Category Archives: Crude By Rail

Crude By Rail, Derailment, Emergency Readiness & Response, Hazardous cargo transparency, Hazmat notification

Governor’s Oil by Rail Report Highlights Need for Sustainable Funding and Close Coordination to Protect Public Safety

Repost from California Department of Fish & Wildlife
[Editor: This is a major, highly significant report from the Governor’s Rail Safety Working Group.   The recommendations aren’t nearly as strong as needed, but they’re a step in the right direction.  Download the Governor’s Report, OIL BY RAIL SAFETY IN CALIFORNIA.  See the Governor’s Office of Emergency Services announcement.  See also coverage in Reuters, SFGate, Huffington Post.   – RS]

Oil by Rail Report Highlights Need for Sustainable Funding and Close Coordination to Protect Public Safety

June 10, 2014 by Janice Mackey

Large Increase in Oil by Rail Points to Need for Long-Term Solutions

In an effort to prepare state and local emergency responders for the dramatic increase in shipments of oil by railroad in California communities, the state Interagency Working Group on Oil by Rail Safety today released a report outlining its recommendations to improve public safety during the transport of oil by rail in California.

“Keeping California’s residents and environment safe from oil spills from rail deliveries, pipelines, or marine shipments is a top public safety priority,” said Mark Ghilarducci, Director of the California Office of Emergency Services. “Implementing these recommendations will bolster a growing array of prevention, response and regulatory efforts.”

State energy officials estimate that crude oil imports by rail will increase from 1 percent of total California oil imports in 2013 to 25 percent of imports by 2016. Most of the increase is due to a sharp rise of imports from Canada and North Dakota in the Bakken shale formation.

In response, Governor Edmund G. Brown Jr. included proposals in his budget to prepare the state for the influx of oil by rail, including increasing safety inspections of railways by the Public Utilities Commission and establishing an inland oil spill preparedness and response program.

“Californians recognize that moving oil can be a dangerous business,” said California Department of Fish and Wildlife Director Charlton H. Bonham. “Enhancing the programs we have in place will give Californians the confidence they need to know that any movement of oil in this state will be done in the safest manner possible.”

The report details 12 main recommendations:

  • Increase the number of California Public Utilities Commission rail inspectors;
  • Improve emergency preparedness and response programs;
  • Request improved identifiers on tank placards for first responders;
  • Request railroads to provide real-time shipment information to emergency responders;
  • Request railroads provide more information to affected communities;
  • Develop and post interactive oil by rail map;
  • Request the federal Department of Transportation to expedite phase-out of older, riskier tank cars;
  • Accelerate implementation of new accident prevention technology;
  • Update California Public Utilities Commission incident reporting requirements;
  • Request railroads provide California with broader accident data;
  • Ensure compliance with industry voluntary agreement;
  • Ensure state agencies have adequate data.

Several state agencies engage in prevention, planning, emergency response, and cleanup activities applicable to oil by rail, including the Office of Emergency Services (OES), the Office of State Fire Marshal (OSFM), California Environmental Protection Agency (CalEPA), and the Office of Spill Prevention and Response (OSPR). Local agencies, including the local Certified Unified Program Agencies (CUPAs), also play critical roles in emergency preparedness and response, and have expressed growing concern about increased oil by rail transport.

In addition to administration’s budget proposal, state officials are updating California’s emergency response programs, including the CalEPA Emergency Response Management Committee revising the Hazardous Material and Oil Spill annex of the State Emergency Plan and OES reviewing and updating the six Regional Plans for Hazardous Materials Emergency Response.

The report is the product of an intensive 6 month effort by multiple state agencies, including the California Public Utilities Commission; California Office of Emergency Services; California Environmental Protection Agency; Department of Toxic Substances Control; California Energy Commission; California Natural Resources Agency; California Office of the State Fire Marshal; Department of Oil, Gas and Geothermal Resources; and Office of Spill Prevention and Response.

View the report: http://bit.ly/OBR-pdf
Visit the web page: http://bit.ly/OBR-page

Bakken Crude, Crude By Rail, Insurance Industry, Oil Industry, Rail industry, Tar sands crude

Railroads & oil industry must insure against costs of clean-up after catastrophic accidents

Repost from The Times Union, Albany, NY

Editorial: A cost of rail oil profits

Thursday, June 5, 2014

First, 47 people were killed and a town flattened last summer when a crude oil-filled freight train exploded in Lac-Megantic, Quebec. Then, as residents mourned the death and destruction, the railroad at fault declared bankruptcy, leaving the Canadian government holding a nearly $3 billion bill.

The Canadian tragedy has helped fuel a national cry on this side of the border for greater scrutiny of what has become a boom in crude oil rail transport. Capital Region residents need look no farther than the continual ring of tanker cars around downtown Albany for reason to worry that a disaster could happen here, and to wonder: If it does, who will be held responsible?

As we wait for the White House’s release of new federal rules regarding the railroads themselves, state Assemblywoman Patricia Fahy, an Albany Democrat, has proposed that terminal operators also be required to have some responsibility in controlling this surge.

