Category Archives: Crude By Rail

Oil industry study: Don’t worry, be happy…

Repost from Prairie Business Magazine
[Editor: First the oil industry wants us to believe that Bakken crude oil is no more volatile than other light sweet crudes.  Then at the end of the report, they recommend “highest-risk” labeling on train cars carrying the stuff.  Go figure….  – RS]

Oil industry group study says Bakken, other light crude oils similar

By: Kathleen J. Bryan, August 5, 2014

BISMARCK – A final report on Bakken crude released Monday by the North Dakota Petroleum Council will be presented to the North Dakota Industrial Commission on Wednesday.

The study was done in response to two train derailments last year in which railcars carrying Bakken crude ended in violent explosions. One derailment and explosion in Quebec killed 47 people. Another explosion occurred just outside Casselton, N.D.

The final report confirms preliminary results of the Bakken Crude Characteristics Study, which found that Bakken crude is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels, the NDPC said in a statement.

“This study provides the most thorough and comprehensive analysis of crude oil quality from a tight oil production basin to date,” John Auers, executive vice president of Turner, Mason & Co., the engineering firm commissioned to conduct the study, said in a news release.

In addition to confirming the initial findings presented in May, the final report also detailed best practices for field operations to ensure consistent operation of treating equipment, Bakken crude oil quality and testing procedures and shipping classification.

In addition to recommended best practices and analysis of the final results from sampling and testing, the final report also compares analysis from other studies on Bakken crude, including a study commissioned by the American Fuel & Petrochemical Manufacturers and the federal Transportation Pipeline and Hazardous Materials Safety Administration.

“The test results from this study are consistent with scientific data reported by the AFPM and PHMSA,” Petroleum Council Vice President Kari Cutting said. “All of this data does not support the speculation that Bakken crude is more volatile or flammable than other light, sweet crudes.”

The full report is available at http://www.ndoil.org/image/cache/NDPC_Bakken_Crude_Study_-_Final_Report.pdf.

South Carolina ethanol train derailment raises concerns

Repost from Greenville Online
[Editor: Note that recent new DOT rules do NOT require rail carriers to notify state emergency agencies concerning movement of ethanol trains.  Significant quote: “Ethanol rail transportation increased 500 percent from 2003-2012, according to the Association of American Railroads, while rail transport of crude oil increased more than 4,000 percent since 2008, according to Department of Transportation figures.”  Details on the derailment here.  – RS]

Upstate derailment puts focus on potential dangers

Nathaniel Cary, The Greenville News, August 4, 2014

Several times a week trains hauling millions of gallons of ethanol lumber along tracks through the heart of Upstate cities and towns, carrying the flammable gas toward a plant in Belton, where it’s then delivered to gas stations across the Southeast.

But in the dead of night on a recent Friday, something went wrong on the train’s journey.

It happened at 1:30 a.m. July 25 while the city of Spartanburg slept. A train, operated by CSX, went off the track. Before it could stop, an engine, a hopper car filled with sand and three tank cars filled with ethanol ended up in a ditch.

The ethanol-filled tankers landed upside down, and there they sat, within sight of houses and a few hundred yards across a field overgrown with kudzu from the city’s railroad museum and AMTRAK station.

The train was pulling 90 black tank cars filled with about two million gallons of ethanol, more than enough to fill three Olympic-sized swimming pools.

Fortunately, the train was moving very slowly around a curve and none of the cars punctured. No liquid spilled, no fire ignited, said Spartanburg Fire Chief Marion Blackwell.

Investigators with the Federal Railroad Administration are still trying to determine what caused the engine to leave the track, but the wreck highlighted a safety debate that’s arisen as the amount of crude oil and ethanol the nation transports by rail has increased exponentially with the country’s energy boom.

The Department of Transportation has proposed new rules to improve oil and ethanol train safety in the wake of derailments in recent years that have killed dozens, caused evacuations and spilled millions of gallons of oil and ethanol.

