Category Archives: Rail industry

Bakken Crude, Crude By Rail, Derailment, Federal Regulation (U.S.), High Hazard Flammable Trains (HHFTs), Oil spill, Rail industry, Rail industry lobby, Rail tank cars, Tank car design, Tank car leaks

Told to fix leaky oil train cars in 2 months, owners sought 3 years

Repost from McClatchyDC
[Editor:  Significant quote: “This year is already the second worst for oil spilled from trains since the federal government began collecting data 40 years ago….trains spilled about 1 million gallons in 2013 alone, vs. 800,000 in all the prior years combined….More than 600,000 gallons of oil has spilled from trains so far this year….”  – RS]

Told to fix leaky oil train cars in 2 months, owners sought 3 years

By Curtis Tate and Samantha Wohlfeil, September 2, 2015 

HIGHLIGHTS
• Washington state spills led to March order from federal agency
• Industry group asked for three-year extension
• Regulators gave owners until end of 2015

The wreckage of an oil train derailment in Mount Carbon, W.Va., still smolders 48 hours after the crash, on Wednesday, Feb. 18, 2015.

WASHINGTON  |  Railroad tank cars equipped with defective valves still will be allowed to transport crude oil and other hazardous materials through the end of the year, despite a March directive from federal regulators requiring their replacement within 60 days.

The Federal Railroad Administration order followed a Bellingham (Wash.) Herald story about a leaking oil train reported in Washington state in January. The Railway Supply Institute, trade group representing tank-car owners, wrote the agency in April asking for a three-year extension to replace the faulty valves on tank cars that carry hazardous materials.

About 6,000 tank cars were affected by the recall, issued on March 13. On May 12, the day of the original deadline, regulators wrote back to the trade group that the agency found no basis to give tank car owners until 2018 to comply, but nonetheless gave them until Dec. 31, an extension of more than six months.

Officials from the Railway Supply Institute couldn’t be reached to comment.

60   Number of days tank car owners had to comply
with March directive.

The federal order came about a month after crews discovered tank cars leaking from their top fittings while hauling crude oil through Washington state.

In mid-January, a 100-car train loaded with Bakken crude had 16 leaking cars removed at four different stops between northern Idaho and the Tesoro refinery in Anacortes, Wash.

As the train traveled west along the Columbia River, leaking cars were pulled as they were discovered; at each stop, the entire train was inspected before continuing on to the next location.

BNSF Railway, the train’s operator, said a total of 26 gallons of oil from 14 of the leaking cars was found only on the tops and sides of the cars, and no oil was found on the ground, in a report to the U.S. Department of Transportation.

Separately, the Federal Railroad Administration fined the owner of a North Dakota oil loading terminal $10,000 for a spill from a tank car that was discovered in November in Washington state. When the car arrived at a refinery for unloading, inspectors found it coated in oil and measured about 1,600 gallons missing.

State officials first learned of the spill a month after it happened, and no local officials were notified. In March, the Washington Utilities and Transportation Commission recommended $700,000 in fines against BNSF for failure to report 14 hazardous materials spills within the 30 minutes required by state law.

BNSF has disputed the state regulator’s findings. A hearing is scheduled for January.

Six major oil train derailments this year across North America have demonstrated the continued risks of large volumes of crude oil moving by rail.

Four of those derailments occurred in just four weeks in February and March: two in Ontario, one in West Virginia and another in Illinois. All involved large spills, fires and explosions, but no serious injuries.

Two less serious oil train derailments have occurred since, in North Dakota in May and Montana in July.

600,000   Number of gallons of oil spilled from trains
so far this year.

The rail industry and its regulators have been under pressure from lawmakers and the public to fix tank car vulnerabilities and take more steps to prevent derailments from happening.

The U.S. Department of Transportation issued its final rule on tank car standards for trains carrying oil, ethanol and other flammable liquids on May 1.

The new rule requires a tougher design for the tank cars, including thicker shells, more puncture resistance and thermal insulation to protect against prolonged exposure to fire.

