Category Archives: Federal Regulation (U.S.)

Swinomish tribe sues to permanently ban Bakken oil trains

Repost from The Seattle Times

Swinomish tribe sues to block Bakken oil trains

A federal lawsuit filed by the Swinomish Indian tribe seeks to ban BNSF Railway from transporting Bakken crude oil across tribal lands. The line in question carries oil trains to the Tesoro refinery in Anacortes.

By Hal Bernton, April 7, 2015 at 8:37 pm, Updated April 8, 2015 at 12:10 pm
A view of the Tesoro refinery, as seen from Cap Sante lookout in Anacortes. Photographed on July 16, 2012. (John Lok / The Seattle Times)
A view of the Tesoro refinery, as seen from Cap Sante lookout in Anacortes. Photographed on July 16, 2012. (John Lok / The Seattle Times)

The Swinomish Indian Tribal Community on Tuesday went to federal court to block BNSF Railway from sending 100-car oil trains through reservation lands, claiming the company is violating an easement that sharply restricts rail traffic.

The easement signed by the railway’s predecessor company in 1991 permits only two trains a day of 25 cars or less from transiting the reservation. It also calls for the railroad company to get permission from the tribe to increase traffic.

The lawsuit filed in U.S. District Court in Seattle asks the court to permanently ban the railroad from shipping Bakken shale crude oil across tribal land, asserting that the railroad never sought permission for the oil trains.

“A deal is a deal,” said Swinomish Chairman Brian Cladoosby in a statement released Tuesday. “Our signatures were on the agreement with BNSF, so were theirs. So was the United States. But despite all that, BNSF began running its Bakken oil trains across the reservation without asking, and without even telling us.”

The Swinomish rail line that traverses tribal land on Fidalgo Island enables trains to reach a Tesoro refinery in nearby Anacortes.

A BNSF spokesman, in a statement released Tuesday said, “We have received the complaint and are reviewing it.”

The tribal lawsuit is part of an intensifying backlash in Washington and elsewhere in North America against shipping Bakken shale crude from North Dakota and Montana. Production from those fields has surged with the development of new fracking techniques.

Since 2013, a series of train derailments resulted in fiery explosions of Bakken crude, with four of those accidents occurring since early February. Bakken crude has a higher volatility than many other crudes, due to elevated levels of gases such as ethane, propane and butane

At Seattle’s Emergency Operations Center on Tuesday, Mayor Ed Murray, King County Executive Dow Constantine and other officials joined U.S. Sen. Maria Cantwell, D-Wash., to discuss threats posed by these accidents.

“In Canada nearly two years ago, a mile-long train derailed and the ensuing explosion cost 47 people their lives,” Cantwell said. “That blast leveled a half-mile radius. If that happened in Seattle, the effects would be catastrophic.”

“In Seattle, an incident of this type could impact tens of thousands of residents.”

Cantwell introduced legislation last month that would require the federal Transportation Department to regulate the volatility of crude oil shipped by trains.

The bill also would increase funding for first responders and require more disclosures from railroads about train routes. The railroads would also have to plan for worst-case derailment scenarios.

In Washington last year, up to 19 trains a week crossed parts of the state with crude oil that ends up at state or California refineries.

Some of those trains now cross Swinomish lands on the way to the Tesoro refinery. The number of those trains could rise if Shell gets approval for a rail facility at its refinery in Anacortes.

As the trains move through tribal lands, they pass close by a casino, a lodge and other development.

“Based on the demonstrated hazards” of Bakken shale crude, the tribe is “justifiably and gravely concerned” with the oil shipments, the lawsuit asserts.

The railroad’s 1991 easement across the reservation lands resulted from the settlement of an earlier tribal lawsuit that alleged that BNSF’s predecessor company was trespassing on their lands with its trains during most of the past century.

The settlement called for periodic railroad disclosures “as different products, or commodities, are added or deleted.” It also called on the tribe not to “arbitrarily withhold permission to increase the number of trains or cars when necessary to meet shipper needs.”

The crude-oil shipments across tribal lands began in late 2011, but tribal officials said they were never informed in advance, and have never authorized that train traffic.

“We told BNSF to stop, again and again,” Cladoosby said. “It’s unacceptable for BNSF to put our people and our way of life at risk without regard to the agreement we established in good faith.”

