Category Archives: Federal Regulation (U.S.)

Minimal enforcement fines

Repost from the Kansas City Star and McClatchy Newspapers

Federal rail agency collects minimal enforcement fines, documents show

2014-01-31
By Curtis Tate
McClatchy Washington Bureau

WASHINGTON — The U.S. Department of Transportation collects relatively small civil penalties against the railroads it regulates, as concern grows over the safety of shipping large volumes of crude oil and ethanol in tank cars long known to be deficient, federal documents show.

Tiskilwa, IL, 7-Oct-11

A McClatchy review of annual enforcement reports shows that the Federal Railroad Administration rarely fines any company more than $25,000, though it’s authorized to collect a maximum of $175,000 per violation. Some fines are as little as $250, and most settlements are substantially lower than the agency had first proposed.

Additional documents obtained by McClatchy reveal that the agency agreed to a $17,000 settlement in September 2010 with the Canadian National Railway over a June 2009 derailment in Cherry Valley, Ill. The accident killed one person, injured nine – including two firefighters – spilled more than 300,000 gallons of ethanol and caused the evacuation of more than 600 nearby residents.

Two inspection reports filed in the weeks after the accident also show that the violations that resulted in the fine didn’t directly contribute to the accident or its severity, including faulty equipment on cars that didn’t derail or spill their cargo and incorrect documentation of the placement of cars in the train. Such defects would have been violations even if the accident hadn’t occurred.

The agency originally proposed a $25,000 fine for the accident, in which 13 tank cars of ethanol derailed, leaked and caught fire.

In contrast, the railroad reached a $36 million settlement in October 2011 with the family of the woman who was killed when the fire engulfed her car at a road crossing.

“The Federal Railroad Administration uses a variety of tools to ensure that railroads are operating safely, including civil penalties, enforcement actions and partnerships to drive change within safety culture,” said Kevin Thompson, a spokesman for the agency. “These tools are an integral force in driving continuous safety improvement, resulting in significant declines in all measureable safety indicators.”

Patrick Waldron, a spokesman for Montreal-based Canadian National, said the company agreed to pay the fine and, as with any report it discusses with its U.S. regulators, “continually reviews our own internal procedures for regulatory compliance and safety improvements.”

The railroad administration collected $13.9 million in civil penalties last year.

The small settlement amounts demonstrate a “symbiotic” relationship between railroads and their federal regulators, said Mary Schiavo, a former DOT inspector general during the Clinton administration.

“Fines are a cost of doing business,” she said.

The Cherry Valley accident prompted a warning in 2012 from the National Transportation Safety Board about the inadequacy of the DOT-111A tank car, the most common type in service on North American railroads. The NTSB is an advisory board that has no enforcement power. Agencies within the Department of Transportation may accept or ignore its recommendations.

Since October 2011, tank car manufacturers have voluntarily built DOT-111A tank cars to a higher standard, with features that help prevent punctures and ruptures that could release hazardous materials, and heat damage due to fire exposure.

But that still leaves tens of thousands of vulnerable older tank cars that are carrying massive quantities of crude oil from North Dakota’s Bakken region to refineries and transfer terminals across the continent.

After fiery derailments in Quebec, Alabama and North Dakota, regulators concluded that the Bakken crude, which is extracted from shale rock through hydraulic fracturing, is more volatile than conventional oils.

No one was killed or injured when Bakken crude oil trains derailed near Aliceville, Ala., in November and Casselton, N.D., in December, but the accidents together spilled more than 1.15 million gallons of oil.

The derailment of an unmanned, runaway crude oil train killed 47 people last July in Lac-Megantic, Quebec.

Philadelphia had a close call last week, when a CSX crude oil train derailed on a bridge over the Schuylkill River but didn’t spill any of its cargo.

State and local officials, members of Congress, rail companies and petroleum producers have called on the federal government to issue new guidelines for the safe handling of crude oil by rail and to update the safety standards for tank cars.

The Association of American Railroads, an industry group, estimates that railroads moved 400,000 carloads of crude oil in 2012, mostly Bakken. Railroads moved 325,000 carloads of ethanol in 2010, according to industry estimates.

The tank cars in the Quebec, Alabama, North Dakota and Illinois accidents weren’t considered defective under federal guidelines.

