Category Archives: Crude By Rail

Bakken Crude, Crude By Rail, DOT-111, Oil prices, Tar sands crude, Volatile gases

LOCAL OP-ED – Jerome Page: The triumph of human ingenuity

Repost from The Benicia Herald

Jerome Page: The triumph of human ingenuity

August 8, 2014 by Jerome Page

TIME TO TAKE A CLOSE LOOK AT OUR STARTLING SUCCESS in solving our energy problems with oil — good old American Bakken crude along with a hefty swash of that Canadian tar sands crude. Canada being a very friendly neighbor, this seems a great deal on both sides of the border. And thanks to a fine railroad system, it’s just a simple straight shot from North Dakota and Alberta right up to our door here in Benicia, California! Providence be blessed!

And yet there are, as always, folks who not only want to examine that gift horse’s teeth but can be just plain ungracious — if not downright surly and disagreeable — about it. What could possibly be wrong with cheaper oil in copious quantities, without ever having to deal with folks who don’t even speak English?

But enough. I’ll step out of the Joe Schmoe character and comment just a bit on that question of what can, in fact, possibly be wrong.

From an Earth Island Journal clipping (June 29, 2014), a piece by Adam Federman, we read: “Since the Lac-Mégantic disaster (with its 47 dead) there has been a string of oil train collisions and derailments. Late on the night of November 7, a train carrying at least 2.7 million gallons of Bakken crude derailed near Aliceville, Alabama, resulting in dramatic explosions similar to those seen in Lac-Mégantic. Because the train exploded a few miles outside of Aliceville, no one was injured or killed. On December 30, a train carrying crude collided with another train outside of Casselton, North Dakota, releasing more than 400,000 gallons of oil into the surrounding land. At least half the town’s 2,400 residents were evacuated, though no one was injured. And on April 30, an oil train operated by CSX derailed in the city of Lynchburg, Virginia, sending flames and oil into the James River and forcing the evacuation of more than 300 residents. Last year more oil spilled in rail accidents — 1.15 million gallons — than the previous 35 years combined.” (Italics mine)

Then the following:

“Extra-flammable Bakken crude riskier to ship by rail than other oil, U.S. safety watchdog warns,” by Jeff Lewis, Jan. 2, 2014:

“CALGARY — U.S. authorities said Thursday crude oil shipped by rail from the Bakken shale in North Dakota across the United States and Canada ‘may be more flammable’ than other types of oil, as the latest in a string of explosive accidents focuses attention on the booming oil-by-rail trade.”

How about we ditch that “may be”! For example, another read on Casselton:

“‘There was a huge fireball’: Train carrying crude oil explodes after derailing in North Dakota,” by Dave Kolpack, Associated Press, Dec. 30, 2013:

“A train carrying crude oil from North Dakota’s oil patch derailed Monday near the small town of Casselton, setting off a series of fiery explosions. No injuries were initially reported, but officials were warning residents to stay indoors as the situation unfolded. Cass County Sheriff’s Sgt. Tara Morris says as many as 300 residents of Casselton may be evacuated.

“Morris estimates about 10 cars from a mile-long train caught fire and will have to burn out. She said it could take up to 12 hours before authorities can get close.

Next, “How crude-by-rail accidents may impact the U.S. oil market,” Reuters, Jan. 23, 2014:

“A spate of high-profile crude-by-rail accidents is making oil analysts consider how tighter rail safety standards could impact U.S. oil markets, by potentially crimping a mode of transport that has grown exponentially amid the shale drilling boom.

“Any regulation or industry-driven move to hastily sideline a fleet of some 75,000 older tank cars commonly used for shipping crude could roil U.S. oil logistics, boost costs for refiners, and even hit output from North Dakota’s giant Bakken field, oil analysts said.

“The scenario that many view as more likely — where older rail cars could be gradually retrofitted or retired — would be less disruptive but still raise transportation costs.” (And, of course, forestall greater dangers, but what the hell, what’s life without a little spice!)