Rep. Garamendi and area leaders call for safer crude-by-rail transport

Repost from The Benicia Herald
[Editor:  Significant quote: “Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.”  – RS]

Rep. Garamendi to call for safer crude-by-rail transport

By Donna Beth Weilenman, April 7, 2015

U.S. Rep. John Garamendi, D-Fairfield, will join industry leaders in Davis on Wednesday in calling for the U.S. Department of Transportation to make rail delivery of crude oil safer.

“Crude oil is or has until very recently been transported by rail through several cities in Congressman Garamendi’s 3rd Congressional District, including Davis, Dixon, Fairfield, Suisun City and Marysville,” said his media specialists, Donald Lathbury and Matthew Kravitz, in a joint statement on the news conference.

“These routes are very close to residential communities, schools, parks, and businesses.”

Among those joining Garamendi will be Sarah Feinberg, acting administrator for the Federal Railroad Administration, and Paul W. King, deputy director of the Office of Rail Safety at the Safety and Enforcement Division of the California Public Utilities Commission.

Municipal and other leaders also are expected to attend, including Davis Mayor Dan Wolk, Marysville Mayor Ricky Samayoa, Yolo County Supervisor Don Saylor and Solano County Supervisor Skip Thomson.

Also expected to attend are Terry Bassett, Yolo County Transportation District executive director; Dana Carey, Yolo County office of Emergency Services manager; and Terry Schmidtbauer, assistant director of Resource Management in the Solano County Office of Emergency Services.

Garamendi has introduced House Bill 1679 that would prohibit the transport of North Dakota Bakken crude by train unless it has a maximum Reid vapor pressure (RVP) of 9.5 psi.

He said this is the maximum volatility permitted by the New York Mercantile Exchange (NYMEX) for crude oil futures contracts.

By comparison, he said, a recent literature review by Sandia Labs indicates that the North Dakota Petroleum Council’s study of 152 Bakken crude samples found an average RVP of 11.7 psi and a max of 14.4 psi. A rule going into effect in North Dakota this month sets the limit at 13.7 psi.

Garamendi and Congresswoman Doris Matsui, D-Sacramento, sent a letter March 3 to the Department of Transportation in which they suggested strengthening safety improvements and asked DOT to drop any plans for weakening regulations.

Instead, they called for stronger safety standards for crude-by-rail transportation.

“Families living near oil-by-rail shipping lines are rightfully concerned about the safety of the trains that pass through their communities,” Garamendi said. “For that reason, I have repeatedly called on the Department of Transportation to use all the tools at their disposal to ensure that these shipments are as safe and secure as possible.

“Every day that strong and effective rules are delayed is another day that millions of Americans, including many in my district, are put at greater risk.”

Garamendi’s announcement will be made at 11:30 a.m. Wednesday next to the Davis Train Depot, near the corner of Second and H streets, Davis.

NTSB: Equip oil trains with fire protection within 5 years

Repost from McClatchyDC
[Editor:   Bloomberg adds coverage of NTSB comments on the inadequacies of the CPC-1232 tank cars.  – RS]

NTSB: Equip oil trains with fire protection within 5 years

By Curtis Tate, McClatchy Washington Bureau, April 6, 2015
US NEWS RAILSAFETY-CA 2 SA
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. (Randall Benton/Sacramento Bee/MCT)

The National Transportation Safety Board on Monday called for the nation’s fleet of railroad tank cars hauling crude oil and ethanol to be equipped with fire protection within five years in an effort to eliminate the large explosions associated with recent accidents.

The NTSB cited the performance of tank cars in four recent oil train derailments, two in the U.S. and two in Canada, where fire exposure weakened the bare steel tanks and increased the pressure inside the cars beyond what they were designed to sustain.

The agency called on the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration to require tank cars carrying oil and ethanol to be equipped with a ceramic blanket and high-capacity pressure-relief devices.

The NTSB also for the first time endorsed a five-year timeline for retrofitting or replacing the tank cars, including the goal that 20 percent of the fleet be made compliant per year. Industry groups representing oil producers and refiners have pushed for a 10-year timeline.

“We can’t wait a decade for safer rail cars,” NTSB Chairman Christopher Hart said in a statement. “The industry needs to make this issue a priority and expedite the safety enhancements, otherwise, we continue to put our communities at risk.”

In January, the NTSB added tank cars to its “ Most Wanted” list of safety improvements. But at the time, Hart wouldn’t say what the NTSB considered an appropriate timeline for making the fixes.