It also requires existing tank cars be retrofitted to meet the new standards, depending on the level of hazard, within two to 10 years. Industry groups have challenged the new rule in court, saying it doesn’t give them enough time to complete the retrofit. Environmental groups have sued as well, saying it gives the industry too much time.

This year is already the second worst for oil spilled from trains since the federal government began collecting data 40 years ago.  A McClatchy analysis of the data last year found that trains spilled about 1 million gallons in 2013 alone, vs. 800,000 in all the prior years combined.

More than 600,000 gallons of oil has spilled from trains so far this year, according to a new analysis of data from the Pipeline and Hazardous Materials Safety Administration.

Wohlfeil writes for the Bellingham Herald and reported from Bellingham, Wash.
Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Federal Regulation (U.S.), Fire, Hazardous cargo transparency, Hazmat notification, High Hazard Flammable Trains (HHFTs), Rail industry

Feds warn railroads to comply with oil train notification requirement

Repost from McClatchyDC
[Editor:  Significant quote: “Illinois, Kentucky, Ohio, New York and Pennsylvania told McClatchy last month that they had received no updated oil train reports from CSX since June 2014.”  See also the Federal Railroad Administration press release AND letter.  – RS]

Feds warn railroads to comply with oil train notification requirement

By Curtis Tate, July 22,2015
This Feb. 17, 2015, photo made available by the Office of the Governor of West Virginia shows a derailed train in Mount Carbon, W.Va. U.S. transportation officials predict many more catastrophic wrecks involving flammable fuels in coming years absent new regulations.
This Feb. 17, 2015, photo made available by the Office of the Governor of West Virginia shows a derailed train in Mount Carbon, W.Va. U.S. transportation officials predict many more catastrophic wrecks involving flammable fuels in coming years absent new regulations. | Steven Wayne Rotsch AP

The U.S. Department of Transportation warned railroads that they must continue to notify states of large crude oil shipments after several states reported not getting updated information for as long as a year.

The department imposed the requirement in May 2014 following a series of fiery oil train derailments, and it was designed to help state and local emergency officials assess their risk and training needs.

In spite of increased public concern about the derailments, railroads have opposed the public release of the oil train information by numerous states, and two companies sued Maryland last July to prevent the state from releasing the oil train data to McClatchy.

The rail industry fought to have the requirement dropped, and it appeared that they got their wish three months ago in the department’s new oil train rule.

We strongly support transparency and public notification to the fullest extent possible. Sarah Feinberg, acting administrator, Federal Railroad Administration

But facing backlash from lawmakers, firefighters and some states, the department announced it would continue to enforce the notification requirement indefinitely and take new steps make it permanent.

There have been six major oil train derailments in North America this year, the most recent last week near Culbertson, Mont. While that derailment only resulted in a spill, others in Ontario, West Virginia, Illinois and North Dakota involved fires, explosions and evacuations.

In a letter to the companies Wednesday, Sarah Feinberg, the acting chief of the Federal Railroad Administration, told them that the notifications were “crucial” to first responders and state and local officials in developing emergency plans.

“We strongly support transparency and public notification to the fullest extent possible,” she wrote. “And we understand the public’s interest in knowing what is traveling through their communities.”

The letter was written after lawyers for Norfolk Southern and CSX used the new federal oil train rules to support their position in the Maryland court case that public release of the information creates security risks and exposes the companies to competitive harm.

Feinberg added that the notifications must be updated “in a timely manner.”

States such as California, Washington and Illinois have received updated reports regularly from BNSF Railway, the nation’s leading hauler of crude oil in trains. Most of it is light, sweet crude from North Dakota’s Bakken region and is produced by hydraulic fracturing of shale rock.

But to get to refineries on the east coast, BNSF must hand off the trains to connecting railroads in Chicago or other points. Illinois, Kentucky, Ohio, New York and Pennsylvania told McClatchy last month that they had received no updated oil train reports from CSX since June 2014.

