Category Archives: Crude By Rail

Faces of Fracking – Ed Ruszel of Benicia, California

Repost from Faces of Fracking
[Editor – This is much more than a story about our friend Ed Ruszel.  Author Tara Lohan packs background and detail into this piece like a great storyteller.  Another MUST READ, including almost everything you need to know about crude by rail in Benicia….  (This story also appears on Grist and DeSmogBlog.)  – RS]

Faces of Fracking

Stories from the front lines of fracking in California

Ed Ruszel
Ed Ruszel’s family business is in an industrial park in Benicia, CA, where Valero Energy is hoping to build a new rail terminal at its refinery to accept 70,000 barrels of crude oil a day. (Sarah Craig)

“Business by the Rails” by Faces of Fracking, CC BY-NC-ND 4.0

Ed Ruszel

Story by Tara Lohan | Photography by Sarah Craig

Ed Ruszel’s workday is a soundtrack of whirling, banging, screeching — the percussion of wood being cut, sanded, and finished. He’s the facility manager for the family business, Ruszel Woodworks. But one sound each day roars above the cacophony of the woodshop: the blast of the train horn as cars cough down the Union Pacific rail line that runs just a few feet from the front of his shop in an industrial park in Benicia, California.

Most days the train cargo is beer, cars, steel, propane, or petroleum coke. But soon two trains of 50 cars each may pass by every day carrying crude oil to a refinery owned by neighboring Valero Energy. Valero is hoping to build a new rail terminal at the refinery that would bring 70,000 barrels a day by train — or nearly 3 million gallons.

And it’s a sign of the times.

Crude by rail has increased 4,000 percent across the country since 2008 and California is feeling the effects. By 2016 the amount of crude by rail entering the state is expected to increase by a factor of 25. That’s assuming industry gets its way in creating more crude by rail stations at refineries and oil terminals. And that’s no longer looking like a sure thing.

Valero’s proposed project in Benicia is just one of many in the area underway or under consideration. All the projects are now facing public pushback — and not just from individuals in communities, but from a united front spanning hundreds of miles. Benicia sits on the Carquinez Strait, a ribbon of water connecting the San Pablo and Suisun Bays in the northeastern reaches of the San Francisco Bay Area. Here, about 20 miles south of Napa’s wine country and 40 miles north of San Francisco, the oil industry may have found a considerable foe.

The Geography of Oil

The heart of California’s oil industry is the Central Valley — 22,500 square miles that also doubles as the state’s most productive farmland. Oil that’s produced here is delivered to California refineries via pipeline. For decades California and Alaska crude were the main suppliers for the state’s refineries. Crude came by pipeline or by boat. Over the last 20 years imports from places like Saudi Arabia, Ecuador, and Iraq have outpaced domestic production. But a recent boom in “unconventional fuels” has triggered an increase in North American sources in the last few years. This has meant more fracked crude from North Dakota’s Bakken shale and diluted bitumen from Alberta’s tar sands.

A Union Pacific train engine is parked in front of the Valero refinery in Benicia, CA. Union Pacific has the final say over the logistics of trains arriving to the refinery. (Sarah Craig)

            “Union Pacific Train” by Faces of Fracking, CC BY-NC-ND 4.0

Unit trains are becoming a favored way to help move this cargo. These are trains in which the entire cargo — every single car — is one product. And in this case that product happens to be highly flammable.

This is one of the things that has Ed Ruszel concerned. He doesn’t think the tank cars are safe enough to transport crude oil (or ethanol, which is also passing through his neighborhood) in the advent of a serious derailment.

But he’s also concerned not just with the kind of cargo, but the sheer volume of it. If a derailment occurs on a train and every single car (up to 100 cars long) is carrying volatile crude, the dangers increase exponentially. The more trains on the tracks, the more likely something could go wrong. In 2013, more crude was spilled in train derailments than in the prior three decades combined, and there were four fiery explosions in North America in a year’s span.

This risk Marilaine Savard knows well. I met her in February of 2014 when she visited the Bay Area to tell residents about what happened in her town of Lac Megantic, Quebec. The closest word to describe the experience was “apocalypse,” she said, through tears.

Most people by now know of the train derailment that killed 47 people and incinerated half of Lac Megantic’s downtown in the wee hours of the morning on July 7, 2013. The fire was so hot the city burned for 36 hours. Even the lake burned.

We now have term for this: bomb train.

Traffic Jam

Just two days before the disaster in Lac Megantic, Ed joined a community meeting in Benicia about the Valero project. For many residents, it was the first they were learning of it, but Ed had known months before.

In January 2013 a train carrying petroleum coke leaving Valero’s refinery derailed. It was minor — no cargo spilled — but it did rip up a piece of track, and the stalled train blocked the driveway to Ruszel Woodworks for hours. It was one of three minor derailments in the industrial park in the span of 10 months.

Ed came outside to see what the problem was. “The Valero people told me ‘get used to it, because we’re really going to be bringing in a lot of cars soon,’” Ed says. “At that point I really started paying attention and I got really scared.” Ed soon learned about plans for Valero’s new terminal, the 100 train cars that would pass by his business each day, and that it appeared the city was ready to rubber stamp the project — no Environmental Impact Report required.

The fire was so hot the city burned for 36 hours. Even the lake burned.

To explain one of the reasons for his concern, Ed shows me around his property where the lands comes to a V and two rails lines intersect. The main line of Union Pacific’s track passes along the back of Ed’s property, about 75 feet from his building. Here trains can get off the main line and switch to the local line that runs inside the industrial park. The local track passes by the front of Ed’s property, about 20 feet from the building.

The tracks into the industrial park were not designed for a crude by rail facility, Ed says. There are no loops. For Valero to get crude tanks into the refinery, the train must pass by the back of Ed’s property on the main line, pull all the way forward (usually about a mile), and then back up onto the local line, past the front of Ed’s property and into the refinery. The process is reversed when the train leaves. The 100 train cars a day that Valero hopes to bring in will come by his business up to four times per day.

