Category Archives: Crude By Rail

New Hampshire and Minnesota pass new laws on emergency response

Repost from Inside Climate News

2 States Beef Up Oil-by-Rail and Pipeline Safety After String of Accidents

Other states that have surging oil-by-rail traffic and pipelines carrying tar sands are expected to consider similar safety requirements.
By Elizabeth Douglass, InsideClimate News  |  Jun 16, 2014
Oil tankers on fire at the train derailment site in Lac-Megantic, Quebec, on July 10, 2013. Concern among the public and state lawmakers over the safety of oil transport has been building with each major oil pipeline spill and train derailment. Credit: Sûreté du Québec

Alarmed by a string of explosive and disastrous oil spills, two states recently passed laws aimed at forcing rail and pipeline companies to abide by more rigorous emergency response measures instead of relying on the federal government.

The moves by New Hampshire and Minnesota reflect a desire for more control over in-state hazards, as well as mounting frustration over gaps in federal law involving oil pipelines and oil trains, superficial federal reviews and the secrecy surrounding spill response plans submitted to U.S. regulators.

“At this point, lots of states are looking at oil-by-rail and thinking about how they would respond—whether they have the resources, whether their first responders have the resources, and whether their laws are sufficient to protect their communities,” said Rebecca Craven, program director at the Pipeline Safety Trust, a safety advocacy group based in Washington State.

It’s the same with pipelines. “States are becoming more aware of new pipelines being proposed in their states, or expansion of existing pipelines, or changes in [a pipeline’s] products,” Craven said. “As a result of public concerns being raised, they’re starting to respond by undertaking state-level spill response plans. I think it could be a trend.”

Under New Hampshire’s law, which the governor is expected to sign, the state gains the power to establish its own, more stringent requirements for inland pipeline spill response plans and equipment. Minnesota’s law creates tougher emergency preparedness standards for pipelines and oil-carrying railroads. It also charges rail and pipeline companies a fee to help equip and train local fire departments to handle oil accidents.

“I think it’s pretty much indisputable at this point that what exists at the federal level is not adequate,” said Sheridan Brown, legislative coordinator for the New Hampshire Audubon. “We’re happy that there’s going to be some state level oversight.”

The concern over the safety of oil transport has been building with each major oil pipeline spill and train derailment.

The most catastrophic incident was the July 6, 2013 accident in Lac-Mégantic, Quebec, where a train derailed, causing 63 railcars full of North Dakota light crude oil to explode and killing 47 people. Since then, a series of other oil train derailments have resulted in fires or explosions, including in Aliceville, Ala.; Casselton, N.D.; Plaster Rock, New Brunswick; and Lynchburg, Va.

Major pipeline spills have been in the public spotlight, too. The most notable of them is the July 2010 pipeline rupture in Marshall, Mich., where more than one million gallons of tar sands oil spilled, fouling the Kalamazoo River—a disaster that has yet to be fully cleaned up. In April 2013, a pipeline split open and dumped tar sands oil into a Mayflower, Ark., neighborhood.

Under pressure to provide better oversight, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration (FRA) have enacted  and proposed new rules for pipelines and trains and imposed voluntary restrictions for oil-laden trains.

But both agencies have a history of being too thinly staffed to carry out the oversight already required of them. And with industry lobbyists working to derail new regulations, critics worry that the necessary protections will never be enacted.

“Essentially, there’s no meaningful regulation or requirements or standards for oil spill response for railroads,” said Paul Blackburn, an attorney and consultant who helped push for Minnesota’s new law. “Instead, decades old federal regulations continue…[that] for all practical purposes exempt railroads from federal oil spill response standards.”

Urgency Felt in Wash., N.H.

Under the federal 1990 Oil Pollution Act, states are allowed to enact their own rules for spill preparedness as long as they are equal to or more rigorous than the federal regulations. Several, including California, Washington, and Oregon, did so years ago.

Now, railroads carrying crude oil through Minnesota have to submit spill prevention and response plans to the state pollution control agency, carry out practice drills and comply with other requirements in an emergency. Companies that move oil in the state via rail or pipeline also have to pay a fee to fund training and buy equipment for emergency crews to respond to an oil-train explosion or pipeline rupture.

