Category Archives: Rail industry

Railroads & oil industry must insure against costs of clean-up after catastrophic accidents

Repost from The Times Union, Albany, NY

Editorial: A cost of rail oil profits

Thursday, June 5, 2014

First, 47 people were killed and a town flattened last summer when a crude oil-filled freight train exploded in Lac-Megantic, Quebec. Then, as residents mourned the death and destruction, the railroad at fault declared bankruptcy, leaving the Canadian government holding a nearly $3 billion bill.

The Canadian tragedy has helped fuel a national cry on this side of the border for greater scrutiny of what has become a boom in crude oil rail transport. Capital Region residents need look no farther than the continual ring of tanker cars around downtown Albany for reason to worry that a disaster could happen here, and to wonder: If it does, who will be held responsible?

As we wait for the White House’s release of new federal rules regarding the railroads themselves, state Assemblywoman Patricia Fahy, an Albany Democrat, has proposed that terminal operators also be required to have some responsibility in controlling this surge.

Since the Quebec disaster, at least eight significant accidents have occurred in North America, involving trains carrying either tar sands crude oil or Bakken crude oil, which is the source for the tankers bound for the Port of Albany. Ms. Fahy, pointing to the bankruptcy of the railroad company involved in the Lac-Megantic accident and the failure of its insurance to cover the billions in damage, suggests “terminal operators should put up enough financial security to cover expenses after something happens.”

That makes sense. In the same way General Electric is being held responsible to clean up PCBs from the Hudson River, the railroads and terminal operators profiting from crude oil transport should be required to invest in upgrades to safeguard against accidents, as well as surety for when an accident happens. This is a cost of doing dangerous business.

With Global Companies and Buckeye Partners seeing twofold increases in just a couple of years to 3 billion gallons of crude flowing through their terminals annually, and with railroad profits surging nearly 20 percent since 2009, these modern-day rail magnates can handle the expense.

Ms. Fahy’s bill would apply to all bulk storage facilities in the state that handle crude oil, and require financial security to meet all the responsibilities for cleanup and decontamination associated with any release of the oil.

She notes that, as freight railroads went from just 9,500 carloads of crude in 2008 to more than 434,000 carloads in 2013, the storage needs have increased accordingly.

According to the Times Union’s Brian Nearing, Lac-Megantic officials have estimated it will cost $2.7 billion to rebuild the shattered town, where more than 30 buildings were destroyed, and another $200 million to clean up oil-contaminated land, the sewer system and nearby bodies of water like the Chaudiere River.

We can’t let that happen here. Ms. Fahy’s bill is a step in the right direction.

US DOT and railroads want to circumvent Washington State’s Public Records Act

Repost from The Seattle Post Intelligencer (seattlepi.com)

Should shipments of oil by rail be kept secret from the public?

Posted on June 4, 2014 | By Joel Connelly
In this image made available by the City of Lynchburg, several CSX tanker cars carrying crude oil in flames after derailing in downtown Lynchburg, Va., Wednesday, April 30, 2014. (AP Photo/City of Lynchburg, LuAnn Hunt)Several CSX tanker cars carrying crude oil erupt in  flames after derailing in downtown Lynchburg, Va., on April 30.  It was the latest in a series of oil train accidents.  Nobody was killed, but much of downtown Lynchburg was evacuated.  (AP Photo/City of Lynchburg, LuAnn Hunt)

The nation’s railroads were told last week by the U.S. Department of Transportation that they must notify state emergency management officials about the volume, frequency and county-by-county routes used in cross country shipment of volatile North Dakota crude oil.

But a hitch has developed in Washington, where refineries at Anacortes and Cherry Point north of Bellingham are increasingly relying on oil by rail.

In its order, the Department of Transportation, siding with the railroads, said the information ought to be kept secret from the public.

The DOT told state emergency preparedness agencies to “treat this data as confidential, providing it only to those with a need to know and with the understanding that recipients of the data will continue to treat it as confidential.”

