Category Archives: Crude By Rail

Bakken Crude, Crude By Rail, Derailment, DOT-111, Explosion, Lac-Mégantic, Massive increase in crude-by-rail, Rail accidents

BOOM: North America’s Explosive Oil-By-Rail Problem (Weather Channel video)

Repost from Weather Films
[Editor: Perhaps the best short video presentation I’ve seen on the dangers of crude by rail.  Excellent for groups and public forums.  Caution: graphic scenes of anguish and destruction.  See also the lengthier original text-based report, notable for its expose on bridge safety.  – RS]

Boom: North America’s Explosive Oil-By-Rail Problem

Weather Films, 12/7/14

On July 6, 2013, a train hauling two million gallons of crude oil exploded in the Canadian town of Lac-Megantic, killing 47 people. It took two days to put out the fire and devastated the small community.

That catastrophe had its origin in America. For five years, a boom in oil production has been taking place in the Bakkan Shale region of North Dakota. Oil from the Bakkan is transported across the U.S. and Canada by rail to refineries on the coasts – it was one of these trains that derailed in Lac-Megantic.

The sharp increase in domestic oil production has created jobs, decreased economic vulnerability to turmoil in the Middle East, and lowered prices of gasoline and home heating oil.

But there’s another side to this story.

In “Boom,” a joint investigation by The Weather Channel and InsideClimate News, we explore how the boom in oil has resulted in highly volatile crude oil being sent over aging, often defective rails in vulnerable railcars.

Rail accidents involving oil trains have been on the rise. But industry and regulators have been slow react. Will it take another Lac-Megantic to make America’s towns and cities safer?

Read the full report here: stories.weather.com/boom

“Boom” was produced by Weather Films, the award-winning documentary unit of weather.com.
Produced by Greg Gilderman
Edited by Brandon Kieffer
Associate Producer: Katie Wiggin
Consulting Producer: Joe Halderman
Director of Photography: Jason Rudge
Executive Producers: Neil Katz, Greg Gilderman, Shawn Efran
Additional Reporting by Andy Blatchford
Additional Editing by Jason Rudge
Special Thanks: Karine Blanchette, Yannick Gagne, Bernard Boulet, Adrien Aubert, Rachel Rawson, Trip Jennings, Samuel Ezerzeer
Bakken Crude, Crude By Rail, Derailment, Feather River Canyon, State regulation

Call For Crude-By-Rail Moratorium In California After Train Derailment

Repost from DeSmogBlog

Call For Crude-By-Rail Moratorium In California After Train Derailment

2014-12-09, by Mike Gaworecki

A train derailment last week has prompted a California state legislator to call for a moratorium on crude-by-rail shipments through the state’s “most treacherous” passes.

Twelve cars derailed on a Union Pacific rail line along the Feather River northeast of Oroville, CA in the early morning hours of November 5th. The state Office of Emergency Services responded by saying “we dodged a bullet” due to the fact that the train was carrying corn, some of which spilled into the river, and not oil.

State Senator Jerry Hill (D-San Mateo), a vocal critic of the state’s emergency preparedness for responding to crude-by-rail accidents, does not think California should wait around for a bullet it can’t dodge before taking action. Hill sent a letter to Governor Jerry Brown calling for a moratorium on shipments of volatile crude oil from North Dakota’s Bakken Shale and other hazardous materials via the Feather River Canyon and several other high risk routes throughout California.

“This incident serves as a warning alarm to the State of California,” Hill wrote in the letter. “Had Tuesday’s derailment resulted in a spill of oil, the spill could have caused serious contamination in the Feather River, flowing into Lake Oroville and contaminating California’s second largest reservoir that supplies water to the California Water Project and millions of people.”

Hill’s letter goes on to mention the fact that increased use of crude transport by rail due to the fracking boom has also led to many more “fatal and devastating rail accidents involving large crude oil spills,” specifically raising the specter of the derailment and explosion of a train in Lac-Mégantic, Quebec in 2013, which killed 47 people and spilled 26,000 gallons of crude into the Chaudière River.

There is a need for a moratorium, Hill argues, because a train carrying one million gallons of Bakken crude—the same type of oil that was being transported through Lac-Mégantic—travels through the Feather River Canyon every week, and there are plans for a second of these “bomb trains” (so called due to the highly volatile nature of Bakken crude) to be added soon.

According to Hill, the trains travel through some of California’s most remote regions where the risk of derailment is especially high and “emergency responders are ill-equipped to quickly respond in these regions to prevent and mitigate major environmental and public health harm.”

Crude-by-rail has taken off in the U.S. because there is simply not enough space in existing pipelines to transport the glut of oil being produced across North America. This has led to more oil being spilled by train accidents in 2013 than in the previous three decades combined. According to Pipeline and Hazardous Materials Safety Administration data, last year saw some 1.15 million gallons of crude oil spilled by rail incidents, compared to just 800,000 gallons between 1975 and 2012.

It just so happens that there are no pipelines bringing crude to California, however, so the state is bracing itself for a massive increase in the number of oil trains. In 2011 there were 9,000 carloads of oil shipped by rail into the Golden State, but that number is expected to swell to 200,000 carloads by 2016.

So far this year, California has imported nearly 4.4 million barrels of oil by rail through September, compared to just 3.3 million barrels from January to September in 2013. To put that in context: the 6.3 million barrels ultimately shipped via rail to California refineries last year represented a 506% increase over the 1 million barrels shipped by rail in 2012, but was still just 1% of total oil shipments into the state. However, crude-by-rail shipments are growing so quickly that they are expected to reach as much as 150 million barrels by 2016, some 25% of total imports.

When reached for comment, the governor’s office deferred to the California Office of Emergency Services. Kelly Houston, deputy director of the OES, told DeSmog, “We share Senator Hill’s concern about the increase in crude oil coming into California by rail,” but that ultimately any decision on a moratorium would have to come from the Department of Transportation’s Federal Railroad Administration.

Houston stresses that the state is working to make crude-by-rail shipments safer, pointing to a report released by the state this past June, “Oil by Rail Safety in California,” and the work being done with railroad operators and federal regulators to improve California’s safety and emergency preparedness standards. “We’re going to have an increased risk because we don’t want to stop commerce into the state,” Houston says, “but what we want to do is increase safety and preparedness.”

Crude By Rail, Emergency Readiness & Response, Funding for emergency response, State regulation

Washington Gov. Inslee eyeing a tax on oil shipments arriving by rail

Repost from Crosscut.com, Seattle, WA

Inslee is eyeing a tax on oil shipments arriving by rail

His measure could also target pipeline shipments.
By John Stang, December 6, 2014
Tanker cars can carry oil or LPG.
Tanker cars can carry oil or LPG. Paul K. Anderson, Chuckanut Conservancy

The Inslee administration’s leaders expect to introduce a bill to extend Washington’s 5-cents-a-barrel oil tax to pipelines and railroad oil cars.

Currently, the tax on the 42-gallon barrels applies only to oil arriving in Washington by ship. Dale Jensen, director of the Washington Department of Ecology’s oil spill program, briefed the House Environment Committee on the matter Friday.

Officials are also considering the possibility of increasing the current 5-cents-a-barrel tax on oil arriving in the state. Part of the money goes to oil spill prevention and response programs across the state. The administration has not yet calculated how much money will be needed in upcoming years, meaning it has also not decided yet whether to increase the five-cents tax or keep it intact, Jensen said.

Extending the tax to oil railcars and pipelines reflects the shrinking of the amount of oil arriving in Washington by ship, while pipeline traffic and rail oil traffic are increasing, Jensen said.

In 2003, 91 percent of the oil going to Washington’s refineries came by ship, with 9 percent arriving by pipeline, and none arriving by rail. In 2013, 67.4 percent arrived in Washington by ship, 24.2 percent by pipeline and 8.4 percent by railroad.

A typical tanker railcar holds 29,200 gallons. Washington’s five refineries process roughly 24.3 million gallons of crude oil a day, and have the capacity of processing 26.5 million gallons daily. At 42 gallons per barrel, that translates to approximately $34.75 in tax per tanker car or roughly $28,900 per day for the amount of imported oil to be refined in Washington.

In the 2014 legislative sessions, Sen. Rodney Tom of Medina — who retired this year and was the leader of the Senate’s Majority Coalition Caucus at that time — introduced a bipartisan bill to extend the oil tax to railroad oil cars, but not pipelines. With support from both parties, the Senate Ways & Means Committee recommended passage on March 10. But that bill did not make it to a full floor vote by the time the 2014 session ended on March 13.

Frank Holmes, representing the Western States Petroleum Association, said the organization supported Tom’s 2014 bill, which the association membership believed accurately reflected Washington’s oil traffic shifting from ship to rail. However, the association opposes installing the tax on pipeline oil. Holmes said Washington’s pipelines have had an excellent safety record during the past 50 years.

All this unfolds as Gov. Jay Inslee is digesting a draft state report on factors to consider on designing legislation to improve oil train safety in Washington. In the Legislature’s 2014 session, Democrats and Republicans introduced somewhat similar oil train emergency prevention and response bills, including requirements that oil companies and railroads provide advance information on each oil train to emergency agencies. But the two sides could not get past one major point. The Democrats wanted to make the volumes and chemical compositions of the oil in each upcoming train available to the public. The Republicans were against that provision, arguing it would expose proprietary corporate secrets.

Jensen speculated that Inslee may push for full public disclosure of the oil train information.

 

Crude By Rail, Derailment, DOT-111, Emergency Readiness & Response, Evacuation, Federal Regulation (U.S.), Fire, Marine transport, Oil stabilization, State regulation, Tank car retirement, Tank car retrofit, Volatile gases

Albany NY Area officials say crude-oil transport is getting safer

Repost from The Press Republican, Plattsburgh, NY
[Editor: the safety improvements showcased here are far from adequate, nevertheless, it’s a good update on conditions in New York.  Sen. Schumer is absolutely right – the DOT-111 tank cars should be taken out of service immediately… and not just in New York.  And Bakken crude should be stabilized before it is transported (not just conditioned) … just as it is in Texas.  – RS]

Area officials say crude-oil transport is getting safer

Lohr McKinstry, December 6, 2014
A DOT-111 oil tank car sits on a siding in the Midwest. New York state is adopting tougher rules on use of the tank cars, which pass through Essex and Clinton counties enroute to Albany,

LEWIS — New state regulations on crude-oil trains should help make them safer, Emergency Services officials from Essex and Clinton counties said recently.

