Yolo supervisors challenge Benicia on crude oil train plans
By Tony Bizjak, Jul. 15, 2014
Steve Helber / The Associated Press | Several CSX tanker cars carrying crude oil derailed and caught fire along the James River near downtown Lynchburg, Va., in May. Emergency officials are pressing railroads for more information on oil train schedules and routes so they can be prepared.
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In a letter to be sent this week, Yolo County officials accuse the city of Benicia of failing to adequately review the potential for oil spills and fires resulting from a plan by the Valero Refining Co. to run two daily trains carrying crude oil through the Sacramento region to its Bay Area refinery.
A recently published environmental report by Benicia concludes the project will not cause any significant negative impact to cities and habitat up the rail line. That finding was based on an Illinois professor’s analysis saying a train incident causing an oil spill might happen only once every 111 years between Roseville and Benicia.
The Yolo letter, approved Tuesday by the Board of Supervisors, calls that analysis inaccurate and irrelevant because it doesn’t explore the potential magnitude of oil spills. A crude oil train crash and explosion last year in Lac Mégantic, Canada, killed 47 people and leveled several blocks of downtown.
“A catastrophic explosion and spill in a populated area is different from a 100-gallon spill in a shipyard that is quickly cleaned up,” the Yolo letter states. “Without considering the second half of the risk analysis, the (report) cannot conclude that the risk of a spill is insignificant.”
The Yolo board was split, 3-2, on sending the letter. Yolo Supervisor Matt Rexroad opposed the letter, saying he believes the risk of a spill is small and the county should focus its time on issues where it will have more impact. “There is only so much we can have an impact on,” he said. “You allocate resources (based on) how big you think risks are. I don’t know this one is worth fighting.”
Board Chairman Don Saylor took the opposite tack, saying the issue presents clear safety concerns for communities, businesses and people alongside the railways. “The fact is that a single spill or fire in Yolo County in areas such as downtown Davis, the campus of UC Davis or the many other communities in our region could result in significant property damage and injuries,” Saylor wrote in an email to The Sacramento Bee.
Other local cities and counties are expected to issue comments challenging the Benicia rail plan environmental analysis, which was published last month. Benicia officials have set a Sept. 15 deadline for receiving reactions. If its plans are approved, Valero officials have said they plan to begin train shipments early next year. The transports are among the first of what California officials say is an expected boom in crude-by-rail shipments through the state, prompted by the lower cost of North Dakota and Canadian crude.
CSX Railing More Crude, Warns Against Dropping Train Speeds
Richard Nemec, July 18, 2014
Florida-based CSX Corp. senior executives on Wednesday underscored the continuing growth in the amount of crude oil being shipped by rail and voiced concerns about proposed federal regulations that would drop average train speeds in response to a series of tank car accidents in the past 18 months (seeShale Daily,Aug. 22, 2013).
Executives offered their comments as part of a 2Q2014 conference call. CSX earned $529 million (53 cents/share) in 2Q2014, compared with year/ago earnings of $521 million (51 cents). Record revenues were $3.2 billion, up 7% from 2Q2013.
CSX CEO Michael Ward and Executive Vice President Clarence Gooden talked about the robust crude oil shipping market. Coal shipments are expected to remain higher, too, as natural gas prices hover at about $3.50/Mcf.
“The biggest part of our surge [in business] on our northern network was driven by crude-by-rail and our coal business,” Gooden said. “Our coal business was much higher than expected primarily as a result of [high] gas prices, a colder winter and utility responses.”
Gooden said he sees future crude shipment expansions along the East Coast. “There are expansions there going on as we speak,” he said. “They are predominantly in the Philadelphia and New Jersey areas; we have two customers that are looking at expanding in the Jersey area.”
Every week, CSX is averaging about 2,014 oil tank cars and 20 trains with crude-by-rail, Gooden said. “We could see some slight increases in that going forward, although there are some finite limits for what the Bakken [Shale] can produce and the refiners can process.”
On the question of proposed new federal rail regulations from the Pipeline and Hazardous Materials Safety Administration (PHMSA), Ward said the industry is concerned about a proposed requirement to slow trains to 30 mph. In the longer term, he expects regulators to heed the industry’s warning about that proposed rule.
“While we have not seen the proposals, we have heard that a 30 mph speed limitation is one of the options being considered, and we think that would severely limit our ability to provide freight service to our customers, and also provide passenger and commuter services,” Ward said. “There are all kinds of corollary impacts of this.
