Category Archives: Risk Assessment

Bakken Crude, Emergency Readiness & Response, Federal Regulation (U.S.), Hazmat notification, Public safety funding, Risk Assessment, Spill prevention and response, State regulation

Washington Governor Inslee orders spill response plan

Repost from The Columbian

Inslee issues oil train directive

Dept. of Ecology ordered to develop spill response plan
By Lauren Dake, June 12, 2014
An oil train travels through downtown Vancouver in April. According to state estimates, crude oil shipments in Washington went from zero in 2011 to 17 million barrels in 2013. (Zachary Kaufman/The Columbian)

Gov. Jay Inslee directed state agencies Thursday to tackle mounting public safety concerns and develop an oil spill response plan as train traffic continues to increase, particularly in Southwest Washington.

He announced the directive at a meeting of The Columbian’s editorial board in Vancouver.

“The Pacific Northwest is experiencing rapid changes in how crude oil is moving through rail corridors and over Washington waters, creating new safety and environmental concerns,” the directive reads.

The governor asked the Department of Ecology to work with other state agencies, the Federal Railroad Administration and tribal governments to “identify data and information gaps that hinder improvements in public safety and spill prevention and response.”

Specifically, the governor’s directive asks agencies to:

  • Characterize risk of accidents along rail lines.
  • Review state and federal laws and rules with respect to rail safety and identify regulatory gaps.
  • Assess the relative risk of Bakken crude with respect to other forms of crude oil.
  • Identify data and information gaps that hinder improvements in public safety and spill prevention and response.
  • Begin development of spill response plans for impacted counties.
  • Identify potential actions that can be coordinated with neighboring states and British Columbia.
  • Identify, prioritize, and estimate costs for state actions that will improve public safety and spill prevention and response.

He set an Oct. 1 deadline for Ecology to respond.

He also said he’ll reach out to other states to develop coordinated oil transportation safety and spill response plans, and pledged to ask the 2015-17 Legislature for money for oil train safety.

The directive comes as the state Energy Facility Site Evaluation Council is reviewing an application by Tesoro Corp. and Savage Companies to build an oil shipping terminal at the Port of Vancouver. Bakken crude would arrive at Vancouver by train from North Dakota and leave by ship or barge via the Columbia River.

As governor, Inslee will have the final say on the Tesoro-Savage permit. Inslee said he had to be “very guarded” in his comments about the oil terminal while the review is happening. “We will make the right decision at the right time,” he said.

“I can tell you we have very serious concerns with safety associated with oil trains,” he said.

The governor said he would be “heavily invested in understanding the full ramifications” and plans to be as well-versed as anyone in the state on the topic.

Schools and bridges

The interview was wide-ranging; Inslee also talked about the need to close tax loopholes in order to find additional revenue to fund the state’s public schools.

“We have a sort of Swiss-cheese tax code because some lobbyists have been successful in getting some special favors over the decades,” Inslee said. “Some of those make sense … They are not uniformly virtuous.”

In this coming legislative session, he said, he will push lawmakers to increase the state’s minimum wage.

“I do believe minimum wage is one of the tools that are useful to give working people a fair break,” he said.

And, he said, the state continues to have a lot of “unmet needs” when it comes to transportation.

“Many of them are here (in Southwest Washington), the (Columbia River Crossing) just being one of them. We know there are other needs as well,” Inslee said.

Inslee said once the region has “legislators that really want to find a solution for Southwest Washington,” the area would be better represented in any transportation package.

Inslee was asked about Republican efforts to organize a new bistate bridge coalition. He said the only thing he’s heard is “there have been some discussions.”

It’s an effort spearheaded by Sen. Ann Rivers, R-La Center, and Rep. Liz Pike, R-Camas. Yet another bridge plan is being promoted by Republican County Commissioner David Madore, who vows to open his bridge to traffic in five years.

“The last bridge took, I think, 10 to 13 years to get all the permitting done,” Inslee said. “This is an arduous, lengthy, multijurisdictional process … There might be 1,000 other plans.”

A new bridge is “pivotal to the entire state” and he planned to spend his day in Vancouver talking to “people of good faith and open minds” to discuss the best way to move forward.

The first-term Democrat spent all day Thursday in Vancouver. He presented awards to state Department of Transportation employees, and visited a local technology firm, Smith-Root, that is expanding. Thursday evening he gave the commencement address at the Washington School for the Deaf’s graduation ceremony.

Bakken Crude, Explosion, Hazardous cargo transparency, Hazmat notification, Rail accidents, Risk Assessment

Setting the record straight on the oil industry studies of Bakken crude by rail

Repost from Reuters

Industry tests of oil train dangers need scrutiny, U.S. officials say

By Patrick Rucker  |  WASHINGTON, June 2, 2014

(Reuters) – Oil industry studies concluding that Bakken crude oil is safe to move by rail under existing standards may underestimate the dangers of the fuel and should not be the last word, U.S. lawmakers and industry officials said on Monday.

