Category Archives: Massive increase in crude-by-rail

Bakken Crude, Crude By Rail, Explosion, Fire, Light sweet crude, Massive increase in crude-by-rail, Oil stabilization, Public Safety, Rail inspection, Rail Safety, Train speed, Volatile gases

MINNESOTA PUBLIC RADIO: Seven things you need to know about oil-by-rail safety

Repost from Minnesota Public Radio (MPR)

7 things you need to know about oil-by-rail safety

By Emily Kaiser, Feb 26, 2015
Derailment in Mount Carbon, West Virginia
This aerial Feb. 17, 2015 file photo photo made available by the Office of the Governor of West Virginia shows a derailed train in Mount Carbon, West Virginia. Steven Wayne Rotsch | AP file

Last week’s oil train derailment in West Virginia launched a national conversation about the safety of shipping oil by rail. It’s a topic we’ve been hearing about over the past couple years, especially here in Minnesota, where Bakken oil crisscrosses the state’s rail lines in large volume.

It’s a complex topic combining federal policy with scientific questions. The Wall Street Journal’s Russell Gold has been following the issue closely and spoke to MPR News’ Tom Weber to explain what you need to know.

Here are 7 things you should know about oil transport by rail:

1. The most misunderstood part of crude oil transport by train: It’s very explosive.

“The kind of oil that’s being taken out of the ground in North Dakota and put into these tanker cars is a much lighter oil,” Gold said. “It is a very gassy oil; it has a lot of ethanes, and butanes and propanes dissolved in it. It really does explode and that’s really what’s causing the problems.”

When a set of tanker cars goes up in flames, it can cause 20-story-tall fireballs.

Footage from the West Virigina derailment last week:

2. The amount of crude oil carried by train has increased exponentially in less than a decade.

According to the American Association of Railroads, there were 9,500 rail cars carrying crude in 2008. Last year is was 400,000.

We’ve been moving small amounts of crude by rail for years, but it was one or two cars in long train, Gold said. Now we see 100 to 120 tanker cars all filled with crude oil. That’s 70,000 barrels of crude per train, he said.

3. Once the crude oil is extracted in North Dakota, it has to be transported to the country’s major refineries on the coasts.

Refineries are built to utilize the gases removed from the product. If it was stabilized near the extraction site, North Dakota would have to find a way to use or dispose of the ethane and propane gases that make the oil explosive.

4. Railroads have become “virtual pipelines” for oil.

From a Gold WSJ article:

While these virtual pipelines can be created in months, traditional pipelines have become increasingly difficult to install as environmental groups seek to block permits for new energy infrastructure.

“What we are seeing on rail is largely due to opposition to and uncertainty around building pipelines,” said Brigham McCown, who was the chief pipeline regulator under President George W. Bush . Pipelines, he adds, are far safer than trains.

5. Pipeline leaks and spills are environmental problems. Oil train derailments are public safety issues.

When you have a tank car that derails and starts losing it’s very gassy oil, it’s going to burst into fire rather than leak into waterways, Gold said.

6. If you live close to these rail lines, get in touch with local first responders.

Gold recommends checking with emergency responders nearby and ask if they are properly trained to handle a crude oil train derailment. Make sure your fire chief is in contact with the rail companies to know when major shipments come through your area. Push for decreasing train speed limits and increased track inspection.

7. Can we make the tanker cars safer? Gold gave us the latest:

MPR News Producer Brigitta Greene contributed to this report.

CPC-1232, Crude By Rail, Derailment, Diluted bitumen (Dilbit), DOT-111, Evacuation, Explosion, Fire, Massive increase in crude-by-rail, Tar sands crude

INSURANCE JOURNAL: Derailed Train in West Virginia Had Safer Tank Cars

Repost from Insurance Journal

Derailed Train in West Virginia Had Safer Tank Cars

By John Raby and Jonathan Mattise | February 26, 2015 

The fiery derailment of a train carrying crude oil in West Virginia earlier this month is one of three in the past year involving tank cars that already meet a higher safety standard than what federal law requires – leading some to suggest even tougher requirements that industry representatives say would be costly.

Hundreds of families were evacuated and nearby water treatment plants were temporarily shut down after cars derailed from a train carrying 3 million gallons of North Dakota crude on Feb. 16, shooting fireballs into the sky, leaking oil into a Kanawha River tributary and burning down a house nearby. It was snowing at the time, but it is not yet clear if weather was a factor.

