Category Archives: DOT-111

Plumas Co. Grand Jury: Scathing indictment of hazardous material transportation through Feather River Canyon

Repost from Plumas County News
[Editor:  This Grand Jury report is thorough and well written – an excellent resource and alarming in its analysis.  Its findings and recommendations (near the end of the report) might be a valuable resource for communities everywhere.  There are a number of references to “after-action reports.”   Question for our research: how can concerned citizens obtain such reports?  – RS]

Hazardous material transportation a roulette wheel for potential disaster

Feather Publishing

6/5/2015

Editor’s note: This is the fourth in a series of midterm reports submitted by the 2014-15 Plumas County Civil Grand Jury.

SUMMARY
Early in the morning Nov. 25, 2014, a Union Pacific freight train derailed in the Feather River Canyon just east of Belden, sending 11 railcars full of corn off the tracks and down the steep embankment. In a press statement shortly afterward, a State Office of Emergency Services official was quoted as saying, “We dodged a bullet” because the train was only carrying corn.

Based on a rash of recent derailments and spills of hazardous materials happening throughout the United States and Canada, “a bullet” in fact grossly underestimates the potential devastation, magnitude and scope of the consequences left from these horrific incidents. Luckily, it was only corn that spilled. With the recent surge in crude-by-rail domestic crude oil transports between oil fields in North Dakota, Texas, Colorado and Pennsylvania and Bay Area refineries through the Feather River Canyon, the aftermath could have wrought far-reaching disaster had it been the high-flammable Bakken crude in the tanker cars.

According to sources, the number of crude-by-rail trains passing through the Feather River Canyon has tripled in number within the past three years. With developments in hydraulic fracking technology coming about in domestic oil fields, the petroleum market has seen a profound shift from importing foreign oil to extracting it in domestic oil fields in the United States. As a result, thousands of jobs have been created and oil prices have plummeted since this recent boon in domestic oil production. In addition, other hazardous chemicals are transported throughout the United States by rail and by truck. According to the Federal Railroad Administration, only the railroads are required to know what’s in the cars they’re shipping.

The grand jury found it extremely important to examine the recent corn derailment other recent crude-by-rail disasters in the U.S. and Canada to determine whether Plumas County agencies and private transportation operators are adequately prepared in “worst-case” scenarios. In respect to the Plumas County corn derailment, because the corn was relatively harmless and could be immediately dealt with without invoking hazardous material protocols, local, state and railroad officials and crews did an excellent job in containment of the spill and clearing and repairing the tracks within the impact area.

As a result of a quick and well-coordinated response, the Feather River Canyon rail route was restored and passing rail traffic three days after the initial derailment. Nonetheless, the grand jury has found the incident to be a practical review for a county hazardous material spill and useful opportunity to compare and contrast the corn spill with other recent more disastrous spills. Plumas County did indeed “dodge the bullet,” and from this incident the grand jury believes it will provide valuable findings and recommendations which may in turn act as a catalyst and cast fresh perspectives and insights on dealing with future potential spills and hazardous material disasters.

BACKGROUND
In review of the Feather River Canyon corn spill Nov. 25, 2014, a total of 11 cars full of raw corn derailed and spilled down a steep embankment near Rich Bar. Luckily, the spill was only tons of kernels and husks, and the incident proved to have had only a minimal impact, environmentally speaking.

The corn spill turned out to be good opportunity to test the Plumas County emergency response system. The incident was first reported by Union Pacific Railroad Dispatch in Omaha, Nebraska, to the Plumas County Warning Center, stating, “12 rail cars close to Rich Bar at Hwy 70 MPM 265 on the Canyon Sub,” and that “12 rail cars loaded with grain derailed, it is unknown whether the cars are upright or on their sides, and that the derailment occurred in a canyon next to a stream or river and it is unknown at this time if the waterway was impacted.”

According to the after-action report on the incident, the State Warning Center notification included the Plumas County sheriff, California Highway Patrol, Plumas County Environmental Health, State Water Quality Board, State Department of Toxics, State Drinking Water, Cal Office of Emergency Services, U.S. Environmental Protection Agency and the California Department of Fish and Wildlife. The accident occurred around 3 a.m. Nov. 25. By 8 a.m. Union Pacific had placed containment booms 100 feet down the Feather River. Fortunately, none of the cars landed in the river and only a small amount of corn spilled into the river.

