Category Archives: Crude By Rail

Bloomberg News – Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

Repost from Bloomberg News

Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

By Lynn Doan Jun 17, 2014

Valero Energy Corp. (VLO)’s plan to unload as many as 70,000 barrels of oil a day from trains at its Benicia refinery will increase emissions across California in a “significant and unavoidable” way, a city report shows.

Valero has applied to build a rail-offloading rack at the plant northeast of San Francisco that would take oil from as many as 100 tanker cars a day. The San Antonio-based company delayed the project’s completion by a year to early 2015 as it awaits approval from the city.

“Project-related trains would generate locomotive emissions in the Bay Area Basin, the Sacramento Basin, and other locations in North America,” the city of Benicia said in an environmental assessment posted on its website today. “The city has no jurisdiction to impose any emission controls on the tanker car locomotives; therefore, there is no feasible mitigation available to reduce this significant impact to a less-than-significant level.”

Valero is proposing the rail spur as record volumes of oil are extracted from North American shale formations that the U.S. West Coast has little pipeline access to. California’s refiners are already bringing in the biggest-ever volumes of oil by rail as they seek to displace shrinking supplies of crude within the state and from Alaska.

A series of explosions and derailments of trains carrying crude, including one in Quebec that killed 47 people in July, touched off a flood of letters to the city of Benicia about Valero’s project and compelled the planning commission to put off a decision until an environmental study could be done.

New Rules

Regulators in both the U.S. and Canada are imposing new rules designed to improve the safety of trains carrying oil and a group of California agencies released a report June 10 recommending ways in which the state should respond.

Earlier this month, the city council in Vancouver, Washington, voted to oppose a proposal by Tesoro Corp. (TSO) and Savage Cos. to build a 360,000-barrel-a-day, rail-to-marine complex at the Port of Vancouver.

Valero’s Benicia project would probably result in a spill of more than 100 gallons once every 111 years, according to an analysis conducted as part of the city’s environmental report. The report was prepared by researchers at the University of Illinois’s Rail Transportation and Engineering Center in Urbana, Illinois.

California’s refiners received 557,315 barrels of oil by rail in April, the most ever for that month, state Energy Commission data show. Crude from Canada made up 45 percent of the state’s total rail receipts. Oil from North Dakota accounted for 22 percent.

’Challenged’ Market

Valero has described refining in the western U.S as “a challenged market” with margins close to break-even when all of the region’s plants are running normally. Profits from the 132,000-barrel-a-day Benicia refinery are particularly under pressure, Joe Gorder, the company’s president and chief executive officer, said in a presentation May 21.

The plant “produces a significant yield of gasoline, which, of course, we’ve seen the margins compressed on and demand not be the greatest on,” Gorder said at the UBS Global Oil and Gas Conference in Austin, Texas. Sourcing alternative crudes on the West Coast “would increase the economics out there for us substantially,” he said.

Spot California-grade diesel has traded about 3.5 cents a gallon above gasoline in Los Angeles this year and averaged an 8.75-cent premium in 2013, data compiled by Bloomberg show.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Charlotte Porter

Lac-Mégantic: How to get rid of a town’s oil stain

Repost from The Toronto Star
[Editor: Firefighters and emergency first responders should all read this, a detailed recounting of efforts to contain the oil and clean the land following the disaster in Lac-Megantic, Quebec.  First published in December, 2013, this is still an important read for all who would understand the decisions made and lessons learned by first responders following a massive clean-up effort.  – RS]

Lac-Mégantic: How to get rid of a town’s oil stain

Six million litres of light crude spilled over, under and through Lac-Mégantic. Quick thinking and heroic efforts by a team of environmental experts and others kept things from getting a whole lot worse. Now they’re trying to make downtown habitable again.
By: Wendy Gillis News reporter, Published on Sat Dec 14 2013
Note: This story has been nominated for a National Newspaper Award .

LAC-MÉGANTIC, QUE.—Sherbrooke fire chief Gaétan Drouin stood on the bridge spanning the Chaudière River, the winding tributary that divides Lac-Mégantic . The town burned violently before him. Noxious smoke, thick and pungent, filled the air. Even stronger was the faintly sweet smell of light crude.

His flashlight beam cut through the darkness, down to the water cascading from the town’s namesake lake into the river it feeds.

Green-yellow oil, slick and bright, had overtaken the river, and was gushing downstream.