Government pamphlet: Bureau of Explosives

Attachment: Pamphlet 34 – Recommended Methods for the Safe Loading and Unloading of Non-Pressure (General Service) and Pressure Tank Cars

From the Editor, The Benicia Independent …

Valero proposes to offload 100 tanker cars every day.  Each car will undergo highly technical and potentially dangerous operations where safety caps are manually removed and valves are tested before hoses can be attached, relief valves opened, and the offload valve is fully opened.  At each step in this complicated procedure, fugitive emissions can be added to the air, and minor test spills are intentional and routine.  Question: will Valero follow the guidelines of the Federal Department of Transportation, Bureau of Explosives?  How much do 100 such offloading procedures every day add to the toxic pollutants in our air, especially as compared to fewer connect/disconnect procedures for marine and pipeline supplies of crude oil?

I know there are a few intrepid citizens out there who want to know more in technical detail, and who will devote themselves to the sorts of tech analysis of protocols that inevitably point to issues of both worker and public safety / public health.  Please take a look at the attached document from the DOT / Bureau of Explosives: Pamphlet 34 – Recommended Methods for the Safe Loading and Unloading of Non-Pressure (General Service) and Pressure Tank Cars(Pay close attention to the highlighted material on pages 11-13.)

[NOTE: original source of this pamphlet and other informative documents is http://boe.aar.com/boe-download.htm.]
Roger Straw
Editor, The Benicia Independent

‘Time warp’ for oil train safety

Repost from The Oregonian

By Rob Davis The Oregonian
January 24, 2014
U.S. Sens. Ron Wyden and Jeff Merkley
U.S. Sens. Ron Wyden and Jeff Merkley met Friday at Portland Fire & Rescue headquarters with railroad companies and first responders, saying reforms are needed to address dangers in Oregon from trains hauling potentially explosive crude oil.  (Rob Davis/The Oregonian)

U.S. Sens. Ron Wyden and Jeff Merkley met Friday in Portland with railroad companies, emergency responders and public officials to deliver a clear message: The two Oregon Democrats take oil train safety seriously and believe more needs to be done to protect the state’s residents.

Last year, 110 trains passed through Portland each carrying dozens of cars filled with potentially explosive crude oil from North Dakota. They’re moving the same type of oil that was involved in three high-profile explosions since July, including one in Quebec that killed 47 people and leveled part of a town.

The hour-long meeting Wyden organized at Portland Fire & Rescue headquarters demonstrated the senators’ concern about oil train safety and allowed them to hear directly from first responders. But it also reinforced a festering issue for oil trains.

While there’s been a lot of talk about making them safer, there isn’t much to show for it.

Oil still moves with lighter regulation on trains than if it were transported in traditional ways, such as oil tankers. Despite pledges, railroad companies have been slow to provide state officials with information about oil train routes, their frequency and emergency response plans. Rail companies are resisting legislative efforts to increase those disclosures in Washington state.

Ron Wyden talks about safety concerns with oil trainsSen. Ron Wyden discusses his concerns about oil trains currently shipping potentially explosive crude through Oregon. Wyden says reforms are needed to ensure oil train risks are addressed.

“Too many Oregon communities believe that the safety and public disclosure rules for transporting this oil are stuck in a time warp,” Wyden said. “We’re going to have to strike a better balance between information sharing and security.”

Friday’s meeting yielded some suggestions for improvement. Terry Moss, the St. Helens police chief, said 911 dispatchers there don’t know when mile-long oil trains are passing through his community and blocking crossings for minutes at a time. Dispatchers currently can’t help police and fire responders route around trains, Moss said.

But it also struck out on familiar questions, like how long it would take to phase out thousands of old oil tank cars first identified as safety risks in 1991. Rail companies said they didn’t know.

Wyden, chairman of the U.S. Senate Committee on Energy and Natural Resources, has promised an investigation and said he would track oil train safety until reforms are chaptered in law.

“The Senate is going to bird-dog this,” Wyden said. “This is not something that’s just going to be debated for a few weeks – we’re going to stay at this until it gets fixed.”

KPIX report: Feds Raise Concerns

Repost from KPIX  Channel 5 / CBS News Bay Area
http://sanfrancisco.cbslocal.com/video/9763450-feds-raise-concerns-over-transporting-crude-oil-by-rail/

Feds Raise Concerns Over Transporting Crude Oil By Rail

Federal officials have sounded the alarm over shipping crude oil by rail, following a series of accidents. The announcement comes as two Bay Area cities consider proposals to accept the shipments. Christin Ayers reports.

KPIX Report: Detailing a New Danger, 23 Jan 2014
KPIX Report: Detailing a New Danger, 23 Jan 2014

Download NTSB letters: