Category Archives: Federal Regulation (U.S.)

Lynchburg city leaders: ‘We dodged a bullet’

Repost from The Lynchburg News & Advance

James River Association reflects on train derailment

May 14, 2014 11:08 pm  |  Alex Rohr
River association reflects on train derailment
Bobby Harris listens to Lynchburg City Manager L. Kimball Payne III speak during a community meeting on rail safety concerns hosted by the James River Association at the Craddock Terry Hotel and Event Center on Wednesday.  Photo by Autumn Parry

The phrase repeated throughout a James River Association forum reflecting on the CSX train derailment of two weeks ago was “we dodged a bullet.”

No one was killed in the wreck that caused 17 tankers of a 105-car train to derail on April 30. No one died in the subsequent fire after one tanker breached, spilling 20,000-plus gallons of oil into the James River. The damage to environment likely is minimal.

But the JRA held a forum Wednesday with City Manager Kimball Payne, Upper James Riverkeeper Pat Calvert and City Councilman Turner Perrow to reflect on the incident, the aftermath and what to do going forward to prevent a worse disaster.

Payne and Perrow had just left a meeting at City Hall when they were told separately about the wreck. Payne, who was named JRA’s 2014 River Hero at the beginning of the meeting, recounted watching black smoke from a window at City Hall.

He immediately thought downtown was on fire, the Depot Grille had been destroyed, and people had died.

“It was a horrifying thought. …So I, like an idiot, headed for the river,” Payne said.

By the time he arrived, police and firemen were on the scene, knew the tankers were hauling Bakken crude and were acting accordingly.

“Then I realized the Depot Grille was still standing and I felt a lot better. But the river was on fire. … It could have been a lot worse.”

As the April 30 incident unfolded, Payne, Calvert and Perrow found themselves in a national discussion on rail safety, fielding questions from reporters across the country.

“I don’t know how they got my cellphone. I was getting texts from CBS news,” Payne said.

Safety concerns related to the hauling of Bakken oil — more volatile than standard crude — have been growing nationwide following the fatal wreck in Quebec, Canada in July as well as derailments resulting in environmental damage. The National Transportation Safety Board, the agency investigating the derailment, held a forum the week before the Lynchburg wreck on rail safety, referencing a national increase in rail traffic.

“The national discussion is happening. We’re on the sidelines right now,” Perrow said after the meeting.

“What this did is it pulled Virginia into the conversation. We’ll see if we have a seat at the table or not.”

One week after the wreck, the U.S. Department of Transportation issued an emergency order requiring railroads to provide state agencies information about Bakken crude hauled by rail. The order did not include a requirement for the state to share that information with localities.

“We don’t think it’s strong enough. They need to do more,” Calvert said speaking for the JRA. He specified the JRA wants stronger regulations on rail cars, in particular the older models that have proved vulnerable even with upgrades.

While Payne said he wants to know what hazardous materials are hauled through Lynchburg in general and how to deal with them, he doesn’t know what the city would do with minute-by-minute details.

Ed Melton, general manager of RockTenn, a packaging manufacturer on Concord Turnpike near the tracks, attended the forum and said he is concerned about evacuating his employees.

But the speakers emphasized hazardous material safety is not only about crude or rail. Payne said the city needs to know the general dangers on roadways. Calvert said hazards on the James include those causing the February Duke Energy coal ash spill into the Dan River in Eden, North Carolina and the January Freedom Industries chemical spill into the Elk River in West Virginia.

“The James River watershed holds about 80 percent of the toxic substances in the state of Virginia. To me, that’s very alarming,” Calvert said.

He and JRA Chief Executive Officer Bill Street said addressing those hazards should be part of the discussion going forward.

“We don’t have all the answers. That’s why we wanted to bring people together to talk about it,” Street said.

All three speakers said because the issue involved interstate commerce — the oil was drilled in North Dakota, and the train came from Chicago on the way to Yorktown — a decision would need to come at the federal level.

Perrow said the discussion needs to include whether hazardous materials should be going through populated areas where they could cause loss to human life or less populated ones where it may take longer to respond resulting in harsher damage. He said personal safety and environmental health should be balanced with economic benefit.

“I know I haven’t given you any answers, but I don’t think they’re out there right now,” Perrow said.

Calvert said he drank out of a plastic water bottle and arrived at the meeting in an automobile — both acts dependent on crude oil.

“We’re all dependent on this. We are all sort of complicit in this. Now what are we going to do about it?” Calvert said.

Those who are interested in participating in the policy decisions, and at least making sure what can be done is done, may contact their government representatives.

Perrow, who has been educating himself on rail, and in particular rail car safety, said people should do the same, and also talk to Sens. Tim Kaine and Mark Warner because they are involved in the conversation at the national level. The senators issued a joint statement May 5 asking for tighter regulations, and another after the May 7 emergency order urging further action.

When asked by an attendee what she and others could do to help shape policy, Perrow said they should get or stay involved with JRA.

Street said the JRA keeps its members informed about ongoing issues and lets them know when to contact representatives when decisions are being made so their voice can join others most effectively.

“We are the voice of the river,” Street said. “The more people we have in this effort, the stronger the voice will be.”

NY Times: excellent report, new information on rail car phaseout, redesign

Repost from The New York Times
[Editor: Significant quote: “But safety advocates, as well as railroad officials, point out that these newer cars — known as CPC-1232s — have also failed in recent crashes….Ten of the 13 cars that derailed in Lynchburg, Va., last week … were built after 2011, including the one that ruptured and spilled 30,000 gallons of oil into the James River, according to Eric Weiss, a spokesman at the National Transportation Safety Board. At least two other recent train derailments also involved newer tank cars.”  – RS]

Despite Orders, Federal Tank-Car Safety Measures Are Slow in Coming

By JAD MOUAWADMAY 8, 2014

The derailment of a freight train carrying crude oil in Lynchburg, Va., last week was a reminder that basic safety features of the oil-by-rails business remain vastly inadequate, despite a flurry of emergency orders by federal regulators.

The federal Department of Transportation, which on Wednesday said that the growing movement of oil trains posed an “imminent hazard” to the public, has nevertheless been slow to toughen up tank-car standards.

While those delays have angered lawmakers and local officials, a small number of railroads and refiners have pushed the industry to change.

BNSF, the rail operator owned by Berkshire Hathaway and the largest carrier of oil from the Bakken region in North Dakota, said in February that it would buy 5,000 new tank cars with the latest safety features. It was a departure from the industry’s practice of railroads not owning cars.

Other railroads and refiners in Canada said they would charge higher rates for older cars in a bid to move the industry to adopt the newer models, built since 2011.

Tracks by the James River near downtown Lynchburg, Va., where tanker cars carrying crude oil derailed on April 30. Credit Steve Helber/Associated Press

And regulators in Canada recently mandated the use of the newest model within three years.

But safety advocates, as well as railroad officials, point out that these newer cars — known as CPC-1232s — have also failed in recent crashes.

Ten of the 13 cars that derailed in Lynchburg, Va., last week, for instance, were built after 2011, including the one that ruptured and spilled 30,000 gallons of oil into the James River, according to Eric Weiss, a spokesman at the National Transportation Safety Board. At least two other recent train derailments also involved newer tank cars.

The fiery Lynchburg derailment, where 350 people were evacuated, was the latest in a series of accidents that have caught industry regulators as well as railroads off guard. Last year, an oil train exploded in Lac-Mégantic, Quebec, killing 47 people.

Critics have long contended that the tank cars that are commonly used to carry crude oil and other petroleum products do not have enough safety features to prevent a spill.

The federal safety board has repeatedly noted in recent years that the tank cars — called DOT-111s — have a high rate of failures in accidents. Making things worse, the kind of oil that comes out of the Bakken region is particularly flammable and prone to explosion.