That’s a concern not just because of potential dangers from derailments and diesel fumes from idling trains, but also because the industrial park has a rail traffic problem.

“My big concern here is specifically with the rails — I realize there are other huge environmental issues and global issues with the kinds of fossil fuel production we’re dealing with now and where it’s going,” Ed says.

Already trains servicing the Valero refinery and other industry neighbors can cause traffic nightmares. The trains block driveways to businesses and sometimes major roadways.  An off ramp from Interstate 680 empties into the industrial park. Ed has photos of cars trying to exit the highway but are backed up on the interstate because of train traffic.

The reason has to do with the area’s history.

The tracks that come through the industrial park were not built for industry, but for the U.S. Army.

From 1851 to 1964, part of the land now claimed as an industrial park was home to the Benicia Arsenal. Bunker doors in the hillsides and buildings from the 1800s are part of the area’s colorful history. The rail lines moved around troops and armaments from the Civil War through the Korean War, Ed says, but it’s ill-suited to servicing a busy commercial rail terminal.

The Public Comments

Ed’s family moved their woodworking business to the industrial park in 1980. His brother Jack and their father started the company when Jack was still in high school, and it’s grown to over 20 employees. They’ve always played nice with the other businesses, including the refinery, which was built in 1968 and bought by Valero in 2000.

Ed Ruszel drives by the Valero Refinery, which is about a mile from his family’s woodworking business in Benicia, CA. (Sarah Craig)
  “Valero’s Refinery” by Faces of Fracking, CC BY-NC-ND 4.0  

But the Ruszels felt the crude by rail issue demanded they take a stand. While not aligned with any local activist groups, Ed and other members of his family have spoken publicly about their concerns.

“In some ways, getting outspoken we feel like we’re sticking our neck out,” Ed says. “There are four generations of my family here in Benicia — I’ve got my 80 year-old mother, tiny little grandnieces and nephews, and they all have to live with it. But it is important enough.”

Their voices are part of a growing chorus in the area.

On May 31, 2013 the City of Benicia issued a Mitigated Negative Declaration, which means an initial study by the city concluded there were no significant environmental problems with the project that couldn’t be mitigated.

But many residents felt differently and commented on the initial study or voiced concerns at a July 9 city planning department meeting, which occurred just two days after the disaster in Lac Megantic drove home the reality of a catastrophic accident.

By August the city sided with concerned residents and decided that a draft Environmental Impact Report (DEIR) needed to be prepared to further review the project. An outside consultant was hired for the job but paid for by Valero. After much delay, the DEIR was released in June 2014 and promptly slammed by everyone from the state’s Attorney General Kamala Harris to the local group Benicians for a Safe and Healthy Community because it left out crucial information and failed to address the full scope of the project.

Even the Sacramento Area Council of Governments, which represents 22 cities in six counties that are “uprail” from the project, weighed in. It noted the draft EIR doesn’t offer any recommendations for safety measures because it concludes there is no “significant hazard.”

“We believe that conclusion is fundamentally flawed, disregards the recent events demonstrating the very serious risk to life and property that these shipments pose, and contradicts the conclusions of the federal government, which is mobilizing to respond to these risks,” the comment states. It even quotes a U.S. Department of Transportation report from May 2014 that says that Bakken crude by rail shipments pose an “imminent hazard.”

One of the biggest omissions in Valero’s DEIR was Union Pacific not being named as an official partner in the project. With the trains arriving via its rail lines, all logistics will come down to the railroad. Not only that, but the federal power granted to railroad companies preempts local and regional authority.

This preemption is one of the biggest hurdles for communities that don’t want to see crude by rail come through their neighborhoods or want better safeguards. An October 2014 editorial in the San Francisco Chronicle lamented, “What’s really crazy is the federal law that allows preemption of municipal and state law when it comes to critical decisions on rail safety. Affected communities deserve a say over what rolls through their towns.” With preemption, that may be impossible.

The DEIR also doesn’t identify exactly what kind of North American crudes would be arriving and from where, deeming it “confidential business information.” Attorney General Kamala Harris called that omission an “overly broad determination of trade secrets.”

Different kinds of crude have different health and safety risks. A pipeline rupture carrying Canadian diluted bitumen in a tributary of the Kalamazoo River in Michigan in 2010 showed that the thick, corrosive crude is much harder (perhaps impossible) to clean up adequately and is different than conventional crude, which sheens on the surface of water. And Bakken crude has proved more explosive than other crudes because of its chemical composition. It’s likely that some of the crude coming to Valero’s refinery would be from either or both sources.

Consider the numbers: In 2013 the total crude by rail brought into California was nearly 6.3 million barrels, and in the first nine months of 2014, the numbers were 4.3 million barrels. The top two sources have been North Dakota and Canada.

Further, the DEIR only examines the risks of a minor derailment along a 69-miles stretch of track between Benicia and Roseville. It doesn’t address the hazards (which could be catastrophic) of the three potential routes that the Union Pacific trains may take entering California, which involve passing over mountains, through tinderbox-dry forests, and along critical water sources.

Just a week ago a train derailed along one such route in the Feather River Canyon. Eleven cars plunged off the track and down the canyon. Had the cargo been crude instead of corn, its contamination could have made its way down the Feather River to Lake Oroville, a reservoir for millions of Californians.

Public comments on the DEIR closed on September 15, and now it’s a waiting game to see what happens next in Benicia. The planning commission will vote on whether to accept or deny the permit for the project. If the commission denies the permit, Valero can appeal to the city council. Either way, it’s likely to end up in court.

Cumulative Impacts

Ed spends his weekdays on land in Benicia and his weekends on the water, sailing out of nearby Richmond. He has shaggy brown hair, a neatly trimmed salt and pepper goatee, and looks every bit the weathered sailor that he is.

Having worked professionally as a boat captain and even as a solo sailor to Hawaii, Ed is a bit overqualified for the nearly windless fall Sunday we set sail with local activist Marilyn Bardet, a member of Benicians for a Safe and Healthy Community.