The BNSF and Union Pacific Railroads have sent the state drafts of confidentiality agreements that would restrict access to what the shippers call “security sensitive information.”

In this Aug. 8, 2012 photo, a DOT-111 rail tanker passes through Council Bluffs, Iowa. DOT-111 rail cars being used to ship crude oil from North Dakota's Bakken region are an "unacceptable public risk," and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board said Wednesday, Feb. 16, 2014. The cars were involved in derailments of oil trains in Casselton, N.D., and Lac-Megantic, Quebec, just across the U.S. border, NTSB member Robert Sumwalt said at a House Transportation subcommittee hearing. (AP Photo/Nati Harnik, File)
A DOT-111 rail tanker passes through Council Bluffs, Iowa. DOT-111 rail cars being used to ship crude oil from North Dakota’s Bakken region are an “unacceptable public risk,” and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board told Congress in February. The cars were involved in derailments of oil trains in Casselton, N.D., and Lac-Megantic, Quebec, just across the U.S. border. (AP Photo/Nati Harnik, File)

On Wednesday, however, spokesman Mark Stewart of state Emergency Response Commission told the Associated Press that the railroads’ request conflicts with one of Washington pioneering open government laws.

The confidentiality agreements “require us to withhold the information in a manner that’s not consistent with the Public Records Act,” Stewart told the AP.

The US DOT order came in the wake of a series of oil train fires, most recently train cars catching fire in Lynchburg, Virginia and dumping “product” into the James River.

This follows a deadly runaway trail explosion last year that leveled the downtown of Lac-Megantic, Quebec, and killed 47 people, as well as an explosion and fire near Casselton, North Dakota.

Lawmakers, notably Sen. Maria Cantwell, D-Washington, have pressed the Transportation Department to speed implementation of new safety rules that would require phaseout of 1960′s-vintage, explosion vulnerable DOT 111 tank cars.

The Tesoro Refinery in Anacortes accepted its first trainload of oil in September of 2012. The shipments have soared, with 17 million barrels of oil coming into the state by rail in 2013.  Trains carry as many as 50,000 barrels of crude oil to the Tesoro refinery.

And Tesoro wants to build a $100 million rail-to-barge terminal in the Port of Vancouver on the Columbia River. It would be the largest such terminal in the Northwest, capable of receiving 380,000 barrels of oil a day. The Vancouver City Council voted earlier this week to oppose the project.

Shell Anacortes is in the process of creating a facility that would take 100-car oil trains.  The BP Refinery at Cherry Point is also receiving oil by rail.

All told, according to a Sightline Institute study, 11 refineries and ports in Washington and Oregon are either receiving oil by rail, or have projects underway to receive rail shipments of oil.

The shipments head by rail through cities in both Eastern and Western Washington.

The railroads have been highly secretive about their operations.  They are regulated by the federal government under the Interstate Commerce Act, leaving cities and local governments with almost no rights to request information or limit operations.

The BNSF has promised to purchase 5,000 newer, safer tank cars, and Tesoro has pledged to phase out use of the DOT-111 cars this year.

Washington State: federal emergency order not enough

Repost from Seattle Weekly News

Emergency Order Requires Railroads to Report Bakken Oil, but Is It Enough?

By Jerry Cornfield Thu., May 29 2014

By the end of next week, Washington will learn how often tank cars of oil siphoned from North Dakota’s Bakken Shale are getting shipped by rail through the state.

An emergency order from the U.S. Transportation Department requires railroads to tell the state how many trains carrying this highly flammable varietal of black gold are expected to travel through Washington each week, and on which routes.

Railroads are not required to reveal exactly what days and times the trains are coming or how much crude oil is getting transported.

Community leaders, emergency responders and some politicians say that’s the information they really need to be prepared for a derailment, spill or other type of accident.

They’re aware of oil train derailments in Virginia in April, in Alabama in November; and in Quebec last July, where 47 people died.

They know the chances of an accident are increasing as rail shipments of all types of crude oil multiply in Washington. The state Department of Ecology estimates it went from zero barrels in 2011 to nearly 17 million barrels—roughly 714 million gallons—in 2013.

