Category Archives: Bakken Crude

U.S. railroads demand states keep oil shipment details secret

Repost from CBC News, Canada

U.S. railroads demand states keep oil shipment details secret

Some states refuse to comply with requests

The Associated Press Posted: Jun 06, 2014
Damaged rail cars in Casselton, N.D.  from a train that derailed on Dec. 30, 2013. States and railroads are wrestling over whether oil shipment information can be disclosed.
Damaged rail cars in Casselton, N.D. from a train that derailed on Dec. 30, 2013. States and railroads are wrestling over whether oil shipment information can be disclosed. (Associated Press)

U.S. railroads forced to turn over details of their volatile crude oil shipments are asking states to sign agreements not to disclose the information. But some states are refusing, saying Thursday that the information shouldn’t be kept from the public.

Federal officials last month ordered railroads to make the disclosures after a string of fiery tank-car accidents in North Dakota, Alabama, Virginia and Quebec, where 47 people died when a runaway oil train exploded in the town of Lac-Mégantic.

‘If the states do not provide those signed confidentiality agreements, we will not be able to provide subsequent updated information’– spokesman for CSX railroad

The disclosures due Saturday at midnight include route details, volumes of oil carried and emergency-response information for trains hauling one million gallons or more of crude. That’s the equivalent of 35 tank cars.

BNSF, Union Pacific and CSX are seeking agreements that the information won’t be publicly shared. They said the information is security sensitive and releasing it could put them at a competitive disadvantage.

States say communities need to know

State emergency officials said communities need to know about the trains, and the proposed agreements would violate open-records laws.

“Our state statutes prohibit us from signing,” said Lori Getter with Wisconsin Emergency Management. “It will help the responders to make sure they are fully prepared and trained to respond to a potential incident. But it’s also good to let the community know.”

In addition to Wisconsin, Montana, Illinois, North Dakota, Idaho and Washington state also have declined so far to sign the agreements, according to state emergency officials. Other states have said they intend to meet the railroads’ requests.

In Colorado, South Dakota, Iowa and Oregon, the confidentiality proposals are under review by attorneys and no decision has been made, officials said. Officials in Virginia said they intend to make the information public.

U.S. crude oil shipments topped 110,000 carloads in the first quarter of 2014. That’s an estimated 3.2 billion gallons of crude and the highest volume ever moved by rail, the Association of American Railroads said Thursday. It’s spurred by booming production in the Northern Plains.

Volatile Bakken oil

The May 7 federal order covered oil shipments by rail from the Bakken region of North Dakota, Montana and parts of Canada. The Bakken produces a light, sweet crude that is highly volatile and contains more flammable gases than heavier oils such as from the oilsands region of Canada.

Federal officials have said sharing information on Bakken shipments is crucial for local firefighters and other emergency responders to be prepared for accidents.

Railroads that fail to comply face penalties of $175,000 per day and a prohibition against moving Bakken oil. But officials indicated Thursday that there will be flexibility in how the rules are enforced.

“Although we will aggressively monitor compliance, we will also consider extenuating circumstances as railroads work with states to ensure information about the shipment of crude oil is appropriately provided,” said Federal Railroad Administration Associate Administrator Kevin Thompson.

CSX spokesman Gary Sease said the company is providing the information now and asking that the confidentiality agreements be returned with 30 days.

“If the states do not provide those signed confidentiality agreements, we will not be able to provide subsequent updated information,” Sease said. The agreements are necessary “for security reasons and for competitive reasons,” he said.

Union Pacific also was providing the information to at least some states, but officials from several states said BNSF so far has not. A BNSF spokeswoman did not immediately answer whether the railroad planned to hold back the information after Saturday’s deadline.

Louisiana and New Jersey officials said they do not intend to release the information they receive. Louisiana State Police Capt. Doug Cain said there would be security concerns associated with releasing the routes, although the state plans to make sure local officials have the information.

Rep. Mike Thompson bill to study crude-by-rail security from terrorist threats

Repost from The Vallejo Times-Herald
[Editor: … as if risks of derailment and explosion weren’t enough to worry about…  – RS]

Legislation to enhance crude-by-rail safety passes House

Times-Herald staff report  |  06/05/2014

Following an increase in crude oil by rail to the Bay Area, Rep. Mike Thompson has authored legislation aimed at making it safer to transport the highly flammable cargo.