The train’s tanks were a newer model – the 1232 –designed during safety upgrades voluntarily adopted by the industry four years ago. The same model spilled oil and caught fire in Timmins, Ontario this month, and last year in Lynchburg, Virginia.

A series of ruptures and fires have prompted the administration of President Barack Obama to consider requiring upgrades such as thicker tanks, shields to prevent tankers from crumpling, rollover protections and electronic brakes that could make cars stop simultaneously, rather than slam into each other.

If approved, increased safety requirements now under White House review would phase out tens of thousands of older tank cars being used to carry highly flammable liquids.

“This accident is another reminder of the need to improve the safety of transporting hazardous materials by rail,” said Christopher Hart, acting chairman of the National Transportation Safety Board.

Oil industry officials had been opposed to further upgrading the 1232 cars because of costs. But late last year they changed their position and joined with the railway industry to support some upgrades, although they asked for time to make the improvements.

According to the Association of American Railroads, oil shipments by rail jumped from 9,500 carloads in 2008 to 500,000 in 2014, driven by a boom in the Bakken oil patch of North Dakota and Montana, where pipeline limitations force 70 percent of the crude to move by rail.

The downside: trains hauling Bakken-region oil have been involved in major accidents in Virginia, North Dakota, Oklahoma, Alabama and Canada, where 47 people were killed by an explosive derailment in 2013 in Lac-Megantic, Quebec.

Reports of leaks and other oil releases from tank cars are up as well, from 12 in 2008 to 186 last year, according to Department of Transportation records reviewed by The Associated Press.

Just two days before the West Virginia wreck, 29 cars of a 100-car Canadian National Railway train carrying diluted bitumen crude derailed in a remote area 50 miles south of Timmins, Ontario, spilling oil and catching fire. That train was headed from Alberta to Eastern Canada.

The train that derailed in West Virginia was bound for an oil shipping depot in Yorktown, Virginia, along the same route where three tanker cars plunged into the James River in Lynchburg, Virginia, prompting an evacuation last year.

The train derailed near unincorporated Mount Carbon just after passing through Montgomery, a town of 1,946, on a stretch where the rails wind past businesses and homes crowded between the water and the steep, tree-covered hills. All but two of the train’s 109 cars were tank cars, and 26 of them left the tracks.

Fire crews had little choice but to let the tanks burn themselves out. Each carried up to 30,000 gallons of crude.

One person – the owner of the destroyed home – was treated for smoke inhalation, but no other injuries were reported, according to the train company, CSX. The two-person crew, an engineer and conductor, managed to decouple the train’s engines from the wreck behind it and walk away unharmed.

The NTSB said its investigators will compare this wreck to others including Lynchburg and one near Casselton, N.D., when a Bakken crude train created a huge fireball that forced the evacuation of the farming town.

No cause has been determined, said CSX regional vice president Randy Cheetham. He said the tracks had been inspected just three days before the wreck.

“They’ll look at train handling, look at the track, look at the cars. But until they get in there and do their investigation, it’s unwise to do any type of speculation,” he said.

State officials do have some say over rail safety.

Railroads are required by federal order to tell state emergency officials where trains carrying Bakken crude are traveling. CSX and other railroads called this information proprietary, but more than 20 states rejected the industry’s argument, informing the public as well as first-responders about the crude moving through their communities.

West Virginia is among those keeping it secret. State officials responded to an AP Freedom of Information request by releasing documents redacted to remove nearly every detail.

There are no plans to reconsider after this latest derailment, said Melissa Cross, a program manager for the West Virginia Division of Homeland Security and Emergency Management.

___

Contributors include Joan Lowy in Washington, D.C.; Matthew Brown in Billings, Montana; and Pam Ramsey in Charleston, West Virginia. Mattise reported from Charleston.
Bakken Crude, CPC-1232, Crude By Rail, Derailment, DOT-111, Explosion, Massive increase in crude-by-rail, Tank car design, Tank car retrofit, Valero Benicia Refinery, Valero Crude By Rail

SAN FRANCISCO CHRONICLE EDITORIAL: Get rid of exploding tank cars

Repost from The San Francisco Chronicle
[Editor: Significant quote: “Valero Energy Co. has agreed to haul Bakken crude to its Benicia bayside refinery in the newer CPC-1232 cars as part of its city permit application to revamp its facilities to receive crude by rail rather than via oceangoing tanker. But that promise now appears inadequate to protect the safety of those in Benicia as well as in other communities — Roseville, Sacramento, Davis — along the rail line.”  (emphasis added)  – RS]

