Category Archives: Bakken Crude

Texas Public Radio: Derailments Spike Along With Oil Shipments

Repost from Texas Public Radio
[Editor: This seems to be an early posting on Texas Public Radio, with actual interview audio to follow.  I will return to add the audio when it is posted.  – RS]

The Source: Derailments Spike Along With Oil Shipments

By Paul Flahive, July 1, 2014
Link to original image: http://bit.ly/1lvK3ci Credit Flickr user Paul Sullivan / cc

Transporting crude oil from areas booming with the hydraulic fracturing revolution relies heavily on railroads. Busier railroads means more derailments and more derailments with trains loaded with old cars filled with oil means more tragedies.

Chris Hart, acting chairman of the National Transportation Safety Board, noted the dramatic rise in flammables being transported by rail the in a letter to U.S. Senators Ron Wyden and Jeff Merkley while noting a number of specific oil derailments:

  • March 27, 2013, derailment of a Canadian Pacific train involving 14 tank cars of Western Canadian crude oil in Parkers Prairie, Minnesota, that released 15,000 gallons of product.
  • January 31, 2014, 11 tank cars of a Canadian National (CN) train transporting North Alberta crude oil in New Augusta, Mississippi, derailed, releasing 50,000 gallons of product.
  • February 13, 2014, 19 tank 2 cars of a Norfolk Southern train carrying Western Canadian heavy crude oil derailed in Vandergrift, Pennsylvania, releasing 4,300 gallons of product.
  • January 7, 2014, 5 tank cars of a CN train carrying Western Canadian (Manitoba/Saskatchewan) crude oil derailed in Plaster Rock, New Brunswick, releasing 60,000 gallons of product.

As we enter July, the property damage by oil on rail derailments has already surpassed all of last year and these derailments have affected every region of the country according to a Politico investigation.

As these trains travel through our communities, sometimes without the knowledge of first responders, are we safe? Should we have more information and the ability to keep these trains outside densely populated areas? Are there alternatives, and how does the Keystone XL pipeline figure in?

Guests:

  • Kathryne Wolfe, Politico’s deputy transportation editor
  • Tom “Smitty” Smith, Texas director of Public Citizen, a consumer and citizen advocacy group

*This is the second segment in the July 1 edition of The Source, which airs at 3 p.m. on KSTX 89.1 FM.  Audio from this segment will be posted by 5:30 p.m.

‘Micro refineries’ a solution to oil-train woes, energy firm says

Repost from Reuters in The Jamestown Sun

‘Micro refineries’ a solution to oil-train woes, energy firm says

By Reuters Media Today

WASHINGTON – A handful of small refineries in North Dakota could remove dangerous gas from oil train cargoes and make shipments from the state’s productive Bakken shale area safer on the tracks, according to a company which has pitched the idea to regulators.

The proposal from Quantum Energy Inc would strip propane and other volatile gas from North Dakota crude and send much of the remaining fuel to distant refineries.

Williston, North Dakota-based Quantum hopes to build five “micro refineries” near railheads already handling Bakken crude to strip about 100,000 barrels a day of fuel from that stream.

Some of the resultant gas could add to household fuel supplies in the upper Midwest while making Bakken-origin rail cargoes safer, Quantum’s executive vice president Russell Smith told Reuters.

“Our plan solves a couple of important problems,” said Smith, who earlier this month pitched the idea in meetings with White House officials and Transportation Department regulators mulling oil train safety.

Besides light fuels, Smith said, the Quantum facilities would also pull a stream of diesel gasoline from Bakken sources to help slake demand in the region. Executives hope to have permits and financing to break ground on at least one of the proposed refineries before year-end.

The company expects that each processing center would cost about $500 million.

A spokesman for the U.S. Department of Transportation said officials could not comment on their deliberations about oil train safety or meetings with industry.

In the coming weeks, though, officials are expected to outline measures to improve oil train safety such as demanding tougher tank cars, slower speeds and diversions around urban centers.

Several oil cargoes from North Dakota’s Bakken have exploded during rail accidents in the last year. Some officials say toughened tank cars should be used to move such fuel.

