailment and explosion in Quebec killed 47 people. Another explosion occurred just outside Casselton, N.D.

The final report confirms preliminary results of the Bakken Crude Characteristics Study, which found that Bakken crude is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels, the NDPC said in a statement.

“This study provides the most thorough and comprehensive analysis of crude oil quality from a tight oil production basin to date,” John Auers, executive vice president of Turner, Mason & Co., the engineering firm commissioned to conduct the study, said in a news release.

In addition to confirming the initial findings presented in May, the final report also detailed best practices for field operations to ensure consistent operation of treating equipment, Bakken crude oil quality and testing procedures and shipping classification.

In addition to recommended best practices and analysis of the final results from sampling and testing, the final report also compares analysis from other studies on Bakken crude, including a study commissioned by the American Fuel & Petrochemical Manufacturers and the federal Transportation Pipeline and Hazardous Materials Safety Administration.

“The test results from this study are consistent with scientific data reported by the AFPM and PHMSA,” Petroleum Council Vice President Kari Cutting said. “All of this data does not support the speculation that Bakken crude is more volatile or flammable than other light, sweet crudes.”

The full report is available at http://www.ndoil.org/image/cache/NDPC_Bakken_Crude_Study_-_Final_Report.pdf.

Amtrak provides crude oil train details states had withheld

Repost from McClatchyDC
[Editor: The author notes that this method of obtaining information on transport of crude by rail “only worked in the few places where Amtrak owns or controls track over which freight trains operate.”  – RS]

Amtrak provides crude oil train details states had withheld

By Curtis Tate, McClatchy Washington Bureau, August 4, 2014
US NEWS RAILSAFETY MCT
Empty tank cars roll south along Amtrak’s Northeast Corridor at Newark, Del., on July 28, 2013. The cars were unloaded at the nearby PBF refinery in Delaware City, Del., and are heading back to North Dakota for another shipment. (Curtis Tate/MCT)

— Two loaded and two empty crude oil trains operate daily over Amtrak’s Northeast Corridor in Maryland and Delaware, according a document submitted by the passenger railroad in response to a Freedom of Information Act request.

Last month, Norfolk Southern, the freight railroad that operates the crude oil trains, went to court in Maryland to block the state Department of the Environment from making the same information available to McClatchy and the Associated Press.

The Amtrak document also contains some details of Norfolk Southern’s crude oil train operations in Pennsylvania. That state last month denied requests from McClatchy and the Pittsburgh Post-Gazette to provide information about the shipments.

Dave Pidgeon, a Norfolk Southern spokesman, declined to comment.

In May, following a series of derailments, fires and spills involving crude oil trains, the U.S. Department of Transportation required railroads to notify states about train shipments of 1 million gallons or more of Bakken crude oil to help emergency responders better prepare for an incident.

There is no federal law that shields the crude oil train information from public release. Nonetheless, railroads asked states to sign confidentiality agreements, and some states, including Maryland and Pennsylvania, complied.

However, other states, including California, Washington, Illinois and Florida, did not sign the agreements and have made the crude oil train details available to McClatchy and other news organizations.

In Maryland, according to documents filed on July 23 in the Circuit Court for Baltimore City, state Attorney General Doug Gansler’s office had voided the confidentiality agreements that a state official had signed. However, both Norfolk Southern and rival carrier CSX contested the attorney general’s ruling and sought an injunction to prevent the imminent release of the records.

Pennsylvania is one of the largest single destinations in the country for Bakken crude oil by train. On Monday, McClatchy appealed the Pennsylvania Emergency Management Agency’s denial of an open records request for crude oil train details there.

Amtrak owns or controls lines in Pennsylvania, Maryland and Delaware that Norfolk Southern uses for freight. The national passenger railroad is subject to the federal Freedom of Information Act.

According to Amtrak, Norfolk Southern’s crude oil trains operate over 21 miles of the Northeast Corridor, the busiest passenger train route in the country. The crude oil trains travel between Perryville, Md., and Newark, Del., sometimes alongside Amtrak’s passenger trains. They also use a portion of a line east of Harrisburg, Pa., that Amtrak controls.

The trains are generally 100 cars and weigh 13,500 tons loaded and 4,000 tons empty. By contrast, Amtrak’s flagship Acela Express trains include two locomotives and six cars, weighing a total of 624 tons.

Freight trains commonly operate over the Northeast Corridor at night, but some run during the day. Amtrak restricts Norfolk Southern’s crude oil trains to 30 mph from 6 a.m. to 10 p.m. Overnight, the trains can operate at 50 mph.

Norfolk Southern crude oil trains cannot exceed 135 cars on Amtrak lines.

The Norfolk Southern trains supply the PBF Energy refinery in Delaware City, Del. The facility closed in 2009, only to be revived with rail deliveries of domestic crude oil.

Read more here: http://www.mcclatchydc.com/2014/08/04/235391/amtrak-provides-crude-oil-train.html?sp=/99/200/#storylink=cpy

 

Oil trains to pass through Stockton

Repost from The Record, Stockton, CA
[Editor: Significant quote: “‘These aren’t rail cars filled with rubber duckies. They’re filled with dangerous crude oil,’ said Diane Bailey, a senior scientist with the Natural Resources Defense Council in San Francisco.”  – RS]

Crude oil transport danger for Stockton?

Deadly 2013 explosion in Quebec among incidents fueling concerns
By Alex Breitler, Record Staff Writer, August 03, 2014
Top Photo
A train passes through Stockton carrying crude oil and other flammable liquids Friday morning. | CRAIG SANDERS/The Record

It’s no misprint: Explosive crude oil shipments into California last year increased 506 percent.