State agencies have implemented 66 actions designed to strengthen standards, regulations and procedures to make the transport of crude oil by rail and water in New York safer and to improve spill preparedness and response.

Gov. Andrew Cuomo received a status report outlining the progress made by multiple state agencies after they were directed to evaluate the state’s capacity to prevent and address crude-oil accidents.

Local leaders have been concerned about the 100-car-plus oil trains moving through Clinton and Essex counties as the crude oil extracted in North Dakota arrives via Canadian Pacific Railway trains.

The oil is on its way to the Port of Albany, where it is stored for transport to various refineries.

IMPROVEMENTS

Essex County Emergency Services Director Donald Jaquish said he sees the new procedures as a safety benefit to the North Country.

“It’s a step in the right direction,” he told the Press-Republican. “We’re in a better position than we were a year ago.”

There’s been concern the trains could derail, and the oil burn or explode, as it has in other regions, and Jaquish praised Canadian Pacific for trying to make the tracks and tank cars safer.

“Upgrading the DOT-111 tank cars, rail replacement and maintenance, and specialized training are all beneficial to safety.

“Canadian Pacific has been helping us with training, hands-on-experience, that first responders need for these situations.”

EVACUATION PRACTICE

The tank cars are not owned by Canadian Pacific but by oil companies and vendors, and as a federal common carrier, the railroad is required to transport them.

Both the railroad and federal regulators have pushed for upgrades to the DOT-111 single-shell cars or a switch to the stronger DOT-109 or 112 cars.

“In almost any situation we get, we will be doing evacuations,” Jaquish said. “We’ve been working with Clinton County on planning and implementation.”

Clinton County Emergency Services Director Eric Day said any improvements to the transport of oil cars are welcome.

“At the end of the day, what they’ve done is good, no question,” Day told the Press-Republican. “Any regulatory move to make the DOT-111 cars safer is a plus. It’s a long time coming.”

One problem is that there are thousands of DOT-111 tank cars still in service, he said.

“There are so many of them (DOT-111 cars) out there on the tracks. They’re not going to stop moving the oil before they fix the cars. The oil is not going to stop coming any time soon.”

STATE GUIDANCE

Day said enhanced state regulations on oil shipments will be helpful.

“If there are changes that are pushed upon them (shippers), it can only make it safer. We’ve seen some of the benefits of the state’s work with regard to planning,” he said.

“We have guidance now on firefighting potential on dealing with these things. There are so many variables. Multiple cars of this crude oil on fire are a different animal.”

He said that, thanks to a donation, they now have the foam needed for such fires. The expensive product costs $30,000 for 1,000 gallons of foam but puts out crude-oil-based fires.

VOLATILE GAS

The North Dakota Industrial Commission has proposed draft regulations to remove the volatile gases from the oil before it is shipped, and Day said that provision is a good one.

“One of the things that makes the Bakken crude so volatile are the gases in the oil. The gas works its way out and is stuck in the head space of the car. If they breech, there’s flammable gas; cars that aren’t breeched and heat up, the gas could expand and be a problem.

“Removing that gas is a possibility before they put in the cars and ship it. If they could do that, it’s a big win.”

FEDERAL ROLE

Cuomo called for the federal government to mandate tank-car upgrades or replacement.

“The federal government plays a vital role in regulating this industry, and Washington must step up in order to expedite the implementation of safer policies and rules for crude-oil transport,” he said in the release.

The governor said the oil-production industry has resisted stronger tank-car standards and regulations requiring companies to reduce the volatility of crude before shipment.

A new report from the Brattle Group for the Railroad Supply Institute, a trade group, showed that a proposed federal rule to upgrade rail-tank cars could cost $60 billion.

According to the report, the high price tag is largely due to the costs associated with potential modifications to tank cars, early retirement of existing tank cars, temporarily using trucks instead of rails for transport and lost service time for tank cars under modification or awaiting modification.

‘TIME BOMBS’

U.S. Sen. Charles E. Schumer (D-NY) has also come out against use of DOT-111 cars.

“These outmoded DOT-111 tank cars … are ticking time bombs that need to be upgraded ASAP,” the senator said in a news release.

“That is why for two years, since the tragedy at Lac-Megantic, I have pushed federal regulators to phase out and retrofit these cars.

“As a result of our efforts, the federal Department of Transportation has put a proposal on the table that could start taking these cars off the tracks within two years, as well as restrict the speeds at which these trains operate.”

On July 6, 2013, a 74-tank-car train carrying Bakken light crude derailed in Lac-Megantic, Quebec, and the tank cars exploded, killing 47 people, destroying 30 buildings and spilling 1.5 million gallons of heavy crude oil.

That disaster was followed by oil-train-explosion derailments in Alabama, North Dakota, Illinois and New Brunswick, Canada.