“I would hope as we look at this with the federal government that we can show the modeling of how disastrous that could be for fluidity of the entire U.S. rail system as well as the impact on [long-haul] trucking. We think cooler heads will ultimately prevail” among federal regulators.
Other parts of the proposed federal rulemaking due to recent crude rail car derailments have the full support of the CSX executives, such as the proposed crude rail tank car designs (seeShale Daily,May 7).
“We’re quite excited about the potential for the new car design as well as the retrofits to the existing cars, and that is part of the proposed rulemaking [at PHMSA],” said Ward, adding that CSX has “done a number of things” to improve safety. “We think the next big thing to make things better is a stronger car for newbuilds as well as the retrofit to existing cars.”
A warning placard on a tank car carrying crude oil. | Associated Press
By NATASHA KHAN, PublicSource, July 13, 2014
More trains carrying crude oil to East Coast refineries mean a greater risk of accidents. Derailments in Pennsylvania and throughout the country are a signal to some that an accident could be disastrous.
Why is more crude oil moving through Pennsylvania?
North America is now the biggest producer of crude oil in the world, partly as a result of fracking in North Dakota and other Western states. Without pipelines to move the oil, much of it has been pushed onto the rails. In 2013, U.S. railroads carried more than 40 times what they carried in 2008. Refineries processing much of the crude from the Bakken formation in the West are in the Philadelphia area.
Are these trains dangerous?
As crude-by-rail traffic increased, so did its accidents. Some lawmakers and public safety groups are concerned that as production surges, people near railroad tracks are exposed to more danger. And some believe the crude boom has outpaced the necessary regulations to ensure safety.
There have been at least 12 significant derailments involving crude since May 2013 in North America. Some involved explosions, evacuations, environmental damage and injuries. The most devastating was in Lac-Mégantic, Quebec, in July 2013, when 47 people died after a train carrying crude exploded. Since January, Pennsylvania has had derailments involving crude in Philadelphia, Vandergrift and McKeesport. There were no injuries in any of the accidents.
How much crude oil do these trains carry?
Right now Norfolk Southern and CSX, the major railroads in the state, move as many as eight trains of crude oil a day combined through the state.
Dubbed “virtual pipelines,” these trains can have more than 100 tank cars and can carry millions of gallons of crude.
Is Bakken crude more volatile than other types of oil?
North Dakota Bakken crude is potentially more volatile, corrosive and flammable than other kinds of crude oil. Investigations found that the Bakken crude that exploded in Quebec was classified as a less dangerous type of oil. In February, the U.S. Department of Transportation issued an emergency order requiring testing of all Bakken crude to determine its explosive nature.
Are other types of crude oil dangerous?
Other types of crude from the U.S. and Canada also could pose a threat. All crude oil is flammable and can cause environmental damage, Christopher Hart, acting National Transportation Safety Board Chairman, told the Associated Press in June.
What’s wrong with the rail cars?
Sometimes referred to as the “Ford Pinto of railcars,” the DOT-111 tank cars used to ship crude have been known to be a safety hazard for decades, according to federal safety investigators. Designed in the 1960s, they are prone to puncture and “catastrophic loss of hazardous materials” when trains derail, according to the NTSB.
The derailments have caused an outcry by state and federal officials and safety groups demanding that the cars be taken off the tracks. Canada has already ordered railroads to stop using them by 2017, but U.S. regulators have been slow to act. The U.S. DOT did advise railroads in May to stop using the cars to carry crude oil. The White House is reviewing new standards for tank cars, but it could take months before rules are in place.
How are trains carrying crude oil regulated?
Two federal entities regulate railroads carrying crude: The Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA). The FRA has about 400 inspectors who sometimes work with state inspectors. In Pennsylvania, the state’s Public Utility Commission does spot inspections of tracks and rail equipment.
Emergency planning is largely left up to counties. A state agency oversees 67 Local Emergency Planning Committees, which can request general information from railroads about hazardous materials coming through their counties. That information is not public.
Can you find out when crude oil trains come through your neighborhood?
Officially, no. Railroads are not required to share information about hazardous materials under federal law. Norfolk Southern and CSX, for example, said they don’t give out that information, citing possible security incidents and competition.
In May, the DOT said it no longer viewed information on crude oil from the Bakken as security sensitive. The agency told railroads with trains carrying more than 1 million barrels of Bakken crude to give the information to states. At least six states, including Washington, California and Virginia, made the information available. Pennsylvania didn’t. The Pennsylvania Emergency Management Agency refused to release the information to PublicSource. The agency denied our Right-to-Know request, calling the information “confidential” and “proprietary.”