But rather than criticize the order as inadequate, these leaders cite the federal action as a step forward.

“We’re all kind of worried about (Bakken crude) because it is much more flammable than regular crude oil. We have been asking for more information,” said Brad Reading, assistant chief of Snohomish County Fire District 1 and chairman of the countywide Special Operations Policy Board which handles planning for hazardous materials incidents. “This is certainly a step forward.”

Marysville Mayor Jon Nehring said he understood the federal change “wasn’t overwhelming” in its scope when it was announced in early May

“From the perspective of public safety, the greater the detail the better, so any movement in that direction is good,” he said.

The rules, which kick in June 6 and apply to all 50 states, cover only shipments of at least 1 million gallons of Bakken crude. That sounds like a lot, except when you consider that one tank car holds about 30,000 gallons of crude oil, and oil trains commonly have 100 or more cars hitched together.

Railroads must give the State Emergency Response Commission an estimate of how many trains will run through each county each week. The commission will notify the counties.

After railroads provide the information next week, they won’t need to contact the state again unless the number of trains carrying Bakken oil increases or decreases by 25 percent or more.

Refiners and railroads aren’t enamored with the notification directive. They worry it could increase the risk of sabotage and encourage daring activists to try to block trains through protests.

They’d prefer not to see the information publicized. State emergency management officials plan to post it online but on Tuesday were checking to find out if they are barred from doing so.

And the federal rules don’t deal with the safety of the rail cars in which the Bakken is shipped. That’s a separate conversation going on in Washington, D.C. where the Obama Administration and lawmakers on both sides of the aisle are likely to impose tougher standards for rail car construction.

Sen. Doug Ericksen, R-Ferndale, chairman of the Senate Energy, Environment & Telecommunications committee, said the new notification rule is “a piece of the puzzle” but tank car safety is critically important and needs addressing sooner than later.

He’s planning to hold a public hearing on oil trains June 17 in Spokane.

“State lawmakers must continue to pressure the federal government to take stronger action,” he said when the order came out May 7. “It is what communities throughout Washington deserve and what we didn’t get from our federal leaders today.”

Political reporter Jerry Cornfield’s blog, The Petri Dish, runs regularly at www.heraldnet.com .

Chicago, nation’s busiest rail hub: firefighters unprepared, lacking foam and equipment

Repost from the Chicago Tribune

Area poorly prepared for crude-oil train fires

Stocks of firefighting foam few and far between

By Richard Wronski, Tribune reporter  |  May 25, 2014
Cherry Valley accidentIn 2009, a Canadian National freight train hauling 75 tank cars with ethanol derailed and erupted into a massive fireball in Cherry Valley, near Rockford. Although firefighters had about 400 gallons of foam on hand and more on the way, they concluded it wasn’t enough to put out the fire. (National Transportation Safety Board / June 19, 2009)

Few Chicago-area fire departments have enough firefighting foam and equipment to respond effectively to the roaring infernos seen near Rockford and elsewhere in recent years when multiple railroad tank cars carrying flammable liquids derail and explode, the Tribune has found.

So-called unit trains, rolling pipelines with more than a hundred tank cars hauling millions of gallons of crude oil, have become game changers for emergency responders, posing new threats and requiring updated safety strategies, experts say.

Such trains have become a common sight in the Chicago area, the nation’s busiest rail hub. Each day, one-fourth of U.S. freight traffic — nearly 500 freight trains and 37,500 rail cars — passes through the city and suburbs, experts say, although it’s unknown exactly how much of this traffic is crude oil.

Yet, the majority of communities lack the thousands of gallons of foam and equipment — like airport “crash trucks” — to respond immediately and effectively to smother flames fueled by one or more railroad tank cars, officials say.

Most fire departments stock only enough 5-gallon containers of foam to extinguish fires involving vehicles and tanker trucks. Larger incidents, involving train loads of flammable liquids, would overwhelm individual departments, officials say.