Regulators have homed in on the vapor pressure of Bakken fuel, one index of the explosion risk.

Industry-funded tests of Bakken fuel have returned vapor pressure readings of 15 pounds per square inch on the commonly-used Reid scale, while Quantum Energy believes it could bring that reading below 6 psi, similar to fuels like ethanol and heavy crude.

“The crude is much less volatile once you take these light tops off,” said Smith, referring to the gassy share of Bakken fuel.

Some oil industry officials, though, see little need to reduce vapor pressure in oil train cargoes and think Quantum might have misjudged demand for gas.

“There will be a market for propane, potentially in North Dakota, but what about the other components they’ll be removing?” said Kari Cutting, vice president of the North Dakota Petroleum Council.

Pentane, butane and other light gases are not easily marketable in North Dakota currently and may have to be shipped to buyers such as far-off chemical plants in tank cars fit to carry dangerous gas.

Smith said Quantum expects to find buyers that would welcome the portion of Bakken fuel not marketed close to the source. The Bakken field extends into Montana and Canada’s Saskatchewan and Manitoba provinces.

Martinez Environmental Group: Volatile crude by rail IS a concern

Repost from The Martinez Gazette, Letters

‘Volatile crude by rail IS a concern’

June 26, 2014

Dear Editor,

The front page headline of the June 14-15 edition of the Martinez News-Gazette read: “Crude by rail not a local threat, CAER director says.”   The article covered the recent City of Martinez Public Safety Committee, which convened to examine the Bakken crude by rail issue. The meeting was dominated by CAER director Tony Semenza, who is also principal of a consulting firm that serves a number of major local refineries.

Mr. Semenza was quoted “… there is one train, with up to 100 tanker cars, that originates in Stockton every 7-10 days and ends up at the Kinder Morgan facility in Richmond, traveling via the tracks that parallel Highway 4.” In other words, this train is going right through Martinez! It rolls over the (rusty) Alhambra trestle carrying 3,000,000 gallons of Bakken crude, the same oil that has been exploding all over North America and that killed 47 people in Lac-Megantic, Quebec.  According to maps recently released by the Natural Resources Defense Council, an explosion by an oil train on that track would threaten thousands of Martinez residents and endanger five schools located within the zone of impact.

Minimizing the issue by only focusing on the one present train ignores recent trends and projections for the near future. Only one train now. There were none this time last year.  Next year, if the refineries have their way, there very well could be a drastic increase of oil train traffic through our town. Nationally, crude oil train traffic is skyrocketing, from 9,500 carloads in U.S. in 2008 to 434,000 in 2013.  California crude-by-rail rose an incredible 506 percent just from 2012 to 2013, with a further 24-fold increase expected by 2016. Accidents have also increased across the country.

Just in the past 11 months, there have been nine major derailments of oil trains, involving explosions, evacuations and spills. These trains spilled over a million gallons of crude oil, more than spilled by railroads in the past 37 years combined. And with crude-by-rail projects pending all around Martinez in Benicia, Pittsburg, Rodeo and Santa Maria, we will  see more than just one train every 7-10 days. So, let’s not minimize the risk. Volatile crude by rail IS something we need to be concerned about here in Martinez.

The disappointing part of the Martinez Public Safety Committee meeting was the decision by Mike Menesini and Anamarie Avila Farias to not immediately elevate the issue to the full City Council, despite the current threat to our health and safety. If you live anywhere near the tracks, check out www.mrtenvgrp.com for more information, and write or call your city council to ask them to do something meaningful on this issue quickly. Other Bay Area cities have passed resolutions opposing the passage of crude by rail. Martinez needs to do the same.