“Minnesota recognized that scores of its cities and towns are threatened by crude oil shipments by rail and pipeline, and that local first responders are almost always the first on the scene,” said Blackburn. “To respond to a major spill—such as from an oil unit train [of around 100 tank cars]—is well beyond the abilities of most rural fire departments.”

Blackburn said he expects other states that have growing oil-by-rail traffic to consider similar fees and requirements.

In New Hampshire, lawmakers were focused on preventing and cleaning up oil possible spills from just one pipeline: the Portland-Montreal Pipeline, the only hazardous liquids pipeline in the state. It is partly owned by Portland Pipe Line Corp.

“They have, by and large, been good neighbors, but you look around the country and you see some of the problems that have occurred,” said state Sen. Jeff Woodburn, who sponsored the New Hampshire bill. “I think it’s pretty important to take steps toward giving more authority, more autonomy, to the states to be more engaged in the potential of a spill.”

The 236-mile line consists of three separate pipes built to carry conventional crude oil from Maine, through New Hampshire and Vermont, and on to refineries in Montreal and Ontario. Two of the pipes are still carrying varying amounts of oil, while a third was retired in 1984.

What worries state officials and environmentalists is that the Portland-Montreal pipeline could be reversed and used to carry tar sands oil to Maine’s coast for export. Canada approved what could be the first part of this plan—a reversal on Enbridge Inc.’s Line 9b so it can deliver Alberta’s tar sands to Montreal.

The Portland-Montreal pipeline runs through New Hampshire’s picturesque northern region, crossing more than 70 streams and wetlands, including two major rivers, according to Brown, the legislative coordinator for New Hampshire Audubon. Brown and others are concerned that oil spills involving dilbit are harder to clean because globules tend to sink in water.

“Our North Country economy is primarily based on recreation, so to have something up there that damages wetlands and rivers would really be catastrophic for those communities,” said Brown.

“That got us looking at what [protections are] in place,” he said. “And there really isn’t a lot at the state level…there is a heavy reliance or faith in the federal government that it’s going to take care of things. But the spill in [Michigan] and some of these other spills have shown that that is not the case.”

Once the governor signs it, the New Hampshire law will give the state’s department of environmental services the authority to craft pipeline spill regulations to cover inland oil transit. Currently, that agency is in charge of marine spill prevention and response.

The catch is that the new law won’t come with any new funding—and least not yet. A proposed fee ran into opposition and was dropped from the legislation.

“Our department of environmental services was very generous to accept additional responsibility without additional money,” said Brown. “They saw enough urgency there to doing this, enough benefit to doing it that they said, ‘let’s go forward, and we’ll figure out the funding part of it some other time’…they were eager to have that tool to make sure the plans are better here in the state.”

California imposes 6.5-cent fee on oil companies for every barrel of crude that arrives by rail or pipeline

Repost from The Sacramento Bee
[Editor: Significant quote: “The resulting funds, estimated at $11 million in the first full year, will be allocated for oil spill prevention and preparation work, and for emergency cleanup costs. The efforts will be focused on spills that threaten waterways, and will allow officials to conduct response drills.”  Of course, we won’t need this fund if we simply STOP crude by rail and move toward clean energy.  – RS]

California to impose fee on crude oil rail shipments; funds to be used for spill prevention, cleanup

By Tony Bizjak, The Sacramento Bee  |  Jun. 16, 2014
A crude oil train operated by BNSF travels just outside the Feather River Canyon in the foothills into the Sacramento Valley. Jake Miille / Special to The Bee

California leaders have included several safety provisions in this year’s state budget with the aim of preventing toxic spills and fires as oil companies ship more crude oil on trains through cities and wildland areas.

Beginning in the coming fiscal year, the state will apply a 6.5-cent fee on oil companies for every barrel of crude that arrives in California on rail, or that is piped to refineries from inside the state. The resulting funds, estimated at $11 million in the first full year, will be allocated for oil spill prevention and preparation work, and for emergency cleanup costs. The efforts will be focused on spills that threaten waterways, and will allow officials to conduct response drills.

The budget also separately includes funds to hire seven more rail safety inspectors for the California Public Utilities Commission, PUC spokeswoman Terrie Prosper said.

The 6.5-cent shipping charge will be administered by the state Office of Spill Prevention and Response. “We consider this a great victory,” office administrator Tom Cullen said Monday. Until now, the office’s scope has been confined mainly to coastal areas. “We weren’t positioned in California to prepare for and respond to oil spills on the interior of the state.”

Cullen and others negotiated the shipping charge over the weekend with oil industry officials. The charge, an extension of an existing marine fee, may be the first of several steps California officials take in coming months to improve the state’s ability to minimize oil spills and handle them more effectively when they happen.

Tupper Hull, spokesman for the Western States Petroleum Association, said his organization will work with the state on the issue.

“The new revenues, the first place they should go, is to make sure local responders are adequately equipped,” Hull said. “We recognized from the beginning that this is a legitimate issue.”

The safety efforts have taken on urgency as oil companies reveal plans for hundreds of crude-by-rail shipments in California, including a proposal by the Valero Refining Co. to ship 100 crude oil tank cars a day through downtown Sacramento and downtown Davis to Benicia. Details of that plan are expected to be released by Benicia officials Tuesday.

Federal officials have warned that one of the crude oils being shipped into the state, from the Bakken region of North Dakota, appears to be more flammable than typical crude oils. Three recent train crashes and explosions, including one that killed 47 people in the Canadian city of Lac-Megantic last year, prompted federal transportation officials last month to require that railroads notify state emergency officials of large Bakken shipment times and routes.

Central to the state’s safety efforts will be keeping a closer watch on the tracks themselves. The state budget includes seven new rail inspector positions to help the California Public Utilities Commission fulfill its mandate to inspect every mile of rail in the state annually. PUC deputy director of rail safety programs Paul King said his agency has failed in that task some years because of lack of personnel.

With rail crude oil shipments on the rise, it’s critical that the state steps up now, King said. “The Bakken crude in particular is a big problem. This is a lot of volatile material coming in on routes where it hasn’t come in before.”

The state Senate on Monday passed a resolution urging the U.S. Department of Transportation and other federal agencies to write tougher standards for train tank cars and to “prioritize safety over cost effectiveness” in dealing with rail crude shipments. Federal officials have said they intend to improve design standards for rail cars hauling crude oil, but haven’t set a date.

Sens. Jerry Hill, D-San Mateo, and Lois Wolk, D-Davis, introduced a bill last week that would impose a second shipping fee on oil companies to be used to train and equip “first responders,” such as fire departments and hazardous materials crews, to deal with major spills and fires on railroad lines. The authors have not yet determined the fee amount.

“It’s not a matter of will (a spill) happen, it’s when,” Hill said. “We have to be prepared. We need to provide the resources for first responders to address the emergency.”

A recent state report found that 40 percent of local firefighters in the state are volunteers whose departments generally lack the training and equipment to deal with major hazardous materials spills.

Assemblyman Roger Dickinson, D-Sacramento, also has authored a bill requiring rail carriers to communicate more closely with state emergency officials about crude oil rail movements.

Read more here: http://www.sacbee.com/2014/06/16/6488137/california-to-impose-fee-on-crude.html#storylink=c

 

White House agency under pressure from big oil & rail – accused of “coddling” the industries

Repost from DESMOGBLOG
[Editor: The influential White House Office of Information and Regulatory Affairs (OIRA) is reviewing the newly-proposed oil-by-rail safety regulations rolled out by the DOT and PHMSA.  Significant quote: “A DeSmogBlog review of OIRA meeting logs confirms that in recent weeks, OIRA has held at least ten meetings with officials from both industries on oil-by-rail regulations. On the flip side, it held no meetings with public interest groups.”  See also important statements by BNSF and the DOT on the need for an entirely new tank car design near the end of this article.   – RS]

Meeting Logs: Obama White House Quietly Coddling Big Oil on “Bomb Trains” Regulations

Sun, 2014-06-15  |  Justin Mikulka and Steve Horn

When Richard Revesz, Dean Emeritus of New York University Law School, introduced Howard Shelanski at his only public appearance so far during his tenure as Administrator of the White House Office of Information and Regulatory Affairs (OIRA), Revesz described Shelanski as, “from our perspective, close to the most important official in the federal government.”

