Category Archives: Bakken Crude

Vancouver City Council urged to oppose Tesoro oil terminal

Repost rom The Columbian
[Editor: The resolution is expected to pass.  – RS]

In Our View: Stopping the Oil Terminal

Vancouver City Council should formally adopt its opposition to proposed project

May 19, 2014

After months of limbering up, members of the Vancouver City Council have taken a swing at a proposed oil terminal at the Port of Vancouver — and smacked one out of the park. Councilors have prepared a draft resolution weighing in on the deal reached last year between port officials and Tesoro Corp. and Savage Companies. They have opposed the proposal in no uncertain terms and have urged government entities that have a say in the matter to rule against it.

The draft resolution will be discussed by the council during a workshop Monday and will receive a public hearing on June 2; council members are expected to vote on the resolution June 16. And while the city has no official decision-making capacity regarding the oil terminal — which would handle up to 380,000 barrels of crude oil per day, arriving by train from the Bakken formation in North Dakota — it has effectively distilled the arguments against the idea. Among the items included in the resolution’s 37 “whereas” statements:

• “Human error, acts of nature and unforeseen disasters are beyond the control of measures proposed for the Vancouver oil terminal project and could have devastating effects on the entire community.”

• There have been several well-documented derailments and explosions of trains carrying Bakken crude, including one in Quebec that killed 47 people.

• The city has invested heavily in a proposed Columbia Waterfront Development, a $1.3 billion project that would result in commercial, residential, and recreational outlets along the banks of the Columbia River — just upriver from the terminal site and in the shadow of the rail tracks used by oil trains.

Each of these is an important aspect deserving of consideration, but the most valid argument from city officials is this: “Whereas the City has a paramount interest in the health, safety and welfare of its citizens and believes that the development of the proposed Tesoro Savage crude by rail oil terminal is contrary to the health, safety and welfare of its citizens and business community.”

These talking points have been presented previously by some on the city council and by many members of the public. But formal adoption of the resolution by council members (four of the seven members have expressed opposition to the terminal) would go a long way toward stopping it in its tracks. The state Energy Facility Site Evaluation Council is reviewing the proposal and will make a recommendation to Gov. Jay Inslee, who will have the final say regarding approval. The city council’s resolution urges both EFSEC and the governor to decline certification of the terminal, and it also urges federal and state lawmakers to tighten regulations regarding the transportation of crude oil.

Most intriguingly, council members request that the Port of Vancouver terminate its lease with Tesoro and Savage. The ability of port officials to do that remains open to interpretation — in part because the lease released to The Columbian under a public-records request contains heavily redacted portions. It is difficult to assess the legal obligations of the port under such a veil of secrecy, which is another reason to question the terminal proposal. If Tesoro and Savage cannot trust the public to know the details, it’s unlikely the public will trust the companies to act in the best interest of the community.

The reasons for opposing the oil terminal are sound and well-considered, having undergone months of scrutiny and discussion. The Vancouver City Council would be wise to formally adopt its opposition.

Iowans worry: unsafe tank cars, hazardous loads, unsafe speeds

Repost from KCRG ABC9, Eastern Iowa

Outdated Rail Cars Carry Dangerous Loads Through Iowa

By Erin Jordan, The Gazette


FAIRFAX, Iowa — Will Forester spends his days fixing boats. But he thinks about trains.

Every 10 to 20 minutes, he hears the horn of a Union Pacific train as it approaches Forester Marine in downtown Fairfax. The freight trains hauling coal hoppers, tank cars and flatbeds roar by his boat-repair shop, shaking the century-old former depot and making Forester’s ears ring.

“They go by at about 70 miles per hour,” Forester said. “It’s just pretty fast for a little town.”

Included on those trains are DOT-111s, tank cars used to carry ethanol, crude oil and other hazardous liquids across the country despite concerns about the cars’ risk of puncture and fire in a derailment.

Several high-profile train wrecks, including a fiery crash in Canada last summer that killed 47 people, have renewed scrutiny of the DOT-111s, regarded in Iowa and across the nation as the workhorse of the energy industry.

Although never intended for high-speed use, DOT-111s may be driven through some parts of Iowa at nearly four times their recommended speed.

The Canadian government has ordered all DOT-111 cars be upgraded within three years. So far, the U.S. Department of Transportation has issued only piecemeal restrictions and voluntary recommendations.

Outdated cars, hazardous loads

The next time you’re stopped for a train, look for black, tube-shaped tank cars. Those are likely DOT-111s.

“At any one time, you can see literally dozens and dozens of 111s going by,” said Tom Ulrich, operation officer for the Linn County Emergency Management Agency.

