Category Archives: Crude By Rail

Oil, gas, coal industries want Washington, British Columbia as permanent home ports

Repost from SeattlePI
[Editor: Note that at the time of this posting, the link to SeattlePI is ok, but it carries an advertisement at top promoting Energy East Pipeline –  a project to bring nasty Western Canadian tar sands oil to Eastern Canada.  Supposedly all the “facts” and “benefits” of this tar sands disaster.  Ironic, eh?  – RS]

Oil, gas, coal industries want Washington, British Columbia as permanent home ports

By Joel Connelly, June 4, 2015

Shell’s exploration fleet is due to depart Seattle soon for the Arctic, but other energy industries are planning their own home ports up and down the West Coast, from the Columbia River to the Salish Sea to British Columbia’s North Coast.

The public’s attention will wane at its peril.  Public understanding of the gains and pains of Big Oil and Big Coal’s plans for the Northwest is strongly advised.

Spill response boats work to contain fuel leaking from the bulk carrier cargo ship Marathassa, anchored on Burrard Inlet, Thursday, April 9, 2015, in Vancouver, British Columbia. The City of Vancouver warned that the fuel is toxic and should not be touched. (AP Photo/The Canadian Press, Darryl Dyck)

The waters of Puget Sound, Georgia Strait and the Inland Passage are fast becoming a chosen path for shipment of coal, liquid natural gas, and — if many in Congress have their way — oil to China and other fast-developing Asian markets.

The drilling rigs Polar Pioneer and Noble Discoverer will almost certainly be in Alaskan waters when legal and administrative challenges to Shell Oil’s Seattle home port are heard in July.

In recent months, the resistance to Shell has overshadowed the proposed oil train terminus in Vancouver, Washington, the coal port and refinery proposed for Longview, the growing number of oil trains through Seattle, and the enormous pipeline terminus and oil export port proposed just east of Vancouver, B.C.

The invasion of the energy industry has drawn sporadic public attention. A crowd of 2,300 showed up for a Seattle meeting to scope out the Army Corps of Engineers’ environmental studies of the proposed Gateway Pacific coal export terminal north of Bellingham.

Ignored south of the border, more than 100 demonstrators were arrested last November at a park on Burnaby Mountain, just east of Vancouver, B.C. They were protesting sample drilling by a Houston company that wants to make Burnaby the terminus of a pipeline carrying Alberta tar sands oil.

The proposed Kinder Morgan pipeline, beginning in Edmonton, has at least 890,000 barrels a day a higher capacity than the vastly more-publicized Keystone XL project in the Midwest.

A sight that won't be stopped by sit-ins and City Council resolutions:  A coal train passes an oil train after tanker cars derailed in Magnolia this morning.  Oil and coal could become the Northwest's "supreme shipping commodities" crowding our trade dependent economy..

The oil would not stay in British Columbia.  Thirty-four tankers a month would carry it through the international waters of the Strait of Juan de Fuca and Haro Strait, the boundary between the U.S. San Juan Islands and the Canadian Gulf Islands.

Governments, on both sides of the U.S.-Canada border, do not inspire public confidence.

The U.S. Department of Transportation, in recent safety rules on oil trains, proposes to allow three years — THREE YEARS — for explosion-prone, 1964-vintage DOT-111 tanker cars to finally be off America’s railroad tracks.

The USDOT is “laser focused” on safety, U.S. Transportation Secretary Anthony Foxx told Sen. Maria Cantwell, D-Wash.  Still, the DOT has sided with the railroads and rebuffed requests by first responders for full information on cargoes being carried from the Bakken oil fields in North Dakota through Puget Sound cities.

“Because of the detailed and sensitive nature of the safety and security analysis information, the federal government requires that the information be treated as Sensitive Security information that cannot be publicly disclosed,” Foxx told Cantwell.

Nor do the USDOT rules require removal of potentially explosive gases from tank cars carrying shipments of oil.

The situation is even more alarming in Canada. The government of Prime Minister Stephen Harper wants to turn the Great White North into a global petro power.  And that means bringing Alberta oil to tidewater for export.

Oil tanker cars derailed beneath the Magnolia Bridge in July of 2014.

The National Energy Board of Canada (NEB) has approved (with conditions) an oil pipeline that would carry Alberta tar sands crude to an oil port at Kitimat, at the head of the long, treacherous Douglas Channel in northern British Columbia.