Bakken and other crude oils are believed to be shipped through Pittsburgh and other Pennsylvania cities on a regular basis on their way to Philadelphia refineries. A spokeswoman for the Pennsylvania Public Utility Commission told PublicSource that Bakken crude is shipped through Pittsburgh.
What has been done to improve safety?
U.S. regulators asked railroads to comply with a number of voluntary actions. The railroads agreed to slow crude trains to no more than 40 mph in high-risk urban areas. (However, a train that derailed in Lynchburg, Va., in April was traveling at just 24 mph.)
Recent proposed rules for crude oil, including new standards for tank cars, drew comments from the public representing more than 100,000 people.
In March, CSX agreed to give PEMA access to its real-time monitoring system that tracks crude’s movement through the state. Cory Angell, the agency’s spokesman, said it is working with Norfolk Southern on a similar agreement.
Are first responders prepared for a significant derailment in Pennsylvania?
Daniel Boyles, the emergency services coordinator for Blair County, told PublicSource he thinks railroads are doing everything in their power to prevent accidents. However, he said, first responders need more training. Trains carrying Bakken crude roll through his county twice a week, he said.
Emergency officials in Beaver, Allegheny and Dauphin counties said that awareness has increased and railroads have given emergency responders more training.
A PEMA spokesman said the state is prepared in the case of a major derailment. He added that Pennsylvania will soon use a DOT grant to train county hazmat teams and first responders.
Who doesn’t think first responders are prepared?
“No community is prepared for a worst-case event,” Deborah Hersman, former chairwoman of the National Transportation Safety Board, told a Senate subcommittee in April.
Under voluntary safety measures effective July 1, railroads will contribute $5 million for training for emergency responders. And they will develop a list of emergency-response resources in case of a derailment.
But federal safety officials have questioned whether voluntary actions are enough. Currently, railroads don’t have to provide comprehensive emergency plans for the crude oil being transported. That’s what’s needed, Hersman said.
In a Jan. 23 letter to federal regulators, she said that without comprehensive crude oil response plans “(rail) carriers have effectively placed the burden of remediating the environmental consequences of an accident on local communities along their routes.”
Which officials are talking about this in Pennsylvania?
Sen. Bob Casey, D-Pa., endorsed a bill he said would boost safety. The bill would include $3 million for track inspections and hire 20 new inspectors.
Philadelphia Mayor Michael Nutter backed a proposal to charge a federal freight fee to crude-oil producers and industrial consumers. The money would be used to improve tracks.
Christina Simeone, director of PennFuture’s energy center, said other states have shown leadership on the issue — but not Pennsylvania.
New York Gov. Andrew Cuomo commissioned a safety report for his state. The report laid out actions the state should take. Minnesota lawmakers allocated $6.4 million for more inspectors, specialized training for first responders and fixes for highway-rail grade crossings along crude routes.
Republican Gov. Tom Corbett has been silent about the safety issue, said Simeone, who commented that there is interest in “minimizing the issue” because of concerns about the refinery business in Philadelphia and gasoline prices in the region.
Pittsburgh Mayor Bill Peduto has not been part of the conversation. In a recent meeting with PublicSource, Peduto said that he is “aware of the reality of what is coming through.” In the case of an accident, Pittsburgh could call on the PA Region 13 Task Force, he said. The task force is an initiative that allows counties to pull resources from the entire region in case of an emergency.
Repost from Time Magazine [Editor: The message is getting out far and wide with this mainstream publication’s observance of the one-year anniversary of the killer wreck in Lac-Mégantic. An intensely personal account of what it is like to live near these rolling “bomb trains.” – RS]
A Year After a Deadly Disaster, Fears Grow About the Danger of Crude Oil Shipped By Rail
Sebastien Malo, July 10, 2014
When 21-year-old mother Kahdejah Johnson was told two years ago that she’d secured a spot at the Ezra Prentice Homes, a quiet housing project in Albany, she felt confident she’d found a stable home to raise her newborn son. With its manicured lawns and tidy beige row houses, the Ezra Prentice Homes are a far cry from the crumbling housing projects of large cities. “When people come into town they’re like ‘These are your projects? These are condos!’” says Johnson.
But today, Johnson is losing sleep over how close her house is to railroad tracks congested, day and night, with tanker cars carrying crude oil, visible just outside her bedroom window. The fear of an accident is so great that Johnson has taken to evacuating her apartment some nights, to spend the night at her mother’s home, further from the tracks. “Now I’m afraid to be in my own home,” she says. “Do you know how fast we could die here?”