If a train derails, hazardous-materials teams are charged with preventing leaks that might cause fire, an explosion or a spill that could damage the environment or kill animals. But officials don’t always know the type or volume of hazardous materials moving through their jurisdictions.

A 2010 commodity study in Johnson County showed 443 million gallons of flammable liquids traveled the Iowa Interstate Railroad, which runs through Iowa City. Flammables included ethanol, petroleum products and paint.

Another 2.3 million gallons of corrosives — including hydrochloric acid, battery acid and potassium hydroxide — shipped via Iowa Interstate and Cedar Rapids and Iowa City Railroad (CRANDIC) in 2010, the study showed.

Other hazardous materials moving by rail in Johnson County in 2010 included environmentally hazardous substances, anhydrous ammonia and pesticides.

Linn County almost certainly has higher volumes, Ulrich said. But officials won’t know until after a regional commodity study starting this summer.

Linn County will contribute $9,000 to the first phase of the study, which eventually will include Benton, Buchanan, Cedar, Clayton, Clinton, Delaware, Fayette, Jackson and Jones counties. The local emergency planning committee for the smaller counties already has received $18,000 in Homeland Security grants toward the project, committee chairman Mike Ryan said.

Most rail transport safe

Most hazardous materials are shipped via rail without incident, said Tom Simpson, president of the Railway Supply Institute, a trade group that acts on behalf of suppliers to North American railroads.

“Over 99 percent of hazardous shipments arrive safely,” he said. “DOT-111’s operate every day of the year safely. They have been built to the standards the DOT has in place.”

There are about 97,000 DOT-111s carrying flammable liquids across the country, Simpson said. More than 40 percent of the cars are carrying crude oil and another 30 percent are freighting ethanol.

“You can see the DOT-111s are an important part of our domestic energy-development service,” he said.

The rail car industry started making safer tank cars in 2011, but with a national uptick in crude production, the DOT-111s are critical to shipping oil from places such as North Dakota and Colorado to refineries in Texas and Louisiana.

Bakken crude a concern

The Bakken formation, which covers about 200,000 square miles in North Dakota, Montana and Canada, has been known to be a vast oil source since the 1950s. But hydraulic fracturing, or fracking, has boomed in recent years.

Bakken crude has more flammable gasses and is more likely to explode, the federal government has warned.

Forty-seven people were killed July 6 when a runaway 74-car freight train derailed in Lac-Megantic, Quebec. The train, carrying Bakken crude in DOT-111 tank cars, started fire and several tank cars exploded, destroying more than 30 buildings.

The area was flooded with crude and other chemicals that are still being cleaned up today.

A train carrying crude nearly toppled a bridge in Philadelphia in January, and another crude oil train derailed and caught fire in downtown Lynchburg, Va., last month. That fire caused an evacuation of hundreds of people and spilled oil into the James River.

It’s hard to tell where Bakken oil is being shipped in Iowa.

Canadian Pacific, which describes itself as the “only rail carrier providing single line haul service between the Bakken and major crude oil markets in the Northeastern United States,” has an online map showing routes that appear to go from Mason City through Eastern Iowa towns that include New Hampton, Postville and Marquette.

A 2012 crude-by-rail map published by the U.S. Pipeline and Hazardous Materials Safety Administration shows heavy Bakken transports along the Canadian Pacific line that runs on the Iowa side of the Mississippi River.

Officials from Canadian Pacific and Union Pacific would not confirm whether Bakken oil is being shipped on their railroads.

“For security reasons, we don’t provide specifics,” Canadian Press spokesman Ed Greenberg said.

Onna Houck, corporate counsel for Iowa Interstate Railroad, said the company does not ship Bakken oil on its 500 miles of track in Iowa.

Starting in June, railroads that ship 1 million gallons of more of Bakken crude on a single train must notify each state’s emergency response commission, according to a May 7 emergency order from the U.S. Department of Transportation.

Ethanol shipped in DOT-111s

Ethanol also can be dangerous when it’s shipped in outdated tank cars.

An Oct. 7, 2011, trip on the Iowa Interstate Railroad ended in disaster when 26 cars jumped the tracks near Tiskilwa, Ill. Of 10 DOT-111s carrying ethanol, three erupted in massive fireballs causing officials to evacuate the town of 750 people, the National Transportation and Safety Board reported.

“The poor performance of DOT-111 general specification tank cars in derailments suggests that DOT-111 tank cars are inadequately designed to prevent punctures and breaches, and that catastrophic release of hazardous materials can be expected,” the NTSB said.