“We couldn’t carry enough 5-gallon drums and couldn’t switch them out fast enough to get that kind of foam on a tank car or any fire like that,” said Jim Arie, Barrington’s fire chief. “That requires very specialized equipment and personnel.

“It’s truly the worst-case scenario for a fire department, and it’s not the kind of thing you can staff for or have enough equipment for.”

These days, tank-car trains run frequently through scores of suburbs on the tracks that Canadian National Railway Co. acquired in 2009 from the Elgin, Joliet & Eastern Railway, Arie said.

“We may be two years, five years or 12 years before we have an incident. We can’t staff up for that every day, day in, day out, knowing that it may be way down the road before something happens,” Arie said.

In Aurora, which has nine fire engines and 195 firefighters, including a 27-member hazardous-materials team, a fiery derailment would result in a “major disaster,” said Chief John Lehman. Both the Canadian National and the BNSF Railway Co. run tank-car trains through Aurora.

“We could do all the training in the world and have all the equipment in the world, but if one of those (trains) comes off the rails and creates an issue in a very densely populated area, our exposure would be very significant,” Lehman said. “Our ability to deal with an incident of that magnitude would be very taxing.”

Nationwide, crude shipments have grown from 9,500 carloads in 2008 to more than 400,000 in 2013, according to the Association of American Railroads.

The industry stands by its performance, saying more than 99.9 percent of its shipments arrive safely, according to the railroad association.

To deal with any large-scale emergency, nearly all of the state’s 1,200 fire departments depend on each other for help as part of the Mutual Aid Box Alarm System, or MABAS. Besides responding to major events like fires and natural disasters, MABAS also has 42 specialized operations teams for hazardous materials.

MABAS mobilized crews and equipment from several departments June 19, 2009, when a Canadian National freight train hauling 75 tank cars with ethanol derailed and erupted into a massive fireball in Cherry Valley, near Rockford.

Although firefighters had about 400 gallons of foam on hand and more on the way, they concluded it wasn’t enough to put out the roaring fire, which eventually spread to 13 tank cars, said Steve Pearson, who was then chief of the North Park Fire Protection District in Machesney Park.

Unable to get close enough to attack the intense flames, which rose hundreds of feet high, firefighters could do little but let the blaze burn itself out and go into a “defensive position” a half-mile away, Pearson told the National Transportation Safety Board forum on railroad safety last month.

“Even if we had an endless amount of foam, it could not have been safely applied to this incident,” he said.

But firefighters stress the importance of responding to such incidents as swiftly as possible with ample foam before they get out of control.

Although some people were rescued, a 44-year-old woman in a car stopped at the train crossing was fatally burned and several others were injured. Her pregnant 19-year-old daughter lost her baby.

It wasn’t until 5 p.m. the next day, nearly nine hours after the derailment, that all fires were extinguished and residents could return to about 600 homes that were evacuated, Pearson said.

Increased risks

The roster of fiery derailments has steadily grown along with the flow of volatile crude oil from the booming Bakken fields of North Dakota, Montana and Canada.

Nine oil train derailments have occurred in the U.S. and Canada since March 2013, several resulting in intense fires and evacuations, according to the NTSB.

By far the worst occurred when a runaway oil train derailed and exploded July 3, 2013, in Lac-Megantic, Quebec. Sixty-three tank cars spilled more than 1.3 million gallons of oil. Forty-seven people were killed and 30 buildings destroyed, officials said.

Earlier this month, Canadian officials charged the railroad — which was then owned by Rosemont-based Rail World Inc. — and three of its employees with criminal negligence in connection with the incident.

Reacting to the spate of incidents, the NTSB convened a two-day forum last month in Washington to address the safety of shipping crude oil and ethanol by rail. More than 20 fire officials, federal administrators, railroad and tank car industry representatives, and other experts testified.

One focus was the crash-worthiness of the tank cars. The NTSB has warned for decades that older-model cars like those involved in the Cherry Valley incident, known as DOT-111s, are prone to rupture in a derailment.