The NEB is now considering the 890,000 barrels-a-day, $5.4 billion (Canadian) Kinder Morgan pipeline.  Vancouver and Burnaby are trying to get full information on environmental consequences. A major spill in Burrard Inlet could cost Vancouver as much as $1.25 billion.  However, the British Columbia government has barely intervened with the project.

While watching hockey’s Stanley Cup playoffs, American viewers have been exposed to pro-pipeline propaganda on Canadian TV.  The government promises “world class” marine safety.  A stud-muffin Kinder Morgan employee talks about how much he loves the out-of-doors.

Don’t believe Canada’s claims for a New York minute.

While pushing an oil port, the Harper government has shut down the Kitsilano Coast Guard Base in Vancouver and is in the process of closing the Coal Harbor marine traffic and communications center.  The oil would be routed to Burnaby, while Coast Guard operations are being moved to Victoria.

The vast Alberta oil stands project, along with oil development in North Dakota, is outstripping the capacity of North America's pipelines.  Hence, oil is increasingly being moved by rail.  A disaster in Quebec raises questions for the Northwest. (Getty Images)

The British Columbia government has its sights set on something else — development of huge liquid natural gas (LNG) terminals on the coast. The gas would be exported to China.

An Indian band near Prince Rupert recently rejected a $1 billion, long-term deal to roll over and allow an LNG terminal.

The B.C. government is more pliable.  It is pledging to freeze in place environmental and safety regulations for the duration of the LNG terminals’ operation.  It’s forging ahead with the big, nature-wrecking Site C hydro project on the Peace River to supply electricity to the LNG industry.

So far, the most sustained resistance has come from Native American and Aboriginal First Nations tribes.

The tribes have managed to unite across the border, understanding that disruption, oil spills and damage to natural resources will be felt on BOTH sides of the border.

The Swinomish tribe is challenging Anacortes-bound oil trains, which cross its reservation, in federal courts. The Lummi Indians have steadfastly resisted Gateway Pacific.

Newborn J51 with her mother J19 off San Juan Island. Photo: Dave Ellifrit, The Center for Whale Research.

Up north, the Tsleil Wauth First Nation, with land on Burrard Inlet, fielded a study by experts.  It found there is a 37 percent chance of a spill of 100,000 barrels or more, which could kill between 100,000 and 500,000 sea and shorebirds.

The basic point for residents of this much-envied corner of the Earth:

Full, accurate information on the real and possible consequences of major energy projects is not going to come from government.

Given the scope of the projects, two words of wisdom come immediately to mind: Question authority.

With fracking boom and oil trains, big cities fear explosive safety risks

Repost from The Blade, Toledo, Ohio
[Editor:  Significant quote by Josh Mogerman, spokesman for the Natural Resources Defense Council’s Great Lakes regional office in Chicago: “Welcome to the Bomb Train Capital of America…. Of all the suite of issues I work on for the NRDC, this is the scariest…. These are moving targets going through very, very densely populated areas.

RISKY CARGO ON MIDWEST OIL TRAINS

Amid fracking boom, cities fear explosive safety risk it can carry

BY TOM HENRY , BLADE STAFF WRITER, June 1, 2015

CHICAGO — While the global fracking boom has stabilized North America’s energy prices, Chicago — America’s third largest city and the busiest crossroads of the nation’s railroad network — has become ground zero for the debate over heavy crude moved by oil trains.

With the Windy City experiencing a 4,000 percent increase in oil-train traffic since 2008, Chicago and its many densely populated suburbs have become a focal point as Congress considers a number of safety reforms this year.

Many oil trains are 100 or more cars long, carrying hydraulically fracked crude and its highly explosive, associated vapors from the Bakken region of Montana, North Dakota, Saskatchewan, and Manitoba.

A majority of those trains also cross northwest Ohio on their way to refineries and barge terminals along the East Coast.

Derailments can lead to massive explosions, such as the one on July 6, 2013, when a runaway train derailed in Lac-Megantic, Que., just across the U.S.-Canada border from Maine. The resulting explosions and fire killed 47 people and leveled the town’s business district.

“For me to assure my community there’s no risk, I would be lying,” Aurora, Ill., Mayor Tom Weisner told reporters on the Halsted Station’s elevated platform near downtown Chicago last week. The discussion was arranged by the Institutes for Journalism & Natural Resources, a group that promotes better environmental reporting.