One of the important facts that should be emphasized here concerns containment supplies and where they are located. It took roughly five hours for the railroad to have containment booms in place. According the Plumas County officials, Union Pacific does not have any spill containment kits in Plumas County. A formal request from the grand jury was emailed to Union Pacific safety representatives asking about the whereabouts of containment kits — according to their response (the grand jury received a very quick email reply that day), Chico, Roseville and Reno, Nevada, were the closest railroad facilities that had emergency containment kits.

Other revelations from the after-action report revealed that the Union Pacific Railroad Dispatch Center could not pinpoint the exact location in the Feather River Canyon to the Warning Center. In addition, dispatch was not “forthcoming” on what was spilled, although the center did state that the Plumas County Sheriff’s Department was notified that “there were no injuries, no hazardous materials released, and that no assistance was needed.” The corn spill after-action report in its conclusion posted its “corrective actions from railroad incident” review. Some of the recommendations are summarized here:

—Push Union Pacific dispatch for better initial report information.

—Use GPS to pinpoint incident location.

—Coordinate with the U.S. Forest Service and the California Department of Fish and Wildlife for any incident in the Feather River Canyon.

—The incident commander for any hazardous materials incident is designated as the primary law enforcement authority.

—Follow Plumas County Hazardous Materials Response Plan.

—The Office of Emergency Services will try to find a local Union Pacific dispatch contact person.

Evidently, the cause of the corn derailment was a section of the railroad track breaking or separating. Ironically, Union Pacific reported that all railroad ties along the Feather River Canyon were replaced in 2013. Union Pacific conducts track inspections at regular intervals and reportedly it conducts Feather River Canyon inspections every three months. Nonetheless, the corn derailment exemplifies that rail accidents can happen at any time.

In respect to the other crude-by-rail spills, the same results were concluded. Train speed was not a factor and rail and bridge inspections were documented before the incidents occurred. The crude-by-rail derailments were all on relatively flat landscapes. The Feather River Canyon route, with its rocky and unstable terrain, is much more prone to outside factors that can lead to derailments.

According to 2013 Plumas County Hazard Mitigation Plan, in 2007 and in 2012 a rockslide struck and derailed passing trains. The 2007 slide derailed 22 rail cars; 20,000 gallons of peanut oil ruptured from several cars and 30,000 gallons of highly flammable denatured alcohol also spilled down the embankment. The 2012 incident was caused by a large boulder that fell onto the tracks and was struck by a Burlington Northern Santa Fe train. Over 3,000 gallons of diesel fuel spilled from the train into the Feather River.

The recent crude-by-rail spills throughout the U.S. showcase the dramatic rise in domestic oil production and rail shipments to coastal refineries. According to railroad data, in 2008 there were reportedly about 10,000 oil cars carrying domestic crude. In 2014, there were over 400,000 crude-by-rail train cars, representing a 4,000 percent increase. Furthermore, the type of crude oil coming from shale deposits from Bakken oil fields (commonly referred as “light crude”) is high combustible. In almost every instance in which trains carrying Bakken crude derail and tanker cars are punctured, fiery detonation results. First responders and emergency service crews can merely watch it burn and concentrate on containment perimeters rather than extinguishing the oil fire. Without sensationalizing a disaster that occurred in another place, had any of the recent oil tanker disasters happened along the Feather River route, particularly at locations near population areas including downtown Portola, Blairsden, Twain and Keddie, where the railroad tracks are relatively close, the extent of the damage could have been far different.

The grand jury would first like to acknowledge as a matter of fact that hazardous chemical hauling is an integral part of our economy. As potentially dangerous as they are, crude oil, gasoline and chemicals are used safely every day. Without them our economy and all the things we do, all the products we require in our daily lives, the way we move would be changed; just about everything revolves around the consumer and the safe use of chemicals and their byproducts.

That being said, the vital role of both the national carriers of hazardous materials and our public safety officials at each level is to make safety the No. 1 priority. Safety, defined here, entails the complete processing of any particular product, from its extraction and refinement to transportation, delivery and ultimate usage.

Railroads carry over 40 percent of our nation’s freight. When conducted safely and securely, commodity transport over rail is proven to be economically the best and most efficient mode of transportation in terms of fuel efficiency, supply chain costs and safety. Intermodal traffic refers to the transport of goods on trains. Today, two major rail companies, Union Pacific and Burlington Northern Santa Fe, transport intermodal goods through Plumas County. According to the Union Pacific Railroad, chemical transport is roughly 17 percent of total payload being carried. The breakdown of goods, however, is not representative of actual train payloads. In other words, trains passing through the county could have any number of railcars full of one particular commodity or another and the cars may be full or empty.