Iowa Interstate Railroad ships ethanol from plants with a combined capacity of more than 1 billion gallons, Houck said. Railroads can’t reject legal loads, even if the freight is hazardous material.

As the shippers own or lease the rail cars, railroads have little say over the use of DOT-111s.

ADM, which produces ethanol as part of its grain-processing operations in Cedar Rapids, declined to speak with The Gazette about its use of DOT-111s. Penford Products, which also has an ethanol plant, did not return calls seeking an interview.

Speed can influence derailments

It’s not just the materials inside a train but the speed that can increase risk.

Albert Ratner, a University of Iowa associate professor of mechanical engineering who studies fires during train derailments, said DOT-111s were designed to drive about 18 miles per hour. With less than half an inch of steel around the center, weak end caps and easily damaged valves, the DOT-111 doesn’t hold up well in a crash, he said.

“If you’re in areas where they’re going 40, 50 miles an hour, you’re really rolling the dice because if the car derails, the car’s not designed for that,” Ratner said.

Emergency manager Ulrich agreed.

“When they derail, even at low speeds, there’s the opportunity for the valving to shear off, top and bottom, and for the tank itself to be compromised,” he said.

The Union Pacific line through Fairfax has a speed limit of 70 miles per hour, with engineers reducing the speed to 50 mph only if there are 20 or more cars with hazardous materials, Union Pacific spokesman Mark Davis said.

“In a lot of rural communities, faster is better because the crossings aren’t blocked for as long,” Davis said.

The speed limit on Iowa Interstate Railroad is 40 mph. Canadian Pacific’s tracks through Iowa vary from 10 to 40 mph.

Stopgaps and precautions

The rail car supply industry so far has built more than 17,000 upgraded tankers that include thicker steel, stronger end caps and more protection for top fittings, Simpson said. They will have 55,000 by the end of 2015.

But until the DOT-111s can be replaced, the industry is using stopgaps and precautions.

The UI’s Ratner has researched fuel additives that prevent mist, which is often what ignites in a train derailment. The additives can save lives but cost five to 10 cents per gallon, he said.

Canadian Pacific introduced a $325-per-car surcharge in March for all older tank cars as a way to encourage shippers to upgrade, Greenberg said.

Union Pacific tries to keep its tracks in top condition to prevent derailments, invests heavily in education for employees about hauling hazardous materials and works with emergency managers in every county, Davis said.

Still, accidents happen. A train on UP lines dumped 6,500 gallons of oil during a derailment May 9 near LaSalle, Colo.

“We have to work with our customers to help make the transportation of their products safer,” Davis said.

Oil industry: no reason to regulate bakken crude differently

Repost from NGI’s Shale Daily
[Editor: NGI stands for Natural Gas Intel.  This report on oil industry trade groups is interesting, if not exactly reliable.  – RS]

Trade Group: No Reason to Regulate Bakken Crude Differently

Charlie Passut  |  May 15, 2014

Crude oil from the Bakken Shale isn’t significantly more dangerous than crude from other plays to transport by rail and poses a lower transport risk than other flammable liquids, but it may contain higher amounts of dissolved flammable gases compared to heavier crudes, according to a report commissioned by the American Fuel & Petrochemical Manufacturers (AFPM).

AFPM, which represents nearly all of the petroleum refiners and petrochemical manufacturers in the United States, said it surveyed 17 of its members and collected approximately 1,400 samples of Bakken crude for its 38-page report, which was released Thursday. The trade association said it commissioned the report at the request of the U.S. Department of Transportation (DOT).

“The results show that while Bakken crude (and other light crudes) may contain higher amounts of dissolved flammable gases compared to some heavy crude oils, the percentage of dissolved gases would not cause Bakken crude to be transported under a DOT hazard class other than Class 3 Flammable Liquid and does not support the need to create a new DOT classification for rail transportation,” the report said.

DOT has been investigating a series of train derailments involving rail cars containing Bakken crude. The investigation is part of DOT’s Operation Classification, also known as the “Bakken Blitz,” (see Shale Daily, Feb. 26).

Last February, DOT issued an emergency order [Docket No. DOT-OST-2014-0025] requiring rail carriers to test crude oil before transport, and to classify crude as a Packing Group (PG) I or II hazardous material, effectively forbidding its classification under PG III, a “low danger” category.

DOT issued a second emergency order last week [Docket No. DOT-OST-2014-0067], advising against the use of older, more vulnerable rail cars for the shipment of Bakken crude (see Shale Daily, May 7). Railroads were also required to notify the appropriate state emergency response commissions when the trains carrying more than 1 million gallons of Bakken crude are moving through their states.