The independent board, which has only advisory power, has been recommending upgrades to the nation’s workhorse tank car, called the DOT-111, for more than 20 years.

The car’s design became an issue after railroads across North America began hauling exponentially larger volumes of crude oil and ethanol. An oil train derailment that killed 47 people in Quebec in July 2013 galvanized a new effort on both sides of the border to improve the cars.

In February, the Transportation Department sent a package of proposed regulations to the White House Office of Management and Budget for review. They include requirements for thermal protection on the tank cars and are similar to a tank car design the Canadian government proposed last month. The final rule is scheduled for publication next month.

In the meantime, four trains carrying different types of crude oil derailed in the span of four weeks. The derailments, two in Ontario, and one each in West Virginia and Illinois, led to spills, fires and evacuations.

Oil industry groups have called for more attention to preventing derailments and less emphasis on the cars and what’s in them. But the tank car improvements have widespread support from lawmakers, regulators, mayors and governors, the rail industry and the NTSB.

In statements Monday, Sen. Ron Wyden and Rep. Peter DeFazio, both Oregon Democrats, praised the NTSB’s recommendations.

“I am very happy to see that they recommended thermal protection for cars carrying hazardous materials, an aggressive retrofit or replacement schedule, and a transparent, publicly available reporting mechanism to report tank car replacement,” DeFazio said.

“It is my hope that the next step from the administration will be a strong DOT rule that will get these cars upgraded quickly, or get them off the tracks completely,” Wyden said.

The railroad industry’s leading advocacy group in Washington echoed those calls.

“The freight rail industry supports an aggressive retrofit or replacement program and believes final regulations on new tank car standards will provide certainty and chart a new course in the safer movement of crude oil by rail,” said Ed Greenberg, a spokesman for the Association of American Railroads, in a statement.

Why more pipelines won’t solve the problem of oil-train explosions

Repost from Grist

Why more pipelines won’t solve the problem of oil-train explosions

By Ben Adler on 6 Apr 2015
Shutterstock | Shutterstock
In the last few years, the grassroots environmental movement has energetically opposed constructing big new oil pipelines in North America. Their opposition is understandable, since, on a global level, fossil fuel infrastructure encourages fossil fuel consumption, contributing to climate change, and, on a local level, oil pipelines leak and explode. But conservatives have been delighted to argue that greens are endangering the public and being short-sighted. Oil that comes out of the ground has to get to market somehow, and currently a huge amount of it is being shipped on freight trains. The result? An epidemic of oil train derailments, causing spills and even deadly explosions.

Is it fair to blame activists for this? Should climate hawks throw in the towel and accept Keystone XL as the lesser evil?

No and no — and I’ll explain two key reasons why.

First: Much of the oil criss-crossing the U.S. on trains is coming from North Dakota and traveling out along east/west routes where there aren’t even any proposals for big new pipelines. You can’t blame activists for that. Keystone would connect the Alberta tar sands to refineries on the Gulf Coast, but wouldn’t do anything to help move North Dakota’s fracked bounty. Right now rail is the main option for that. “Keystone XL would enable tar-sands expansion projects, but is unlikely to reduce crude-by-rail,” says Anthony Swift, an attorney at the Natural Resources Defense Council. But don’t just take his word for it. Oil-loving, Keystone-supporting North Dakota Sen. Heidi Heitkamp (D) makes the same point: “I am not someone who has ever said that the Keystone pipeline will take crude off the rails. It won’t,” Heitkamp said in November. “Our markets are east and west and it would be extraordinarily difficult to build pipelines east and west.”

Second: Climate activists are supporting something that actually would go a long way toward solving the problem of dangerous oil trains: strict regulation of those trains.

In the long term, of course, climate hawks want to keep the oil in the soil, and they are pushing for structural changes — like an end to federal leases for oil drilling offshore and on federal land — that would reduce the amount of oil we produce in the U.S. But in the short term, they’re not just being unrealistic and saying “no” to all oil transport — they’re pushing to make that transport safer.

The Department of Transportation has the authority to impose rules on oil trains’ design and speed, which would reduce the risk of them leaking and exploding when they derail or crash. DOT made an initial proposal in July of last year and is expected to finalize it in May. Green groups have been disappointed by the proposal, though — both the weakness of the rules and the slowness of the timetable. If all goes according to plan, the rules would be implemented later this year, but their requirements would still take years to phase in.