Get rid of exploding tank cars

EDITORIAL On Crude by Rail, Monday, February 23, 2015
Absent new regulations, U.S. transportation experts predict more oil train wrecks like this one, which occurred Feb. 17 in Mount Carbon, W.Va. | Steven Wayne Rotsch / Associated Press

When a train carrying crude oil derailed last week in West Virginia, sending up a fireball that burned for five days, communities on rail lines in California noted that the accident involved the newer — and it was hoped safer — CPC-1232 model tank cars. Some 3 million gallons of Bakken crude spilled from 26 cracked cars into a Kanawha River tributary, endangering water supplies and forcing the evacuation of two towns. The smoldering crude burned a home, but thankfully no one was killed.

Two days before the West Virginia train wreck, a train pulling CPC-1232 tank cars derailed and caught fire in Ontario, Canada. There was a similar accident last year in Lynchburg, Va.

Clearly, it will take tank car safety upgrades more extensive than those adopted voluntarily by the rail industry four years ago to assure the public safety and protect the environment of communities crossed by rail lines. Yet authorities have dithered.

Bakken crude, a light crude with a low sulfur content, is highly flammable, by the Department of Transportation’s own account. The shippers are working on new procedures to strip out highly volatile elements before the crude is loaded, but they are not uniformly required.

The Obama administration is considering more extensive safety upgrades such as rollover protection, sturdier hulls, shields to prevent tank rupture or collapse, and electronic brakes that would stop the cars before they slam into each other. But it is taking too long to adopt new federal rules. The oil and rail industries support some upgrades, but want more time to accomplish them. This is unacceptable.

The U.S. Department of Transportation has been working on the rules since 2012 but does not expect adoption until mid-May. Once the new rules are accepted, the industry would have three to four years to phase out the unsafe DOT-111 model tank cars, which the National Transportation Safety Board has warned are not suitable to transport flammable liquids. Meanwhile, tens of thousands of the faulty DOT-111 tank cars remain on the rails. Canadian rail authorities accelerated their phaseout of the cars after a fire set off by a derailed oil train killed 47 people in Lac-Mégantic, Quebec, in July 2013.

Safety upgrades are lagging the rapid increase in oil moving by rail: Shipments have increased from 9,500 car loads in 2008 to 500,000 car loads in 2014, driven by the boom in the Bakken Oil Shale formation in North Dakota, where there are few oil pipelines and 70 percent of the petroleum is shipped by train.

Valero Energy Co. has agreed to haul Bakken crude to its Benicia bayside refinery in the newer CPC-1232 cars as part of its city permit application to revamp its facilities to receive crude by rail rather than via oceangoing tanker. But that promise now appears inadequate to protect the safety of those in Benicia as well as in other communities — Roseville, Sacramento, Davis — along the rail line.

The government and the oil and rail industries will need to move more quickly to adopt new safety rules before communities along the rail lines can welcome oil trains rolling into town.

Bakken Crude, CPC-1232, Crude By Rail, Derailment, DOT-111, Ethanol, Explosion, Federal Regulation (U.S.), Massive increase in crude-by-rail, Rail accidents, Rail routing, Risk Assessment, Tank car design, Tank car retrofit, Tar sands crude, Train braking systems, US Department of Transportation

AP EXCLUSIVE: DOT predicts fuel-hauling trains will derail 10 times a year; cost $4 billion; 100’s killed

Repost from Associated Press News
[Editor: Download the July, 2014 Department of Transportation analysis here.  A word of caution: a reputable source writes, “On a closer inspection, PHMSA conceded that the numbers it used for the analysis are flawed and that the scenarios lined out in the AP story are assuming no new regulations are enacted.”  That said, my source also wrote, “We didn’t need a study to tell us there was a problem.”- RS]

AP Exclusive: Fuel-hauling trains could derail at 10 a year

By Matthew Brown and Josh Funk, Feb. 22, 2015 12:00 PM ET

BILLINGS, Mont. (AP) – The federal government predicts that trains hauling crude oil or ethanol will derail an average of 10 times a year over the next two decades, causing more than $4 billion in damage and possibly killing hundreds of people if an accident happens in a densely populated part of the U.S.

The projection comes from a previously unreported analysis by the Department of Transportation that reviewed the risks of moving vast quantities of both fuels across the nation and through major cities. The study completed last July took on new relevance this week after a train loaded with crude derailed in West Virginia, sparked a spectacular fire and forced the evacuation of hundreds of families.