Ed Ruszel and Marilyn Bardet, an activist with Benicians for a Safe and Healthy Community, sail outside of the Richmond Harbor to investigate the presence of the oil industry along the Bay Area’s shoreline. (Sarah Craig)
  “Richmond Sailing” by Faces of Fracking, CC BY-NC-ND 4.0 

Marilyn has been a refinery watchdog in Benicia for years and worries about more than just the transportation of fossil fuels. “For me it’s not only about whether they were going to bring it by rail, but whether they were going to bring it at all,” she says.

Sailing from Richmond, we get a good perspective of how pervasive the oil industry is in this area. We pass a couple of blue and white docked ships with their decals reading “Marine Spill Response.” Ever since the Exxon Valdez spill in Alaska, Ed explains, the industry pays into a fund that keeps ships at the ready in case of an accident.

No such thing exists for the crude by rail industry. In fact, the National Transportation Safety Board reported in January 2014, “Current regulations do not require railroads transporting crude oil in multiple tank cars to develop comprehensive spill response plans and have resources on standby for response to worst-case discharges.”

Ed points the bow of the boat toward the Long Wharf in Point Richmond where hulking oil tankers sidle up to be unburdened of their cargo.

We also have a clear view of the large terra cotta-colored storage tanks nesting above neighborhoods in the hillsides of Richmond. These are part of the sprawling refinery operations run by Chevron, but first begun by Standard Oil in 1901.

And it’s not the only refinery around here. In the North Bay, there are five along a 20-mile crescent, with Richmond and Benicia being the bookends. In between, Phillips 66 operates a refinery in Rodeo, and two other refineries (Shell and Tesoro) straddle Martinez.

Residents of these towns have joined in the crude-by-rail fights as well — lending their comments to Environmental Impact Reports, attending community meetings, and joining together for “healing walks” between communities.

Oil storage tanks used by the Chevron refinery in Richmond, CA are seen from the water’s edge. A fire at the refinery in 2012 caused thousands of nearby residents to seek medical treatment. (Sarah Craig)
   “Chevron Refinery By the Bay” by Faces of Fracking, CC BY-NC-ND 4.0 

The network of support has even extended hundreds of miles south. The Phillips 66 refinery has two parts — one in Rodeo and the other 200 miles away, just outside the town of Nipomo in San Luis Obispo County. A pipeline joins the operations. The refinery has expansion plans that are currently being reviewed. One part of those plans involves building a new rail unloading facility in Nipomo that would bring in five unit trains of crude a week, with 50,000 barrels per train.

But the crude-by-rail projects in the area don’t end there. In nearby Pittsburgh, 20 miles east of Benicia, residents pushed back against plans from WestPac Energy. The company had planned to lease land from BNSF Railway and build a new terminal to bring in a 100-car unit train each day of crude. But WestPac’s plan has stalled after Attorney General Kamala Harris commented on a recirculated Draft Environmental Impact Report and said the project had “significant legal problems” and “fails to disclose the sources and analyze the environmental impacts of the new crude.”

Further south in Kern County in the heart of oil country, Plains All American just opened a crude-by-rail terminal that is permitted for a 100-car unit train each day. Another nearby project, Alon USA, received permission from the county for twice as much but is being challenged by lawsuits from environmental groups.

Closer to home, though, unit trains are already arriving. In March, an investigation by local TV station KPIX revealed that Kinder Morgan, a “midstream” company which is in the business of transporting crude (usually by pipeline or rail), received a change of use permit for a rail terminal in Richmond. Kinder Morgan had been transporting ethanol, but the Bay Area Air Quality Management District OK’d Kinder Morgan to offload unit trains of Bakken crude into tanker trucks. KPIX journalists followed the trucks to the Tesoro refinery in Martinez, just across the Carquinez Strait from Benicia.

Aimee Durfee is part of the Martinez Environmental Group. Not only is Martinez flanked by two refineries, but it’s also bisected by Union Pacific rail lines. Now, the residents also know that crude is arriving by truck. “We came to understand that we are collateral damage,” she said. “We get it coming and going.”

Aimee says her group’s biggest fear is the threat of derailment and explosion. The same is true for many Richmond residents near Kinder Morgan’s rail terminal.

“The permit was given illegally by the air district, without concern for the health and safety of the community,” says Andres Soto, an organizer with Communities for a Better Environment. “Should there be a catastrophic explosion — there are residences and two elementary schools across the street from the railyard.” He also says that the blast zone in Richmond contains a total of 27 schools. The blast zone is defined as a half mile away for evacuations if there is a derailment and one mile away if there is an explosion and fire.

Train cars are parked at the Kinder Morgan rail facility in Richmond, CA. The facility is currently permitted to offload Bakken crude from unit trains. (Sarah Craig)
  “Rail Terminal” by Faces of Fracking, CC BY-NC-ND 4.0 

Earthjustice, a nonprofit that litigates on behalf of environmental causes, has led legal efforts trying to block the permit for Kinder Morgan, but in September, Judge James Bush threw out the suit because it was not filed within 180 days of the permit issuance. (The catch-22 of course being that it hadn’t been filed in the proper window of time because no one knew it had even happened, since public notice was not given.)

Earthjustice has appealed Judge Bush’s decision, but residents are continuing to fight the permit in other ways. On October 28, the Richmond City Council unanimously passed a resolution calling on the Bay Area Air Quality Management District to review and “if feasible, revoke the permit and subject the project to a complete CEQA process,” which would be a full environmental review.

The Big Picture

With all this crude by rail activity, some big picture thinking would be helpful. As Attorney General Kamala Harris wrote about the Benicia project, “There’s no consideration of cumulative impacts that could affect public safety and the environment by the proliferation of crude-by-rail projects proposed in California.”

Ed has come to a similar understanding. He is focused on the trains passing by his shop, but the process has opened his eyes to a lot more. He’d heard about the impacts of tar sands and Bakken crude but didn’t have a personal connection to it until unit trains began arriving in California.