Transportation safety officials say trains are transporting higher amounts of crude oil and ethanol on trains that can stretch a mile long. Tank cars aren’t built thick enough to prevent punctures and spills when they are involved in accidents, and trains are driving too fast through urban areas, officials say.

Last July, a train operator didn’t brake sufficiently when a 72-car oil train went around a curve in the Quebec city of Lac Megantic. The train derailed and cars exploded, killing 47 people. Fires burned for days and destroyed the village center.

One woman died and two others were seriously injured in June 2009 while they waited at a train crossing in Cherry Hill, Illinois, when an ethanol train derailed and caught fire. An ethanol train that derailed in Pennsylvania in 2006 spilled 485,000 gallons and caused a two-day evacuation in parts of the city of New Brighton.

In South Carolina, there have been 145 incidents involving transportation of Class 3 flammable liquids — which includes crude oil and ethanol — by rail since 1972, when the Pipeline and Hazardous Materials Safety Administration began keeping track of data.

No lives were lost in those incidents, but they caused $2.8 million in damages, according to PHMSA data.

The most devastating train accident in South Carolina since 1972 took place in Graniteville in 2005 when a Norfolk Southern train carrying chlorine — a Class 2 gas — crashed into an idle train.

One of the tank cars holding chlorine breached and released the gas into the air. The train engineer and eight others died and 554 people were checked at hospitals for breathing difficulty, according to an investigation by the National Transportation Safety Board.

“I thought the wake-up call here would have been the chlorine gas spill,” said Susan Corbett, president of the 5,400-member South Carolina chapter of the Sierra Club.

The Sierra Club has come out in support of the proposed safety rules, though the club’s stance is that it’s taken too long to draft the rules and will take too long to implement the changes over the next three years.

“Anytime you’re moving this stuff around, either by rail or by truck, there’s always a risk,” Corbett said. “It definitely is something that should be of concern for all of us because of the health risks and disasters.”

Local routes

Trains carrying large quantities of ethanol travel through cities and towns in the Upstate more than 150 times every year. The routes run through the heart of Spartanburg and Greenville and through smaller towns like Williamston and Pelzer.

Most of the trains originate in Illinois and normally stretch 82 cars long, said Steven Hawkins, who as president and CEO of the Greenville & Western Railway Co., which owns and operates 13 miles of rail line from Pelzer to Belton in Anderson County, hauls the trains for the final leg of their trip.

The trains hold 80 cars of ethanol and two hopper cars, one at each end, filled with sand or gluten to act as a buffer between the “ignition source” engine and the hazardous materials cars, Hawkins said.

CSX runs the route from Illinois to Pelzer, where Hawkins’ Greenville & Western takes over, driving the final six miles to an ethanol plant in Belton owned by Lincoln Energy Solutions, a Greenville-based biofuel delivery company, he said.

That’s the route the train was following when it derailed in Spartanburg, CSX officials have said.

Greenville & Western runs about 150 routes each year with the hazardous material cars, he said.

The transportation safety board says the surge in ethanol production has altered the way ethanol is transported by rail. It used to be carried in smaller quantities, but now entire trains carry nothing but the flammable gas additive.

Ethanol rail transportation increased 500 percent from 2003-2012, according to the Association of American Railroads, while rail transport of crude oil increased more than 4,000 percent since 2008, according to Department of Transportation figures.

“While the soaring volumes of crude oil and ethanol traveling by rail has been good for business, there is a corresponding obligation to protect our communities and our environment,” said NTSB Chairman Deborah Hersman.

CSX participated in the Department of Transportation review and analysis of the current transportation practices and tank car standards and works closely with first responders, communities, oil producers, tank car owners and other railroads “to make the safe transportation of these important products ever safer,” CSX spokeswoman Carla Groleau said.

In May, Transportation Secretary Anthony Foxx issued an emergency order for rail carriers to notify state emergency agencies when trains pass through their states carrying more than 20 cars of volatile crude oil harvested from the Bakken shale region in North Dakota.