When a 72-car train of explosive crude barrelled into the town early on Saturday, July 6, it killed 47 people, levelled buildings, ripped away livelihoods, and annihilated the heart of the downtown.

It also unleashed nearly six million litres of oil.

The deluge glugged out of punctured tanker cars and ran down city streets ablaze, a river of burning oil. It seeped into the ground, gushed down manholes into the sewers and stormwater pipes, causing powerful explosions underground. It spilled into crystal waters of the lake, clung to boats in the marina, and rushed down the winding Chaudière, a 185-kilometre river that empties into the St. Lawrence.

As firefighters battled the blaze, a growing army of environmental emergency experts descended on the town to stop the spread of the volatile Bakken crude, a substance slightly thicker than vegetable oil. With every minute, it extended its reach deeper, further, threatening to sicken communities, poison the air, and ruin ecosystems.

They have been on the ground ever since, fighting a toxic villain that, even now, is on the move.

The spill in an urban setting has destroyed buildings untouched by flame, prompted a mass exodus of contaminated soil, and forced crews to rebuild even as they decontaminate, with the aim of jumpstarting the faltering economy.

Those leading the clean-up sum it up simply: There has never been anything like it.

Stop the bleeding

By the time Jean Campagna arrived in Lac-Mégantic from his home outside Sherbrooke, the fire had been raging for eight hours. Like so many others, he had been summoned by a dead-of-night call. The day before, he had clocked out at 4:30 p.m., ready for his vacation.

The technician with the Quebec environment ministry’s emergency team approached the blaze at the mouth of the river, near the bridge, when he arrived at 9:45 a.m. His eyes were drawn to a torrent of crude gushing into the river from a two-foot storm pipe.

“The first thing we had to do was absolutely stop that as quickly as possible,” he said. “I knew that there were drinking water intakes downstream, and I knew that it was running strong through the pipe. It was practically pure oil.”

Scanning the scene, he saw allies in municipal workers and environmental emergency employees, and began co-ordinating — a role he has played ever since, as a clean-up project technician. He held a five-minute meeting near the bridge, planning a joint assault.

Everywhere, there was work to do.

When oil escaped from the tankers beginning at 1:14 a.m., some of it immediately burned. The rest travelled in two main directions: on the surface of the ground, towards the lake; and underground, infiltrating soil and pipe networks.

On the surface, burning oil moved downhill from the derailment, shooting with flames as it flowed towards the lake. Streetlamps melted and shoreline rocks fractured as the fiery crude entered the water. The oil was still burning as a strong wind sent it back to land, where it hit the rocky shore of downtown’s Parc des Vétérans.

Oil seeping into the ground gravitated towards the highly permeable material known as backfill, usually a mixture of sand and gravel. Backfill blankets parts of the town and lines the underground infrastructure, including pipes. In some areas, it travelled three metres deep, until it hit a thick, mostly impenetrable layer of natural clay. Like water on a table, it spread out horizontally.

Hot crude infiltrated Lac-Mégantic’s sewer pipes by seeping into the foundations of the destroyed buildings that led to the basement floor drains, which are connected to the sewage network. It found entry through connecting joints, or simply melted the pipes, on some streets made of plastic known as PVC. From there, it travelled to the water treatment plant, inundating it with oil.

Finally, hundreds of thousands of litres ran down the streets into storm drains, where fumes caused explosions. On the residential street Rue des Vétérans, the underground blasts sent manholes flying up to 10 metres high. At a storm pipe that empties into the river more than a kilometre away from the impact zone, burning oil went shooting out, like a rocket blasting off.

Emergency actions by quick-thinking first responders stopped the contamination from becoming much worse.

Firefighters, municipal workers and police watching the oil flowing down manholes and storm drains desperately shovelled soil into its path. Firefighters heaped gravel into the gap underneath the marina quay, trapping the oil before it could run to the mouth of the river. Others frantically shovelled earth down a manhole, trying to stop the oil from travelling to the sewage treatment plant.

In one important move, a crew of volunteer firefighters, workers from the nearby factory, and Tom Harding, the train’s engineer, removed nine tanker cars that remained on the tracks, on the north end of the blaze, close to the town’s church and blocks of residential streets. So close to the fire, the cars were ticking time bombs.

