Category Archives: Crude By Rail

Crude By Rail, DOT-111, Federal Regulation (U.S.)

Adirondack rail line marketed for long-term storage of obsolete oil tankers

Repost from the Times Union, Albany NY

Adirondack rail line marketed for long-term storage of obsolete oil tankers

Environmentalists see Adirondacks ”graveyard”

By Brian Nearing, August 7, 2015 Updated 6:33 am
Oil train cars in the Port of Albany on Wednesday April 22, 2015 in Albany, N.Y. (Michael P. Farrell/Times Union) Photo: Michael P. Farrell
Oil train cars in the Port of Albany on Wednesday April 22, 2015 in Albany, N.Y. (Michael P. Farrell/Times Union) Photo: Michael P. Farrell

TAHAWUS — To the dismay of environmental groups, a railway company potentially is going to store hundreds of emptied-out crude oil tankers on its rail line in the Adirondacks.

The Saratoga and North Creek Railroad initially planned to use its tracks to haul rock from a mine in the High Peaks, but that has not panned out. Now, the owners see a new source of cash from storage of aging oil tankers that don’t meet current Canadian and proposed new U.S. safety standards, and will await either retrofitting or scrapping.

Parent company Iowa Pacific Holdings has already begun to market its line for tanker storage, but questions remain over whether state permits will be required. On Thursday, spokesmen for both the state Department of Environmental Conservation and the Adirondack Park Agency said the situation was being “researched” and declined further comment.

Last month, Iowa Pacific Holdings President Ed Ellis told a panel of Warren County lawmakers that his company believes it needs no outside permission to begin storing the tankers along the Essex County portion of the line and was informing the county merely as a courtesy.

The 30-mile line, which runs from North Creek to near Tahawus in the High Peaks, is owned by Warren County in Warren and Saratoga counties, and leased by the railroad since 2010. The tracks in Essex County are owned by the railroad.

Ellis told county lawmakers that his company could store hundreds of tanker cars on a section of track in Essex County called the Sanford Lake line that runs along the Hudson and Boreas rivers.

He said the tankers would contain only oil residue and pose a “virtually non-existent” risk of explosion or fire. “We have been storing tanker cars on our line in Colorado for nine years without a problem,” Ellis said.

“This opens up a lot of profound questions,” said Roger Downs, conservation director of the Atlantic Chapter of the Sierra Club, which in 2012 had unsuccessfully opposed a federal ruling to reopen the line, which had been closed since 1989, to freight traffic.

“We would hope that the Adirondack Park Agency and local authorities have some local control. We are completely opposed to this plan,” said Downs. Some 13 miles of track run through the forever-wild state Forest Preserve.

Peter Bauer, executive director of the conservation group Protect the Adirondacks, said jurisdiction over potential mass tanker storage was complex. “And no one can say how long those tankers might be there,” he added. “It could potentially be a railroad graveyard.”

Bauer also said the rail line runs through newly acquired state land that once belonged to the Finch Pruyn paper company. “Was this kind of use what the governor had in mind when he supported that purchase?” Bauer asked.

A call to Ellis’ office for comment was not returned. Last week, he said new and proposed regulations could shelve much of an 80,000-car tanker fleet and require that the tankers be stored for years while they await either retrofitting to meet tougher standards or are scrapped.

Canada just required tank cars must have double hulls to reduce the risk of explosions and fires in derailments. U.S. rules were also recently announced.

In addition to its Adirondack line, Iowa Pacific Holdings is also offering other rail lines in California, Colorado, Illinois, Oregon and Texas for tanker storage, according to the company website.

In 2012, Iowa Pacific purchased the rail line from NL Industries, which had stopped mining at Tahawus in the 1980s. Since then, the company has spent millions to replace rails and ties, rehabilitate track sidings and add rock ballast.

Iowa Pacific is a privately held, Chicago-based operator of nine U.S. railroads, manages two rail lines in the United Kingdom and runs other rail-related businesses.

Ellis told county lawmakers that the tanker car storage revenue in the Adirondacks could eventually be worth “seven figures” a year to the railroad.