Fortunately there’s now a stronger proposal that climate hawks can get behind: a new Senate bill that would impose stiffer requirements than those being proposed by the Obama administration. Sen. Maria Cantwell (D-Wash.) introduced the Crude-By-Rail Safety Act late last month, along with three Democratic cosponsors: Tammy Baldwin (Wis.), Patty Murray (Wash.), and Dianne Feinstein (Calif.). It got immediate backing from big green groups.

Here are four critical things that need to be done to make oil trains safer, three of which are included in Cantwell’s bill:

  1. Stop the transport of oil in an old model of rail car, called the DOT-111, that was designed back in the ‘60s. DOT-111s “have a number of manufacturing defects that make them much more likely to rupture in a derailment,” says Swift. So environmentalists want to get 111s off the rails immediately. That’s exactly what Cantwell’s Senate bill would do. DOT, in contrast, proposes to delay that transition. “DOT only slowly phases out 111s by 2017 and the rest of fleet by 2020, and we think the industry is pushing to move the phaseout to 2025,” says Devorah Ancel, an attorney at the Sierra Club. “It’s very concerning.”
  2. Require steel jackets around vulnerable rail cars that carry oil. DOT would require freight companies to transition to a newer, sturdier model of car called the CPC-1232, but even those cars aren’t sturdy enough — they have already been involved some fiery accidents, including one in West Virginia in February and one in Illinois in March. Cantwell’s bill would go further, requiring CPC-1232s to be jacketed, and then calling for “new tank car design standards that include 9/16th inch shells, thermal protection, pressure relief valves and electronically-controlled pneumatic brakes.”
  3. Clamp down on the amount of flammable gases permitted in the oil on train cars. Oil fracked in North Dakota’s Bakken shale carries more volatile gases with it than your average crude, making explosions more common. DOT’s proposed rules do nothing to curb that. Cantwell et al would limit the volatility of the oil being transported and increase fines for violations.
  4. Reduce train speeds. Currently, the speed limit for crude-by-rail is 50 mph, and that’s voluntary. DOT would make a speed limit mandatory, but would only lower it to 40 mph, and even that may only apply in “high threat urban areas” with more than 100,000 people. “The question of speed limits is crucial,” says Swift. “You need to dramatically reduce the speed at which these trains are moving.” Swift notes that CPC-1232s may puncture when going above 18 mph, but environmental groups stop short of explicitly calling for that speed limit. NRDC says, “Crude oil unit trains must adhere to speed limits that significantly reduce the possibility of an explosion in the event of a derailment.” That would presumably fall somewhere between 18 mph and 40 mph. Stricter speed limits is the one major needed reform that the Senate bill doesn’t address.

Cantwell’s bill also doesn’t compensate communities when accidents happen (the DOT proposal doesn’t either). But the bill’s sponsors intend to introduce future legislation to establish an oil spill liability trust fund paid for by fees from the companies moving crude oil. “Taxpayers should not be on the hook to bail out communities after a disaster caused by private companies,” said Cantwell.

It’s hard to imagine this bill passing both houses of an intensely pro-business, pro–fossil fuel Republican Congress. But Senate Democrats hope that by raising the issue they can build public awareness and support for stronger rules.

The bill could put pressure on the Obama administration to adopt the strongest possible version of its proposal. During the public comment period on DOT’s draft rules, the oil and rail industries argued for the weakest rules under consideration. Now the plans are being reviewed by the White House Office of Management and Budget, which tends to scale rules back in order to reduce their cost to business. Representatives from the oil and rail industries have been meeting with OMB to lobby for weaker rules.

Late last month, Chuck Schumer (N.Y.), who will take over as Senate Democratic leader after Harry Reid (Nev.) retires next year, announced that he and six colleagues — including Baldwin and Democratic Whip Dick Durbin (Ill.) — had sent a letter to OMB Director Shaun Donovan asking him to ensure “the rule is strong and comprehensive and that it is finalized as quickly as possible.” If nothing else, Schumer’s push and Cantwell’s bill will set up a countervailing force to the industry voices that the Obama administration is listening to.

The administration should protect public safety without being pushed by fellow Democrats — in this case, it has the power to do so without congressional approval. There is definitely a clear alternative to the false choice between pipelines and dangerous oil trains.