Sylvain Grégoire, an employee from the nearby particleboard plant, rushed to the factory at 3:25 a.m. to get the company’s rail car mover, called a Trackmobile. At the factory, it moves small rail cars filled with wood. He hoped it would pull tankers far larger and heavier. An hour later, he was steering down the sloping track, towards the blaze.

“I thought of my kids,” he said. “I wondered, what if it explodes?”

At 8 a.m., all nine cars, together containing 961,000 litres of crude, had been moved to safety, several hundred metres away from the blaze.

By the time Campagna and his ministry colleagues arrived, Eastern Canada Response Corporation (ECRC), a company specializing in marine oil-spill response, was setting up booms — long, thin and buoyant tools that catch oil on the surface of the river and lake.

The strong current meant crews could not simply string booms across the river, because the oil would just flow underneath. They configured some in alternating rungs, deflecting the oil from one to the next until it reached a collection point. From there, the oily water was vacuumed up with surface skimmers, and collected in tanker trucks.

Back at the bridge, Campagna and others tried to stop the flow of oil gushing from the storm pipe into the river.

They decided to place an inflatable plug directly into the pipe, trapping the oil and stopping the hemorrhage. But the oil was gushing so strongly it was difficult to put in place.

A vacuum truck was sent to a manhole further up the pipe, closer to the impact zone, where it began pumping to intercept the oil flowing downpipe. The level of oil significantly lowered, a worker descended into a manhole to place the plug. Because of the toxic vapours inside the sewers, he was strapped into a harness, so the crew could pull him up quickly if he was hurt.

Another truck was brought in to suck up the oil collecting at the plug. There would be a constant procession of 15 tanker trucks — filling up, leaving, coming back — for the next three days.

Campagna and dozens of others worked into the night, plugging other pipes, sucking up thousands of litres of oily water from the lake and river, and setting up what would ultimately total more than three kilometres of boom.

Overnight Saturday, fire crews considered simply letting the inferno burn out on its own, a tactic sometimes used to reduce air contamination. The higher the temperature of the fire, the less smoke it produces, meaning that when you blast a fire with water and foam to cool it off, air pollution is increased.

But the amount of oil they knew was left in the tankers could mean the fire would burn 10 more days. All the while, oil would continue to gush into the ground.

“The faster we were able to put out the fire, the faster we would be able to work on the migration of the oil in the soil,” said Drouin, the Sherbrooke fire chief.

Fire crews chose to attack the blaze, trucking in specialized foam. Just before noon on Sunday, 36 hours after the derailment, the blaze was extinguished. Firefighters were still cooling the charred, steaming ground well past sundown.

Rehabbing the river

The helicopter rotors thudded as the survey team flew along the winding Chaudière River on July 7, the day after the derailment. A blue metallic sheen, spanning the width of the river for 80 kilometres downstream of Lac-Mégantic, confirmed serious contamination.

In total, 100,000 litres of oil spilled into the Chaudière.

For the first few days after the derailment, Sonia Laforest, a shoreline restoration scientist with Environment Canada, documented the oil’s travel from the helicopter window, part of a team brought in to evaluate the contamination of the lake and river, and provide scientific and technical advice to ECRC, the marine oil spill company, and other first responders.

The fly-overs determined the contamination had been mostly confined to 120 kilometres of shoreline. But crews would have to walk the riverbanks to understand what areas were hardest hit.

The crude that spilled in Lac-Mégantic had more light fractions than heavy, which from a clean-up perspective has significant advantages. While heavier crude may have sunk slightly in the water, this crude has floated on the surface, making it easier to trap with booms. It also meant there would be no black, tarry residue on wildlife and plants because it is not sticky enough to form large clumps — think molasses versus vegetable oil.

The danger is that lighter oil is more prone to penetrating sediment, which can set off a chain reaction, contaminating vegetation and wildlife.

A week after the disaster, the parties tasked with cleaning the river launched a clean-up process called SCAT, Shoreline Clean-up Assessment Technique. The exercise is simple but tedious: workers travel on foot, methodically documenting signs of oil on the shoreline’s banks, beaches and vegetation. The process is like environmental triage.

Four teams were formed, made up of officials from Environment Canada, Quebec’s environment ministry, clean-up company ECRC and the municipal government. They began at the mouth of the river, near the town, looking for oily sheen on the water, green residue on banks, slimy vegetation — anything indicating contamination.