During a safety forum recently, the departing chairwoman of the safety board, Deborah Hersman, warned of the risk of a “higher body count” if regulators did not update tank car standards.

On Wednesday, transportation regulators said they would urge shippers to stop using older tank cars to carry crude oil, recommending that they use cars with “the highest level of integrity.”

But industry officials point out that phasing out older cars too fast would lead to a shortage in tank cars, which could ultimately curtail the surging production of oil from the Bakken.

About 98,000 DOT-111 tank cars are in service carrying crude oil and ethanol in the United States and Canada, according to the Association of American Railroads. Their design dates to the 1960s and the overwhelming majority were built before 2011. Only about 18,000 were built after that date and could be modified easily if needed.

Thomas D. Simpson, the president of the Rail Supply Institute, a trade group representing shippers and tank car owners, said 55,000 new cars had been ordered through 2015.

The Association of American Railroads, the industry’s trade group, has said older cars should be rapidly phased out or refitted. It has proposed a set of improvements, including better protections to valves and handles, to prevent them from opening in a crash; the use of high-pressure relief valves; and thicker steel tanks and thermal protections. Those improvements are intended to further strengthen safety features that were incorporated after 2011.

The Transportation Department has been working on the new standard for several years. Transportation Secretary Anthony Foxx told a Senate committee hearing on Wednesday that his department was moving as fast as it could on new safety regulations for oil shipments by rail, including new tank standards.

Regulators sent their latest proposals to the White House last week, and said they expected to make their proposed rules public by the summer. This would be followed by a 60-day public comment period, which would also need to be reviewed. This means final regulations would not be likely before the end of the year.

“These issues are complex and recent crashes, including Lynchburg, show why we need to take the time to get it right and make sure the new design reflects the latest information,” said Casey M. Hernandez, deputy director of public affairs at the Department of Transportation.

The number of oil tank-car failures and accidents has risen sharply in recent years, as crude shipments have surged. In the emergency order directing railroads to provide traffic information to state officials, the Department of Transportation called the accident rate “startling.”

In 2013, there were 116 episodes involving tank cars carrying crude oil, according to the Transportation Department’s Pipeline and Hazardous Materials Safety Administration, more than twice the number of all episodes between 1990 and 2009. And 154 tank cars failed last year, according to federal records, a 50 percent jump from the previous year.

The details of what regulators are considering have not been made public and industry officials said they did not know yet what to expect. If the United States regulations are more stringent than those adopted in Canada, officials there said they would toughen their own rules to match them.

“We recognize the status quo isn’t acceptable,” said Mr. Simpson of the Rail Supply Institute. “If I could say one thing to the secretary of transportation, it is get the rule out. Give us certainty and we will act.”

A version of this article appears in print on May 9, 2014, on page B3 of the New York edition with the headline: Despite Orders, Federal Tank-Car Safety Measures Are Slow in Coming.

Bloomberg: Feds announce weak “emergency order”

Repost from Bloomberg Business Week

The Government Takes a Weak Stab at Making Oil Trains Safer

By Matthew Philips  |  May 08, 2014

On Wednesday, a week after a train loaded with crude oil from North Dakota exploded in downtown Lynchburg, Va., dumping 30,000 gallons of oil into the James River, the Department of Transportation announced two moves to try to keep this from happening so frequently. It’s doubtful that either will make much of a difference in preventing what’s become a major safety hazard in the U.S.

Under a new “emergency order,” the DOT said it’s now going to require any railroad that ships a large amount of crude to tell state emergency responders what it’s up to. That includes telling them how much crude it’s hauling and the exact route it intends to take. Railroads also now have to provide local emergency responders with contact information of at least one person who’s familiar with the load, in case, you know the local fire chief needs to find out what the heck’s inside that overturned tank car that just unleashed a 400-foot fireball.

This emergency order applies to any train carrying more than 1 million gallons of crude specifically from the Bakken region of North Dakota. That’s essentially all the trains hauling crude across the U.S. right now. Since there aren’t enough pipelines connecting the oil fields in North Dakota, most of the nearly 1 million barrels the state produces leaves every day by train. It takes about 35 tank cars to haul 1 million gallons. Most of these oil trains are 100 cars long and stretch over a mile.