OIRA has recently reared its head in a big way because it is currently reviewing the newly-proposed oil-by-rail safety regulations rolled out by the Department of Transportation (DOT) and Pipeline and Hazardous Materials Safety Administration (PHMSA).

During his presentation at NYU, Shelanski spoke at length about how OIRA must use “cost-benefit analysis” with regards to regulations, stating, “Cost-benefit analysis is an essential tool for regulatory policy.”

But during his confirmation hearings, Shelanski made sure to state his position on how cost-benefit analysis should be used in practice. Shelanski let corporate interests know he was well aware of their position on the cost of regulations and what they stood to lose from stringent regulations.

“Regulatory objectives should be achieved at no higher cost than is absolutely necessary,” Shelanski said at the hearing.


Howard Shelanski; Photo Credit: White House Office of Information and Regulatory Affairs

With the “cost-benefit analysis” regarding environmental and safety issues for oil-by-rail in OIRA’s hands, it appears both the oil and rail industries will have their voices heard loudly and clearly by the White House.

A DeSmogBlog review of OIRA meeting logs confirms that in recent weeks, OIRA has held at least ten meetings with officials from both industries on oil-by-rail regulations. On the flip side, it held no meetings with public interest groups.

“Cost-Benefit”: A Brief History

OIRA was created in 1980 by President Ronald Reagan with the goal of getting rid of “intrusive” regulations.

“By instructing agencies to clear drafts of regulations through OIRA, Presidents have made the agency…a virtual choke point for federal regulation,” explains the Center for Progressive Reform, a think-tank critical of OIRA and its cost-benefit analysis.

Cost-benefit analysis was put on the map by Harvard Law School professor Cass Sunstein, “regulatory czar” and head of OIRA for President Barack Obama before Shelanski.

The ideology, which is embraced by President Obama, is inspired by the “Chicago School” of free market economics, unpacked in depth in Naomi Klein’s book, “The Shock Doctrine.”

“He’s a University of Chicago Democrat, so he’s very attuned to the virtue of free markets and the risks of free-market regulation,” Sunstein told The Wall Street Journal about Obama in 2009. “He’s not an old-style Democrat who’s excited about regulations.”


Cass Sunstein; Photo Credit: Wikimedia Commons

The Washington Post described Sunstein as Obama’s “intellectual mentor” who “had a major influence on Obama’s view of government — stressing pragmatism over ideology.”

But of course, the “Chicago School” has its own ideological roots: neoliberalism.

Big Oil Meet and Greet

The first on-the-books meeting OIRA held in the second quarter of 2014 about the newly-proposed oil-by-rail safety regulations written by the U.S. Department of Transportation (DOT) was with lobbyists, economists and attorneys representing both the American Petroleum Institute (API) and Chevron on May 19.

Attendees of that meeting included Misty McGowen, Director of Federal Relations for API and Michael Yoham, Manager Rail Transportation Services for Chevron.

This API-Chevron White House visit parallels the one they made together when OIRA mulled over new rules on sulfur in gasoline. In 2012, a group led by API president Jack Gerard went to the White House to discuss this issue with another of President Obama’s closest advisers, Valerie Jarrett.

This visit clearly paid dividends for the industry when the new regulations were delayed.

Akin to what is currently happening with the oil-by-rail regulations regarding Bakken shale oil and the DOT-111 tank cars, it was coordinated with a big public relations push trashing the regulations as unnecessary.

History, as they say, has repeated itself in the oil-by-rail sphere.

A new report touting the safety of oil obtained from hydraulic fracturing (“fracking”) in the Bakken Shale was released by industry groups the same week as the API-Chevron visit with OIRA.


Image Credit: Shutterstock | Trueffelpix

Less than two weeks later on May 30, OIRA met with representatives from the American Fuel & Petrochemical Manufacturers (AFPM) and Tesoro, among others. Stephen H. Brown, a Tesoro lobbyist, represented the company — which has a multi-pronged oil-by-rail footprint — at the meeting.

AFPM has also gone on the record saying Bakken fracked oil is safe for railway transportation, also concluding DOT-111 tank cars are “fine” for moving Bakken crude to market.