Days usually began at 5 a.m. Even then, the July sun quickly made sweat run down their necks. They wore rubber gloves, boots, pants, life jackets, hats, and lugged backpacks filled with a day’s worth of water, lunch and bug repellant. Some days, temperatures reached the mid-30s. Others, intense rain beat down.

Laforest, who has spent her career trudging along contaminated shorelines, including in South Korea after a devastating spill, found the heat, rain and the problems accessing the shoreline overwhelming at times.

“It was the most difficult I’ve ever walked.”

The SCAT evaluation continued through August and September, crews walking a total of 275 kilometres. The results showed that approximately 40 kilometres of both rocky and sandy banks needed immediate cleaning.

Armed with these results, Quebec’s environment ministry sent out a crew of 200 workers in September and October. On rocky shores, they used rakes or low-pressure hoses to roust oil residue from the shoreline. It then floated on the surface of the water, downstream to absorbent booms.

On sandy embankments, there was a risk of erosion, which can be traumatic to the shoreline ecosystem. Rather than the harsh rakes or low-pressure hose treatment, crews ran water down the bank using a perforated pipe, simulating rainfall, which then sent oil in the sediment back into the river, again to be caught by booms.

More shoreline clean-up may continue in the spring. Experts await test results of water organisms to reveal if contaminants have infiltrated the food chain.

Intakes for the three towns that source drinking water from the Chaudière were reopened in September after being closed since July 7.

In August, clean-up crews also had to tackle the marina, where oil had clung to 101 boats. One by one, the boats and the marina’s quays were removed to be pressure-washed inside a massive basin built nearby, which collected the contaminated run-off so it could be treated. Rocks that line the marina bank were washed the same way, booms catching oil re-entering the lake.

Attacking the air

In the initial days, the focus was on investigation and victim recovery. Access to the “red zone,” the impact area, was mostly restricted to Transportation Safety Board officials, police, firefighters and forensic experts searching for human remains.

For them, the danger had shifted from fire to the toxins in the air.

From the early hours of the disaster, a team of air contamination experts had arrived from Quebec’s environment ministry, driving a Trace Atmospheric Gas Analyzer. The blue bus the size of a motorhome is a lab on wheels, called upon in environmental emergencies. Air intakes placed outside the bus allow technicians to detect toxic components of ambient air.

The Center for Toxicology and Environmental Health, an American firm, was also on hand, one toxicologist flying in from Little Rock, Ark.

Among the major dangers that experts watched for was carbon monoxide, which can be produced when organic materials burn. They also looked for volatile organic compounds (VOCs) — chemicals that get into the air when they evaporate from the oil. Common VOCs produced by petroleum products are benzene, toluene, ethylbenzene and xylene. All are damaging, and benzene is carcinogenic.

Those investigating or searching in the area wore masks that filter out dangerous chemicals, while air contamination experts ensured toxins did not surpass a level the respirators could purify.

Air experts were also monitoring vapours that could explode, a risk that was highest when workers began removing oil left over in the derailed tankers beginning July 14. Crews knew dangerous, potentially explosive vapours could be built up inside, and conducted a series of tests before tanks were opened.

Once in the clear, the carcasses were cut with a water drill, to avoid dangerous hot spots. A temporary road was built through the impact zone to allow machinery to come and go. After the tankers were emptied and clean, Transportation Safety Board officials removed sections of the tankers they needed for analysis in the board’s Ottawa lab.

Throughout the process, firefighters were on hand to keep the tankers and the oil cool with Class B foam, used on flammable liquids to smother vapours that could ignite.

By the end of July, 740,000 litres of oil was collected from the tankers.

Trench warfare

By August, the “red zone” more closely resembled a construction site than a disaster area.

All the tank cars had been destroyed, the carcasses cut down and recycled. Gone, too, was debris that had littered the impact zone — railroad ties, warped tracks, concrete foundations of ruined buildings. All had been removed by heavy machinery, then recycled or burned.

Now dotting the landscape were dozens of oil recuperation trenches, dug by excavators carving deep troughs into the soil. The trenches collected the oil already in the soil, and stopped its possible spread to other areas; they were placed strategically to divert the crude from entering sewer or storm pipes.

Tanker trucks were in constant motion, sucking up the oily water the trenches spat up, then bringing it to a mobile water filtration facility set up near the sewage treatment plant.

Throughout the summer, crews had also been concerned about rainwater passing through the contaminated pipes, sending oil through once more. They installed plugs throughout the network beneath the disaster zone, then stationed tanker trucks at manholes to vacuum up water collected inside.