The grand jury has found that the mission statements, top priorities, primary focus and action plans are remarkably similar in commitment, scope and language between hazardous material producers, transport carriers and government officials at every level. In other words, everyone directly engaged in the production and distribution of everything delivered over rail, by air or on pavement — as well as their overseers — share a common pledge to make safety their top priority in the public domain and the environment.

In addition, the grand jury has studied the after-action reports of many of the most recent crude-by-rail derailments and public highway chemical transport accidents and learned that in nearly every case, there were inspections completed days or weeks before the incidents, rail and highway speeds were under the mandated limits and handling of the volatile payloads were properly done according to federal safety mandates.

According to official published reports, there has been more oil spilled from trains in the past two years than in the previous four decades. Between 1975 and 2012, around 800,000 gallons of crude oil was spilled in the U.S. By comparison, according to data from the Pipeline and Hazardous Materials Safety Administration data, over 1.5 million gallons of crude oil was spilled from rail cars.

As a result of the series of ruptures and fires that have recently plagued the U.S., federal regulators are considering higher safety standards and further upgrades such as thicker tanks, rollover protection for chemical carrying tanker cars, electronic braking systems on individual rail cars and increased track inspections.

The U.S. Department of Transportation has issued a notice for crude oil and high-hazard flammable trains tanker cars, calling for a phaseout of the older CTC-111A tanker car (commonly known as the DOT-111). Currently there are still around 300,000 CTC-111A cars still being used throughout the U.S. These tanker cars each generally carry between 20,000 and 30,000 gallons of oil. According to the U.S. Department of Transportation the older CTC-111As have the following safety flaws:

—Thin skins: Upon derailment, tanks often rupture.

—No head shields: Shields on both ends of tanker cars can prevent puncturing during collisions.

—Poor protection over valves and fittings.

—Lack of pressure relief devices for boiling liquid expanding vapor explosions.

In short, the older CTC-111A tanker cars were not designed for hauling flammable materials.

The new replacement tanker car, called the CPC-1232 (CPC is a railroad industry standard that stands for casualty prevention circular), features new standards for hazardous material railway transport. As of November 2011, all new tank cars built for transporting crude oil and ethanol must follow new standards, including half-height shields, thicker tank and head material, normalized steel, top fitting and gauge protection and recloseable pressure relief valves.

As of March 2015, there are reportedly 60,000 of the newer CPC-1232 tanker cars hauling crude in the U.S. In response to all the recent crude-by-rail derailments, Union Pacific, CSX and Burlington Northern Santa Fe have all stepped up in increased safety inspections and adapting new safety standards. The railroads are now relying on distributed power units, which place locomotives in the middle and/or both ends of the trains. Studies show that placing power locomotives on both ends and in the middle enhances safety because it even spreads physical forces on the train.

This revelation is significant — the 1991 Dunsmuir toxic chemical derailment was caused by this very reason. The power locomotive was placed in the rear of a 97-car train and light and empty cars flanked a full tanker car filled with 19,000 gallons of metam sodium. The investigation of the Dunsmuir disaster found that because all the power was placed at the rear of the large train, the uneven power distribution caused the train to buckle.

Metam sodium is a soil fumigant. When it spilled into the upper Sacramento River — because of poor containment action and the nature of toxicity of the chemical — it killed every plant and fish for approximately 40 miles downstream.

Railroads also use wayside electronic detectors to monitor railroad tracks. New safety detecting technology is also being used in their prevention and risk reduction process that features use of lasers and ultrasound to identify rail defects.

The grand jury has learned that many of the hazardous material railcars do not belong to the rail carrier but to the company producing and transporting the product. For example, most of the older CTC-111A and newer CPC-1232 tanker cars are actually owned by the crude oil fracking companies and refineries.

The number of trains carrying crude oil and other hazardous materials is actually based on sheer economics. For example, in 2014, when oil prices hovered around $100 a barrel, the price sent domestic oil production to an all-time high. Crude-by-rail oil shipments though Plumas County increased substantially as coastal refineries in Martinez and Benicia purchased more oil from the Bakken oil fields in North Dakota and other domestic oil fields in Texas and Oklahoma.

DISCUSSION
The grand jury chose a review of several recent U.S. crude-by-rail derailments for comparative reasons. The after-action reports provide valuable findings and recommendations from disasters that can happen anywhere, anytime. The reports are particularly invaluable to first responders, and public safety agencies.

After-action reports detail each incident from the time of the initial report that entails the scope and severity of the incident. In response to the above disastrous incidents, the U.S. Department of Transportation and the Federal Pipeline and Hazardous Materials Safety Administration issued a “call to action” in January, calling on “rail company executives, associations, shippers and state and federal agencies to discuss how stakeholders can prevent and mitigate the consequences of rail accidents that involve flammable liquids.”

The grand jury also believes that examining the recent corn spill in Plumas County and comparing it with the way other derailments were handled can lead to information and recommendations that enhance and hopefully improve upon the vanguards (prevention, preparedness, response, recovery) of any future local potential disaster.

The tenets from the PHMSA call to action report produced similar recommendations — a strategic approach that promotes “effective preincident planning, preparedness, response, outreach and training.” One important point that the grand jury kept hearing was a difficulty and lack of communication between the railroad and local emergency management officials. One of the key elements the PHMSA call to action report specifically addresses is the absolute need for interaction and relevant guidance to first responders and local emergency management teams to “safely and effectively manage incidents.”

The report also called for preincident planning and communication with all organizations to learn about what is being transported. Emergency response teams must have the training to safely contain and protect themselves and the contaminate zone affected. The need for a local hazmat team cannot be overemphasized.

The following crude-by-rail disasters summarized in this grand jury report illustrate some of the potential circumstances other public safety agencies have had to deal with. Despite all the mandated safeguards dealing with hazardous material hauling, i.e., safe speeds, upgraded rail cars, railcar and track inspections, specialized training, etc., accidents can happen anytime and anywhere within transportation routes of hazardous materials.

Plumas County and the surrounding 12 counties in northeastern California lie within Region 3 of the State Emergency Services System. At the time of this report, Plumas County has no hazmat team. Upon any need for hazmat response, Plumas County must contact nearby Butte or Shasta teams. In more serious incidents, Plumas County would have to enlist state or federal emergency service agencies.

Lac-Megantic, Canada: In July 2013 a train carrying 72 tank cars full of crude oil exploded after the train braking system released, sending the unmanned train on a downhill run into the Canadian town of Lac-Megantic, Quebec. The runaway train crashed into a crowded downtown pub, killing 47 people and destroying over 30 buildings. According to the National Transportation Safety Board investigation, the train had been idling and unmanned for over seven hours and the emergency braking system disengaged. The train then rolled down the tracks for several miles, picking up speed and eventually derailing into downtown Lac-Megantic. Of the four disaster crude-by-rail spills mentioned in this report, the results from the official investigation determined that sheer neglect (train left running and unattended and braking system released, causing a runaway unmanned train) was the primary factor in the disaster.

Aliceville, Alabama: A 90-car train carrying Bakken crude derailed in November 2013 and exploded. Nearly 750,000 gallons of its 2 million gallon load spilled in wetlands in Alabama. Officials still assail cleanup operations today and report that containment booms and absorbent products were ineffective.

Lynchburg, Virginia: In April 2014 a CSX train carrying crude oil derailed and caught fire, spilling thousands of gallons of oil into the James River. Oil fires from the ruptured tanker cars burned for two days. Reports indicate that the tanker cars were all the new CPC-1232 model.

Casselton, North Dakota: In December 2013 a Burlington Northern Santa Fe train hauling grain derailed and fell across another set of tracks. Shortly after, a crude oil train heading in the opposite direction struck the derailed cars and derailed itself. Several tanker cars exploded. A slow response to the first incident set up the chain of events for the explosive second incident.

Montgomery, West Virginia: In February 2015 a train carrying crude oil in West Virginia derailed sending 27 tanker cars off the tracks. Twelve of those rail cars exploded, not at once, but randomly for up to 12 hours. The cause is still under investigation.

In the event of a local hazardous material disaster, the Plumas County Office of Emergency Services is notified and it determines the scope and magnitude of the incident and then contacts the Plumas County Board of Supervisors. Depending on the incident assessment of the Plumas County OES, the BOS has the authority to officially declare an emergency, which allows the Plumas County OES to request help from relevant local, state and federal agencies.

Through leadership and partnership with all first responders, each incident goes through a foundational process that includes prevention, preparedness, response and recovery. The first three steps of the mitigation process rely on the safe containment of the hazardous material as quickly as possible with a special focus on protecting human life (isolate, deny entry, protect life safely, mitigate). The recovery phase, however, can last for years. The Dunsmuir toxic spill, for example, seriously impacted the area for several years after. At the time of this report, the crude-by-rail spills were all still in the recovery phase. Fortunately, the Plumas County corn derailment had a minimal effect on the environment. The first three phases of emergency services mitigation at the corn spill served as a great training exercise for all agencies and first responders involved.

Recovery, in this case, was at a minimum in terms of environmental impact.

In regard to Plumas County hazmat, the grand jury has learned that the county must rely on local volunteers to devote their time as first responders.

Plumas County has had a difficult time finding enough volunteers to cover the entire county, and retaining volunteers after hazmat certification and specialized training has not worked out. All the local fire districts within Plumas County have been actively seeking volunteers.

FINDINGS
F1) The grand jury finds that communication between Plumas County public safety agencies and railroad officials is profoundly inadequate.

F2) The grand jury finds that the lack of spill and containment equipment along rail routes in Plumas County poses a direct threat to public safety and the natural environment.

F3) The grand jury finds that relying on hazmat response teams from surrounding counties compromises response times and threatens Plumas County public safety and natural resources.

F4) The grand jury finds that the lack of training of first responders concerning hazardous materials that they may have to deal with could have profound consequences.

F5) The grand jury finds that population centers within Plumas County that are in close proximity to railroads have grossly inadequate protection resources.

RECOMMENDATIONS
R1) The grand jury recommends Plumas County Emergency Services and the Plumas County Environment Health Agency establish direct local contact with Union Pacific and Burlington Northern Santa Fe and any hazardous material carrier that operates within the county.

R2) The grand jury recommends that Plumas County negotiate with railroad officials to have spill containment booms and absorbent kits in key strategic storage facilities in Plumas County.

R3) The grand jury recommends that the BOS find the means to provide hazmat training and certification to in-county first responders.

R4) The grand jury recommends more hazardous material training between first responders and all those involved in mitigating hazardous material disasters. Union Pacific, for example, offers tank car safety training in Roseville at the California Office of Emergency Services Specialized Training Institute every year. The training involves practically all aspects of hazardous material incident mitigation.

R5) The grand jury recommends that the BOS and Plumas County OES conduct a “what-if” evaluation for population centers within Plumas County that are within potential “blast zones” of crude-by-rail tanker cars.

Firefighter battalion chief: Russian roulette on the railways

Repost from Chico News & Review
[Editor:  This article is well-written and documents gutsy analyses by a regional firefighter and County officials who understand that local safety is at the mercy of federal regulators.  Three years of Russian roulette – and more.  A “must read.”  – RS]

Russian roulette on the railways

Butte County train tracks are Bakken-free for now, but emergency responders fear a return of the volatile fuel
By Evan Tuchinsky, 05.21.15
Cal Fire Battalion Chief Russ Fowler says the Department of Transportation’s new rules regarding traincar safety are insufficient. PHOTO COURTESY OF CAL FIRE

What is ‘Bakken’?

The light crude oil known as Bakken comes from fracking a geologic formation of that name under North Dakota, Montana and Canada. Less dense and with less carbon, light crudes yield more gasoline than heavier crudes, but also are more volatile.

Trains crash. That fact hit home last week when a passenger train derailed in Philadelphia and also last year, on Nov. 26, when a cargo train derailed in the Feather River Canyon.

The risk of devastation multiplies when the derailed train carries volatile crude oil. A recent spate of those accidents has garnered national attention, too, prompting the U.S. Department of Transportation (DoT) to release new regulations governing the conveyance of flammable liquids. The measures have drawn near-unanimous opposition, though, and done little to assuage lingering local fears.

“My constituents have raised concerns and the Board [of Supervisors] is concerned,” said Butte County Supervisor Maureen Kirk, who represents Chico. “We’re hoping that some of the legislation and some of the discussion that comes forward will make even stiffer requirements on the transport of this Bakken oil.”

The DoT regulations came out May 1. Five days later, another oil train crashed, in North Dakota. By last Friday (May 15), both the petroleum industry and environmentalists had filed legal challenges to the DoT’s so-called “final rule.”