According to the AFPM survey, the flashpoint for Bakken crude ranged from -59 to 50 degrees Celsius. The trade association said that meant it meets the criteria for transport as a PG I, PG II or PG III material or as combustible liquids. It also found that Bakken crude’s initial boiling point ranged from 2.2 to 66.9 degrees Celsius. AFPM said oil with an initial boiling point of 35 degrees Celsius or lower could be shipped as PG I, but other oils could be sent as PG II, PG III or as combustible liquids.

The vapor pressure of Bakken crude at 50 degrees Celsius tested at a maximum 16.72 pounds per square inch absolute (psia). Meanwhile, rail tank car pressures on delivery tested at a maximum of 11.3 pounds per square inch gauge (psig), which AFPM said demonstrates that Bakken crude may be safely transported in DOT Specification 111 tank cars.

“Measured tank car pressures show that even the older DOT 111’s authorized to transport Bakken crude oil are built with a wide margin of safety relative to the pressures that rail tanks may experience when transporting Bakken crude oil,” the report said.

Last week, two DOT agencies — the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) — issued a safety advisory strongly urging those shipping or offering Bakken crude to use tank car designs with the highest level of integrity available in their fleets. The agencies advised offerors and carriers to try and avoid using older legacy DOT Specification 111 or CTC 111 tank cars for the shipment of Bakken crude.

AFPM added that of all the samples taken of hydrogen sulfide (H2S) concentrations, only one sample tested above the short term exposure limits set by the Occupational Safety and Health Administration. The lone high sample tested at a maximum 23,000 ppm. “Where they exist, high H2S concentrations are addressed under existing transportation and workplace safety regulatory provisions without affect to rail tank car authorizations,” the report said.

The report also compared the Reid Vapor Pressure (RVP) — a measurement for volatility — of Bakken crude to other types, including crude from the Eagle Ford Shale in Texas and the Denver-Julesburg (DJ) Basin in Colorado. Other crudes tested were Louisiana Sweet (LLS), West Texas Intermediate (WTI), Arabian Super Light, Agbami, Sarahan Blend, Brent, Alvheim blend, Arabian Heavy, Alberta Dilbit and Alba.

The report said Bakken crude had an RVP of 7.83 psia. By comparison, crude from the DJ Basin tested at 7.82 psia, the Eagle Ford was 7.95 psia, LLS was 4.18 psia and WTI was 5.90 psia. Arabian Super Light tested at the highest RVP (20.7 psia) while Alba was the lowest (1.6 psia).

“While survey data on specific samples of Bakken crude oils (like other light crude oils) showed higher gas content than assay data, it may be expected that similar variations arise in the case of non-Bakken crude oils,” the report said. “The data suggests that Bakken crude oil is within the norm for what might be expected in the case of light end content in light crude oils.”

The report was prepared by Frits Wybenga, hazardous materials consultant for the Rockville, MD-based firm Dangerous Goods Transport Consulting Inc.

Last July, an unattended freight train transporting Bakken crude rolled downhill, derailed and exploded in Lac-Megantic, Quebec, killing 42 people (see Shale Daily, July 9, 2013).

Six months later, a 90-car crude oil train loaded with Bakken crude heading to a refinery in Florida derailed in a rural area near Aliceville, AL. According to DOT, more than 20 cars derailed and at least 11 ignited, causing an explosion and fire. Although no one was injured in the incident, an undetermined amount of crude fouled a wetlands area, causing an estimated $3.9 million in damage.

On Dec. 30, 2013, a BNSF train carrying Bakken crude hit a grain train traveling in the opposite direction that had derailed earlier near Casselton, ND. The crash caused 21 cars carrying crude to derail, 18 of which subsequently ruptured and exploded (see Shale Daily, Dec. 31, 2013). There were no injuries, but about 1,400 were evacuated. Damage was estimated at $8 million.

CBS TV Sacramento: uprail communities concerned as crude by rail spikes

Repost from CBS13 Sacramento
[Editor: Rather a poor report, with a few errors (for instance, six explosions, not three) and a pessimistic ending.  But good tv exposure on the issue.  See the excellent quote by Davis Mayor Joe Krovoza, and note how the Valero Benicia spokesperson evades the reporter’s question on “Who will pay for safety?” in the interview near the end.  – RS]

Crude Oil Shipment Spike Has California Residents Along Railways Concerned

May 13, 2014


DAVIS (CBS13) — It’s been a deadly year for the oil and railroad industries as crude oil tankers on North American railways explode in three separate incidents, calling into question what dangers are we willing to accept in our insatiable quest for fuel.