“Tank cars known as DOT-111s are used to transport most of the 10 percent of U.S. oil production, or around 800,000 barrels per day, that is shipped by railroad. The cargoes have surged over the past half decade, offering drillers in fast-growing shale plays like the Bakken a quick and flexible way to send barrels to consumer markets without relying on limited regional pipelines.

“DOT-111 rail cars built before 2011, which have been involved in several accidents, are under scrutiny for safety issues that make them more likely to puncture in a derailment.

“Over the weekend, a train carrying North Dakota crude derailed in Philadelphia, although there was no fire or injuries.

“‘I view this as a potentially hugely significant rail risk,’ said Credit Suisse’s Jan Stuart, referring to how new crude-by-rail safety measures could impact Bakken-region oil logistics or production.” (That risk of course is financial, and when you’re talking financial risk, man you have an audience; human risk, risk to life and limb — not so much!)

“So far, the Department of Transportation has set a schedule for next year to draft new regulations, including updated tank car specifications, but it is facing pressure to move faster.

“‘Regulators have endorsed the new safety standards for newly built cars, but so far have not required any retrofitting,’ said Sandy Fielden of the RBN Energy consultancy in Austin. ‘If the existing fleet of older cars were to need retrofitting, it would be very disruptive.’”

And why in hell would we be wanting to do anything “disruptive” when the money is rolling in so beautifully! Is it that hard for people to focus on the crucial bottom line?!

“In the fast-growing Bakken, where pipeline capacity has not kept up with oil production, more than 70 percent of output that is approaching 1 million barrels per day now moves by rail, according to the North Dakota Pipeline Authority.

“Over half of the U.S. crude moved by rail hails from the Bakken, where the trend has allowed drillers to quickly send their barrels to refineries in the biggest fuel markets along U.S. coasts where they fetch higher prices, boosting profits.

“‘The most likely scenario is for regulators to gradually phase in safety improvements,’ said energy analyst Michael Wittner of Societe Generale. ‘That could increase transportation costs, but if there were a decision to replace older tank cars on short deadline, crude would be piling up in North Dakota.’” (Let’s not be disrupting the flow of oil — and cash.)

“Retrofitting the entire fleet of older DOT-111s would be costly and take up to ten years, the Rail Supply Institute, which represents tank car owners, said last year, in part because manufacturers are already struggling with a backlog of tank car orders. Newer DOT-111s feature safety improvements, but comprise only around 14,000 cars so far, according to the AAR.

“Sidelining older DOT-111s could depress Bakken oil prices at the wellhead as producers compete for insufficient pipeline capacity, eventually hurting production, Fielden said. Any fall in deliveries by rail could force some coastal U.S. refineries to go back to buying more expensive crude imports.

“If all older tankers were retrofitted, it could add between 20 and 40 cents per barrel to crude-by-rail costs, assuming a cost of $30,000 to $60,000 per car, according to a report this month from Turner, Mason & Company consultants.

“Should producers have to rely just on pipelines, Bakken deliveries would plummet to less than 600,000 bpd at the most, less than 60 percent of daily output, according to the state pipeline authority.

“Because of its rapid output growth and isolated location from fuel markets, only a small portion of Bakken crude is processed in facilities known as fractionation plants, which strip out volatile gases like propane and butane, known as light ends. The plants can require large up-front investment, and years to build.” (Whoa there, time and money again? Forget it!)

“‘Regulatory costs are going to go up, it’s just a question of how high and how fast,’ said Robert McNally, president at U.S. energy consultant Rapidan Group. ‘I expect officials will try to find a sweet spot where timely and adequate regulations … do not cripple Bakken economics.’” (Ah yes, a sweet spot that doesn’t interfere with profit!)

Just maybe in all of that there are some lessons for those of us living in Benicia, California about the priorities that should be guiding our decisions when it comes to bringing in Bakken and Canadian tar sands crude. Our neighbors to the east on that train route are obviously deeply concerned; why not Benicia?

Should an accident or major spill occur on that clearly precarious route down the Feather River Canyon, the damage to river, reservoir and water supply would be incalculable. And what of Sacramento and Davis and their obvious great vulnerability — have we no responsibility to our neighbors along that long trail from Alberta or North Dakota to Valero?