Signed,

Martinez Environmental Group Members Aimee Durfee, Tom Griffith, Bill Nichols, Jim Neu, Kathy Petricca, Guy Cooper, Nancy Peacock, Karen & Arnie Wadler

Safety board chairman says oil train dangers extend beyond crude from the Bakken

Repost from The Associated Press

APNewsBreak: Oil train dangers extend past Bakken

By Matthew Brown, Associated Press, Jun 26, 2014
AP Photo
AP Photo/Matt Brown

BILLINGS, Mont. (AP) — The dangers posed by a spike in oil shipments by rail extend beyond crude from the booming Bakken region of the Northern Plains and include oil produced elsewhere in the U.S. and Canada, U.S. safety officials and lawmakers said.

Acting National Transportation Safety Board Chairman Christopher Hart said all crude shipments are flammable and can damage the environment – not just the Bakken shipments involved in a series of fiery accidents.

Hart cited recent derailments in Mississippi, Minnesota, New Brunswick and Pennsylvania of oil shipments from Canada. He said those cases exemplify “the risks to communities and for the environment for accidents involving non-Bakken crude oil.”

Hart’s comments were contained in a letter to U.S. Sens. Ron Wyden and Jeff Merkley obtained by The Associated Press. They add to growing pressure on federal regulators to improve oil train safety in the wake of repeated derailments, including in Lac-Magentic, Quebec, where 47 people were killed in a massive conflagration last July.

Citing the highly volatile nature of Bakken oil, Transportation Secretary Anthony Foxx last month ordered railroads to notify states of shipments from the region so firefighters and first responders can better prepare for accidents.

But Wyden and Merkley told Foxx on Thursday that the order leaves emergency personnel in the dark on oil shipped from outside the Bakken region.

The Oregon Democrats urged Foxx to expand his order to cover crude from all parts of the U.S. and Canada. They also pressed for the 1 million-gallon minimum threshold in Foxx’s order to be lowered to include smaller shipments.

“With the exception of the Lac-Megantic accident, every accident involving crude oil, ethanol and other flammable materials since 2006 has resulted in a hazardous materials release of less than 1,000,000 gallons,” Wyden and Merkley wrote to Foxx in a letter.

They said the derailments cited by the transportation safety board show that trains carrying non-Bakken crude or less than 1 million gallons pose the same “imminent hazard” that Foxx has asserted for Bakken oil.

Bakken oil on average travels more than 1,600 miles to reach its destination, transportation officials said. That’s much further than oil from some other parts of the country.

U.S. transportation officials said the lengthier journey increases the overall risk exposure for Bakken oil – and is one reason it’s being treated differently than other hazardous cargos.

Representatives of the oil industry and officials in North Dakota also have complained about Bakken oil being singled out by regulators – although for opposite reasons. The American Petroleum Institute and American Fuel and Petrochemical Manufacturers have argued Bakken oil is no more volatile than other light, sweet crudes.

The concerns aired Thursday by the NTSB and Oregon senators essentially flip that argument on its head, to say different types of crude and other hazardous liquids such as ethanol also pose a significant safety risk.

“Accidents involving crude oil or flammable liquids of any kind, especially when these liquids are transported in large volumes, such as in unit trains or blocks of tank cars, can have disastrous consequences,” Hart said.

Association of American Railroads spokeswoman Holly Arthur said the rail industry is complying with Foxx’s original order. She said the group would have to see the specifics of any proposed changes before commenting further.

About 700,000 barrels of oil a day – enough to fill 10 “unit trains” of 100 tank cars each – is coming out of the Bakken by rail, according to the North Dakota Pipeline Authority. That’s about 70 percent of crude-by-rail shipments nationwide, according to federal officials.

Yet the same hydraulic fracturing – or “fracking” – technology that has helped drive the boom in the Bakken region during the past decade is being employed on shale oil fields elsewhere. Crude from the tar sands of western Canada is also fueling the surge in North American production.

Charles Drevna, president of American Fuel and Petrochemical Manufacturers, said he supports getting more information on oil trains to first responders so they’re ready for potential accidents.

According to an analysis done for the U.S. State Department, more than half the loading capacity of oil train facilities built in recent years is in parts of the U.S. and Canada outside the Bakken region. That includes loading terminals in Colorado, Ohio, Oklahoma, Texas, Wyoming, New Mexico, Utah and parts of western Canada.