Bridge safety, Crude By Rail, Derailment, Explosion, Rail infrastructure, Rail inspection

Sen. Bob Casey calls for more funding for railroad bridges

Repost from The Herald, Sharon PA

Casey calls for more funding for railroad bridges

By John Finnerty, CNHI Harrisburg, August 7, 2015 7:38 am

HARRISBURG – The federal government must step up oversight of railroad bridges as hundreds of trains carrying explosive crude oil from the Bakken region of North Dakota cross the state each week, said U.S. Sen. Bob Casey.

Casey, a Democrat and the state’s senior senator, has repeatedly criticized the government’s regulation of railroads in light of derailments and explosions involving crude oil.

Pennsylvania has more than 900 bridges that carry trains over highways, Casey said. The Federal Railroad Administration has just one inspector to check those bridges.

Under a 2010 Federal Railroad Administration rule, railroads must check each bridge at least once a year. At the time that rule was adopted, the government estimated there were 100,000 railroad bridges in the United States.

Railroads face fines of $100,000 for failing to comply with inspection rules.

But short-staffing at the railroad administration means the agency is in no position to ensure that railroads comply, Casey said.

“This lack of oversight could cause gaps in our rail safety system and creates an environment where hundreds of unsafe bridges could be in daily use without proper federal oversight,” he said in a written statement. “It’s time to put more cops on the beat by hiring more rail inspectors. With the risks that our communities face only increasing, the FRA needs to put this process into overdrive.”

Before the Bakken region’s tracking boom, railroads carried about 9,500 cars of crude oil a year. This year they’re on track to top a half-million, according to the American Association of Railroads.

That includes trains that carry at least 60 to 70 million gallons of crude oil across Pennsylvania each week.

Crude By Rail, Derailment, Fire, Human error, Rail infrastructure, Rail inspection

To boost the safety of moving oil by rail, focus on the tracks, paper argues

Repost from the Houston Chronicle

To boost the safety of moving oil by rail, focus on the tracks, paper argues

Infrastructure report says broken rails and human error are also problems as shipments of crude increase

By Jennifer A. Dlouhy, August 6, 2015
A train hauls crude oil in Seattle last month. Railroads and regulators can leverage technology to make existing inspection programs more efficient and effective, says a white paper by the Alliance for Innovation and Infrastructure.on Wednesday, July 15, 2015. The highly controversial trains haul rail cars loaded with oil brought from the oil fields of North Dakota and Montana. (Joshua Trujillo, seattlepi.com) Photo: JOSHUA TRUJILLO / SEATTLEPI.COM
A train hauls crude oil in Seattle last month. Railroads and regulators can leverage technology to make existing inspection programs more efficient and effective, says a white paper by the Alliance for Innovation and Infrastructure.on Wednesday, July 15, 2015. The highly controversial trains haul rail cars loaded with oil brought from the oil fields of North Dakota and Montana. (Joshua Trujillo, seattlepi.com) Photo: JOSHUA TRUJILLO / SEATTLEPI.COM

WASHINGTON – More can be done to boost the safety of moving oil by rail by focusing on the tracks themselves, according to a white paper released Thursday by a group promoting infrastructure investments.

New rules requiring more resilient tank cars are an important step, the Alliance for Innovation and Infrastructure said, but regulators, railroads and shippers now need to do more to combat the leading cause of derailments, including broken rails and human error.

From integrity sensors to measurement systems, an array of technologies can help ensure tracks are sound, said Brigham McCown, chairman of the alliance and a former head of the Pipeline and Hazardous Materials Safety Administration.

‘Proactive engagement’

“We tend to be reactionary. Something happened, so what are we going to do to fix it?” McCown told reporters Thursday. “We focus on the accident, rather than focusing on a long-term proactive engagement of reducing the potential for accidents to begin with.”

The issue has drawn attention amid a surge in oil-by-rail traffic. As trains carry crude across the United States to refineries and ports, there has also been a series of fiery derailments involving tank cars carrying that hazardous material.

Over 22 pages, the alliance’s white paper makes the case that railroads and regulators can leverage technology to make existing inspection programs more efficient and effective.