The South Carolina Emergency Management Division received notice from both of the state’s major rail carriers, CSX and Norfolk Southern, that they don’t transport Bakken crude oil through South Carolina in those amounts, spokesman Joe Farmer told The Greenville News.

No such notification is required for trains carrying ethanol.

Safety proposal

The Department of Transportation wants to phase out outdated tank cars — called DOT-111s — it calls vulnerable to puncture and explosion in a derailment.

Trains with any of the older cars would face speed limits of 40 miles per hour.

Tank car owners could retrofit the cars with a safer shell and better braking rather than switch to a new tank style. Trains that meet all standards could travel 50 mph outside of 100,000-population cities. Trains that don’t upgrade to enhanced braking systems would face a 30 mph limit.

The Department of Transportation would also require a risk assessment of rail routes and railroad conditions that high-hazard flammable trains use.

National ethanol groups balked at the safety proposals announced by the Department of Transportation, saying ethanol isn’t as volatile as Bakken crude oil and that the rules may paint with too broad a brush by classifying oil and ethanol together.

“Ethanol is a low volatility, consistent commercial product with a 99.997 percent rail safety record,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “Unlike oil from fracking, ethanol is not a highly volatile feedstock of unknown and differing quality and characteristics being shipped to a refinery for commercial use.”

But ethanol and oil trains both use the DOT-111s that the NTSB called inadequate in the aftermath of the Cherry Hill ethanol disaster.

Only 14,000 tank cars of the 92,000 in the North American fleet are built to the latest industry standards, according to the Association of American Railroads.

The rules won’t change operations for the Greenville & Western because its train only travels 25 miles per hour and it doesn’t own any of the tank cars it transports, Hawkins said.

Tank car safety changes will be up to the shippers since they own most tank cars, he said.

Hawkins, who bought the short-rail line in 2006 after a 20-year-career in rail service, said he’s got a spotless safety record.

“We’re already at such a low speed anyway, not that we ever want to have that type of incident as has occurred, but at the slow speed that we operate, it would be a non-event,” Hawkins said.

Amtrak provides crude oil train details states had withheld

Repost from McClatchyDC
[Editor: The author notes that this method of obtaining information on transport of crude by rail “only worked in the few places where Amtrak owns or controls track over which freight trains operate.”  – RS]

Amtrak provides crude oil train details states had withheld

By Curtis Tate, McClatchy Washington Bureau, August 4, 2014
US NEWS RAILSAFETY MCT
Empty tank cars roll south along Amtrak’s Northeast Corridor at Newark, Del., on July 28, 2013. The cars were unloaded at the nearby PBF refinery in Delaware City, Del., and are heading back to North Dakota for another shipment. (Curtis Tate/MCT)

— Two loaded and two empty crude oil trains operate daily over Amtrak’s Northeast Corridor in Maryland and Delaware, according a document submitted by the passenger railroad in response to a Freedom of Information Act request.

Last month, Norfolk Southern, the freight railroad that operates the crude oil trains, went to court in Maryland to block the state Department of the Environment from making the same information available to McClatchy and the Associated Press.

The Amtrak document also contains some details of Norfolk Southern’s crude oil train operations in Pennsylvania. That state last month denied requests from McClatchy and the Pittsburgh Post-Gazette to provide information about the shipments.

Dave Pidgeon, a Norfolk Southern spokesman, declined to comment.

In May, following a series of derailments, fires and spills involving crude oil trains, the U.S. Department of Transportation required railroads to notify states about train shipments of 1 million gallons or more of Bakken crude oil to help emergency responders better prepare for an incident.

There is no federal law that shields the crude oil train information from public release. Nonetheless, railroads asked states to sign confidentiality agreements, and some states, including Maryland and Pennsylvania, complied.

However, other states, including California, Washington, Illinois and Florida, did not sign the agreements and have made the crude oil train details available to McClatchy and other news organizations.