Monday’s accident was the latest in a spate of fiery derailments, and senior federal officials said it drives home the need for stronger tank cars, more effective braking systems and other safety improvements.

“This underscores why we need to move as quickly as possible getting these regulations in place,” said Tim Butters, acting administrator for the Transportation Department’s Pipeline and Hazardous Materials Safety Administration.

The volume of flammable liquids transported by rail has risen dramatically over the last decade, driven mostly by the oil shale boom in North Dakota and Montana. This year, rails are expected to move nearly 900,000 car loads of oil and ethanol in tankers. Each can hold 30,000 gallons of fuel.

Based on past accident trends, anticipated shipping volumes and known ethanol and crude rail routes, the analysis predicted about 15 derailments in 2015, declining to about five a year by 2034.

The 207 total derailments over the two-decade period would cause $4.5 billion in damage, according to the analysis, which predicts 10 “higher consequence events” causing more extensive damage and potential fatalities.

If just one of those more severe accidents occurred in a high-population area, it could kill more than 200 people and cause roughly $6 billion in damage.

“Such an event is unlikely, but such damages could occur when a substantial number of people are harmed or a particularly vulnerable environmental area is affected,” the analysis concluded.

The two fuels travel through communities with an average population density of 283 people per square kilometer, according to the federal analysis. That means about 16 million Americans live within a half-kilometer of one of the lines.

Such proximity is equivalent to the zone of destruction left by a July 2013 oil train explosion that killed 47 people and leveled much of downtown Lac-Megantic, Quebec, the analysis said.

Damage at Lac-Megantic has been estimated at $1.2 billion or higher.

A spokesman for the Association of American Railroads said the group was aware of the Department of Transportation analysis but had no comment on its derailment projections.

“Our focus is to continue looking at ways to enhance the safe movement of rail transportation,” AAR spokesman Ed Greenberg said.

Both the railroad group and the Railway Supply Institute, which represents tank car owners and manufacturers, said federal officials had inflated damage estimates and exaggerated risk by assuming an accident even worse than Lac-Megantic, which was already an outlier because it involved a runaway train traveling 65 mph, far faster than others that had accidents.

To get to refineries on the East and West coasts and the Gulf of Mexico, oil shipments travel through more than 400 counties, including major metropolitan areas such as Philadelphia, Seattle, Chicago, Newark and dozens of other cities, according to routing information obtained by The Associated Press through public record requests filed with more than two dozen states.

Since 2006, the U.S. and Canada have seen at least 21 oil-train accidents and 33 ethanol train accidents involving a fire, derailment or significant amount of fuel spilled, according to federal accident records reviewed by the AP.

At least nine of the trains, including the CSX train that derailed in West Virginia, were hauling oil from the Northern Plains’ Bakken region that is known for being highly volatile. Of those, seven resulted in fires.

Both the West Virginia accident and a Jan. 14 oil train derailment and fire in Ontario involved recently built tank cars that were supposed to be an improvement to a decades-old model in wide use that has proven susceptible to spills, fires and explosions.

Safety officials are pushing to make the tanker-car fleet even stronger and confronting opposition from energy companies and other tank car owners.

Industry representatives say it could take a decade to retrofit and modify more than 50,000 tank cars, not the three years anticipated by federal officials, who assumed many cars would be put to new use hauling less-volatile Canadian tar-sands oil.

The rail industry’s overall safety record steadily improved over the past decade, dropping from more than 3,000 accidents annually to fewer than 2,000 in 2013, the most recent year available, according to the Federal Railroad Administration.

But the historical record masks a spike in crude and ethanol accidents over the same time frame. Federal officials also say the sheer volume of ethanol and crude that is being transported – often in trains more than a mile long – sets the two fuels apart.

Most of the proposed rules that regulators are expected to release this spring are designed to prevent a spill, rupture or other failure during a derailment. But they will not affect the likelihood of a crash, said Allan Zarembski, who leads the railroad engineering and safety program at the University of Delaware.

Derailments can happen in many ways. A rail can break underneath a train. An axle can fail. A vehicle can block a crossing. Having a better tank car will not change that, but it should reduce the odds of a tank car leaking or rupturing, he said.

Railroads last year voluntarily agreed to reduce oil train speeds to 40 mph in urban areas. Regulators said they are considering lowering the speed limit to 30 mph for trains not equipped with advanced braking systems. Oil and rail industries say it could cost $21 billion to develop and install the brakes, with minimal benefits.