“Can we have an intellectually honest discussion about mechanical and track integrity on the rails?,” AFPM president Charles Drevna asked rhetorically in a May 19 Railway Age article. “You shouldn’t blame the cargo for an accident.”

Other Big Oil companies that got the ear of OIRA in June included Phillips 66 (purchased as a wholly-owned subsidiary by ConocoPhillips in 2001) and ExxonMobil.

BNSF Lands Two Meetings in One Week

Records also reveal OIRA met twice in one week with Burlington Northern Sante Fe (BNSF), the oil-by-rail behemoth owned by Warren Buffett. The first was held on June 3 and the second on June 6.

Buffett was a major donor to President Obama for both the 2008 and 2012 presidential elections. He also gave big money to Hillary Clinton — former Secretary of State for the Obama Administration and likely presidential candidate in 2016 — during the 2008 Democratic Party presidential primaries, and has already endorsed her for 2016.


Warren Buffett (L), President Barack Obama (R); Photo Credit: Wikimedia Commons

BNSF Executive Chairman Matthew Rose came to the June 3 meeting flanked by two BNSF lobbyists: Amy Hawkins and Cliff Rothenstein (who maintains BNSF as a client on behalf of K&L Gates). Some speculate Rose could succeed Buffett as CEO of Berkshire Hathaway, the holding company that bought BNSF in 2009.

On June 6, Roger Nober, BNSF Executive Vice President for Law and Corporate Affairs, landed a one-on-one meeting with Shelanski. Before working for BNSF, Nober passed through the government-industry revolving door, serving as an attorney for the Department of Transportation.

According to an article published in EnergyWire, BNSF supports an “aggressive phase out” of its DOT­-111 tank cars.

”[BNSF] believe[s] the next ­generation tank cars should exceed the 2011, stronger new standard known as the CPC­-1232 tank car,” Roxanne Butler, a spokeswoman for BNSF told EnergyWire.

Butler did not respond to questions from DeSmogBlog about what BNSF discussed with OIRA in the meetings, nor did she specify what she meant by an “aggressive phase out.”

The CSX Corporation oil-by-rail train that exploded in Lynchburg, Virginia in late-April, though, had CPC-1232 “next ­generation tank cars.”

On the May 14 edition of The Rachel Maddow Show, Secretary of Transportation Anthony Foxx told Maddow that he does not believe the CPC-1232 is the solution.
Secretary of Transportation Anthony Foxx interview with Rachel Maddow, via YouTube.

“I can tell you that I don’t have confidence in the DOT-111 [and] I’m unconvinced that the 1232 — which is the upgraded car — is the absolute solution,” said Foxx. “I think there’s going to have to be a new type of tank car established to keep this country as safe as possible.”

Oil Exports Connection

For its first oil-by-rail meeting of June, DOT officials and OIRA officials sat alongside Russell Smith, lobbyist for oil and gas industry capital investment firm Quantum Energy; FTI Consulting lobbyist John Cline; and John Whitcomb, legislative analyst for FTI Consulting.

Cline formerly headed up C2 Group, a Washington, DC-based lobbying group purchased in March 2013 as a wholly-owned subsidiary of FTI Consulting.

BNSF is one of C2 Group’s clients.

As his C2 Group biography explains, Cline has also passed through the revolving door, formerly working for both the White House and DOT. 

“John served in the White House as a Special Assistant for Intergovernmental Affairs under President George H.W. Bush,” Cline’s bio states.

“Prior to his service in the White House, he was Director of the Office of Congressional Affairs for the U.S. Department of Transportation (DOT)… John entered public service in 1989 upon his selection by President Bush as Associate Administrator for the Federal Transit Administration at DOT.”

FTI — overseer of public relations efforts for fracking front group Energy in Depth — published a report promoting oil exports in June 2013.

Many prospective coastal crude oil export terminals rely on oil-by-rail to move product to the coast.

For example, the exploding CSX Corporation oil-by-rail train in Lynchburg, Virginia owned by Plains All American was on its way to the Yorktown facility. Yorktown has been marked a potential export terminal if the ban on exporting U.S. oil is lifted.

Map Credit: CSX Corporation

Cui Bono?

While Shelanski’s remarks at NYU discussed cost-benefit analysis, he also talked about how the question over regulatory policy often boils down to shifting costs.

