Category Archives: Massive increase in crude-by-rail

Safety board chairman says oil train dangers extend beyond crude from the Bakken

Repost from The Associated Press

APNewsBreak: Oil train dangers extend past Bakken

By Matthew Brown, Associated Press, Jun 26, 2014
AP Photo
AP Photo/Matt Brown

BILLINGS, Mont. (AP) — The dangers posed by a spike in oil shipments by rail extend beyond crude from the booming Bakken region of the Northern Plains and include oil produced elsewhere in the U.S. and Canada, U.S. safety officials and lawmakers said.

Acting National Transportation Safety Board Chairman Christopher Hart said all crude shipments are flammable and can damage the environment – not just the Bakken shipments involved in a series of fiery accidents.

Hart cited recent derailments in Mississippi, Minnesota, New Brunswick and Pennsylvania of oil shipments from Canada. He said those cases exemplify “the risks to communities and for the environment for accidents involving non-Bakken crude oil.”

Hart’s comments were contained in a letter to U.S. Sens. Ron Wyden and Jeff Merkley obtained by The Associated Press. They add to growing pressure on federal regulators to improve oil train safety in the wake of repeated derailments, including in Lac-Magentic, Quebec, where 47 people were killed in a massive conflagration last July.

Citing the highly volatile nature of Bakken oil, Transportation Secretary Anthony Foxx last month ordered railroads to notify states of shipments from the region so firefighters and first responders can better prepare for accidents.

But Wyden and Merkley told Foxx on Thursday that the order leaves emergency personnel in the dark on oil shipped from outside the Bakken region.

The Oregon Democrats urged Foxx to expand his order to cover crude from all parts of the U.S. and Canada. They also pressed for the 1 million-gallon minimum threshold in Foxx’s order to be lowered to include smaller shipments.

“With the exception of the Lac-Megantic accident, every accident involving crude oil, ethanol and other flammable materials since 2006 has resulted in a hazardous materials release of less than 1,000,000 gallons,” Wyden and Merkley wrote to Foxx in a letter.

They said the derailments cited by the transportation safety board show that trains carrying non-Bakken crude or less than 1 million gallons pose the same “imminent hazard” that Foxx has asserted for Bakken oil.

Bakken oil on average travels more than 1,600 miles to reach its destination, transportation officials said. That’s much further than oil from some other parts of the country.

U.S. transportation officials said the lengthier journey increases the overall risk exposure for Bakken oil – and is one reason it’s being treated differently than other hazardous cargos.

Representatives of the oil industry and officials in North Dakota also have complained about Bakken oil being singled out by regulators – although for opposite reasons. The American Petroleum Institute and American Fuel and Petrochemical Manufacturers have argued Bakken oil is no more volatile than other light, sweet crudes.

The concerns aired Thursday by the NTSB and Oregon senators essentially flip that argument on its head, to say different types of crude and other hazardous liquids such as ethanol also pose a significant safety risk.

“Accidents involving crude oil or flammable liquids of any kind, especially when these liquids are transported in large volumes, such as in unit trains or blocks of tank cars, can have disastrous consequences,” Hart said.

Association of American Railroads spokeswoman Holly Arthur said the rail industry is complying with Foxx’s original order. She said the group would have to see the specifics of any proposed changes before commenting further.

About 700,000 barrels of oil a day – enough to fill 10 “unit trains” of 100 tank cars each – is coming out of the Bakken by rail, according to the North Dakota Pipeline Authority. That’s about 70 percent of crude-by-rail shipments nationwide, according to federal officials.

Yet the same hydraulic fracturing – or “fracking” – technology that has helped drive the boom in the Bakken region during the past decade is being employed on shale oil fields elsewhere. Crude from the tar sands of western Canada is also fueling the surge in North American production.

Charles Drevna, president of American Fuel and Petrochemical Manufacturers, said he supports getting more information on oil trains to first responders so they’re ready for potential accidents.

According to an analysis done for the U.S. State Department, more than half the loading capacity of oil train facilities built in recent years is in parts of the U.S. and Canada outside the Bakken region. That includes loading terminals in Colorado, Ohio, Oklahoma, Texas, Wyoming, New Mexico, Utah and parts of western Canada.