“Just focusing on what’s happening in my little neck of the woods has led me to spend more time really looking at the big picture,” he said. “The climate is rapidly changing for one reason or another and probably a good portion of it is what we’re doing with the burning of fossil fuels and so forth, especially this rapid extraction.

“I can’t go to New York and demonstrate or deal with the Keystone XL pipeline, but we can look around here, keep our eyes open, and try to articulate what we’re seeing locally,” says Ed.

Obama gets Thompson rail security and safety legislation

Repost from The Benicia Herald

Obama gets Thompson rail safety legislation

December 12, 2014 by
REP. MIKE THOMPSON'S H.R. 4681 passed the House on Thursday. File photo
REP. MIKE THOMPSON’S H.R. 4681 passed the House on Thursday. File photo

President Barack Obama is poised to sign legislation from U.S. Rep. Mike Thompson, D-Napa, that would require security assessments of American oil refineries, including Valero Benicia Refinery, and railroad infrastructure, such as Union Pacific that has tracks through Benicia.

Austin Vevurka, Thompson’s spokesperson, said Thursday that Thompson’s legislation is part of House of Representatives Bill 4681, the Intelligence Authorization Act for Fiscal Year 2015.

The bill requires the Department of Homeland Security Office of Intelligence and Analysis (DHSI&A) to conduct the intelligence assessment. Once the assessment is done, the department would send the results to the House and Senate intelligence committees and supply recommendations for improvements.

Thompson, Benicia’s representative in the House, said the recommendations would help officials better protect communities surrounding refineries and railways.

“Public safety is my number-one priority,” he said, “and through enhanced reporting we can better know if threats exist and how we can fix them.” He said the law “will help make sure we’re transporting and holding crude oil and other cargo through and in our communities in a safe manner.”

He said the improved reporting required by his legislation would help officials in their assessment of the types of threats American oil refineries and railways face, so those threats can be mitigated.

This could include improvements to security at refineries or upgrades to rail infrastructure that could decrease the likelihood of derailments, he said.

Many trains transporting crude oil from the Bakken shale formation of North Dakota run through Thompson’s California District 5. He said the crude oil from that region is regarded as highly flammable. He said his legislation would increase the likelihood the crude would be transported safely.

H.R. 4681 passed the House by a vote of 325-100, and has been sent to Obama to be signed into law.

Thompson bill addresses rail security and safety concerns

Repost from The Vallejo Times-Herald

Thompson bill addresses two important safety concerns

By Times-Herald staff report,

Legislation by U.S. Rep. Mike Thompson to improve security at America’s embassies and for rail and refineries passed the U.S. House of Representatives on Wednesday and now heads to the president’s desk for his signature, the St. Helena Democrat’s office announced.

H.R. 4681, the Intelligence Authorization Act for Fiscal Year 2015, grew partially out of the 2012 terrorist attack out the U.S. Consular facility in Benghazi, Libya, Thompson said.

Studies done since the attack have identified the need for security personnel at U.S. diplomatic posts to receive threat information from the intelligence community in a more timely manner so they can request and receive security enhancements as needed, according to the announcement. Thompson’s legislation will address this need by enhancing information sharing, he said.

“Studies since the Benghazi attack have shown that we need to improve communication between our intelligence community and our diplomatic outposts, and this will make sure that happens,” Thompson said in the announcement.

Thompson’s legislation directs the Director of National Intelligence to provide a status assessment to the House and Senate Intelligence Committees of threat information sharing between the intelligence community and diplomatic security personnel, and to propose remedial action to help make sure security personnel at U.S. embassies can request and receive enhanced security in a timely manner.

The same bill also enhances rail and refinery security by requiring the Department of Homeland Security Office of Intelligence and Analysis to conduct an intelligence assessment of domestic oil refineries and related rail infrastructure security, Thompson’s office said. The assessment’s results are then to be submitted to the House and Senate Intelligence Committees, along with any recommendations for improving those operations’ security. This aims to help officials better protect the communities surrounding refineries and railways from potential harm.

“Public safety is my number one priority and through enhanced reporting we can better know if threats exist and how we can fix them,” Thompson said.“This law will help make sure we’re transporting and holding crude oil and other cargo through and in our communities in a safe manner.”

Many trains transporting crude oil from North Dakota’s Bakken Shale formation run through Thompson’s congressional district. The crude oil from this region is regarded as highly flammable and this legislation will help make sure it’s transported safely, he said.

H.R. 4681 passed the House by a vote of 325-100.

BOOM: North America’s Explosive Oil-by-Rail Problem (text/video)

Repost from Inside Climate News
[Editor: This is the longer text-and-video version of the ICN / Weather Channel BOOM video.  Highly recommended, especially for its focus on bridge safety.  – RS]

ICN_BOOM-North-Americas-Oil-by-Rail-Problem

By Marcus Stern and Sebastian Jones
An investigation by InsideClimate News and The Weather Channel, in partnership with the Investigative Fund at The Nation Institute.

U.S. regulators knew they had to act fast. A train hauling 2 million gallons of crude oil from North Dakota had exploded in the Canadian town of Lac-Megantic, killing 47 people. Now they had to assure Americans a similar disaster wouldn’t happen south of the border, where the U.S. oil boom is sending highly volatile crude oil every day over aging, often defective rails in vulnerable railcars.

On the surface, the response from Washington following the July 6, 2013 explosion seemed promising. Over the next several months, the U.S. Department of Transportation issued two emergency orders, two safety alerts and a safety advisory. It began drafting sweeping new oil train regulations to safeguard the sudden surge of oil being shipped on U.S. rails. The railroad industry heeded the call, too, agreeing to slow down trains, increase safety inspections and reroute oil trains away from populous areas.

But almost a year and a half later—and after three railcar explosions in the United States—those headline-grabbing measures have turned out to be less than they appeared. Idling oil trains are still left unattended in highly populated areas. The effort to draft new safety regulations has been bogged down in disputes between the railroads and the oil industry over who will bear the brunt of the costs. The oil industry is balking at some of the tanker upgrades, and the railroads are lobbying against further speed restrictions.