Authorities are concerned a rail accident would be catastrophic, as trains are carrying more heavy crude since fracking became popular.
Authorities are concerned a rail accident would be catastrophic, as trains are carrying more heavy crude since fracking became popular. THE BLADE/BRIAN BUCKEY

“A derailment in or around our downtown would be absolutely disastrous,” he said.

One of Chicago’s distant western suburbs, Aurora, with 200,000 people, is the second-largest city in Illinois. Though it has fewer than one resident for every 10 in Chicago (population: 2.7 million), Aurora is somewhat smaller than Toledo, which has 281,000 residents.

Mr. Weisner, whose mayoral office overlooks tracks where many of the oil trains pass going toward Chicago, shrugged when asked about emergency planning.

“That always helps, of course. But you could have a major catastrophe before they could arrive on the scene, and that’s the truth,” Mr. Weisner said, noting the Lac-Megantic explosion on at least three occasions.

Closer to home, he said, are memories of a train explosion on June 19, 2009, in Cherry Valley, Ill., just outside Rockford.

Although that derailment involved a train carrying flammable ethanol — not an oil train — its fire killed a motorist stopped at a railroad crossing, injured seven people in cars plus two firefighters, and forced the evacuation of 600 homes.

Aurora, Ill., Mayor Tom Weisner fears what would happen if an oil train derails and explodes in an urban area.
Aurora, Ill., Mayor Tom Weisner fears what would happen if an oil train derails and explodes in an urban area. THE BLADE/TOM HENRY

On March 5, 21 cars of a 105-car BNSF Railway train hauling oil from the Bakken region of North Dakota derailed in a heavily wooded, rural area outside Galena, Ill.

The train erupted into a massive fireball 3 miles from a town of 3,000 people in the northwest corner of Illinois, near the Iowa and Wisconsin borders.

No deaths were reported from that incident and, like several other derailments that have resulted in explosions and fires in recent years, it occurred in a rural area.

Mr. Weisner and others fear it is a matter of time before a much higher-profile incident occurs in Chicago or some other big city where the death toll could be significant.

Shortly after he finished, an oil train moved past Halsted Station, whose tracks are flanked by high-rise apartment buildings.

Oil trains move throughout the Great Lakes region after getting filled with Bakken crude, often ending up on the East Coast.

Chicago and the rest of the Great Lakes region is “the heart of the country,” Mr. Weisner said.

“We’re always going to be at one of the highest levels of exposure,” the Aurora mayor said. “There’s no doubt about it.

This July 7, 2013, photo shows fire fighters watering smoldering rubble in Lac Megantic, Que., after a runaway train derailed causing explosions that killed 47 people and leveled the town’s business district.
This July 7, 2013, photo shows fire fighters watering smoldering rubble in Lac Megantic, Que., after a runaway train derailed causing explosions that killed 47 people and leveled the town’s business district. ASSOCIATED PRESS

Environmental activists such as Josh Mogerman, spokesman for the Natural Resources Defense Council’s Great Lakes regional office in Chicago, put the risk in more graphic terms.

“Welcome to the Bomb Train Capital of America,” he told reporters outside a coffee shop at West Maxwell and Halsted streets, three blocks north of the train station where Mr. Weisner would speak moments later.

“Of all the suite of issues I work on for the NRDC, this is the scariest,” Mr. Mogerman said. “These are moving targets going through very, very densely populated areas.”

Tony Phillips is an artist who lives in a condominium adjacent to Chicago’s Halsted Station.

He said he can hear “the rip of noise” and feel his building shudder as oil trains come by, often in the wee hours of the morning. He said he feels a “slosh effect” in the flooring from the oscillating weight of crude if he gets up in the middle of the night.

“That’s a little spooky,” Mr. Phillips said.

He and others want reforms, tighter rules, and more robust train cars, if nothing else. Some efforts are being made through tighter regulations, but critics claim they’re either not enough or being phased in too slowly.

Fracking boom

Tony Phillips points to the condo in Chicago where he lives on the other side of the tracks at the Halsted Station, where oil trains pass by.
Tony Phillips points to the condo in Chicago where he lives on the other side of the tracks at the Halsted Station, where oil trains pass by. THE BLADE/TOM HENRY

Lora Chamberlain, spokesman for Frack Free Illinois and a new coalition called Chicagoland Oil By Rail, said vapor removal should be on the list of priorities to help mitigate the risk.