Law professor: 9 ways that STATES can help regulate railroad safety and transportation

Repost from LegalPlanet.org
[Editor:  Federal preemption under the Commerce Clause is NOT the last and only word on regulating crude oil trains.  Here are some suggestions for State regulation by Professor Jayni Foley Hein, executive director of UC Berkeley School of Law’s Center for Law, Energy & the Environment.  – RS]

Oil By Rail: Nine Things California Can Do to Increase Safety

While FRA Considers New Federal Regulations, States Can Ramp Up Prevention and Emergency Response
By Jayni Hein, June 24, 2014

At a joint Senate and Assembly hearing last week on oil by rail safety in California, some lawmakers expressed frustration at slow federal action, and asked what California can do to increase public safety. My testimony focused on federal preemption issues, defining areas where the state can regulate, and those where it is preempted by the Commerce Clause, Federal Railroad Safety Act (FRSA), or ICC Termination Act, or all three.

While the Department of Transportation (DOT) and Federal Railroad Administration (FRA) have primary authority over railroad safety and transportation, the California Public Utilities Commission (CPUC) shares authority with the federal government to enforce federal rail safety requirements and conduct inspections. And even with strong federal preemption provisions, there are actions that California and other states can take right now to increase public safety in light of the enormous growth of oil by rail.

Here are nine things the state can do:

1. Prioritize track and rail car inspection.

California has more than 5,000 miles of mainline railroad track. Inspection of track and rail cars is vital, as derailments are the most common type of train accident in the United States. A national analysis of freight train derailments from 2001 to 2010 on the Class I freight railroads’ mainline track found that broken track rails or track welds were the leading cause of derailments. Broken rail car wheels and track obstructions are also common causes of derailments. (Liu, et. al. 2012).

Governor Brown’s new budget includes funding to hire seven additional rail safety inspectors for the CPUC, paid for by rail industry assessments. The state should ensure that it has enough CPUC inspectors to accommodate the projected rise in oil by rail traffic each year. If seven new inspectors are needed right now; we will likely need many more by 2016, when oil by rail shipments are projected to increase as much as 25-fold, to 150 million barrels per year.

2. Obtain robust data on rail routing, rail car contents, and accident causes.

California agencies need more information from FRA and the railroads on routes, frequency, and rail car contents, as well as data on train derailments, their causes, and risk factors specific to crude by rail transit. The state should obtain this data from FRA – a recommendation echoed in the June 10, 2014 California Inter-Agency Working Group Report. The CPUC needs both national data and California-specific data in order to do its job.

3. Conduct an analysis of the risks that crude by rail poses to the state, including identification of high-risk areas of track, and propose specific measures to increase safety.

The legislature should consider requiring an annual report from the CPUC on the specific risks that crude by rail poses to the state, and measures that it can take to increase safety. Voluntary agreements with the railroads may also be an important outgrowth of this state-specific analysis that can inform where and how to direct limited state resources. As previewed above, this state analysis should be guided by the most recent data available from FRA and the railroads.

The legislature could also consider requiring information sharing among the relevant state agencies, including CPUC, Office of Emergency Services (OES), Office of Spill Prevention and Response (OSPR), California Environmental Protection Agency, and more.

4. Require state oil spill contingency plans for trains transporting oil into the state.

SB 1319 (Pavley) would require state oil spill contingency plans for trains transporting oil into the state. Such a state-mandated plan would provide an opportunity to secure better emergency response protection for the environment and public safety.

5. Get access to daily information on oil shipments into California, and ensure that state and local emergency personnel can access this information immediately in the event of an accident.

A recent DOT Emergency Order requires that each railroad operating trains containing more than 1 million gallons of Bakken crude oil, or approximately 35 tank cars, to provide states with weekly notice that includes estimated volumes of Bakken oil  transported per week and routing information.

The state should also have immediate access to real-time shipment information, assuming the technology exists to enable this. The state should also ensure that local emergency response personnel are well trained to deal with any crude by rail accident, and can readily identify the contents of any shipment. Training and information sharing with local emergency response personnel can be paid for by the industry, using a fee or assessment like the 6.5 cent/barrel fee on all oil imports recently approved by the state.

6. Advocate for more stringent federal safety regulations.

Legislative pronouncements, as well as the CPUC’s robust participation in the Rail Safety Advisory Committee (RSAC) are needed to secure better federal standards.