The legislation, which would require an assessment of domestic refinery and rail-related infrastructure, passed the House of Representatives last week by a bipartisan vote of 345 to 59.

It’s currently in the Senate.

“Public safety is the number one priority when we’re transporting and holding crude oil and other cargo through and in our communities,” Thompson said Thursday. “This legislation will let us know if threats exist and how we can fix them.”

Thompson’s district includes three refineries, including the Valero Benicia Refinery, which is seeking approval of a major crude-by-rail terminal. The project’s environmental impact report is due out next week.

Bakken crude from North Dakota, regarded as more flammable than other crudes, is part of the mix of increased crude-by-rail shipments to California. The legislation would require the Department of Homeland Security Office of Intelligence and Analysis to conduct an intelligence assessment of the safety of refinery and crude-by-rail infrastructure. After the assessment is conducted, safety recommendations would be submitted to the House and Senate intelligence committees.

Vancouver City Council votes to oppose crude oil train terminal – “unacceptable risks”

Repost from ThinkProgress

Washington City Rejects Massive Oil Train Project, Citing ‘Unacceptable Risks’

By Emily Atkin June 4, 2014

Flanked by hundreds of concerned residents, the City Council of Vancouver in southwestern Washington State voted early Tuesday morning to formally oppose what would be the Pacific Northwest’s largest crude oil train terminal, saying the project poses “unacceptable risks” to the city’s population of 160,000.

The council’s decision came after six hours of testimony from more than 100 residents, most of them opposed to Tesoro Corp.’s plan to develop a large train terminal at the Port of Vancouver, which would receive up to 380,000 barrels of North Dakotan crude oil per day and transfer it to ships bound for West Coast refineries. That amount of oil, which would come through the city on four separate unit trains per day, is just less than half the daily amount that would be transported by the controversial Keystone XL pipeline.

“The Council’s opposition … [is] due to the unacceptable risks posed to the citizens of Vancouver by the terminal and the related transportation of Bakken crude oil through the city,” the resolution, passed 5-2, reads.

The broad, non-binding resolution opposing Tesoro’s proposal also included language that formally opposes any proposal that would result in an increase of crude oil from North Dakota’s Bakken shale being hauled through Clark County. Last July, 47 people were killed in Lac-Megantic, Quebec, when a train carrying Bakken crude derailed. The U.S. Pipeline and Hazardous Materials Safety Administration has warned Bakken crude could be more flammable than regular oil, due to either its unique properties or because of added chemicals from the hydraulic fracturing process used to extract it.

The National Transportation Safety Board (NTSB) also recently made recommendations that crude oil trains stay far away from urban population centers, citing the increasing rate of fiery accidents involving crude oil trains.

Vancouver Mayor Tim Leavitt and Councilor Bill Turlay were the two that voted no against the proposal, with Leavitt saying he didn’t want to make a “political statement” against a single project without having all the facts.

“It’s kind of like back in the Old West, [when] Judge Roy Bean said, ‘We’re going to have a fair trial and hang the guilty bastard’,” Turlay said, according to a report in the Columbian. “Now, that’s not exactly how I want to present this.”

Turlay and Leavitt did join the other councilors in voting for a resolution that would allow the city to actually have a say in the decision-making process over Tesoro’s proposed project. That resolution allowing intervention in the decision-making process gives Vancouver officials the right to present evidence against the project and appeal any decision, which will ultimately be made by the state’s sitting governor, currently Gov. Jay Inslee.

Bakken: The King in the North

Download from Platts.com McGraw Hill Financial
[Editor: Platts.com is an excellent source of energy industry insider information.  Their 4-page May, 2014 report, “Bakken: The King in the North,” has technical data on Bakken background, industry trends and market predictions.  I have excerpted a few sample quotes below.  – RS]

Bakken: The King in the North

Bakken consumers & potential reach in US Atlantic Coast refineriesBakken crude oil represents light sweet crude produced from the Bakken Shale Formation in the North Dakota / Montana / Saskatchewan / Manitoba region. Production from the US side of the Williston Basin, the sedimentary basin that contains the productive Bakken Shale Formation, crossed the 900,000 b/d mark in November 2013 and was more than 888,000 b/d in February, according to the North Dakota Pipeline Authority and estimates from Bentek, a unit of Platts.
….
Pipeline capacity out of the Bakken is set to increase from 600,000 b/d currently to over 1 million b/d by early 2016….

Bakken transportation flows by type