In Maryland, according to documents filed on July 23 in the Circuit Court for Baltimore City, state Attorney General Doug Gansler’s office had voided the confidentiality agreements that a state official had signed. However, both Norfolk Southern and rival carrier CSX contested the attorney general’s ruling and sought an injunction to prevent the imminent release of the records.

Pennsylvania is one of the largest single destinations in the country for Bakken crude oil by train. On Monday, McClatchy appealed the Pennsylvania Emergency Management Agency’s denial of an open records request for crude oil train details there.

Amtrak owns or controls lines in Pennsylvania, Maryland and Delaware that Norfolk Southern uses for freight. The national passenger railroad is subject to the federal Freedom of Information Act.

According to Amtrak, Norfolk Southern’s crude oil trains operate over 21 miles of the Northeast Corridor, the busiest passenger train route in the country. The crude oil trains travel between Perryville, Md., and Newark, Del., sometimes alongside Amtrak’s passenger trains. They also use a portion of a line east of Harrisburg, Pa., that Amtrak controls.

The trains are generally 100 cars and weigh 13,500 tons loaded and 4,000 tons empty. By contrast, Amtrak’s flagship Acela Express trains include two locomotives and six cars, weighing a total of 624 tons.

Freight trains commonly operate over the Northeast Corridor at night, but some run during the day. Amtrak restricts Norfolk Southern’s crude oil trains to 30 mph from 6 a.m. to 10 p.m. Overnight, the trains can operate at 50 mph.

Norfolk Southern crude oil trains cannot exceed 135 cars on Amtrak lines.

The Norfolk Southern trains supply the PBF Energy refinery in Delaware City, Del. The facility closed in 2009, only to be revived with rail deliveries of domestic crude oil.

Read more here: http://www.mcclatchydc.com/2014/08/04/235391/amtrak-provides-crude-oil-train.html?sp=/99/200/#storylink=cpy

 

Oil trains to pass through Stockton

Repost from The Record, Stockton, CA
[Editor: Significant quote: “‘These aren’t rail cars filled with rubber duckies. They’re filled with dangerous crude oil,’ said Diane Bailey, a senior scientist with the Natural Resources Defense Council in San Francisco.”  – RS]

Crude oil transport danger for Stockton?

Deadly 2013 explosion in Quebec among incidents fueling concerns
By Alex Breitler, Record Staff Writer, August 03, 2014
Top Photo
A train passes through Stockton carrying crude oil and other flammable liquids Friday morning. | CRAIG SANDERS/The Record

It’s no misprint: Explosive crude oil shipments into California last year increased 506 percent.

And a series of high-profile derailments and fiery explosions across North America has fueled fears that those seemingly ubiquitous tanker cars could someday spell disaster here, too.

The surge has really just begun. In a few years the quantity of oil rolling down our railways will be “huge,” said Michael Cockrell, director of the San Joaquin County Office of Emergency Services.

“You’re looking at some really major transportation of oil, and it’s everywhere,” Cockrell said. “It’s going to be all up and down the state.”

The spike is tied to increased domestic drilling in North Dakota, where the Bakken shale formation produces especially valuable and especially volatile crude oil. Trains provide a fast and flexible way to transport that oil to West Coast refineries.

Stockton’s a bit off the beaten path for at least some of these shipments, which often enter the state via Donner Pass or the Feather River Canyon, traveling through Sacramento on the way to Bay Area refineries.

Still, with Stockton serviced by two major railroad companies and with tracks stretching through urban areas to the north, west and south, advocacy groups argue there is a risk here.

“These aren’t rail cars filled with rubber duckies. They’re filled with dangerous crude oil,” said Diane Bailey, a senior scientist with the Natural Resources Defense Council in San Francisco.

It’s impossible to say how many oil trains already roll through town. Railroads don’t divulge that information, citing security concerns. Only recently did they begin notifying local emergency response officials about incoming shipments.

But there are indications Stockton may have a part to play in the oil transportation boom.

Documents describing a controversial proposed terminal in Pittsburg show that trains carrying oil would come from the east, from Stockton. Plans call for up to one train per day, five days a week to arrive at the Pittsburg terminal. From there, the oil would be shipped through pipelines to refineries.