California joins others states such as New York in advocating for more stringent rail car design standards (phasing out DOT-111 cars, for example), mandatory placards on rail cars identifying Bakken crude oil,  expediting Positive Train Control, and requiring electronically-controlled pneumatic brakes on all crude oil trains. The state can also advocate for further federal analysis of possible routing changes, to avoid sensitive population and habitat areas.

7. Monitor compliance with new voluntary measures that the railroads agreed to implement this year.

As part of a February 2014 agreement with DOT, the Class I railroads will perform one additional internal-rail inspection each year than required by the FRA on routes over which trains carry 20 or more tank cars of crude oil, and will conduct at least two track geometry inspections over these routes. The  railroads also agreed to use end-of-train braking systems on all oil trains, and lower train speed in federally-designated “high-threat-urban-areas.”

The CPUC should monitor the railroads’ compliance with these voluntary measures. At the same time, CPUC and the state should advocate for making these voluntary measures mandatory, by issuing new or revised FRA regulations.

8. Consider issuing guidance to local permitting agencies on requirements for offloading facilities and oil refinery expansion.

There are currently at least five crude-by-rail refinery projects being pursued in California: one in Pittsburg, one in Benicia, two in Bakersfield, and one in Wilmington. There is a patchwork of local permitting agencies responsible for land use, air, water, and other local safety and environmental issues that may be relevant to offloading sites and refineries.

Local government and permitting agencies can deny land use and other permits for refineries and offloading facilities if they find safety risks or improper environmental mitigation under statutes like the California Environmental Quality Act (CEQA). But, local agency personnel may have varying levels of expertise in oil and rail issues and may apply permitting criteria inconsistently. As such, the state, through the Office or Planning and Research (OPR), should consider issuing guidance to local permitting agencies on necessary permits and requirements for offloading facility or refinery expansion.

9. Provide guidance on CEQA review and the public comment and participation process, especially relevant to environmental justice communities that may be located near offloading sites or refineries.

While rail accidents can happen anywhere, communities near offloading sites and refineries are especially vulnerable to oil by rail transport risks. The state can provide information and guidance to these communities on opportunities for engagement, comment and participation.

In addition, the state can encourage railroads, industry and refineries to work directly with potentially affected communities to disclose as much information as possible about shipments, safety measures, and how community members can participate in the process to make their communities safer.

Public Radio: Lawmakers Seek Ways to Address Oil Train Risks

Repost from Capital Public Radio News
[Editor: About halfway through this 2-minute Public Radio report, UC Berkeley Law professor Jayni Hein offers several ways in which state regulators CAN make effective contributions to public health and safety.  The 3-hour California Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail  can be viewed here – RS]

Lawmakers Seek Ways to Address Oil Train Risks

California Update
By Mark Prell & Capital Public Radio News , June 20, 2014

California lawmakers are taking a closer look at the risks posed by importing crude oil by rail. At issue is what the state can do to prevent and respond to oil rail accidents when so much regulation happens at the federal level.

Audio Report – LISTEN

Crude oil rail transport comes under scrutiny in California

Repost from the Sacramento Bee

Crude oil rail transport comes under scrutiny

By Alexei Koseff, June 19, 2014
crude_oil_rail.JPG
A crude oil train operated by BNSF snakes its way through James, California, just outside the Feather River Canyon in the foothills of Sacramento Valley, on June 5, 2014. Special to The Bee/Jake Miille

The volume of crude oil being shipped to California by rail surged last year, growing more than tenfold and raising concerns about public safety and transparency as these flammable cargoes roll through urban areas like downtown Sacramento.

Legislators have responded with bills that would require more communication by rail carriers to state emergency officials about crude oil shipments and impose a fee to train first responders to deal with major spills and fires on railway lines. Several safety provisions were also added to the budget, creating a fee for every barrel of crude that arrives in California by rail, to be used for oil spill prevention and emergency cleanup.

Lawmakers will explore the matter further during a hearing at 10 a.m. in Room 4203 of the Capitol. The session, jointly held by the Senate and Assembly natural resources committees and the Joint Legislative Committee on Emergency Management, will explore whether the state is prepared for a “boom” in crude oil rail transport, as well as the risks to local communities.

 VIDEO: Lawmakers are hurriedly pushing through hundreds of bills before summer recess, Dan Walters says.