And, finally, of course, there is that bloody problem of the environmental costs of jacking up our use of not just more oil — bad enough in itself — but the most dangerously polluting stuff we can find. A bizarre example of man’s capacity to blot out the future in the pursuit of — just what?!

Jerome Page is a Benicia resident.
Bakken Crude, Crude By Rail, DOT-111, Emergency Readiness & Response, Federal Regulation (U.S.), Hazmat notification

Modesto Bee editorial: Tell us when dangerous oil cars are rolling

Repost from The Modesto Bee

Our View: Tell us when dangerous oil cars are rolling

August 9, 2014

Tank cars suitable for carrying Bakken crude oil sit on the BNSF railroad tracks that run through Escalon in May. The cars were empty, but left unattended for several days at a time. MIKE DUNBAR — mdunbar@modbee.com

Anyone who bothered to examine the 40 black, cylindrical railway tankers parked within 60 feet of a neighborhood in Escalon would have noticed a couple of markings. First was the red diamond-shaped placard with a flame on it; the other was the designation “DOT 111” in a grid stenciled on the tank.Those markings are what you find on tank cars used to carry the most dangerous liquids across America – including the volatile crude oil extracted from Bakken shale deposits in North Dakota.

A BNSF official said those unattended tank cars left on one of the double tracks in Escalon for a total of seven days over several weekends from April to June were empty. Unfortunately, no one in the community of 7,000 knew enough about them to bother to ask what was in them.

“I’m not aware of what was in those cars,” said Escalon Fire Chief Rick Mello, who commands a staff of nine full-time firefighters and a volunteer force of 16. Up to 50 trains go through Escalon each day, and BNSF never notifies Escalon about what is moving along its tracks – unless asked.

That must change, because it’s entirely likely we’ll see far more of those cars in the future. And they won’t always be empty.

California’s Office of Emergency Services estimates shipments of Bakken crude will increase 25-fold by 2016 as 150 million barrels move to California’s refineries in the Bay Area, Southern California and eventually Bakersfield. Since all Bakken crude moves by rail, that could mean another 225,000 tank cars a year moving through Roseville, Sacramento, Modesto, Merced and beyond. Mother Jones magazine calls it a “virtual pipeline.”

The Wall Street Journal reported Bakken crude contains higher amounts of butane, ethane and propane than other crudes, making it too volatile for most actual pipelines. Those gases have contributed to the deaths of 47 people in the town of Lac-Megantic in Canada, where a train carrying Bakken crude derailed in July 2013 and exploded. Less dramatic derailments, some with fires, have occurred in North Dakota, Virginia and Illinois. The U.S. Department of Transportation reports 108 crude spills last year.

“When you look at the lines of travel from Canada and North Dakota, you figure if they’re headed for the Bay Area or to Bakersfield, the odds are that you’re going to see shipments going down the Valley,” said Assemblyman Roger Dickinson, who represents north Sacramento. That’s why he authored Assembly Bill 380, which would require the railroads to notify area first-responders whenever these trains are passing through.

But the nation’s railroads are largely impervious to local concerns; they’re governed by the U.S. Department of Transportation and they’re powerful.

In July, the DOT issued proposed new rules for safe transport, including increased cargo sampling, better route analysis, a 40 mph speed limit on trains labeled “high-hazard flammable,” and switching to the new, safer DOT 111 cars after Oct. 1, 2015. The new cars have double steel walls, better closures and heavier carriages. Currently, they make up about a third of the nation’s tanker fleet.

California’s Office of Emergency Services has issued 12 recommendations, ranging from allowing better data collection to phasing out those old tank cars to better training for first-responders.

Laudably, the railroads are already doing most of these things. Since the mid-1990s, BNSF has offered – at no charge – training for handling spilled hazardous materials and dealing with emergencies. One of Escalon’s eight full-time firefighters was trained at virtually no cost to the city. BNSF said they would even do on-site training for departments. But not every fire department has taken the courses. A BNSF spokeswoman said Sacramento sent only one firefighter to the most recent three-day training on dealing with hazardous materials, including Bakken crude.