And a series of high-profile derailments and fiery explosions across North America has fueled fears that those seemingly ubiquitous tanker cars could someday spell disaster here, too.

The surge has really just begun. In a few years the quantity of oil rolling down our railways will be “huge,” said Michael Cockrell, director of the San Joaquin County Office of Emergency Services.

“You’re looking at some really major transportation of oil, and it’s everywhere,” Cockrell said. “It’s going to be all up and down the state.”

The spike is tied to increased domestic drilling in North Dakota, where the Bakken shale formation produces especially valuable and especially volatile crude oil. Trains provide a fast and flexible way to transport that oil to West Coast refineries.

Stockton’s a bit off the beaten path for at least some of these shipments, which often enter the state via Donner Pass or the Feather River Canyon, traveling through Sacramento on the way to Bay Area refineries.

Still, with Stockton serviced by two major railroad companies and with tracks stretching through urban areas to the north, west and south, advocacy groups argue there is a risk here.

“These aren’t rail cars filled with rubber duckies. They’re filled with dangerous crude oil,” said Diane Bailey, a senior scientist with the Natural Resources Defense Council in San Francisco.

It’s impossible to say how many oil trains already roll through town. Railroads don’t divulge that information, citing security concerns. Only recently did they begin notifying local emergency response officials about incoming shipments.

But there are indications Stockton may have a part to play in the oil transportation boom.

Documents describing a controversial proposed terminal in Pittsburg show that trains carrying oil would come from the east, from Stockton. Plans call for up to one train per day, five days a week to arrive at the Pittsburg terminal. From there, the oil would be shipped through pipelines to refineries.

Plans are also in the works for a $320 million terminal at the Port of Stockton. Commissioners in 2012 approved a lease for the petroleum terminal and storage facility on 33 acres near Washington Street and Navy Drive, said Port Director Richard Aschieris.

It hasn’t been built yet. But Reuters reported last month that trains would deliver 70,000 barrels of oil per day to the port’s Targa Resources Partners terminal. The Houston-based company would then load the oil onto ships to be delivered to refineries.

Aschieris said that in addition to petroleum, Stockton’s terminal will also handle ethanol, natural gas, propane and other materials. He said it will generate $1.2 million a year in taxes for the city and county combined, along with 20 full-time, high-paying jobs.

Aschieris said the project makes sense from a safety perspective.

“No matter what they’re moving, if they move it onto a barge or ship, I would contend that is safer than putting it on trucks and taking it right in through the Bay Area,” he said.

As for the trains that would deliver the oil, Stockton’s flat terrain decreases the odds of a derailment, said Aschieris, who added that private railroads have made “huge investments” in improving local tracks.

The debate over the transportation of crude oil spreads far beyond Stockton and California.

In Quebec, 63 tanks cars of crude oil exploded in July 2013, killing 47 people. Eight other major accidents have been reported in the past two years.

Tellingly, train accidents involving crude oil have increased even while the overall number of train accidents and hazardous material spills has declined.

In late July, acknowledging that the growing reliance on trains “poses a significant risk to life, property and the environment,” the federal government announced plans to phase out older tank cars within two years. They also took action to improve notifications about oil shipments, to reduce the speeds at which oil trains travel through towns, and to encourage railroads to choose the safest routes.

Most crude oil is still transported by marine vessels. But the quantity sent by train has skyrocketed from 1 million barrels in 2012 to 6.3 million barrels last year, and experts say the number could climb as high as 150 million barrels by 2016, according to a report by a working group convened by Gov. Jerry Brown.

For Cockrell, with county Emergency Services, the oil shipments are yet another potential disaster to worry about.

Since railroads are regulated by the federal government, he said he’s concerned that local governments may have difficulty seeking assistance responding to a derailment, and that it might be difficult to seek reimbursement from the private railroads.

Many people could be affected by a large spill in an urban area, Cockrell said.

One advocacy group, San Francisco-based ForestEthics, recently issued “blast zone” maps showing the half-mile evacuation zones overlaid on rail routes that could conceivably carry shipments of crude oil. And the Natural Resources Defense Council has estimated that almost 4 million Californians could be at risk.

Opposition has grown to the proposed new oil terminal in Pittsburg. Other projects are in the works in Bakersfield, Benicia, Santa Maria and Wilmington (Los Angeles).

Mike Parissi, with San Joaquin County’s Environmental Health Department, said the county’s multi-agency hazardous materials team trains for potential railroad disasters – though not specifically for crude oil spills.

“The big thing with the crude oil is it’s very flammable,” he said. “But we can deal with any kind of flammable liquid incident that might come.”

Back at the port, Aschieris said crews there are used to handling hazardous materials. So are the railroads, said a spokeswoman for Burlington Northern Santa Fe, whose tracks pass through Stockton.

“We’ve actually handled hazardous material for many, many years, and we’ve done so safely,” said spokeswoman Lena Kent. “Unfortunately there have been a few high-profile incidents.”

She would not say how much crude oil her company sends through Stockton. She did say two crude oil trains per month enter the state, a tiny fraction of the 1,600 all-purpose trains that Burlington Northern operates throughout the country on any given day.

Union Pacific did not respond to a request for information about its shipments.

Bailey, the scientist with the Natural Resources Defense Council, says the trains should be rerouted, adding that they have a “stranglehold” on the cities through which they pass.

“I haven’t really seen anyone entertain this conversation,” she said. “Does it make sense to bring mass quantities of really dangerous crude oil through people’s cities, so close to their homes?”