The International Association of Fire Fighters also has voiced objections. Representing more than 300,000 firefighters in North America, the IAFF protested a provision that allows railroads to keep the contents of their trains confidential—under the banner of national security.

Russ Fowler, battalion chief with Cal Fire Butte County and coordinator of the local Interagency Hazardous Materials Team, has additional concerns. DoT regulations phase out tank cars that are not up to the current safety standard, rather than pull them off the rails for retrofitting or retirement. Transportation Secretary Anthony Foxx has argued that the alternative would result in increased oil-tanker traffic on highways.

Fowler says one particular railcar commonly used to carry volatile Bakken crude oil, the DOT-111, “just [wasn’t] designed for that product.” Since railroads have until 2018 to get those cars up to standard, “we have three years of potential Russian roulette on our hands if light crude oil is transported down the Feather River Canyon like it was done last fall.”

Cal Fire has communicated with BNSF Railway, Fowler said, and has been told no crude oil deliveries have come through Butte County this year. “I have no reason not to believe them,” he added, though he’s seen DOT-111s riding on Chico tracks.

Lena Kent, BNSF’s spokeswoman for California, confirmed by email that “we are not currently transporting Bakken crude in your county.” She also wrote: “We do provide information to the Office of Emergency Services in California.”

That’s in contrast with last year, when train cars carrying millions of gallons of the explosive oil, reportedly around one shipment per week, did make their way way along the Feather River Canyon. Experts tie the reduction of imports to a reduced demand for the fuel, a lighter type that’s similar to gasoline and thus extremely volatile.

While Cal Fire dreads the prospect of an urban crash, the Feather River Canyon presents a distinct set of frets.

Train tracks head into remote areas that are difficult for emergency responders to reach. Access roads don’t always run adjacent to the rail route—not even parallel in certain spots. Depending on where a crash occurred, spilled oil could contaminate the Feather River and Lake Oroville—a major source of water for California—or could start a forest fire should it ignite.

Even without a blaze or river release, “it would make an ugly, oily mess in the canyon,” Fowler said. “It would be a terrible environmental disaster.”

Butte County supervisors articulated such concerns to the California Public Utility Commission and the Governor’s Office of Emergency Services, before the DoT released its regulations. OES responded by saying the state is investing in “purchasing new Type II hazardous material emergency response units” and in “local training specific to … rail safety incidents.”

For Supervisor Doug Teeter, the board chair who represents the Ridge, that’s little assurance. He has a powerless feeling—believing “it’s just a matter of time” before an accident happens locally, yet knowing “as a county we have no control” over the rails.

“We’re at the mercy of the federal regulators,” he continued. “All we’re really getting is a little response on improved training and equipment. That is not nearly enough to handle a 100-car spill.”

Either in populated or unpopulated areas.

“We as a hazmat team plan for worst-case scenarios,” Fowler said. “Just because you plan for a worst-case scenario doesn’t mean you can mitigate the worst-case scenario, because there are things that can happen that are so catastrophic that it would overwhelm local resources until more regional or statewide resources could come in to help.”

Should legal challenges fail, and in the absence of local authority, a remedy to the DoT regulations remains: Congress. Teeter recently met with a representative of Sen. Barbara Boxer. Meanwhile, North State Congressman John Garamendi has introduced legislation to make light crude safer for rail transport.

Teeter encourages constituents to write congressional representatives and senators. He finds encouragement even in the controversial DoT regulations, which arose amid an uproar.

“Maybe now we’ll have a voice,” Teeter said. “Maybe something can happen.”

 

Tesoro & Phillips 66 building crude railcars stronger than new US rules require

Repost from Reuters
[Editor:  These tank cars exceed the new standard, but still fail on several counts.  For instance, note the closing sentences here: “Hack said Tesoro is talking with Union Tank Car on possibly outfitting crude railcars to add enhanced brakes before the 2021 deadline.  ‘We have some time to make that decision,’ he said.”  You can be sure that every refinery seeking permits for crude by rail will crow that they, too, have ordered newer, safer tank cars.  Get ready, Benicia!   – RS]

EXCLUSIVE-Tesoro building crude railcars stronger than new US rules require

By Kristin Hayes, May 18, 2015 4:59pm BST

(Reuters) – U.S. refiner Tesoro Corp has ordered new crude oil railcars with features that surpass safety standards that federal regulators set this month, executives told Reuters.