The federal DOT issued an emergency order in May to require all carriers to inform first responders about crude oil being shipped through their towns and for the immediate development of plans to handle oil spills. Unfortunately, it contains a discomforting criteria: the order applies only to trains carrying 1 million gallons of Bakken crude, or roughly 35 tank cars. And to reach DOT’s definition of a “high-hazard flammable train,” a train must have 20 tank cars.

But a Bakken explosion in Virginia blew one tank car an estimated 5,500 feet; a photograph of another explosion showed a fireball rising 700 feet from a single car. Our first responders ought to know when even one car carrying such material is coming through.

Dickinson’s bill would make notification available on a real-time basis, without having to ask. His goal, said Dickinson, is to “give first responders better information on how to respond. The techniques and materials used in dealing with different chemicals, or even different types of oil, vary widely. ‘I know I’m dealing with oil, but what kind of oil?’ My bill is aimed at getting better, more timely, more complete information to responding agencies.”

But his bill mirrors federal orders on the size of the train; our first responders need to know when any hazardous shipment is moving through.

The incredible expansion of America’s oil resources is creating many positives – from more jobs to less dependence on foreign oil. But it’s happening so fast that we’re devising the safety aspects as we roll along this virtual pipeline from North Dakota to California in the west and to New Jersey in the east. Accidents are happening along the way. Federal rules don’t go nearly far enough to protect public safety in this new world. Dickinson’s bill and the state OES recommendations would help, but we need a broader dialogue. As Dickinson said, “we know we’re going to have derailments, no matter how careful people try to be.”

That’s why first-responders such as Escalon’s Chief Mello must “prepare for anything, any day.” Knowing what’s coming gives us a head start.

Cleanup funding, CN Rail, Crude By Rail, Derailment, Evacuation, Explosion, Fire, Oil spill

Seven months after January derailment – family left living in tents

Repost from CBC News | New Brunswick

CN derailment near Plaster Rock has left family living in tents

Caleb Levesque and family say CN is to blame for the ongoing issues with their home
CBC News, Aug 08, 2014
Investigators at the scene of the CN derailment in Wapske, near Plaster Rock.
Investigators at the scene of the CN derailment in Wapske, near Plaster Rock. (Transportation Safety Board/Twitter)

Family members in Wapske, N.B., say they have been living in tents on their front lawn for more than a month after their house was ruined following a freight train derailment near Plaster Rock in January.

They say CN Rail is to blame.

Caleb Levesque, the son of the property owner, and his family, say their house remains unlivable due to damage from a train derailment back in January.

Jeff Levesque, whose home was damaged in the CN derailment near Plaster Rock
Jeff Levesque and his son Caleb, whose home was damaged in the CN derailment near Plaster Rock in January, say a carpenter hired by CN has done a botched job of repairs. (CBC)

Levesque says a carpenter hired by CN Rail to fix their house following the derailment left the house worse than before due to poor craftsmanship.

The initial heat of the train derailment melted much of the siding on the house. The carpenter replaced the siding but Levesque says the carpenter CN Rail hired didn’t do it right.

“So all the siding is falling off, buckling. So we’ve been getting a lot of water when it rains,” he said.

Levesque said when post-tropical storm Arthur arrived, the water came right through the new siding, leaving puddles on the floor.

“Completely soaked it, just big puddles on the floor. The inside of the house is soaked, damaged. It’s ridiculous,” he said. “It smells so bad you don’t even want to go in the house.”

Residents wary of mould

Levesque says the most concerning thing now is the mould throughout the house.

He says so far CN Rail has refused to fix the ongoing problem.

Levesque is staying in a tent with his girlfriend, their dog and cat. His father is in another tent, all on their front lawn.

Trains are rolling again near Plaster Rock
Trains are rolling again through the section that had been closed due to the derailment. (Matt Bingley/CBC)

To shower and launder, they’ve been driving to the house of a family friend. For cooking, they’ve made due with just a barbecue, without the use of a stove or fridge.