“A more honest debate and better policy will emerge if the debate acknowledges the difference between creating costs and shifting costs back to their source to reduce harmful externalities,” he said.

Which raises the big questions on oil-by-rail regulations, or lack thereof: cui bono? And who pays the costs?

A case in point is Lac-Mégantic, Quebec — site of the massive “bomb train” explosion which killed 47 people on July 6, 2013 — where the cost to clean up and rebuild the town is estimated at $2.7 billion.


Lac-Mégantic Disaster; Photo Credit: Wikimedia Commons

With all six of the oil and rail companies involved refusing to pick up the tab, the cost has been transferred to taxpayers from the oil and rail industries.

Exactly what API, Chevron, ExxonMobil, BNSF and other powerful factions discussed in their meetings with OIRA remains unknown for now.

But one thing remains clear: the only side OIRA has listened to so far in official meetings is Big Oil and Big Rail.

This is consistent with the trend-lines unpacked in the Center for Progressive Reform’s study titled, “Behind Closed Doors at the White House,” a comprensive review of OIRA meeting logs between 2001-2011.

“Over the last decade, 65 percent of the 5,759 meeting participants who met with OIRA represented regulated industry interests — about five times the number of people appearing on behalf of public interest groups,” stated the report.

“[E]ven under this ostensibly transformative President [Obama]…industry visits outnumbered public interest visits by a ratio of almost four to one.”


Table Credit: Center for Progressive Reform

As the old adage goes, the more things change, the more they stay the same.

“The oil-by-rail situations illustrates the way that the process is, all too often, stacked in favor of industry,” Daniel A. Farber, professor at University of California Law School, scholar for the Center for Progressive Reform and critic of OIRA‘s version of cost-benefit analysis, told DeSmogBlog.

Crude by rail comes to Richmond, California … without public notice or review

Repost from EARTHJUSTICE

Crude-by-rail Rolls into America’s Cities

Jessica Knoblauch  |  June 2, 2014
Soto and Peesapati stand near crude oil rail cars. The city of Richmond is in the background.
Communities for a Better Environment Organizer Andrés Soto and Earthjustice Attorney Suma Peesapati look over the railyard in Richmond, where highly explosive and toxic crude oil is being brought into the city.

In March of 2014, Andrés Soto confirmed his nagging fears: Mile-long trains loaded with highly explosive crude oil had been rolling through his hometown of Richmond, California, unannounced, since the previous September.

Soto, a longtime activist and organizer for Communities for a Better Environment, had previously heard about the oil industry’s push to bring crude-by-rail to the west coast. In late January, his organization came across an industry report highlighting the local rail yard’s intentions to allow the practice. The following month, crude-by-rail popped back up on Soto’s radar after a woman from La-Mégantic, Quebec, spoke to Richmond residents about how her town was destroyed after 63 tankers filled with explosive crude oil derailed and exploded, creating a fireball that killed 47 people.

Though the woman’s eyewitness account terrified him, Soto figured he would deal with the issue if and when it came to Richmond. He assumed, as most people would, that local residents would get plenty of time and opportunity to weigh in on any decision to allow crude-by-rail next to their homes, schools and businesses.

He was wrong.

A Glut of Oil, Brought on By Fracking and Tar Sands

Since late 2012, as hydraulic fracturing and tar sands drilling created a glut of oil, the industry has scrambled to transport as much of it as possible from remote drill sites in North Dakota and Canada to the east and west coasts, where it can potentially be shipped overseas to more lucrative markets. Along the way, these trains run through many small towns and main streets, underneath large cities and over bridges, and even along steep mountainsides and wetlands in pristine wilderness areas like Glacier National Park. But while communities along the tracks take on the risk of these volatile visitors, which occasionally derail and explode, they often aren’t told what’s in them, or even when they’ll be charging through.

“This latest betrayal is just part of a lifelong experience,” says Soto, who, as a Richmond native, has seen firsthand the many environmental injustices forced upon residents of this industrial town. The city has around 400 pollution sites and the surrounding area has a high number of industrial accidents, making Richmond’s county, one of the most dangerous places to live.” Many Richmond residents suffer high rates of asthma, cancer and heart disease. Some of Soto’s own family members, who all grew up in Richmond, have been diagnosed with cancer and rare auto-immune diseases.

But the threat of crude-by-rail is not unique to industrial towns like Richmond. Because trains have played such a major role in shaping America over the past two centuries, today you can find them in every kind of community, carrying benign goods like grain, hogs and, of course, us. But with the growth in crude-by-rail, coupled with lax regulations, these icons of American culture are viewed more warily as their foreboding tank cars chug by, filled with crude oil and marked with barely perceptible warning signs.

Oil rail shipments have increased 6,000 percent from 2008 to 2014, which adds up to about 800,000 barrels of oil transported across America per day, according to the National Transportation Safety Board. The increase in rail traffic, however, has not been met with increased regulatory scrutiny. For example, oil trains are not subject to the same strict routing requirements placed on other hazardous materials, so while trains carrying chlorine are barred from travel through the middle of cities, trains carrying explosive crude oil can pass through with no problem.

In addition, over the past two decades, the National Transportation Safety Board has warned, to no avail, that older tank cars known as DOT-111’s, which make up 69 percent of the U.S. tank car fleet, are prone to puncturing during an accident. These so-called “soda cans on wheels” were first designed in the 1960s to carry harmless materials like corn syrup, yet about 92,000 of them are now used to transport hazardous chemicals (with only 14,000 of those tank cars built to the latest safety industry standards).

Also, fire departments, police and first responders often don’t know basic safety information, like whether a train passing through their town will be carrying extremely flammable Bakken shale oil from North Dakota, or tar sands oil from Alberta, Canada, which is notoriously difficult to clean up. As a result, many communities learn of crude by rail projects by accident—or because of one.

 

Map of major freight lines and major accidents since 2012.

More crude oil was spilled in U.S. rail incidents in 2013 than was spilled in the nearly four decades since the federal government began collecting data on such spills.  Data: ESRI; Federal Railroad Administration; Bureau of Transportation Statistics

Lack of Environmental, Public Review, Despite Accidents

Given the lack of regulations and increased rail traffic, it’s not surprising that crude-by-rail accidents have skyrocketed, spilling oil, starting fires, causing explosions and tragically costing lives. The largest accident happened in July of 2013 in Quebec, but since then a number of derailments have occurred, including an accident in Lynchburg, Virginia, where a train carrying crude oil derailed in the downtown area, creating a 200-foot high fireball, prompting the evacuation of some 300 people, and spilling crude into the nearby river.

Yet, shipping crude-by-rail has, so far, escaped significant environmental and public review. This is partly because it is so new and partly because many of the permitting decisions—decisions that will impact thousands of citizens—are being made at the most local of planning levels. Only recently, in response to community outcry and litigation, have these decisions been brought to the public’s attention. And where full and complete environmental and public health reviews have begun, citizens, officials and scientists have largely been opposed to these projects and their risks.

Soto and Peesapati stand near crude oil rail cars. The city of Richmond is in the background.

Soto and Peesapati stand near crude oil rail cars. The city of Richmond is in the background.  Chris Jordan-Bloch / Earthjustice

Richmond residents found out from news reports that crude-by-rail was going through their city only after local media spotted the trains in Richmond’s rail yard, about a half-mile from an elementary school. State officials with the California Energy Commission didn’t know about the project, and the only agency that did was the local air quality district, which issued an operating permit to Kinder Morgan in February of 2014 without any notice or public process. Though the California Environmental Quality Act requires regulatory agencies to conduct full environmental impact assessments of such projects, the air district avoided its responsibilities by putting the project in the same category as vehicle registration and dog licenses.

“I was flabbergasted,” Earthjustice attorney Suma Peesapati told local television station KPIX after it broke the story. “This just happened under the cover of night.”

Earthjustice quickly sued Kinder Morgan and the air district on behalf of environmental justice and conservation groups for ignoring the well-known and potentially catastrophic risks to public health and safety, and for turning a blind eye to permitting the project in an already polluted and overburdened low-income community.

Similar stories of “discovering” these pipelines on wheels can be found all across the country.

In Hoquiam, Washington, a small town in Grays Harbor, people were largely unaware of plans to turn the major estuary, which is home to commercial and tribal fishing, into an industrial crude oil zone.

Members of the Quinault Indian Nation, outraged at plans to build three crude oil shipping terminals, which threaten the tribe’s treaty-protected fishing and gathering rights, turned to Earthjustice after local agencies permitted the projects based on the conclusion that they would have no significant environmental impact.

An aerial view of Grays Harbor, WA, where planned crude oil terminals threaten treaty-protected fishing and gathering rights.

An aerial view of Grays Harbor, WA, where planned crude oil terminals threaten treaty-protected fishing and gathering rights.  Photo courtesy of Quinault Indian Nation

“It makes no sense whatsoever to allow Big Oil to invade our region,” says Fawn Sharp, president of the Quinault Indian Nation. “We all have too much at stake to place ourselves square in the path of this onrushing deluge of pollution, to allow mile-long trains to divide our communities and jeopardize our air, land and waters.”

The Quinault and a group of conservation organizations appealed the permits. And in October of 2013, the Washington Shorelines Hearings Board agreed with the tribe, rejecting the permits for the proposed terminals for failure to address significant public safety and environmental issues. Two of the terminal projects have begun full environmental review processes, and the tribe and local community are fully engaged in opposing them.

On the other side of the country, many residents of a housing project in Albany, New York, discovered that crude-by-rail was coming only after they started seeing—and hearing—long lines of oil-filled rail cars chugging close to their homes and the community playground. They soon found out that in 2012 Global Companies LLC received state permits allowing it to double crude oil storage and loading capabilities at its Port of Albany terminal.

To access the port—which adjoins low-income communities and a playground and is within blocks of an elementary school, a senior facility and a center for the disabled—trains carrying the explosive crude travel a rail line that passes directly through the heart of the city. Yet, the State Department of Conservation approved the project without requiring a full environmental impact review and without complying with its own environmental justice policy, which requires community participation and input on such proposals.

“Some of our clients can literally stick their hand out of their kitchen window and almost touch the trains going by,” says Earthjustice attorney Christopher Amato, who, on behalf of a number of groups sent a letter to the New York Department of Conservation, asking the agency to require a full environmental assessment that takes into account not just the rail project but all of the impacts that will come with turning the Port of Albany into a major oil shipping hub.

In March of 2014, Albany residents successfully convinced the county to halt the expansion plans. The news followed pressure by a broad coalition—including community and environmental groups like Earthjustice.

Crude-by-Rail Proposals Continue, as Communities Take Action

Despite significant pushback from communities, the oil and gas industry continues to ramp up its crude-by-rail operations to take advantage of the current fracking boom around the country. In Washington, Oregon, and California, there are more than a dozen known proposals for new or expanded crude-by-rail capacity.

In addition, certain members of Congress are calling for the lifting or loosening of the ban on crude oil export to other countries.

“Both coasts are in the crosshairs of the oil industry,” says Kristen Boyles, an Earthjustice attorney who represents tribes and conservation groups in Washington and Oregon who are fighting crude-by-rail.

In February of 2014, the Department of Transportation took the first initial steps to making crude-by-rail safer now, issuing an order that requires railroads to inform state emergency management officials about the movement of large shipments of crude oil through their states and urging shippers to avoid using older model tanks cars that are easily ruptured in accidents.

Residents applaud at Berkeley City Hall, following a vote in March 2014, opposing a proposed crude-by-rail project.

Residents applaud at Berkeley City Hall, following a vote in March 2014, opposing a proposed crude-by-rail project.  Mauricio Castillo / Earthjustice

In addition, communities, no longer content to just lie down on the tracks and hope for additional regulations, are taking matters into their own hands. In December of 2013, two Chicago aldermen proposed that its City Council declare the DOT-111 tank cars a “public nuisance” and ban them from the city. And in February and March of 2014, city councils in Spokane, Seattle and Bellingham, Washington, passed resolutions requiring greater disclosures by railroads on traffic and routes, while Minnesota and the Washington state legislatures debated rail safety bills. Most recently, the city of Richmond and the neighboring city of Berkeley passed resolutions demanding tighter regulations or outright bans of the shipping of crude-by-rail through their communities.

“We didn’t go looking for this fight,” says Soto, who has spent much of his life fighting social injustice and shows no signs of slowing down. “But we’re going to fight it all the same.”