Albany is one of a growing number of cities where residents like Johnson fear the devastating consequences of accidents involving railcars filled with crude oil. They have reason to fear—on July 6, 2013, a train carrying oil derailed in the Canadian town of Lac-Megantic, causing an explosion that destroyed more than 30 buildings and killed more than 40 people. This past Sunday, Johnson and other Albany residents held a vigil to commemorate the Lac-Megantic derailment—and draw attention to the growing opposition to transporting crude oil by rail
“Jo-Annie Lapointe, Melissa Roy, Maxime Dubois, Joanie Turmel,” participants in the vigil intoned into a microphone, naming Lac-Megantic residents killed in the explosions. In a line, they held portraits of each of the deceased and read their names, pinning the pictures to a black metal fence. “You may not say that they lived right next door to you, but they were your neighbors,” said Pastor McKinley Johnson, who officiated part of the ceremony. “You may not say that you understand all the language, but they’re your sister and your brother.”
As in Lac-Megantic, oil tankers containing highly flammable crude oil from the Bakken oil fields in North Dakota and Montana roll right through their residential areas. Rows of train-cars filled with crude oil often stand idle for hours on the tracks that hug the curves of the housing project, so tightly only 15 feet at most separate the two in some areas. “Once I found out that these are the same tanks that were in Canada, I was like ‘Oh my God, someone pray for us, We’re in danger’,” Johnson said.
This fear is a consequence of the unconventional oil boom in states like North Dakota, where for the last several years producers have been using hydrofracking techniques to pump oil previously locked in underground shale rock. The new oil fields have helped America’s oil production rise to a 28-year high. But that crude oil has to get to refineries, most of which are located in coastal cities—and much of that oil is moving by rail. Nationally, transport of crude oil by train has jumped 45-fold between 2008 and 2013, according to a recent Congressional Research Service report.
While the U.S. has yet to experience a rail catastrophe on the scale of Lac-Megantic, the country has had its share of close calls. The National Transportation Safety Board counts five “significant accidents” of trains containing crude oil in the United States in the past year alone. The latest, in Lynchburg, Virginia, saw a train carrying crude Bakken oil derail and burst into flames in the town’s center this April, producing black plumes of smoke and billows of flames taller than buildings nearby. The crude oil also spilled into the James River, though one was injured.
The worrying trend has opened a new front to the national environmental debate. Some 40 cities and towns across the country scheduled similar events to mark Lac-Megantic’s one-year anniversary. Many of the rallies will take place in the usual hotbeds of environmental activism —in places like Seattle and Portland—but also in blue-collar tows like Philadelphia and Detroit, where activists will voice demands ranging from a moratorium on oil-trains traffic to increased safety controls.
But the problem has also presented environmentalists with a conundrum. One of the factors behind the rapid rise of railroad shipment of crude oil has been the shortage of oil pipelines, which could move greater quantities of oil from landlocked states to coastal refineries. Front and center to this debate is the multi-billion dollar Keystone XL pipeline project, which would connect the oil sands of western Canada to the Gulf Coast, but which President Obama has yet to approve—in part because of objections raised by environmentalists, who fear the potential for a spill.
Fewer pipelines has meant more oil moved via rail. “If Keystone had been built we wouldn’t be moving nearly the volume of oil that we’re moving by rail,” said Charles Ebinger, the director of the Energy Security Initiative at the Brookings Institution.
That has exposed the Keystone’s opponents to criticism that by standing in the way of pipeline projects, they are raising the risk of rail accidents. Though hazardous material like crude oil makes its way safely via rail 99.998 percent of the time, according to the Association of American Railroads, a plethora of research suggests that pipelines result in fewer spillage incidents, personal injuries and fatalities than rail. That includes an authoritative environmental review the State Department released last January, which concluded that “there is… a greater potential for injuries and fatalities associated with rail transport relative to pipelines.”
Still, environmentalists like Ethan Buckner of ForestEthics, the group coordinating the string of events to commemorate the Lac-Megantic tragedy, reject that dichotomy. “The industry is trying to present Americans with a false choice between pipelines and rails,” he says. “We want to choose clean energy.”
Back in Albany, the vigil was deemed a success, drawing a crowd of about a hundred. But Kahdejah Johnson wasn’t among them. Why not? Her fear, she said, got the best of her. “Honestly, I don’t really hang by my house,” she said. “I don’t like to be in that area if I don’t have to be there.” She is now on a waiting list to be transferred to another development—something she’s told could take up to four years. In the meantime, the trains will keep rolling.