They had to keep an eye on the weather. If rain was forecast, they had to make sure extra vacuums and tanker trucks were at the ready to suck up the water gathering inside the pipes.

“We were afraid of storms, because we weren’t sure we would be in control,” said Campagna. “The water goes in, it has to be able to go somewhere.”

To prepare for the rain and snow beginning to fall through winter into spring, crews created a collection system that directs water flowing through the downtown soil into one of five wells situated around the site. Water gathered inside is then pumped into a massive recuperation basin, located in the heart of the impact zone, capable of holding as much as four Olympic swimming pools’ worth of liquid.

From there, the water is drawn into a small white portable that contains a filtration system. The treated water is tested daily, then released into the river.

Throughout the five months since the disaster, environmental consultants have been extracting samples all over the downtown. Their results give analysts two vital pieces of information: where the oil had spread, and the level of contamination.

In Quebec, soil contamination by oil is categorized by potential use. Mildly contaminated soil can still be used for residences and recreational facilities, while moderately contaminated soil can be used for commercial and industrial use.

Much of the 69,000 cubic metres of soil contaminated in the impact zone alone, however, is beyond use in its current state. Preliminary tests revealed higher than accepted levels of benzene, as well as metals including copper, arsenic and lead.

Two other low-lying downtown areas were also deeply contaminated. Oil had seeped into the soil underneath a restaurant near the marina, and an ice cream store close to the river. Both buildings had to be demolished.

As testing went on, oil-rich earth was heaped in piles that just kept growing.

Building a toxic mountain

As a harsh November wind whipped gusts of snow back and forth, Campagna stood next to vast mountain of Lac-Mégantic’s sickest earth. The compact pile stood two storeys tall, spanned a platform larger than a football field, and held 25,000 cubic metres of toxic soil.

It is the first of three mounds that will soon form a contaminated mountain range on the outskirts of town.

The decision to store dirty soil off site was clinched after government leaders decided the town’s economic heart needed to be jolted, as soon as possible.

That meant two things: rebuilding the railroad track, and constructing four commercial condo buildings that would host some of the destroyed impact zone businesses , allowing them to reopen as early as February. Both sites now lie in or around the impact zone.

Their construction prompted a “big, big adaptation” of oil clean-up procedure, said Paul Benoit, a deputy director with Quebec’s environment ministry. He arrived to manage the clean-up shortly after the Quebec government appointed Pomerleau, a construction firm, to take over responsibility for cleanup from the insolvent rail company Montreal, Maine & Atlantic.

“Usually, what we do is we decontaminate, we treat the soil, and then reconstruct,” he said. “That’s the logical sequence.”

To ensure the track and the future commercial buildings were not built on polluted land, crews had to thoroughly test the ground underneath.

Beginning in August, the tests revealed the presence of more oil than anticipated. As it turned out, Lac-Mégantic had a series of abandoned underground pipes, long since forgotten by the city. Oil had congregated inside.

It was only the first surprise. Later in the month, crews found an intact car underground that they believe had been there for at least 25 years.

Not long after, the town’s old railway roundhouse, which is a service building for locomotives, was found two metres underground. Decades ago, Benoit said, it was thought to be easier to simply bury unwanted structures than to dismantle or dispose of them.

Crews decided construction in the disaster zone would be easier if the vast amounts of soil were kept on containment pads. They were equally concerned about contamination spreading if the oil-soaked earth stayed put.

At the end of August, they began building three containment platforms on a vast swath of unused land next to Tafisa, Lac-Mégantic’s particleboard factory two kilometres from downtown.

The forested ground was razed, then made into a layer cake of protective measures: an impermeable membrane, underneath an impenetrable cloth reinforcement, underneath an asphalt platform.

Soon, a cavalcade of dump trucks was ferrying soil from the downtown to the platforms, beeping as they unloaded before going back for more.

For now, the platforms are simply for storage. But the soil may also be treated here, depending on the decontamination method chosen. Among the options to remove the oil is injecting bacteria or chemicals into the piles, promoting oxidization that cleanses soil. This could be done on site.

This week, the Quebec government closed its call for tenders for the decontamination of 558,000 cubic metres of soil, which includes the contents of the pads as well as soil that has not yet been removed.

Whatever treatment is chosen for the piles, the aim is to have the cleaned soil return to fill the downtown’s holes by next winter.