“It sucks. It’s not so bad when you’re just camping, but when you have to do it for over a month … it’s hard,” said Levesque.

He says CN Rail officials should acknowledge the unacceptable conditions their hired carpenter left the home in, and pay to make it right.

“They took the responsibility on when the train went by our house and derailed, they took the responsibility to fix everything that they had damaged,” said Levesque.

The Levesques got an initial quote on the damage from restoration specialist Nicholas Mann, of ServiceMaster Restore.

Mann estimated it would cost about $160,000 to fix the home properly. Levesque said CN Rail offered him $2,500 after receiving the report.

“Right now all we want is to get our house fixed and everything that was in the house replaced,” said Levesque. “We just want our house fixed so we can go home.”

Levesque says his lawyer hopes to meet with CN Rail in September to sort out a solution.

Train jumped the tracks

A 122-car train derailed on Jan. 7 with 19 cars and a locomotive jumping the tracks.

Five derailed tanker cars were carrying crude oil from Western Canada to an Irving Oil refinery in Saint John, N.B., while four other tankers carried liquefied petroleum gas.

About 150 people living within a two-kilometre radius of the crash site were forced to leave their homes for several days.

A Transportation Safety Board investigation found one of the wheels on the 13th car broke from “fatigue.”

Bakken Crude, Crude By Rail, Federal Regulation (U.S.), High Hazard Flammable Trains (HHFTs), Tank car design, Tank car retrofit, Train dwell time, Train speed

An inside look at rail industry views on proposed safety rules

Repost from Railway Age
[Editor: Check out rail industry insider perspectives on the DOT’s proposed new safety rules, and a few of their hoped-for changes before the rules become final.  – RS]

DOT crude oil NPRM: Will cooler heads prevail?

August 7, 2014, by  William C. Vantuono, Editor-in-Chief
A recent call-in forum on crude by rail conducted by Cowen and Company Managing Director and Railway Age Contributing Editor Jason H. Seidl “helped affirm our view that the final version of the DOT’s safety rules may include some changes to the ones proposed on July 23.”

“We believe that the final draft of the [Notice of Proposed Rulemaking on High-Hazard Flammable Trains and DOT 111 tank cars] could be more friendly to shippers than the first proposal,” said Seidl. “This, along with the removed uncertainty, could put a more positive spin on regulations that are sure to add costs for the industry.”

Retrofitting tank cars to 9/16-inch-thick steel is “a tall order,” said Seidl. “A railcar manufacturing executive on our panel suggested that retrofitting existing 7/16-inch-steel cars to 9/16-inch layers would be a problematic task, as the technology for implementing the conversion may not be currently available. Additionally, such an undertaking may be restricted by tight steel supplies, which could disrupt and prolong production for months. This would exacerbate concerns about the two- to five-year proposed compliance period, which is already viewed as insufficient by many players in the industry. According to our panelist, a more realistic retrofitting of the existing 7/16-inch-steel car fleet would take five to seven years and consist of other improvements, such as top fittings and thermal jackets. If retrofitting to a 9/16-inch-steel layer is ultimately adopted in one or more of the paths to compliance, the Greenbrier Companies could benefit as it already applies this standard to its “Tank Car of the Future” group of tank cars. That being said, we believe that the final version of the rules will include some key changes to the ones proposed on July 23.”

The Cowen panelists agreed that reducing crude oil train dwell time would make more sense than reducing speed. “The consensus opinion seemed to be that enforcing broad speed restrictions may not be the right approach,” noted Seidl. “The panelists indicated that emphasis should be placed on reducing the total time that High Hazard Flammable Trains (HHFTs) spend in populated areas, and slower trains do just the opposite. Additionally, reduced train speeds would require more cars and detrimentally impact the supply chain, potentially resulting in higher dwell times in populated areas. One panelist suggested that CBR regulators should communicate with the groups that have created regulations for other rail-transported hazardous materials, such as chlorine. Such regulations, which rely in large part on reducing dwell time in densely populated areas, appear to have been effective in improving transportation safety.”