The emergency order requires the railroads to report the weekly frequency of shipments of 1 million gallons or more of Bakken crude, the routes they use and the counties through which they pass. The railroads must update the reports when the volume increases or decreases by 25 percent.

Railroads found to be in violation of the requirement face a maximum penalty of $175,000 a day for each incident. The Federal Railroad Administration periodically audits railroads for compliance.

6 – Number of major oil train derailments in North America in 2015.

Though publicly available data on the exact volume of crude oil moved by railroads is difficult to come by, in an April earnings call, Norfolk Southern, the principal rival of CSX, reported that its crude oil volumes increased 34 percent from the first quarter of 2014 to the first quarter of 2015.

That’s not a reliable indicator of the increase in Bakken crude oil on any one route, but Illinois, Ohio and Pennsylvania did say they received updated oil train reports from Norfolk Southern in the past year.

Of the states on the CSX crude oil network McClatchy asked, only Virginia reported receiving an update in the year between June 2014 and June 2015, and that was a week after a CSX oil train derailed and caught fire in February near Mount Carbon, W.Va.

Rob Doolittle, a spokesman for CSX, said the railroad continues to be “in full compliance” with the emergency order. He added that the railroad “recently” sent new notifications to the affected states, “regardless of whether there was any material change in the number of trains transported.”

Read more here: http://www.mcclatchydc.com/news/nation-world/national/economy/article28078114.html#storylink=cp

 

Crude By Rail, Lac-Mégantic, Rail industry

Rail company ends shipping of crude oil in Maine & New Hampshire

Repost from The Portland Press Herald
[Editor:  Interesting summary of various effects on rail companies following the Lac-Mégantic disaster.  – RS]

Irving ends rail shipping of crude oil through Maine

The cutback is due to a drop in global demand and is not related to the Lac-Megantic rail disaster, the firm says.
By Tom Bell, July 15, 2015

Irving Oil has stopped shipping crude oil on railroads through Maine and has no plans to revive the practice.

The Canadian company, which operates an oil refinery in Saint John, New Brunswick, confirmed the policy change in a June 30 email to the Maine Center for Public Interest Reporting.

The change means there will be no more oil shipments though New Hampshire and southern and central Maine on Pan Am Railways. In addition, there will be no more oil shipments on the Eastern Maine Railway, which connects with Pan Am at Mattawamkeag and continues through Washington County to the Canadian border.

The cutback is because of global oil-supply-and-demand issues and is not related to the fallout from the Lac-Megantic rail disaster, Mark Sherman, Irving’s chief operating officer, told the Maine Center for Public Interest Reporting. The U.S. demand for Canadian-produced petroleum products has declined in the wake of an oversupply of oil from domestic and Mideast sources.

In 2012, Maine railroads shipped 5.2 million barrels of crude oil, but shipments declined sharply after the July 6, 2013 accident in Lac-Megantic, Quebec, when an unattended 74-car freight train carrying Bakken crude oil rolled and derailed, resulting in a fire and explosion that killed 47 people.

The railroad involved in the disaster, the Montreal, Maine & Atlantic Railway, never carried oil again and went bankrupt. Its successor, the Central Maine & Quebec Railway, also has never carried oil because of political opposition in Lac-Megantic.

Pan Am, whose trains travel through Portland, carried just 15,545 barrels of oil in all of 2014, according to records the company filed with the Maine Department of Environmental Protection. In 2015, Pan Am has carried 37,128 barrels. All those shipments occurred in February, the last month the railroad delivered oil to the Irving refinery, according to the Maine Center for Public Interest Reporting.

An official with Pan Am could not immediately be reached for comment.

John Giles, CEO of Central Maine & Quebec Railway, had been seeking an agreement with Lac-Megantic officials to restart oil train shipments through the Canadian town. On Tuesday, Giles said the railroad does not need to carry oil to be profitable.

“I was never counting on moving crude oil in the first place,” Giles said.