The reason this applies only to Bakken crude is twofold. First, that’s most of what’s being hauled. Second, the oil coming out of the Bakken is unlike any other kind that’s out there. It’s light, sweet, and superflammable, with high levels of propane and methane. That makes it almost impossible for local first responders to put out the fires that erupt when these trains derail. Sometimes, their only recourse is to evacuate the area and watch the tank cars burn.

The amount of oil moving by train each month has risen by nearly 400 percent since 2009Data: American Association of RailroadsThe amount of oil moving by train each month has risen by nearly 400 percent since 2009

On top of the emergency order, the DOT on Wednesday issued a “safety advisory,” in which it “strongly urg[ed]” the oil companies shipping Bakken crude on trains to use the best tank cars they can. This advisory came from the Federal Railroad Administration, a division of DOT. How that differs from the organization’s normal position on safety isn’t clear. But it seems not unlike the FAA, after a rash of plane crashes, “strongly urging” airlines to buy the safest kind of planes they can and stop using old, outclassed ones.

The old, outclassed ones in this case is the DOT-111 model of tank car that’s been involved in most of the crude train explosions, including the one last summer in Quebec that killed 47 people. Although it’s widely deemed unfit for transporting crude, the DOT-111 is used to move the vast majority of oil sent by train in the U.S. It’s also the same classification of tank car that’s used to haul agricultural commodities, such as corn or soybeans.

According to the investment bank Cowen Group, about 100,000 DOT-111 tank cars in the U.S. are used to haul flammables such as crude and ethanol. About three-quarters of them may require retrofitting or a gradual phaseout. While some energy companies, such as Tesoro, are already choosing to phase out DOT-111s in their North Dakota operations, most companies are sticking with them until they’re forced to change. A complicating factor is that it’s not even clear, given how volatile Bakken crude is, whether using safer, better-reinforced cars would even help keep a derailed train from exploding.

The DOT’s safety advisory urging the use of better tank cars is a weaker step than what Canadian regulators did two weeks ago, when they aggressively moved to phase out all DOT-111s from hauling crude within three years. In an e-mail, a DOT spokesperson wrote that the agency is moving as quickly as it can to update its tank car regulations and that the safety advisory is a step it can take immediately. Last week, DOT Secretary Anthony Foxx sent to the White House a list of options on how to make crude-by-rail safer.

 
Philips is an associate editor for Bloomberg Businessweek in New York.

What they are thinking and planning: Crude By Rail Conference & Expo

Repost from Railway Age
[Editor: A Benicia Independent reader sent me an email notification of this Conference, suggesting that it might be instructive for one of us to attend.  Anyone with time and money available to go?  – RS]

June 12 & 13, 2014  |  Key Bridge Marriott  |  Arlington, VA
· Moving CBR Profitably — and Safely ·

Crude by Rail (CBR) is a rapidly growing source of traffic for the railroads, as well
as a key driver of new freight car construction for carbuilders and component suppliers. Because of recent serious accidents, CBR is also under heavy scrutiny by safety and regulatory agencies.

Railway Age’s Crude By Rail Conference & Expo focuses on moving CBR not just safely,
but also profitably.

Speakers include:
CBR Speakers675
Join these and other industry experts to discuss:
•  Safety & Regulations •  New-Gen Tank Cars
•  Traffic Trends •  First Responder Training
•  Tank Car Financing & Leasing •  Insurance & Liability

Who should attend?
•  Railroad transportation & operating personnel •  Government personnel
•  Carbuilders and component suppliers •  Crude oil producers & refiners
•  Consultants •  First responders
View the full agenda now, including confirmed speakers and topics.
 
REGISTER-BUTTON

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Contact us:   Tel. 212.620.7208 / 212.620.7205 | conferences@sbpub.com | @RailwayAgeEvent