Since the Quebec disaster, at least eight significant accidents have occurred in North America, involving trains carrying either tar sands crude oil or Bakken crude oil, which is the source for the tankers bound for the Port of Albany. Ms. Fahy, pointing to the bankruptcy of the railroad company involved in the Lac-Megantic accident and the failure of its insurance to cover the billions in damage, suggests “terminal operators should put up enough financial security to cover expenses after something happens.”

That makes sense. In the same way General Electric is being held responsible to clean up PCBs from the Hudson River, the railroads and terminal operators profiting from crude oil transport should be required to invest in upgrades to safeguard against accidents, as well as surety for when an accident happens. This is a cost of doing dangerous business.

With Global Companies and Buckeye Partners seeing twofold increases in just a couple of years to 3 billion gallons of crude flowing through their terminals annually, and with railroad profits surging nearly 20 percent since 2009, these modern-day rail magnates can handle the expense.

Ms. Fahy’s bill would apply to all bulk storage facilities in the state that handle crude oil, and require financial security to meet all the responsibilities for cleanup and decontamination associated with any release of the oil.

She notes that, as freight railroads went from just 9,500 carloads of crude in 2008 to more than 434,000 carloads in 2013, the storage needs have increased accordingly.

According to the Times Union’s Brian Nearing, Lac-Megantic officials have estimated it will cost $2.7 billion to rebuild the shattered town, where more than 30 buildings were destroyed, and another $200 million to clean up oil-contaminated land, the sewer system and nearby bodies of water like the Chaudiere River.

We can’t let that happen here. Ms. Fahy’s bill is a step in the right direction.

Crude By Rail, DOT-111, Rail routing, Train speed

Oil tank cars pose a hazard when moving and when parked

Repost from  The Post-Standard, Syracuse, NY (Letters to the Editor)

Oil tanker rail cars pose a hazard when moving and when parked

To the Editor:

Every sports person knows that a moving target is harder to hit than a stationary one. When you can read graffiti on oil tanker cars parked in the train yards in Minoa, and other areas around Syracuse, you know you have a serious safety problem.

Interstate commerce allows Bakken crude-oil rail shipments from North Dakota to “pass” through Central New York State. U.S. Sen. Charles Schumer, D-N.Y., wants the U.,S. Department of Transportation and the Association of American Railroads to reduce the speed limit of these oil tanker trains from 50 mph to 40 mph through Syracuse and other heavily populated areas. Between 200 to 300 tanker cars “pass” through the Syracuse area daily. Presently, the 40 mph speed limit only applies to Buffalo and the New York City area.

These antiquated, poorly designed DOT-111 tanker cars pose a potential danger to the populace and the environment regardless of their speed! This was evidenced by the recent CSX derailment of crude oil tanker cars in Lynchburg, Va.

It doesn’t make one iota of difference if these trains travel at speeds of 40 or 50 mph, as long as they keep “passing” through the Syracuse area. Parking, however, for indefinite periods in small populated communities, like Minoa, is not acceptable.

Are we, Minoa residents, considered collateral damage – dispensable, if an accident, man-made or otherwise happens?

Come on, CSX … move these hazardous oil tankers out of my village; my front yard is not a bomb depot.

M. Claire Crull
Minoa

California Energy Commission, California oil industry, Crude By Rail

California Energy Commission workshop in Berkeley on changing trends in sources of crude oil & transport

Circulated by email…

Save the date!  The California Energy Commission will be holding a public meeting on changing trends in sources of crude oil & transport at the Berkeley City College auditorium on Wednesday, June 25 at 9am (details below).    An opportunity to give the CEC an earful about what they modestly term “market changes.”  See p. 3 of the downloadable PDF for public comment instructions, background, etc.   Basic info follows below.

California Energy Commission Workshop
RE: Crude Oil

Notice of Lead Commissioner Workshop on Trends in
Sources of Crude Oil

The California Energy Commission Lead Commissioner on the Integrated Energy Policy Report will conduct a workshop to highlight changing trends in California’s sources of crude oil with emphasis on the potential growth of crude oil transport to California by rail, and the impacts of these trends on the transportation energy market and existing government policies. The discussions will focus on existing and possible new roles of federal, state, and local government to address market changes.

Commissioner Janea A. Scott, Chair Robert Weisenmiller, and Commissioner Karen Douglas will be in attendance.  CPUC President Michael R. Peevey will also be in attendance.  Commissioner Scott is the Lead Commissioner for the 2014 IEPR Update and the Lead Commissioner on Transportation.  Other Commissioners of the California Energy Commission and the California Public Utilities Commission may attend and participate in the workshop.  The workshop will be held:

June 25, 2014, 9:00 AM
Berkeley City College Auditorium
2050 Center Street, Berkeley, California 94704
(Wheelchair Accessible)
Remote Access Available by Computer or Phone via WebEx™
(Instructions background, agenda, etc  here)