Welcome to North Dakota, where the earth is gushing oil. But the black gold blessing is quickly becoming a shipping curse.

The number of trains carrying crude oils is rapidly expanding, putting residents like Errin Enos of Davis at risk.

“Of course I’m scared, they go right past my house,” he said.

About 1 million barrels of oil a day is being extracted from the Bakken Oil Field in North Dakota. Getting it from there to refineries in California has created a controversial and dangerous dilemma.

“Frankly, it’s just the odds,” said California state Sen. Beth Jackson. “If we’re transporting more things by rail, it’s just going to happen at some point no matter how we try to be careful.”

Oil industry insiders know about the controversy involving the third-largest refining state.

For the most part, crude oil is transported around the world on ships, through pipelines and by trains. Each of those has risks.

Three accidents involving oil trains have occurred in the last year alone:

July 2013: A train carrying crude oil derailed and exploded in Quebec, Canada, leveling portions of the town of Lac Megantic and killing 47 people.

December 2013: An oil train collided with a derailed train near Casselton, North Dakota.

April 30: A train loaded with crude oil derailed in Lynchburg, Virginia. Some cars burst into flames, others plunged into the James River.

But even shipping has its dangers.

November 2007: A Cosco Busan oil tanker rammed the Bay Bridge, spilling 53,000 gallons of bunker fuel into the San Francisco Bay—or less than two rail cars full of oil.

March 1989: The Exxon Valdez struck a reef in Prince William Sound Alaska. Up to 750,000 barrels of crude oil spilled, making it one of the most devastating human-caused environmental disasters.

On land, millions of barrels of crude oil are moved through pipelines and trains. So which is safer?

Juan Acosta represents Burlington Northern Santa Fe railroad and recently testified at a hearing at the state Capitol.

Even though pipelines are safer, he says, environmental groups strongly oppose building new pipelines, meaning America’s overflowing oil reserves are now hitting the rails.

Crude Spike Means Busy Railways

Railroads have several lines to bring crude oil into California. Many of them converge at refineries in our part of the state in cities like Richmond and Benicia. In the coming years, officials estimate that 25 percent of crude coming into California will arrive on trains.

Cities and towns that line these train tracks are fighting the trend, because there’s a plan to send even more crude oil through Northern California.

That has Davis Mayor Joe Krovoza concerned.

“If those same tracks are going to be be carrying hundreds of thousands of cars of crude oil through Davis every day, that’s absolutely a situation we can’t have in this community,” he said.

The plan would send 82,000 barrels of North Dakota Bakken crude oil on California tracks through Roseville, West Sacramento and Davis on their way to the Valero refinery in Benicia.

Chris Howe is the director of health, safety and environment at the refinery where they convert crude oil into gasoline, diesel and jet fuel. They hope to build a special station where they can offload North Dakota’s oil from train cars.

“Today about 80 percent of the crude oil that we process at the refinery comes in by marine tanker,” he said.

Currently, a little more than five percent of oil comes into the state by rail, but that’s almost certain to increase dramatically.

With a record amount of crude oil being extracted from North Dakota and a lack of pipelines to ship it, and with the world’s appetite for oil products increasing in places such as China and India, the oil industry says it’s a basic business principle of supply and demand.

And it’s not just in Benicia. Oil is alreayd being offloaded from rail cars and onto tanker trucks at McClellan Park near Sacramento.

Who Will Pay For Safety?

At a recent hearing at the state Capitol, Lisa Stark testified for Union Pacific, saying safety is a top priority.

“I know we’re very aggressive on safety, so it may not make a huge difference here in California because we already have a very aggressive program here,” she said.

But at that same hearing, emergency responders from a host of state agencies were concerned about their ability to respond to a catastrophe.

“What we did learn is that there really is no preparedness,” said State Sen. Jerry Hill.

He says not only are local emergency crews not prepared, but he says only the railroads are willing to pay to train local firefighters, not oil companies.

“They’re fine with most of what’s being proposed,” he said. “It’s the oil companies who are opposed to any additional fees that would be imposed on crude oil that comes.”

Something Howe doesn’t confirm, but doesn’t deny either.

REPORTER: So you think Union Pacific would be willing to go into some of these smaller communities and offer training?

HOWE: I’ve read their commitment to do that and it’s my understanding …

REPORTER: But it’s not something Valero would be willing to do?

HOWE: I would surely encourage the railroad to help do that.

Living along the tracks, Enos believes more trains filled with explosive crude oil will be rolling by his home in the near future.

“They’re gonna get their way,” he said. “I mean I could talk, talk, talk and it’s not gonna make any difference, I don’t believe.”