And rerouting trains away from big cities and small towns? That, too, has been of limited value, because refineries, ports and other offloading facilities tend to be in big cities.

InsideClimate News, The Weather Channel, and The Investigative Fund have monitored the regulatory response to oil train explosions this year, focusing on whether the agency that oversees the railroads—the Federal Railroad Administration (FRA)—is able to ensure that the nation’s aging railroad infrastructure can safely handle its latest task: serving as a massive, rickety network of pipelines on wheels.

We found that regulators don’t have the resources to catch up with—let alone get ahead of—the risks posed by exploding oil trains. That has left the FRA politically outgunned by the railroad industry, leaving it largely to police itself.

Among the issues we identified:

  • Too few government inspectors. The railroad agency has only 76 track inspectors, assisted by a few dozen state inspectors, to oversee the operations of some 780 railroad companies that manage 140,000 miles of track, plus railroad bridges. By its own estimate the agency can inspect less than 1 percent of the railroad activities under its oversight each year.
  • Little oversight of railroad bridges. The FRA has set no engineering standards for railroad bridges, relying almost entirely on individual railroads to inspect, maintain and repair their own bridges and trestles, some of them built more than a century ago. The agency doesn’t keep an inventory or even a count of the bridges, estimated to number between 70,000 and 100,000.
  • Secrecy.  State and local governments can’t independently assess the condition of local rail infrastructure because their inspectors don’t have access to the railroads’ design and maintenance records, or to the tracks, trestles and bridges themselves. The railroads consider such information proprietary; the tracks and bridges are their private property and disclosure of those materials is voluntary.​
  • Meager penalties.  Fines are low, on the theory that the cost and consequences of an accident are sufficient incentive for railroads to properly maintain their tracks and bridges. In 2013, the FRA issued $13.9 million in fines to an industry whose top-seven revenue gainers alone took in nearly $84 billion.

“How did it get missed?” Deborah Hersman, former chair of the National Transportation Safety Board, asked at an April NTSB hearing about the hazards of shipping crude oil by rail. “Unfortunately, I’ve seen too much of a tombstone mentality. Did it take derailments and body count for us to understand?”

But Then the Oil Trains Started Exploding

The economic rebirth of America’s railroads is deeply entwined with the gusher of oil that began flowing from North Dakota’s Bakken shale in the mid-2000s. With few pipelines to carry this liquid gold to refineries, producers turned to the railroads. Why wait to build politically contentious pipelines when they could transport huge volumes of crude by train?

Railcar shipments of oil soared from 9,500 in 2008 to more than 400,000 in 2013– most of it crude from North Dakota. Railroad revenue from transporting crude during that period rose from $25.8 million to $2.15 billion.

This bit of industrial alchemy helped keep oil prices from rising during the ongoing turbulence in the Middle East and created billions of dollars in investments in rail loading and unloading facilities, bringing more jobs to parts of America beyond North Dakota.

But then the oil trains from North Dakota started exploding. First in Lac-Megantic, Canada. Then in Aliceville, Ala.; Casselton, N.D.; New Brunswick, Canada, and Lynchburg,Va.

A tanker train carrying North Dakota Bakken crude oil burns after derailing in western Alabama outside Aliceville, Ala. in November 2013. (Credit: Alabama Emergency Management Agency)

The explosions triggered protests, lawsuits and stormy community meetings: In Albany, N.Y., where Bakken crude is offloaded from railcars and sent down the Hudson River on barges; in Chicago suburbs that are crisscrossed with tracks; in Portland, Ore., a transit point for oil headed to Vancouver, Wash., and in the San Francisco Bay Area, where refineries receive the oil shipped in ocean tankers from Vancouver—and directly by rail from North Dakota.

“When you look at what could happen—and all of us are vulnerable—you’d think there would be more urgency,” said Karen Darch, president of the Village of Barrington, one of several mayors in cities around Chicago alarmed by the rise of oil train traffic through their towns. “… But it looks like the regulators are still keeping their fingers crossed that the next bad accident doesn’t happen.”

NTSB board member Christopher Hart said regulators need to respond to the new reality of oil by rail.

“Sometimes business models change quickly, and we need to figure out a way to keep the regulator up to speed with those changes—so that we don’t have a disconnect between what’s happening in the real world and where the regulations are,” Hart said in an interview. Hart is now the NTSB’s acting chairman.

Government officials and industry trade groups are still sparring over why North Dakota’s crude is much more volatile than traditional heavier crude oil, but many outside experts say the answer is clear: The Bakken’s light crude is more like gasoline and rich in volatile natural gas liquids, including methane, ethane, propane and butane.

(CLICK TO ENLARGE)

There’s an ongoing controversy about how, and how much of, the natural gas liquids should be removed. Currently, North Dakota doesn’t have the equipment and pipelines to process and transport the gases for resale. Instead, some of the gas-laden oil is being shipped to coastal refineries, which are equipped to handle them. There, they can be sold separately, generating additional profits—but creating new dangers along the way.

During the rail journey, the natural gas liquids separate from the oil and become gaseous, forming an explosive propane-butane blanket on top of the oil. If a railcar ruptures—and if some of the gas comes into contact with the outside air and a spark occurs—the railcar will explode and act as a blow torch on the car next to it. The result is a series of explosions like those captured on cellphones after the Lac-Megantic, Aliceville, Casselton and Lynchburg accidents — mushroom-shaped fireballs rising hundreds of feet into the sky.

The danger is compounded when trains are very long. The push to get North Dakota’s oil to refineries as quickly as possible is so strong that trains sometimes stretch for a mile and a half, commonly pulling about 100 railcars. Each car can carry roughly 30,000 gallons of oil, which means a single train can haul as much as 3 million gallons of oil—enough to fill a football field almost as high as the goal posts.

In the past, a train might have included five or 10 cars of crude oil, said the NTSB’s Christopher Hart. Today, “the entire train is nothing but this crude oil.”