In the past year, several doomed oil trains originated from North Dakota’s Bakken region, including a shipment that jumped the tracks and burst into flames in Lynchburg, Virginia, on April 30. Last July, a fiery derailment destroyed the center of the village of Lac-Megantic, Quebec, killing 47 people.

Two industry-funded studies conclude Bakken fuel is rightly classed as a flammable liquid that can safely move in standard tank cars. The cargo is nothing akin to flammable gasses like propane that must move in costlier, heavier vessels, the oil industry has said.

But the industry findings hinge on incomplete and out-of-date methods for determining vapor pressure, an important indicator of volatility, that may miss the true dangers of Bakken fuel, according to several industry officials.

Lawmakers say they expect regulators to scrutinize the industry’s findings.

“These studies should be taken with a grain of salt,” said Senator Charles Schumer, Democrat of New York, a state that is a major pass-through point for Bakken fuel.

One study released May 20 by the North Dakota Petroleum Council (NDPC) collected samples with open bottles rather than a precision instrument, known as a floating piston cylinder, that is being adopted by the industry.

Gas can escape with bottle sampling and such tests are unreliable, said the Canadian Crude Quality Technical Association, a trade group.

“We would consider the data suspect,” the group said.

ASTM, an international standard-setting body, last month deemed the floating piston cylinder the right tool for Bakken fuel samples. Open bottle samples can skew vapor pressure nearly 10 percent lower, according to research from Ametek, which manufactures testing equipment.

Industry officials say that any underestimation of vapor pressure would be negligible.

Vapor pressure results did not exceed 15 pounds per square inch (psi) in the NDPC report.

A separate study by the American Fuel and Petrochemical Manufacturers (AFPM) returned readings below 17 psi.

The threshold pressure for flammable gas is 43 psi under those same conditions.

Rich Moskowitz, general counsel for the AFPM, the refining industry trade group, said its report “clearly found that Bakken crude oil is properly transported as a flammable liquid. That’s the bottom line.”

Industry officials note that the U.S. Department of Transportation has not issued any of its own findings on Bakken fuel despite collecting samples since the summer.

The issue will likely be raised on Tuesday at a panel of the Senate Commerce Committee which will feature testimony from railroad regulators, among others.

“It is my hope that any private data collection and studies on this issue will be highly scrutinized,” said Senator Cory Booker, Democrat of New Jersey, who sits on the panel.

(Reporting by Patrick Rucker; Editing by Grant McCool)
Bakken Crude, Derailment, DOT-111, Explosion, Federal Regulation (U.S.), Oil by Rail Week of Action July 6-12 2014, Oil Industry, Risk Assessment

Interactive Map and Report: “Runaway Train: The Reckless Expansion of Crude-by-Rail in North America”

Repost from DESMOGBLOG.COM
[Editor: The map has some errors, but overall this is a great report and an important contribution in understanding the massive scope of the oil train boom.  – RS]

Interactive Map and Report on Oil-By-Rail, “Booming Bomb Train Industry”

2014-05-28  |  Justin Mikulka

A new report and website released today by Oil Change International provides a comprehensive overview of the current oil-by-rail industry in North America and it isn’t a pretty picture.

The report and interactive map of the “booming bomb train industry” capture the alarming scope of this very recent development.  As the report points out, 70 times as much oil was moved by rail in 2014 as there was in 2005. That rapid expansion is continuing, placing more North American communities at risk.

“This analysis shows just how out of control the oil industry is in North America today. Regulators are unable to keep up with the industry’s expansion-at-any-cost mentality, and public safety is playing second fiddle to industry profits,” said Lorne Stockman, Research Director of Oil Change International and author of the report.

According to the report, Runaway Train: The Reckless Expansion of Crude By Rail in North America, approximately one million barrels of oil per day are moved on 135 trains of 100 cars or more each day in America.  If all of the currently planned development of oil-by-rail facilities occurs, the full capacity to move oil would be five times that amount.

“This is what the All of the Above Energy Strategy looks like – a runaway train headed straight for North American communities,” Stockman said.

N.Amer.CrudeByRail(600)

This massive investment by the oil and rail industries to expand their capacity to move oil by rail is one of the main reasons that improving oil-by-rail safety is unlikely when it comes to the unsafe DOT-111 tank cars.  These cars currently make up approximately 70% of the oil-by-rail tank car fleet and there is currently a two to three year waiting list for companies wanting new tank cars.

The planned expansion of the oil-by-rail industry is simply impossible without the existing DOT-111 cars.  In 2013 this point was made by an industry analyst:

“People who want to ship oil can’t get them,” Toby Kolstad, president of the consultant firm Rail Theory Forecasts LLC said. “They’re desperate to get anything to move crude oil.”