The Star’s Wendy Gillis reports on the monumental cleanup and decontanimation following the disastrous MMA train derailment.

Those working to restore the core hope that timeline sticks. Throughout the clean-up, they have been under intense public scrutiny.

Each day since the disaster, locals and visitors have observed their actions closely, eager for signs of progress. Criticism lately is that crews are just moving around piles of soil.

“They watch us work, they ask questions. And us, on the other side of the fence, we would look at them,” Campagna said. “For some of us, it’s encouraging. For others, it’s irritating.”

He looked downhill, towards the downtown, then reached gloved fingers into the base of the contaminated mound, raised a fistful of the soil to his nose and nodded. He could still smell the oil.

Into the unknown

At night, lampposts light the surviving stretch of quaint storefronts on Rue Frontenac, inside the disaster zone. The buildings appear unscathed, frozen in time at the moment before the disaster destroyed some 40 buildings steps away.

A children’s store advertises new and used clothing. A sign on a green, three-storey apartment building announces furnished rooms for rent. On Rue des Vétérans, a residential waterfront street two blocks south, pretty bungalows bear no obvious signs that a river of burning oil had run down one street over. Inside one home, a dining room lamp shines bright, suggesting someone’s inside.

No one is, of course. When work here ends for the day, it becomes a ghost town. The contamination and ongoing construction has blocked public access until at least June 2014. A security firm guards the tall fence that surrounds the restricted area.

The damage to some buildings here goes unseen, but could prove just as devastating as explosions and flames. If enough oil seeps into the foundation of a building, it becomes too dangerous to inhabit. Over time, it will release toxic vapours, such as benzene, or methane, an explosive gas.

The province and city are still deciding what to do with these buildings. Playing a role will be whether insurance companies will pay to decontaminate the foundations of buildings — something that can be done with major renovation or prolonged cleaning . Some buildings, however, may be beyond repair.

Denis Bolduc, the owner of a shoe and clothing store on Frontenac, isn’t sure he wants to move back into his three-storey building. If it can be saved, it could be three years before he re-enters. By then, he will be well established in his new location in the commercial condos, which opens in February.

He is concerned, too, about an unease that lingers above the once-beloved downtown. He feels that some people want a fresh start — they don’t even want him bringing stock from the Frontenac store to the new location.

“There is a psychological problem in the region,” he said.

In late November, as the final sections of railway were put into place in the distance, residents peered through the fence.

Soon, they will see the train re-enter town, travel down the same stretch, pass through the area its predecessor destroyed. It will be hard to watch. It will also be the first sign this sick land will heal.

Clean-up, by the numbers

5.9  Millions of litres of oil spilled

$200M   Estimated cost to clean river and downtown

558,000  Cubic metres of soil the Quebec government determined needs decontamination

3,369  Metres of boom set up on the river, lake and marina at height of clean-up

275  Kilometres walked conducting the Shoreline Clean-up Assessment Technique process

500  Number of workers on site at height of clean-up

 

Latest crude oil train derailment, Buhl, Alabama

Repost from Tuscaloosa News

Train derailment leads to evacuations in Buhl

No oil spilled, no one injured in 9-car accident

By Stephanie Taylor, June 16, 2014
Josh Jewell, a car shop supervisor for Alabama Southern Railroad, talks on a cellphone at the scene of a train derailment in Buhl on Monday. Jewell said the crash occurred at about 2:45 p.m. Monday afternoon. No one was injured, but seven crude oil tankers were totaled, as well as one box car. Jewell said the area will be cleaned up and the main line opened by today. Michelle Lepianka Carter | The Tuscaloosa News

Authorities ordered a mandatory — but temporary — evacuation Monday for some Buhl residents who live near the site of a train derailment.

Train cars carrying oil derailed near the 16000 block of Crosscut Drive and Sipsey Valley Road at 2:45 p.m., said Lt. Andy Norris, Tuscaloosa County Sheriff’s Office spokesman. No oil was spilled, he said.

A total of nine rail cars derailed, and eight of them — seven tankers and a boxcar — were totaled.

Josh Jewell, a car shop foreman for Alabama Southern Railroad, said the cause of the derailment has not been determined but that about an eighth of a mile of track will need to be fixed.

He said the railroad hopes to have the main line reopened later today.

Immediately following the derailment, the sheriff’s department ordered everyone within 1,000 feet of the intersection to evacuate the area because of the threat of fire.