In a May 7, 2014, order, the U.S. Department of Transportation called for state emergency responders to receive more information about railroad routes handling 1 million gallons or more of Bakken crude oil per week because the number and type of railroad accidents “is startling.”

In 2013, America moved 8.3 billion barrels (348.6 billion gallons) of crude oil via pipeline — nearly 29 times the 291 million barrels (12.2 billion gallons) moved by rail, according to data from the Association of Oil Pipelines and the Association of American Railroads.

Safety experts see North America at a turning point because of the oil and gas industry’s rapid increase in hydraulic fracturing of shale bedrock, a process commonly known as “fracking” that the U.S. Energy Information Administration predicts will remain strong for at least the next 30 years.

Fracking has occurred commercially since the 1950s. The game-changer occurred less than a decade ago, when a technique developed to combine horizontal drilling with fracking made it economical to go after vast reserves of previously trapped oil and natural gas worldwide — including in eastern Ohio and western Pennsylvania, where the Utica and Marcellus shale regions meet.

Rail traffic

Railroads moved 493,126 tank-car loads of oil in 2014, a nearly 5,200 percent increase over the 9,500 tank cars that hauled oil before the fracking boom began to hit its stride in many parts of North America in 2008, according to the U.S. Department of State. Before the fracking boom, rail shipment of crude was rare and generally confined to a few isolated corridors where pipelines hadn’t been built.

Overall domestic crude production has risen 70 percent during that same period. U.S. Energy Information Administration figures show domestic oil produced at a rate of 8.5 million barrels a day in 2014, up from 5 million barrels a day in 2008.

Mogerman
Mogerman | THE BLADE/ BRIAN BUCKEY

This year, crude is expected to be produced at a rate of 9 million barrels a day, just shy of its peak rate of 9.6 million barrels a day in 1970, according to the Energy Information Administration.

“While pipelines transport the majority of oil and gas in the United States, recent development of crude oil in parts of the country under-served by pipeline has led shippers to use other modes, with rail seeing the largest percentage increase,” a Government Accountability Office report said. “Although pipeline operators and railroads have generally good safety records, the increased transportation of these flammable hazardous materials creates the potential for serious accidents.”

The agency cited a need for better U.S. Department of Transportation rules on flammability of products shipped by rail and a greater emphasis on emergency preparedness, “especially in rural areas where there might be fewer resources to respond to a serious incident.”

In its 2015 forecast, the Association of American Railroads contends railroads “are making Herculean efforts” to improve “an already safe nationwide rail network” now crisscrossing some 140,000 miles of the country.

The trade association said freight railroads plan to spend a record $29 billion in 2015 — a staggering $3 million an hour or about $79 million a day — to rebuild, maintain, and expand America’s rail network. Much of the money will go toward new equipment and locomotives, new track and bridges, higher tunnels, and newer technology.

Freight railroads are expected to hire 15,000 more people this year, continuing its upward hiring trend for an industry that employs 180,000 people, the association said.

While considering safety reforms, Congress must ensure that “any changes to public policy still allow railroads to continue private infrastructure spending and other network investments needed to meet customer demand,​” the industry group said.

 

 

Union Pacific chief threatens action on oil train brake rules

Repost from Financial Times

Union Pacific chief threatens action on oil train brake rules

Robert Wright in New York, May 31, 2015 4:55 pm
In this photo from Aug. 8, 2012, a Union Pacific train travels in Council Bluffs, Iowa. Union Pacific said Thursday, Oct. 18, 2012, that its third-quarter profit climbed 15 percent because price increases and more automotive and chemical shipments helped the railroad offset a 12 percent drop in coal shipments. The railroad reported $1 billion in net income, or $2.19 per share. That's up from $904 million, or $1.85 per share, a year ago. (AP Photo/Nati Harnik)
In this photo from Aug. 8, 2012, a Union Pacific train travels in Council Bluffs, Iowa. Union Pacific said Thursday, Oct. 18, 2012, that its third-quarter profit climbed 15 percent because price increases and more automotive and chemical shipments helped the railroad offset a 12 percent drop in coal shipments. The railroad reported $1 billion in net income, or $2.19 per share. That’s up from $904 million, or $1.85 per share, a year ago. (AP Photo/Nati Harnik)

The chief executive of Union Pacific, the US’s largest rail network, has vowed legal action over a provision of new rules for oil trains that he says would cost billions of dollars and provide little benefit.