The 210 tank cars being built in northern Louisiana are so-called pressure cars, with the same design as those that carry liquid petroleum gases such as propane and butane, gas cargoes that are more flammable than crude oil.

They will be delivered in the coming months after being ordered in early 2014.

The new federal rules for all crude and ethanol railcars built after Oct. 1 of this year do not require strength to the level of a pressure car but are stronger than the standards adopted by the industry in 2011.

Tesoro, like other oil-by-rail players, knew the federal standards were coming and the basics of what they would likely be. But the company went further with a stronger car, “which is the primary thing we control,” C.J. Warner, Tesoro’s head of strategy and business development, told Reuters.

The order was a sign the refiner wanted to get ahead of the coming regulations and avoid potential capacity bottlenecks at companies that build tank cars as shippers must now renovate their fleets.

Booming North American onshore production spurred sharp growth in moving oil by rail, particularly for U.S. West and East coast refiners which otherwise must depend on more costly imports. No major crude pipelines move oil from the Midcontinent west across the Rocky Mountains or east through the Appalachians and densely populated northeastern states.

Fiery derailments, caused in some cases by track failures, have become more frequent as oil-by-rail and crude-only trains carrying 100 cars or more went from nearly nothing five years ago to more than 1 million barrels per day late last year.

Opposition to moving oil by rail spiked on safety concerns, prompting the U.S. Department of Transportation and Canada to impose new railcar safety standards.

Tesoro isn’t the only refiner that didn’t wait for word from the U.S. DOT to order stronger cars.

Phillips 66 confirmed to Reuters that it also last year ordered 350 non-pressurized new cars that mostly match the new DOT standard. Those cars will be delivered by year-end, the company said.

THICKER HULLS

Both sets of new cars have 9/16-inch-thick hulls, steel shields on the front and back and protections for valves and fittings where crude goes in on top and drains out the bottom, as the new rules require, company executives said. Tesoro’s design modifies those fittings to handle crude rather than just LPGs.

Tesoro’s cars also have test pressure specifications of 200 pounds per square inch of internal pressure, twice that for non-pressurized cars. A test pressure is typically 20 to 40 percent of how much pressure it would take for the railcar to burst.

That level of test pressure is standard for cars that transport LPGs or highly poisonous substances such as hydrogen cyanide, according to the Association of American Railroads.

“When we saw the design, we were very comfortable that it would meet the new standards that we anticipated,” John Hack, Tesoro’s head of rail operations, told Reuters.

For Tesoro, which hopes to build the largest oil-by-rail facility in the United States in Washington state, it’s an investment in safety and continued access to cheaper North American crudes.

“It’s very important to us to continue to transport North American crude and get it from the Midcontinent out to the West Coast where it competes very nicely with the foreign crudes,” Warner said.

RETROFITS?

By last year most refiners, including Tesoro and Phillips 66, no longer accepted shipments in older, weaker railcars such as those used on a runaway crude train that careened into the small Quebec town of Lac Megantic in mid-2013, killing 47 people.

Early last year Tesoro needed to replace the last of its older cars and worked with its builder, Berkshire Hathaway Inc’s Union Tank Car, to develop the new design, Warner said.

Tesoro and Phillips 66 aim to use their newest cars in crude trains before deciding whether to order more. Both companies’ fleets meet the 2011 industry standard for cars with 7/16-inch-thick hulls and reinforced valves.

Those 7/16-inch cars don’t have to be thrown out, but to move in crude-only trains, they will need added protections, including ‘jackets’, or an extra layer of steel around the tank, according to the DOT rules.

Neither Tesoro’s nor Phillips 66’s new cars are equipped with specialized brakes that the DOT said crude-only trains must have starting in 2021 or be held to 30 miles per hour. An oil industry trade group is challenging that provision in court.

Hack said Tesoro is talking with Union Tank Car on possibly outfitting crude railcars to add enhanced brakes before the 2021 deadline.

“We have some time to make that decision,” he said.