Only six residences were within that area, Norris said. People living in those homes were allowed to return after an hour and a half.

“We have asked people to evacuate as a precaution due to the fact that the rail cars are carrying oil,” Sheriff’s Office Chief Deputy Ron Abernathy said.

The Tuscaloosa County Emergency Management Agency and Tuscaloosa Fire and Rescue Service’s hazardous materials team responded to the derailment.

At about 4:30 p.m., the Sheriff’s Office posted on the department’s Facebook page that it was safe for residents to return to their homes.

The National Transportation Safety Board will investigate the accident and determine its cause.

The derailment was at least the second such accident in West Alabama within the past 12 months.

Tar Sands on the Tracks: Railbit, Dilbit and U.S. Export Terminals

Repost from DESMOGBLOG

Tar Sands on the Tracks: Railbit, Dilbit and U.S. Export Terminals

2014-06-17  |  Ben Jervey

Last December, the first full train carrying tar sands crude left the Canexus Bruderheim terminal outside of Edmonton, Alberta, bound for an unloading terminal somewhere in the United States.

Canadian heavy crude, as the tar sands is labeled for market purposes, had ridden the rails in very limited capacity in years previous — loaded into tank cars and bundled with other products as part of so-called “manifest” shipments. But to the best of industry analysts’ knowledge, never before had a full 100-plus car train (called a “unit train”) been shipped entirely full of tar sands crude.

Because unit trains travel more quickly, carry higher volumes of crude and cost the shipper less per barrel to operate than the manifest alternative, this first shipment from the Canexus Bruderheim terminal signaled the start of yet another crude-by-rail era — an echo of the sudden rise of oil train transport ushered in by the Bakken boom, on a much smaller scale (for now).

This overall spike in North American crude-by-rail over the past few years has been well documented, and last month Oil Change International released a comprehensive report about the trend. As explained in Runaway Train: The Reckless Expansion of Crude-by-Rail in North America (and in past coverage in DeSmogBlog), much of the oil train growth has been driven by the Bakken shale oil boom. Without sufficient pipeline capacity in the area, drillers have been loading up much more versatile trains to cart the light, sweet tight crude to refineries in the Gulf, and on both coasts.

Unfortunately, some of these “bomb trains” never make it to their destination, derailing, spilling, exploding and taking lives.

While shale oil, predominantly from the Bakken, has driven the trend, Canadian tar sands producers are increasingly turning their attention to rail. Hobbled by limited pipeline capacity out of Alberta, and frustrated by their inability (so far) to ram the Keystone XL pipeline through the American heartland, tar sands producers are signing contracts with Canadian rail operators. Canadian National Railway is getting the lionshare of the business.

Canadian National not only has the infrastructure in place near Alberta’s tar sands developments, but also operates 19 subsidiary railways in the United States under the Grand Trunk Corporation. Strung together, Canadian National network stretches 2,800 miles from Western Canada down to the Gulf Coast, the only company that can offer straight-through shipping from the tar sands to Gulf Coast refineries.

Of the upstream infrastructure — or the loading terminals up near the tar sands, the Oil Change International report explains:

At the time of writing there were 31 terminals in operation that load tar sands or heavy crude, with six of these expanding and an additional eight planned or under construction…

The first terminal designed to load unit trains with Canadian tar sands crude, the Canexus terminal in Bruderheim, northeast of Edmonton, Alberta, started operations in December 2013. It has a capacity of 70,000 bpd and loads tar sands bitumen from MEG’s Christina Lake SAGD project, among others.

Downstream, rail terminals are similarly adapting to handle shipments of tar sands crude. From the Runaway Train report:

Terminals designed to unload tar sands crude are currently concentrated in the Gulf Coast region, where the biggest concentration of heavy oil refining capacity is located…

The Gulf Coast terminals have about one million bpd of unloading capacity today, set to grow to over two million bpd in 2016. Some of this capacity is at refineries such as those operated by Valero in Port Arthur, Texas, and St. Charles, Louisiana. Valero has ordered 1,600 insulated and coiled tank cars specifically for hauling tar sands crude to its refineries.

The Gulf Coast also has significant midstream capacity on the Mississippi River, where crude oil, including tar sands crude, is unloaded from trains and pumped from storage tanks into local pipelines or loaded onto barges that deliver to coastal refineries via the Intracoastal Waterway.