The Canadian government has ordered a phaseout of the DOT-111s over the next three years unless they’re retrofitted with better protection in case of derailment. So far, the U.S. Department of Transportation has only recommended that shippers avoid using the DOT-111s “to the extent possible.”

The U.S. is being “extremely lethargic and to some extent irresponsible” in not dealing with the DOT-111s, said Aurora Mayor Tom Weisner, who, with Barrington Village President Karen Darch, is co-chairman of a coalition of communities pushing for more tank-car safety measures.

“The bureaucracy of it all is literally costing people’s lives, and the potential catastrophe before us, unless something is done, is scary,” Weisner said.

Officials at the NTSB forum called for greater community awareness, enhanced planning and preparedness, and improved training for emergency responders.

“While most fire-service personnel are generally familiar with flammable and combustible liquid emergencies, we know from recent catastrophic events that the amount of product being transported via unit trains exceeds our current response capabilities,” Richard Edinger, vice chairman of the International Association of Fire Chiefs, told the forum.

One strategy would be to establish stockpiles of foam at key locations along rail lines where crude oil and other hazardous materials are shipped. Currently, such supplies are few and far between and would probably arrive too late to quell an inferno, experts say.

Increasing supplies of foam would require fire departments, organizations like MABAS and the Illinois Emergency Management Agency to evaluate their current equipment supplies, officials say.

Although the state agency would coordinate the statewide response to a large-scale emergency, it maintains no inventory or list of foam stockpiles, a spokeswoman said.

The agency, however, is considering the possibility of contracting with foam manufacturers to provide the product on short notice, she said.

Combined with water, foam works by smothering combustible liquid fires, suppressing vapors and cooling the fuel and other surfaces. Applying water alone to a crude oil or ethanol fire will spread the flames.

Generally, only refineries, chemical plants and airports have extensive supplies of firefighting foam and special tanker trucks to spray it quickly, experts say.

The Chicago Fire Department has several crash trucks with foam on hand at O’Hare International and Midway airports. Whether the trucks have sufficient foam to respond to a fiery derailment and could be sent elsewhere in the city or suburbs is unclear.

Despite several requests from the Tribune, the city of Chicago and the Chicago Fire Department did not respond to questions about the city’s foam capability.

Canadian National doesn’t stock foam along its routes, but it is “aware of significant foam locations along (the) system which could be called upon during an incident,” a spokesman said.

As evidenced by Cherry Valley, however, it’s questionable whether those stocks could get to the scene of a crude oil disaster quickly enough.

‘Skin in the game’

One community with a significant store of foam is the village of Bedford Park. Close to Midway, the village is the site of several chemical plants, liquid bulk-storage terminals and a large railroad switching yard.

Chief Sean Maloy said his village is a MABAS division headquarters and is well-equipped and trained to deal with most hazmat situations. It has several hundred gallons of foam — much of it stored on a trailer — that could be offered to other communities in an emergency.

“We’ve got a lot of foam available to us. It’s a matter of getting it there quickly,” he said. “It comes down to how much foam you can bring at one time.”

Some experts and public officials have suggested that companies benefiting from the boom in crude oil such as oil producers, tank-car owners and railroads pay a per-gallon fee to help fund training and programs to prepare for emergencies.

Such a fee was proposed in January by Chicago Mayor Rahm Emanuel before a meeting of the U.S. Conference of Mayors in Washington.

On Tuesday, Minnesota Gov. Mark Dayton signed a law to collect $2.5 million annually from railroad and oil pipeline companies to help first responders get ready for derailments and spills involving oil and other hazardous substances.

Jay Reardon, the head of Illinois’ MABAS, said that the risk posed by crude oil shipments should prompt local municipal officials to re-evaluate the ability of their fire departments to provide adequate mutual aid responses.

If Illinois were to set such a fee, Reardon said, the money could fund groups like MABAS to stockpile foam and provide additional hazmat training.

“If there are companies who are making money on this, then don’t they have skin in the game?” Reardon asked. “Shouldn’t they be charged a minute portion, and that money go into a pool to fund risk mitigation?”