Without the oil-by-rail transportation option, the Bakken Shale oil would have no way to get to market.  Despite the fact that the DOT-111 cars are inadequate and the Bakken crude is more explosive, the industry continues to rapidly expand with no new regulations.

The planned expansion of the industry and the current known capacity restraints help explain the recent public relations effort by the oil industry to dismiss any safety concerns.

Last week, the North Dakota Petroleum Council released a new study that said Bakken crude was “comparable in volatility to gas-rich oils from other shale formations in other regions.”

Which is true.  However, in other regions, like the Eagle Ford formation in Texas, the natural gas liquids are stripped from that oil before being shipped by rail which greatly reduces the danger of explosion.

Last week, the American Fuel and Petrochemical Manufacturers also weighed in with their opinion.  AFPM President Charles Drevna stated their position to Railway Age:

“As the standards are today for flammable liquids, Bakken crude fits right in, and the DOT-111 cars should be fine”

These claims are being made despite testimony by Robert Sumwalt of the National Transportation Safety Board calling the DOT-111’s an “unacceptable public risk” when used to transport Bakken crude.

Last week, the White House announced that the Pipeline and Hazardous Materials Safety Administration (PHMSA) will be proposing new oil-by-rail regulations in July.  However, this will just be a proposal and the beginning of a likely contentious political battle about these regulations.  No one expects any new regulations before 2015.  Meanwhile, the industry continues its expansion plans.

In July, at the same time PHMSA is expected to announce its proposed new regulations for the oil-by-rail industry, activists across the country are planning a week of action.  Starting on July 6th, the anniversary of the deadly explosion in Lac-Megantic, Quebec, the “Oil by Rail week of action” will highlight opposition to the shipping of oil by rail through communities and remember the victims of that first Bakken crude oil explosion.

In Lac-Megantic, there is little good news. The town is facing years of clean-up and reconstruction, and billions of dollars of expenses to deal with that disaster.  Recently, Réjean Roy, whose daughter died in that accident, talked about the reality of Lac-Megantic’s current situation and their need to try to revive the town’s tourism industry.

“We need it for my town, because my town is dying. If we do nothing to attract tourists here, the town will die.”

A town will die. But the oil-by-rail industry is booming and regulations are not coming any time soon. It will take a huge public outcry to change that.

Stockman, author of the Oil Change International report, remains hopeful that the tide could turn.

“Communities are already waking up to the dangers of oil trains barreling through their backyards, with spills, explosions and derailments happening all too often. This report and online tool will help provide the critical information that’s been sorely missing in order to shine a light on what’s really going on, and to help stop the runaway train of crude-by-rail in its tracks before more damage is done.”

Insurance Industry, Oil Industry, Rail accidents, Reinsurance, Risk Assessment

Insurance industry figures on 2013 natural and human-caused disasters

Repost from Business Insurance
[Editor’s note: The text here lumps together losses from natural catastrophes and “man-made” disasters.  But the link at the end of this story downloads a PDF that shows detailed information about oil and rail disasters. – RS]

Catastrophes caused global insured losses of $45B in 2013: Swiss Re

Sarah Veysey
March 26, 2014

Global insured losses from natural catastrophes and man-made disasters totaled about $45 billion in 2013, down from about $81 billion a year earlier, according to a report released Wednesday by Swiss Re Ltd.

Economic losses from natural and man-made disasters were about $140 billion in 2013, down from $196 billion in 2012, according to the Swiss Re sigma report.

The most costly insured event in 2013 was flooding in parts of central and eastern Europe during May that caused insured losses of about $4.1 billion, according to the study.

Hailstorms in France and Germany in July caused insured losses of about $3.8 billion, the report showed, while floods in Canada in June resulted in insured losses of about $1.9 billion.

In the United States, thunderstorms and tornadoes in May caused insured losses of $1.8 billion, while severe thunderstorms, tornadoes and hail later that same month caused insured losses of $1.4 billion. A winter storm bringing ice, tornadoes and heavy rain in April resulted in insured losses of $1.2 billion.

Typhoon Haiyan, which hit the Philippines in November, left about 7,500 people dead or missing, and caused insured losses of about $1.5 billion, according to the report.

Windstorm Christian, which hit parts of northern and central Europe in October, caused insured losses of about $1.5 billion, according to Swiss Re, while Typhoon Fitow in China and Japan in September caused insured losses of about $1.1 billion.

“Risk prevention and mitigation measures have progressed in recent years,” Swiss Re said in a statement.

“For instance, the losses from the floods in central and eastern Europe last year would have been much worse had the flood protection measures not been strengthened after the same region suffered severe flooding in 2002,” it said.

The study can be found here: Natural catastrophes and man-made disasters in 2013 sigma1_2014_en.PDF.