Existing regulations, updated in 2014, already mandate both track and rail inspections – the former often entails workers examining the physical conditions of track structures and the roadbed by foot or by vehicle, with that monitoring required as frequently as weekly in some cases. Rail inspections use ultrasonic or induction testing to identify hidden internal defects, with their timing generally pegged to the amount of traffic on rail segments.

The Federal Railroad Administration also requires other probes, including monthly inspections of switches, turnouts, track crossings and other devices.

Constant inspections

Many railroads go above and beyond those inspection requirements.

“Freight railroads spend billions of dollars every year on maintaining and further modernizing the nation’s rail network, including safety enhancing rail infrastructure and equipment,” said Ed Greenberg, a spokesman for the Association of American Railroads. “At any point during the day or night, the nation’s rail network is being inspected, maintained or being upgraded.”

But the infrastructure alliance reiterates a previous assertion by the National Transportation Safety Board, that track inspections are undermined when a single worker can inspect multiple lines at the same time, as currently allowed.

And McCown emphasized that existing technology can boost the odds of catching broken rails and other problems before an accident.

Crude By Rail

Tesoro refinery to pay $4M for inadequate air emission controls for 7 years

Repost from Contra Costa Times

Tesoro refinery to pay $4 million for inadequate air emission controls for seven years

By Denis Cuff, 08/05/2015 02:08:39 PM PDT

MARTINEZ — Saying Tesoro created unlawful and dangerous fumes periodically over a span of seven years, the Bay Area’s clean-air agency is collecting $4 million in penalties from the Golden Eagle refinery in one of its largest-ever pollution settlements.

Tesoro has agreed to pay the penalties for bypassing air pollution controls designed to capture butane, propane and other gas emissions, the agency announced Wednesday.

From 2007 to 2014, the refinery east of Martinez periodically drained gas-laden process water directly to its plant sewer system without first running it through equipment to capture vapors, air officials said.

As a result, officials said, volatile, smog-forming organic gases like butane and propane evaporated into the air at uncontrolled rates.

An aerial view shows the Tesoro Golden Eagle Refinery in Pacheco on March 18, 2008. (Jose Carlos Fajardo/Bay Area News Group)

The fumes exposed plant workers to risks of explosions and the public to greater risks of smog, the air district said.

“We brought it to their attention several times, and it took a little less than a year to fix the problem,” said Ralph Borrmann, an air district spokesman. “The size of the penalty is related to the delay.”

An air district inspector discovered the periodic bypass during a routine refinery inspection in 2013, and the company fixed the problem in 2014 after repeated pleas to do so, officials said.

Tesoro spokesman Brian Nunnally said the refinery “responded quickly to the cited incidents once they were identified, and has taken corrective measures to avoid their recurrence.”

Repost from SFGate

Tesoro settles Martinez refinery pollution suit for $4 million

By Kurtis Alexander, August 5, 2015 5:08 pm

Texas-based oil manufacturer Tesoro Corp. has agreed to pay $4 million to settle a lawsuit claiming the company spewed smog- and ozone-producing pollutants at its refinery in Martinez.

Bay Area air quality regulators announced the deal Wednesday after an eight-year investigation found that refinery workers disposed of the plant’s byproducts in sewer and water-treatment facilities without first removing contaminants that could evaporate and pollute the atmosphere.

The emissions of butane and propane hydrocarbon were recorded at the facility from 2007 to 2014, according to the Bay Area Air Quality Management District. Local regulations require refineries to treat liquid waste so that volatile compounds are removed.

District officials called Tesoro’s practices “unlawful and dangerous.”

Without admitting liability, the company said it has addressed the concerns of regulators.

“Tesoro takes compliance with environmental regulations seriously and strives to comply at all times,” the company said. “In all cases, Tesoro responded quickly to the cited incidents once they were identified, and has taken corrective measures to avoid their recurrence.”

The company is no longer discharging its waste illegally, according to the district.

“We require Bay Area refineries to control their emissions at every step of their process,” Jack Broadbent, the district’s executive officer, said in a statement. “Through the air district’s aggressive enforcement program, these violations were discovered and this uncontrolled release of air pollution stopped.”

Tesoro operates six refineries in the western United States and can produce up to 850,000 barrels of oil daily.