The pledge from Lance Fritz threatens further delay to rules that have already been years in preparation.

The Federal Railroad Administration and Canadian regulators jointly announced the rules less than a month ago to improve the safety of oil movements by rail, which have risen sharply following the surge in US oil and gas production in recent years.

The surge — from only about 1m tonnes of traffic in 2007 to roughly 40m in 2013, the last year for which full data are available — has exposed the shortcomings of existing safety rules for tank cars, with several trains exploding following derailments.

While Mr Fritz said that most of the new provisions were “great regulation”, he criticised provisions demanding that railways start controlling tank cars’ brakes via an electric signal either transmitted wirelessly from the lead locomotive or via electrical wires running along the train.

The new arrangement, known as electronically controlled pneumatic (ECP) braking, is intended to speed up the transmission of the braking command compared with current methods, which rely on pressure changes in a pipe running along the train. That should reduce the number of cars that derail in a crash.

Mr Fritz said, however, that virtually the same improvements could be gained by spacing locomotives out along a train, as Union Pacific frequently does, and the extra benefits of ECP did not justify the costs. The new equipment would cost about $75,000 for each of UP’s 6,500 locomotives, while there would also be substantial costs for fitting out tank cars, nearly all owned by oil shippers or leasing companies.

“The juice isn’t worth the press,” Mr Fritz said. “We think that’s very ill-considered. We provided that feedback and we will continue to provide that feedback.”

The industry could appeal against the rule both through administrative channels and in the courts, Mr Fritz said. “We as an industry are taking that path,” he added.

Railways have been pressing for improvements in tank car design to avoid a repetition of disasters like the Lac-Mégantic explosion in Canada in 2013, in which 47 people died when a poorly secured oil train broke lose, derailed and exploded in the centre of a small town.

Operators are barred from refusing to carry cargo that meets the minimum regulatory requirements but have been concerned that under existing regulations cars were excessively vulnerable in an explosion.

Mr Fritz also criticised the new rules’ standards for thermal protection for cars, meant to prevent their exploding in a fire, saying they were not strict enough.

The Federal Railroad Administration declined to comment publicly on Mr Fritz’s criticisms but looks determined to press ahead with the mandate for ECP brakes.

UP, which has a larger track network than any other US railway, has been a significant beneficiary of the surge in oil movements. Mr Fritz said he expected a strong continuing role for rail in transporting US-produced crude oil.

The sharp fall in the oil price in recent months has shifted traffic away from the routes that UP serves, however, pushing down crude oil movements on its network by 38 per cent in the first quarter compared with last year.

List of 13 links: recent widespread criticism of the new DOT rail safety rules

By Roger Straw, Editor, The Benicia Independent, May 29, 2015

It’s been a month now, and the hot news cycle has cooled off some on the U.S. Department of Transportation’s May 1 announcement of new safety rules governing rail transport of hazardous materials.

A recent local news story detailed the DOT rules without even mentioning the widespread criticisms of the new regulations.  The rules have come under heavy fire from legislators, health professionals, firefighters, emergency responders, environmentalists and communities where these trains are already running – and sometimes derailing.

What follows is a handy list of stories carried previously here on the Benicia Independent, all highly doubtful that the new safety regulations will bring a timely end to the horrific crashes and explosions we’ve seen in recent months and years.

  1. NY Times: U.S. Sets New Rules for Oil Trains – Sen. Schumer: DOT gave railroads too much time to remove unsafe cars
  2. New oil-train safety rules will put public back in the dark
  3. New rules for crude-by-rail transport fall short
  4. Senator Cantwell: “The new DOT rule is just like saying let the oil trains roll. It does nothing…”
  5. Expert comments on new DOT rules – Dr. Fred Millar
  6. New rules for rail tankers face years of debate, delay
  7. ForestEthics: Oil Trains Too Fast, New Safety Rules Too Slow
  8. 300 doctors call for denial of oil terminal permits
  9. New rules on oil trains draw flak from firefighters, too
  10. Groups Sue Obama Administration Over Weak Tank Car Standards
  11. NYU Institute for Policy Integrity: New oil train safety rules spell delay, leaving citizens at risk
  12. Riverkeeper sues U.S. DOT over oil train safety rules
  13. Benicia Herald covers Valero environmental delay

On a more encouraging note, see Responding to criticism, Feds won’t weaken oil-train public disclosure rules .