Giles said his railroad spent $10 million to upgrade the rail line last year and is spending $6 million this year, with about half of that investment in Maine.

An investigation after the Lac-Megantic accident found that the tank-car labels understated the flammability of the oil. Twenty-five companies have offered a total of $431 million (Canadian) to settle lawsuits arising out of the disaster. Irving Oil’s contribution is $75 million. The settlement is being considered by U.S. and Canadian courts.

Crude By Rail, Derailment, Emergency Readiness & Response, Local Regulation, Rail industry, Rail Safety, Take Action

Baltimore City Council holds hearing on crude oil transport

Repost from The Baltimore Sun

City Council holds hearing on crude oil transport

By Christina Jedra, July 8, 2015, 9:57pm
Crude oil train in Maryland
Port Deposit, MD — A Norfolk-Southern train transporting crude oil heads north through Port Deposit past a railroad crossing near the U.S. Post Office. Amy Davis / Baltimore Sun (Amy Davis / Baltimore Sun)

The City Council held its first public hearing Wednesday on the safety of shipping crude oil through Baltimore, with environmental advocates expressing concern about the practice.

“Right now, we are in a blast zone,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “City Hall is in a blast zone.”

According to advocates, 165,000 Baltimore residents live within a one-mile radius of train routes that are potentially vulnerable to explosions from crude oil train derailments.

City Council Vice President Edward Reisinger said the informational hearing was called to evaluate the threat the shipments pose to the city.

Reisinger said recent derailments — such as one in Quebec in July 2013 that killed 47 people in a massive explosion — are cause for concern. He also pointed to an April 2014 derailment in Lynchburg, Va., that spilled thousands of gallons of crude oil into the James River.

The hearing Wednesday evening at City Hall lasted about two hours. Dozens of advocates — many from the climate action network and Clean Water Action — held a rally outside earlier.

“It’s not a matter of if another oil train will derail … it’s only a question of when,” said the Rev. Amy Sens of six:eight United Church of Christ.

The Maryland Department of the Environment recently denied an application by a Houston-based company to ship crude oil through Baltimore’s port terminal near Fairfield. A Connecticut-based company, Axeon Specialty Products, ships tens of millions of gallons of crude oil through the terminal.

It’s not known how much crude oil is shipped through the city or state. Norfolk Southern and CSX sued the state agency to prevent it from releasing the information.

Tidwell said the “No. 1 thing” advocates want is transparency — knowing the quantities, routes and times that hazardous materials are transported in local areas.

Trisha Sheehan, the regional field manager of Moms Clear Air Force, said she would like to see trains rerouted away from “vulnerable populations,” such as hospitals and schools, and a transition to renewable energy sources.

City emergency management officials answered questions for council members. Executives from rail companies, including Norfolk Southern and CSX, also were invited to attend.

Jon Kenney, a community organizer for the climate action network, said the hearing was necessary to raise public attention.

“Residents of Baltimore want [the council] to take action on oil trains in their communities,” Kenney said. “We have been talking to community members who live along the rail routes, and they are concerned. The rail companies are keeping everyone in the dark.”

Reisinger said the council can take little action to influence the sorts of shipments made along rail lines. Still, he said, it is important to discuss how prepared the city and the companies are to safeguard communities from future accidents.

Dave Pidgeon, a spokesman for Norfolk Southern, said company officials recognize that communities like Baltimore look to them to operate the rail lines safely. He said Norfolk Southern has long had a record of safe delivery of hazardous materials.

“This country depends on the railroads to operate safely,” he said. “That is something we have to shoulder.”

He declined to say how much crude oil Norfolk Southern transports through Baltimore, citing safety concerns, among other reasons. Crude oil makes up less than 2 percent of the company’s total traffic, he said.

He said the company works to make sure the shipments it delivers are carried on tank cars that meet the strictest safety standards.

“We have no choice,” Pidgeon said. “We have to haul hazardous material, including crude oil. If a customer gives us a tank car that meets safety standards, we have to haul it. There’s no question.”