Plans are also in the works for a $320 million terminal at the Port of Stockton. Commissioners in 2012 approved a lease for the petroleum terminal and storage facility on 33 acres near Washington Street and Navy Drive, said Port Director Richard Aschieris.

It hasn’t been built yet. But Reuters reported last month that trains would deliver 70,000 barrels of oil per day to the port’s Targa Resources Partners terminal. The Houston-based company would then load the oil onto ships to be delivered to refineries.

Aschieris said that in addition to petroleum, Stockton’s terminal will also handle ethanol, natural gas, propane and other materials. He said it will generate $1.2 million a year in taxes for the city and county combined, along with 20 full-time, high-paying jobs.

Aschieris said the project makes sense from a safety perspective.

“No matter what they’re moving, if they move it onto a barge or ship, I would contend that is safer than putting it on trucks and taking it right in through the Bay Area,” he said.

As for the trains that would deliver the oil, Stockton’s flat terrain decreases the odds of a derailment, said Aschieris, who added that private railroads have made “huge investments” in improving local tracks.

The debate over the transportation of crude oil spreads far beyond Stockton and California.

In Quebec, 63 tanks cars of crude oil exploded in July 2013, killing 47 people. Eight other major accidents have been reported in the past two years.

Tellingly, train accidents involving crude oil have increased even while the overall number of train accidents and hazardous material spills has declined.

In late July, acknowledging that the growing reliance on trains “poses a significant risk to life, property and the environment,” the federal government announced plans to phase out older tank cars within two years. They also took action to improve notifications about oil shipments, to reduce the speeds at which oil trains travel through towns, and to encourage railroads to choose the safest routes.

Most crude oil is still transported by marine vessels. But the quantity sent by train has skyrocketed from 1 million barrels in 2012 to 6.3 million barrels last year, and experts say the number could climb as high as 150 million barrels by 2016, according to a report by a working group convened by Gov. Jerry Brown.

For Cockrell, with county Emergency Services, the oil shipments are yet another potential disaster to worry about.

Since railroads are regulated by the federal government, he said he’s concerned that local governments may have difficulty seeking assistance responding to a derailment, and that it might be difficult to seek reimbursement from the private railroads.

Many people could be affected by a large spill in an urban area, Cockrell said.

One advocacy group, San Francisco-based ForestEthics, recently issued “blast zone” maps showing the half-mile evacuation zones overlaid on rail routes that could conceivably carry shipments of crude oil. And the Natural Resources Defense Council has estimated that almost 4 million Californians could be at risk.

Opposition has grown to the proposed new oil terminal in Pittsburg. Other projects are in the works in Bakersfield, Benicia, Santa Maria and Wilmington (Los Angeles).

Mike Parissi, with San Joaquin County’s Environmental Health Department, said the county’s multi-agency hazardous materials team trains for potential railroad disasters – though not specifically for crude oil spills.

“The big thing with the crude oil is it’s very flammable,” he said. “But we can deal with any kind of flammable liquid incident that might come.”

Back at the port, Aschieris said crews there are used to handling hazardous materials. So are the railroads, said a spokeswoman for Burlington Northern Santa Fe, whose tracks pass through Stockton.

“We’ve actually handled hazardous material for many, many years, and we’ve done so safely,” said spokeswoman Lena Kent. “Unfortunately there have been a few high-profile incidents.”

She would not say how much crude oil her company sends through Stockton. She did say two crude oil trains per month enter the state, a tiny fraction of the 1,600 all-purpose trains that Burlington Northern operates throughout the country on any given day.

Union Pacific did not respond to a request for information about its shipments.

Bailey, the scientist with the Natural Resources Defense Council, says the trains should be rerouted, adding that they have a “stranglehold” on the cities through which they pass.

“I haven’t really seen anyone entertain this conversation,” she said. “Does it make sense to bring mass quantities of really dangerous crude oil through people’s cities, so close to their homes?”