(CLICK TO ENLARGE)
Dangers of Tanker Cars Known Since 1991

The type of railcar typically used to carry North Dakota’s oil—the DOT-111—was never intended to haul volatile crude oil. Designed in the 1960s, the cars originally carried corn syrup and other less explosive cargo.

Since 1991, the NTSB has warned repeatedly that the cars are prone to rupture during a derailment. Still, the ethanol industry used the DOT-111 as a workhorse in the mid-2000s, when the United States became the world’s largest ethanol producer. It remained the ethanol industry’s railcar even after 13 DOT-111s ruptured at a railroad crossing in Cherry Valley, Ill. in 2009, igniting a fire that killed a woman sitting in her car. Three people were seriously injured and 600 homes had to be evacuated.

The NTSB said the accident demonstrated “the need for extra protection such as head shields, tank jackets, more robust top fittings protection, and modification of bottom outlet valves on DOT-111 tank cars used to transport hazardous materials.”

The accident prompted the Association of American Railroads, the industry trade group, to petition the U.S. Department of Transportation to require similar standards for tankers. When the Transportation Department didn’t act quickly, the railroad association issued its own industry standard urging that all tank cars built after October 2011 have those features.

But the vast majority of railroad cars are owned or leased by oil producers, refineries and the ethanol industry—not by railroad companies. And those businesses chafed at the estimated $3 billion price tag, arguing that it was impossible to design a tanker to withstand every crash scenario. The solution, they said, was for the railroad companies to make their tracks safer.

“DOT has proposed tank car standards and other measures that would cost shippers billions of dollars to build new tank cars to carry crude and ethanol over old tracks,” David Friedman of the American Fuel and Petrochemical Manufacturers, a refineries trade group, wrote to the Transportation Department. “That approach to risk is backwards: it is far more effective to prevent a derailment than mitigate impacts from it.”

Century-Old Bridge Supports New-Era Oil Trains

While regulators have focused on the failings of DOT-111s since Lac-Megantic, less attention has been paid to railroad infrastructure and operations.

The regulatory system’s weaknesses are apparent in Tuscaloosa, Ala., where a 116-year-old bridge supports oil trains as they cross the Black Warrior River and into the city’s downtown.

The steel bridge is buttressed by wooden trestles that rise about 40 feet above public parks and jogging trails on either side of the river. On one bank sits the Tuscaloosa Amphitheater, where concert-goers can gaze up at trains silhouetted romantically against moonlit skies. Nearby is a construction site where condos are going up. Less than a mile downriver is a major oil refinery.

When InsideClimate News and The Weather Channel visited the bridge in May, a train of DOT-111s filled with crude oil happened to be parked overhead. At the base of the bridge, many of the pilings that support the trestle appeared to be rotted. Scores of pilings had what looked like makeshift concrete braces where the piling had cracked. Cross braces that keep the track from swaying were hanging loose or lay on the ground beneath the structure. One stretch of the trestle had been blackened by fire.

The M&O Bridge and the surrounding track are the responsibility of Alabama Southern Railway, one of 30 short-line railroads owned and operated by Watco Companies, LLC, a transportation conglomerate. Watco’s chief commercial officer, Ed McKechnie, said trains on that particular line carry heavy crude oil from Canada, not the explosive light crude from North Dakota. But Watco doesn’t rule out moving North Dakota crude across the bridge if a customer comes along, McKechnie said.

Many rail industry officials, academic engineers and regulators say that even 19th century bridges that appear rundown can be safe, because redundancy is built into the bridges and the defects are usually cosmetic. They note that rail bridge collapses are rare. According to FRA accident records, only 58 train accidents were caused by the structural failure of railroad bridges for the 27 years from 1982 through 2008. But most of the surge in oil has come since then.

(CLICK TO ENLARGE)

For the public or even local governments, confirming that a specific bridge is safe enough to handle the new oil trains is almost impossible.The M&O Bridge is inspected annually, McKechnie said, with the most recent inspection on June 14. But he would not disclose or summarize the results. Because railroad companies aren’t required to file that information with federal regulators, there’s no database to check.

In 2009, Congress ordered the FRA to draft railroad bridge safety regulations, but the rule that emerged in 2010 is so narrow that it provides little help. Railroad operators are required to have a maintenance plan for each bridge and conduct at least one annual inspection. But they are not required to submit those plans to the FRA or to give the FRA an inventory of the bridges unless the agency requests that information.

The only direct oversight the rule called for was having the FRA, already dreadfully short of personnel and resources, conduct spot audits of the plans—not the bridges.

A Freedom of Information Act request for any documents related to safety inspections of the M&O bridge produced a January 2006 FRA inspection that found no structural problems but noted that the railroad “has no written policy on bridge inspection and/or maintenance practices.”

An FRA inspection in January 2010 found several problems, including a crushed cap. A cap is a horizontal timber that plays a key role in supporting the elevated track. The railroad took the bridge out of service for four hours to replace the cap.

Summaries of Federal Railroad Administration reports on M&O bridge. (CLICK TO ENLARGE)

The inspection report said Alabama Southern is using an outside contractor to inspect its bridge, but noted that “with few exceptions” the railroad “is not following the repair recommendations….” (Emphasis in report)

When asked to comment on the report, Watco’s McKechnie said, “We continue to believe that an on-going maintenance program has kept the bridge safe and in use.”

An FRA spokesman said the agency investigates every complaint about a bridge or track and invariably finds that the bridges are safe. But it’s unclear how those judgments are made, because the federal government has no engineering standards for bridges.

McKechnie said Watco abides by industry standards produced by The American Railway Engineering and Maintenance-of-Way Association (AREMA). AREMA’s Manual for Railway Engineering is available to the public for a fee, $1,370. The chapter on timber structures (purchased for $290) did not address what percentage of pilings may be rotted or otherwise defective without undermining the structural integrity of a bridge.