(Reporting by Kristen Hays; Editing by Terry Wade and James Dalgleish)

Groups Sue Obama Administration Over Weak Tank Car Standards

Press Release from ForestEthics

Groups Sue Obama Administration Over Weak Tank Car Standards

The new safety standards issued by the Department of Transportation take too long to get dangerous tank cars off the tracks and contain loopholes that leave too many vulnerable
May 14, 2015, Eddie Scher, ForestEthics, (415) 815-7027, eddie@forestethics.org

San Francisco – In the wake of a spate of fiery derailments and toxic spills involving trains hauling volatile crude oil, a coalition of conservation organizations and citizen groups are challenging the U.S. Department of Transportation’s (DOT) weak safety standards for oil trains. Less than a week after the DOT released its final tank car safety rule on May 1, a train carrying crude oil exploded outside of Heimdal, North Dakota. Under the current standards, the tank cars involved in the accident would not be retired from crude oil shipping or retrofitted for another 5 to 8 years.

Earthjustice has filed suit in the 9th Circuit challenging the rule on behalf of ForestEthics, Sierra Club, Waterkeeper Alliance, Washington Environmental Council, Friends of the Columbia Gorge, Spokane Riverkeeper, and the Center for Biological Diversity.

“The Department of Transportation’s weak oil train standard just blew up in its face on the plains of North Dakota last week,” said Patti Goldman, Earthjustice attorney. “Pleas from the public, reinforced by the National Transportation Safety Board, to stop hauling explosive crude in these tank cars have fallen on deaf ears, leaving people across the country vulnerable to catastrophic accidents.”

Rather than immediately banning the most dangerous tank cars — DOT-111s and CPC-1232s — that are now used every day to transport volatile Bakken and tar sands crude oil, the new standards call for a 10-year phase out. Even then the standard will allow smaller trains — up to 35 loaded tank cars in a train — to continue to use the unsafe tank cars.

The new rule fails to protect people and communities in several major ways:

• The rule leaves hazardous cars carrying volatile crude oil on the tracks for up to 10 years.

• The rule has gutted public notification requirements, leaving communities and emergency responders in the dark about the oil trains and explosive crude oil rumbling through their towns and cities.

• New cars will require thicker shells to reduce punctures and leaks, but retrofit cars are subject to a less protective standard.

• The standard doesn’t impose adequate speed limits to ensure that oil trains run at safe speeds. Speed limits have been set for “high threat urban areas,” but very few cities have received that designation.

Click here for a close analysis of the hidden dangers buried in the federal tank car rule

“Explosive oil trains present real and imminent danger, and protecting the public and waterways requires an aggressive regulatory response,” said Marc Yaggi, Executive Director of Waterkeeper Alliance. “Instead, the Department of Transportation has finalized an inadequate rule that clearly was influenced by industry and will not prevent more explosions and fires in our communities. We hope our challenge will result in a rule that puts the safety of people and their waterways first.”

“We’re suing the administration because these rules won’t protect the 25 million Americans living in the oil train blast zone,” says Todd Paglia, ForestEthics Executive Director. “Let’s start with common sense – speed limits that are good for some cities are good for all communities, 10 years is too long to wait for improved tank cars, and emergency responders need to know where and when these dangerous trains are running by our homes and schools.”

LEGAL DOCUMENT: http://earthjustice.org/documents/legal-document/petition-for-review-groups-sue-obama-administration-over-weak-tank-car-standards 

BACKGROUND:

The National Transportation Safety Board has repeatedly found that the DOT-111 tank cars are prone to puncture on impact, spilling oil and often triggering destructive fires and explosions. The Safety Board has made official recommendations to stop shipping crude oil in these hazardous tank cars, but the federal regulators have not heeded these pleas. Recent derailments and explosions have made clear that newer tank cars, known as CPC-1232s, are not significantly safer, and the Safety Board has called for a ban on shipping hazardous fuels in these cars as well.

The recent surge in U.S. and Canadian oil production, much of it from Bakken shale and Alberta tar sands, led to a more than 4,000 percent increase in crude oil shipped by rail from 2008 to 2013, primarily in trains with 100 to 120 oil cars that can be over 1.5 miles long. The result has been oil spills, destructive fires, and explosions when oil trains have derailed. More oil spilled in train accidents in 2013 than in the 38 years from 1975 to 2012 combined.

ForestEthics calculates that 25 million Americans live in the dangerous blast zone along the nation’s rail lines.

REPORTER RESOURCES:

Q&A: The Challenge To The Federal Tank Car Standards

Map: Crude By Rail Across the United States

Quote Sheet By Officials On The Dangers of Shipping Bakken Crude in Hazardous Tank Cars

ForestEthics Map: Oil Train Blast Zone

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