Meanwhile, refineries on the Atlantic and Pacific coasts are angling to get in on the action, hoping that their shipping advantages to Europe and Asia respectively will prove appealing to tar sands producers.

As described in Runaway Train, terminals on the West Coast are particularly well positioned to serve as a “fast-track out of North America for Canada’s tar sands.”

There are currently 13 crude-by-rail unloading terminals in California, Oregon and Washington, of which four are currently expanding their capacity. There are also 11 terminals planned or under construction.

Many of these are at refineries that, like their counterparts on the East Coast, are looking to take advantage of discounted domestic or Canadian crudes that they have little hope of ever gaining access to via pipeline. With a larger proportion of refining capacity geared up for heavy tar sands processing than exists on the East Coast, West Coast refineries such as the Valero facility in Wilmington, Calif., and the Phillips 66 refineries in California and Washington, are keen to rail in tar sands crude.

Accessing these West Coast refineries by rail, as well as the prospect of export terminals in Washington and Oregon, are potentially the tar sands industry’s best bet for major market expansion in the face of delays and possible cancellation of the Keystone XL pipeline and pipelines to the Canadian west coast such as the Northern Gateway and Trans Mountain expansion.

These latter projects, which are primarily focused on exporting tar sands crude to Asia, face particularly stiff opposition from coastal communities, which fear the destruction of fisheries and coastal environments from the increased tanker traffic that would ensue.

Given the relative proximity particularly of Washington State refineries and ports to Alberta’s tar sands fields, these terminals offer oil companies a potential solution to the transportation bottlenecks that are threatening the viability of tar sands production growth. At least three proposals in southern Washington State have the potential to unload tar sands crude from trains and load it onto tankers for export to Asia or transport to refineries along the California coast.

Tar sands producers are particularly motivated to get their crude to coastal terminals and refineries for export. As we’ve covered in the past on DeSmogBlog, tar sands companies want to export their product, because the low-grade crude is more easily refined into diesel, which has a much larger market in Europe and Asia. This is the core reason that the Keystone XL, if built, would be little more than an export pipeline, and wouldn’t actually provide more oil to American markets, nor lower American gas and heating oil prices.

The Oil Change International report also shines a light on the fact that though crude exports are banned from the U.S., domestic refineries can legally export crude from Canada.

While crude oil of U.S. origin is subject to export restrictions, no such restriction applies to exports of Canadian oil through the U.S., as long as it can be shown that no U.S. oil was blended.

Shippers wishing to export Canadian oil from U.S. ports still have to apply for export licenses from the Department of Commerce, but these can and have been granted. Given the lack of pipeline capacity to Canadian ports, it is attractive for tar sands producers to find ways to get their product to a U.S. port where it can be exported. Crude-by-rail terminals on the West and East Coasts are strategically important as they are closer to Alberta than those on the Gulf Coast and it is therefore cheaper to reach these ports by rail.

Railbit vs. Dilbit

As this still-nascent segment of crude-by-rail develops, it’s worthwhile to take a moment to understand the distinction between a couple of different tar sands products that are being shipped by train. The vast majority of tar sand crude-by-rail shipments thus far have been diluted bitumen, or dilbit. Dilbit, which you have heard of as the tar sands crude that is already funneling through North American pipelines, is composed of the sticky, viscous tar sands bitumen, which is then mixed with about 30 percent diluent, allowing it to flow through pipelines. This mixture of dilbit is particularly volatile and abrasive, and reports have pointed to it being more likely to cause leaks and spills and explosions during transport.

Railbit is a relatively new designation for crude, and is defined as bitumen that has been mix with roughly 17 percent diluent. Moving railbit, rather than dilbit, saves tar sands shippers about half of the so-called “diluent penalty,” or the cost of adding the diluent to the mix.

So why are most trains still loaded with dilbit? Because to this point, most loading terminals are still being fed by feeder pipelines or trucks that can only handle this more watered down blend. That and the fact that special loading and unloading facilities are necessary to handle railbit, which is more viscous and needs to be heated in special tank cars to be unloaded. Some downstream terminals are making these investments, seeing railbit as a viable alternative going forward, but today dilbit is still dominant.

Either way, it’s dirty and dangerous, and tar sands bitumen in any form does nothing to lower American energy bills. Bitumen, by rail or pipeline or barge, is bound to wind up on a tanker to Europe or Asia.