“It would be difficult to arrive at an allowable percentage of deteriorated piles that would cover all timber railroad bridges because of the variations in geometry, loading, and amount of deterioration among different timber structures,” an AREMA representative wrote in an email. “The decision as to what is safe is left to the bridge engineer.” Watco’s vice president of engineering, Tony Cox, made a similar argument. He said the M&O Bridge is safe.

And what does the FRA say about the absence of federal or industry standards?

“A numerical standard for defective bridge pilings would be an insufficient standard, as every bridge is unique, and the structural integrity of every bridge must be considered in its proper context,” a spokesman for the rail agency explained by email. “Every bridge must be evaluated by an appropriate expert, and within the context of its construction, operational environment, and operational loading.”

Ultimately, the railroad decides whether a bridge is safe.

Crossties Missing or in Decay

Federal regulators have set safety standards for track, but whether they are adequate is another question.

Environmentalist John Wathen pushes a stick into the rotting piling of a rail bridge near Tuscaloosa. (Credit: The Weather Channel)

In June 2014, a train carrying fuel oil derailed just west of Tuscaloosa, a few miles before it reached the M&O Bridge. Local environmentalist John Wathen, an opponent of shipping crude by rail, posted pictures of the track at the derailment site on his blog. They show crossties in varying stages of decay or completely missing.

“Rotten crossties, missing rail plates, dips and waves in the tracks,” Wathen wrote on the blog.

Watco’s McKechnie reviewed Wathen’s photos for InsideClimate News and The Weather Channel. He described the track as “typical Class I track,” meaning it is the lowest grade of track with speed limited to 10 mph. The train that derailed was complying with that regulation, he said, attributing the accident to “a thermal displacement or a ‘sun kink’ caused by the rail overheating.”

“While the observation of this track can lead to concerns, the track should be able to handle trains moving at 10 mph or less,” he said in an email. McKechnie said an inspection of the track in June found “minor deviations which were corrected immediately.”

According to federal track safety standards, 19 out of 24 crossties can be defective and the track still considered safe.

But where do these track safety standards come from, and how do we know they’re sufficient?

Holly Arthur, a spokeswoman for the industry’s Association of American Railroads said the standards were enacted in 1971 and modified in 1982 and 1998 “through decisions by the Federal Railroad Administration… so best asked of FRA.”

When an FRA spokesman was asked whether a track with 19 out of 24 crossties could be safe, he replied, “The track segment being evaluated must be considered in its totality.”

The state of Alabama offered no help in determining whether the M&O Bridge or the nearby tracks where the train derailed are safe. State DOT spokesman Tony Harris said Alabama “does not have any regulatory authority over bridges of that nature. Those are owned by the railroads themselves. Federal law requires the railroads to inspect those and we are not vested with that duty or responsibility.”

Industry Derails Regulations

After the Lac-Megantic tragedy, senior Transportation Department officials vowed to prevent a similar accident from happening in the United States. Cynthia Quarterman, the Transportation official who oversaw the regulatory response until her resignation in October, and Joseph Szabo, the FRA head through the end of this year, assembled working groups for three issues: train securement, crew size and hazardous materials.

Between September 2013 and April 2014, the three groups met, debated and thrashed out their recommendations.

A drafting session of the hazardous materials working group was held on January 27, in a large meeting room at the headquarters of the National Association of Home Builders, five blocks from the White House. About 60 people sat most of the day facing one another around a large rectangular configuration of conference tables.

FRA staffers occupied one line of tables, including Karl Alexy, head of the agency’s Hazardous Materials Division and chair of the meeting. The other seats were occupied by representatives from industries that ship hazardous materials by rail, including the Association of American Railroads, American Petroleum Institute, Chlorine Institute, American Chemistry Council, Fertilizer Institute and the Institute of Makers of Explosives.

Several railroads that run oil trains on their track also attended, including Canadian National Railway, Union Pacific, Watco and BNSF, the largest shipper of crude. Warren Buffett’s investment firm, Berkshire Hathaway, acquired BNSF for $44 billion in 2009, just as the crude-by-rail boom was taking off. Railroad worker unions were at the session, too, including the Brotherhood of Locomotive Engineers and Trainmen.

Throughout the day, the FRA’s Alexy floated safety recommendations drawn up by his staff. But none got past Michael J. Rush, the railroad association’s watchful attorney. Rush interjected, objected and parried with Alexy, dominating the discussion and delaying or diluting the recommendations.

The railroad association denied a request to speak with Rush, who was paid nearly $1.2 million in 2012 by the association and related organizations, according to the association’s tax filing that year, the most recent filing available.

At one point, Alexy proposed that railroads carrying large volumes of crude oil be required to have a comprehensive spill response plan, just as oil pipeline companies must have. Canada’s Transportation Safety Board had made that one of its key recommendations after the Lac-Megantic derailment, and the U.S. NTSB had taken the unusual step of endorsing Canada’s recommendations, simultaneously announcing them from Washington.

But Rush was having none of it.

Swiveling in his chair as he swung the microphone to his lips, he said, “With all due respect to the NTSB, they completely misunderstood this regulation and this topic.”

After some more back and forth, Alexy did what he would do throughout the day: He deferred to Rush.

“I agree, unless there’s any objection,” Alexy said.

There was none.

At one point, Alexy offered a recommendation that would have required better communication between shippers and railroads, to make sure railcars carrying heavier loads don’t travel over bridges that aren’t strong enough to support them. A typical oil train places roughly 15,000 tons of pressure on structures that could be as much as 150 years old.

“I’m not sure we have a problem with this in the industry,” Rush said.

Alexy cited a recent incident where it had been a big problem—a bridge had collapsed under the weight of railcars it wasn’t certified to support, resulting in a derailment. But after a few minutes of discussion, the group “parked” that recommendation, too.

An exchange between Alexy and Cynthia Hilton, executive vice president of the Institute of Makers of Explosives, reflected the tone of the meeting.

Hilton said she believed the goal that day was to produce recommendations that would give the industry guidance, not requirements that would force them to take specific actions.

“And now I’m reading that ‘the shipper must develop and adhere to a sampling and testing program,’” she said. “That doesn’t sound like a guidance document.”

“You’re right and I agree,” Alexy assured Hilton. “This is of course open for editing, ideas and suggestions. I circled the word ‘must’…. ‘Should’ is probably a little more appropriate.”

In April, the hazardous materials working group produced four narrow, technical recommendations. For instance, one recommended a definition for what constitutes an oil train. Another offered a definition for what constitutes an empty rail car.

None of the staff recommendations that Rush had objected to during the drafting session made the cut. Nor did any of the NTSB recommendations, such as the one that would have required railroads to have emergency plans.

The regulations are still under consideration by the Transporation Department without a formal deadline.

In July, California tried to fill part of the regulatory gap by imposing a 6.5-cent per barrel fee on oil shipped into the state by rail. The money will help communities develop emergency response plans for possible spills. BNSF, Union Pacific, and the Association of American Railroads have since filed suit against California, arguing that such matters are the province of the federal government.

Alexy declined through the railroad agency press office to be interviewed for this article. At an NTSB hearing in April, however, he responded to a questioner who asked him to characterize the results of the working group’s activities.

“A lot of things that we took up initially were overcome by events,” he explained.

Fred Millar, an advocate for tighter hazmat rail regulations and a longtime observer of the FRA, had another explanation: “Industry had veto power over everything.”

“Who Was the Guardian of Public Safety?”

If train safety is the topic, the longtime head of the Association of American Railroads, Ed Hamberger, will be there to argue against what the industry sees as unnecessary or wrongheaded regulations. Attending these events is part of the reason the AAR and related organizations paid Hamberger almost $3 million in 2012.

At an NTSB hearing in April, Hamberger stressed the industry’s safety record. He said that since 1980, the railroads had spent $550 billion on capital investments and maintenance, decreasing their overall accident rate by 79 percent.

“2011 was the safest year on record in terms of accident rate until 2012, which itself was the safest year on record until 2013,” he said. “Preliminary data indicate that 2013 will be the safest year on record. With respect to hazardous materials, you’ve heard the number: 99.997 percent of hazardous materials go from origin to their destination without any accidental releases.”

That figure, 99.997 percent, is derived from 2013 data showing that of the 2.4 million railcars carrying hazardous materials, only 78 “released their contents” before reaching their destinations, according to the railroad association’s Ed Greenberg. This calculation does not factor in the magnitude of the spills, any environmental damage they may have caused, or any injuries, inconvenience or cost to nearby residents.

The aftermath of the Lac-Megantic crude railcar explosion in 2013. (Credit: Axel Drainvile via Flickr) (CLICK TO ENLARGE)

Because the Lac-Megantic accident occurred in Canada, it isn’t included in the railroad association’s safety statistics. But the accident was very much a “Made in America” event. The railroad was based in Hermon, Maine. The oil came from North Dakota, where it was loaded onto American-made railcars and sent on its way to Canada on U.S.-owned track. Because the disaster occurred about 10 miles from Maine, U.S. firefighters rushed to the scene to help fight the fires.

“It felt like an earthquake,” Lac-Megantic resident Yannick Gagne recalled in an interview. After the initial explosion rocked his house, he saw an orange flash. “Our windows were open and we felt the heat come in the house. My children started to cry.”

Gagne and his family survived, but the bar he owned, the Musi-Café, burned to the ground still full of patrons enjoying live music on a festive Saturday night. No remains were found for five of the 47 people who died in the conflagration; the fire vaporized them.

In its final report on the disaster, the Transportation Safety Board of Canada outlined a long list of contributing factors, including a poor safety culture at the railroad, the Montreal, Maine & Atlantic.

But Wendy Tadros, who oversaw the investigation as the head of the safety board at the time, identified a deeper underlying issue: the failure of railroad regulators to keep up with the rapidly evolving safety challenges posed by North America’s energy boom.

“Who was the guardian of public safety?” she lamented during a press conference releasing the report. “That is the role of the government…and yet this booming industry, where trains were shipping more and more oil across Canada and across the border, ran largely unchecked.”


This article is part of a project supported by the Alicia Patterson Foundation, the George Polk Award program at Long Island University, the Fund for Investigative Journalism and the Society of Environmental Journalists’ Fund for Environmental Journalism. It was reported in partnership with The Investigative Fund at The Nation Institute.

Credits

Publisher, InsideClimate News: David Sassoon

Executive Editor, InsideClimate News: Susan White

Editor, The Investigative Fund: Sarah Blustain

Independent Investigative Projects Editor: Keith Epstein

Managing Editor, InsideClimate News: Stacy Feldman

Reported by: Marcus Stern and Sebastian Jones

Graphics, InsideClimate News: Paul Horn

Video Executive Producers, Weather Channel: Greg Gilderman, Nail Katz and Shawn Efran

Video Producer, Weather Channel: Greg Gilderman

Associate Video Producer, Weather Channel: Katie Wiggin

Video Editors, Weather Channel: Brandon Kieffer and Jason Rudge

Fact Checking, The Investigative Fund: Allison Pohle

Additional Video by The Weather Channel

Additional research by Andy Blatchford

Cover Image: Steve Poulin via Flickr

Multimedia Production, InsideClimate News: Zahra Hirji and Sabrina Shankman

Special thanks to local environmentalist John Wathen for raising questions about the Tuscaloosa bridge and for the access to his library of videos and photos.  
About

Boom: North America’s Explosive Oil by Rail Problem is an investigation by InsideClimate News, The Weather Channel and The Investigative Fund.

InsideClimate News is a Pulitzer Prize-winning, non-profit, non-partisan news organization that covers clean energy, carbon energy, nuclear energy and environmental science — plus the territory in between where law, policy and public opinion are shaped. Our mission is to produce clear, objective stories that give the public and decision-makers the information they need to navigate the heat and emotion of climate and energy debates. We have content partnerships with leading global media outlets, and our groundbreaking work is regularly part of the national conversation on climate and energy issues.

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