Category Archives: State regulation

CSX reimburses Lynchburg $107,853; Virginia regulators negotiating further penalties

Repost from The Richmond Times-Dispatch

State regulators expect penalty for CSX oil train wreck

April CSX wreck sent oil into river at Lynchburg
By Alicia Petska, The News & Advance, August 21, 2014 10:30 pm

— State environmental regulators are in talks with CSX to negotiate the terms of a consent order that will be issued in response to the estimated 29,916 gallons of oil released into the James River during the April 30 train derailment in downtown Lynchburg.

The order is expected to include a financial penalty, but the amount has not been determined yet, said Robert Weld, regional director for the Department of Environmental Quality.

Other measures may include long-term monitoring of river conditions and replanting vegetative buffers along the riverbank.

Water quality testing in the weeks after the derailment found no contaminants of concern, Weld said, but visual checks and other monitoring will continue out of an “abundance of caution.”

It remains unclear just how much of the Bakken crude oil that leaked during the downtown derailment actually mixed into the river or made its way downstream.

Much of it burned in the large fire that erupted after 17 cars on a 105-car oil train derailed near downtown Lynchburg. Three cars tumbled over the riverbank, and one ruptured. There were no injuries or building damage.

The incident drew Lynchburg into a national debate over how to safely ship the volatile crude found in Bakken shale around North Dakota, where production has skyrocketed in recent years.

On Wednesday, Weld was among more than a dozen state officials who convened in Lynchburg for the second meeting of a new rail safety task force formed by Gov. Terry McAuliffe after the derailment.

The meeting, held at City Hall, included a presentation from the federal agency charged with regulating hazmat shipments and public comments from environmental advocates and rail employee representatives.

CSX had offered to reimburse the city for the cost of its emergency response and sent the final check last week, according to Lynchburg’s finance department.

The reimbursement totaled $107,853 for personnel and equipment costs, as well as minor property damage to trees, curbs and sidewalks.

The new rail safety task force has been asked to advise the state on how it can improve its own preparedness and response efforts.

It also might weigh in on the federal regulations that govern most aspects of rail operations. The U.S. Department of Transportation has been studying the oil-by-rail issue since a deadly oil train derailment in Quebec in July 2013.

Last month, federal officials released a set of proposed rules that may lead to phasing out older DOT-111 model tankers that have been criticized as puncture prone.

There also may be higher standards for braking systems, speed limits and testing of volatile liquids. The proposed rules are in a 60-day public comment period that will end Sept. 30.

During a public hearing Wednesday, water quality advocates with the Chesapeake Bay Foundation and James River Association urged officials to take a comprehensive look at the rail safety issue and not limit themselves to one region, cargo or issue.

The proposed federal regulations may not do anything to deter the kind of derailment that occurred in Lynchburg, said Pat Calvert of the James River Association, whose office is close to the derailment site.

Given the location of the derailment — near several downtown businesses and a popular trail system — it’s a miracle no one was injured, he said.

“We dodged a bullet,” Calvert said. “But we shouldn’t necessarily be playing Russian roulette here.”

The cause of the Lynchburg derailment is under investigation by the National Transportation Safety Board. The NTSB said it could be a year or more before its report is ready.

The state’s rail safety task force plans to hold its next meeting in September in the Norfolk area. It hopes to tour the Yorktown oil refinery — where oil-by-rail shipments through Virginia end up — and meet with a representative of the NTSB.

North Dakota Considers Requiring Treatment of Bakken Crude to reduce volatility

Repost from The Wall Street Journal

North Dakota Considers Requiring Treatment of Bakken Crude

Hearing Is Planned on Whether Shale Oil Should Be Made Less Volatile Before Transport
By Chester Dawson, August 10, 2014

North Dakota officials are considering requiring energy companies to treat the crude they pump from the Bakken Shale to make it less volatile before it is loaded onto trains.

The North Dakota Industrial Commission plans to hold a public hearing in the coming weeks on possible steps to reduce volatility at a well site before oil is stored or transported, said a spokeswoman for North Dakota Gov. Jack Dalrymple.

The commission, the state’s chief energy regulator, is considering issuing new standards for treating crude as well as monitoring requirements, she said.

Several trains carrying Bakken crude have derailed since the summer of 2013, exploding violently and in one instance killing 47 people in Quebec.

As The Wall Street Journal has reported, light crude tapped from North Dakota shale is more combustible than many other grades of oil and, unlike in other places, seldom stabilized.

Production of this volatile oil through hydraulic fracturing has soared, accounting for most of the additional three million barrels a day of oil that the U.S. produces today compared with 2009. Much of that is shipped to refineries by railcars, especially crude produced in the Bakken where there are few oil pipelines.

Mr. Dalrymple, one of three members of the state commission, on Friday briefed visiting federal officials including Energy Secretary Ernest Moniz and Transportation Secretary Anthony Foxx on proposals for treating Bakken crude oil in the field. The federal government has been weighing whether to require stabilization.
Energy executives point out that neither federal nor state regulations require crude to be stabilized before it is transported. Some say stabilization is unnecessary.

Most oil producers in North Dakota haven’t installed stabilizing equipment designed to reduce crude volatility, which is commonplace in similar shale oil fields such as the Eagle Ford formation in South Texas.

Stabilizers use heat and pressure to force light hydrocarbon molecules—including ethane, butane and propane—to boil out of the liquid crude. The operation lowers the vapor pressure of crude oil, making it less volatile and therefore safer to transport by pipeline or rail tank car.

—Russell Gold contributed to this article.

Publicity-stunt sit-ins, council resolutions won’t stop oil trains

Repost from Seattle PI.com
[Editor: This is a challenging think-piece for opponents of crude by rail.  Personally, I believe that sit-ins, songs and resolutions have a place in a multi-faceted approach to organizing against big oil and rail.  But Connelly has a point – we need to think hard and long on serious strategies for success.  – RS]

Publicity-stunt sit-ins, council resolutions won’t stop oil trains

Posted on August 1, 2014 | By Joel Connelly
A sight that won't be stopped by sit-ins and City Council resolutions:  A coal train passes an oil train after tanker cars derailed in Magnolia this morning.  Oil and coal could become the Northwest's "supreme shipping commodities" crowding our trade dependent economy..
A sight that won’t be stopped by sit-ins and City Council resolutions: A coal train passes an oil train after tanker cars derailed in Magnolia this morning. Oil and coal could become the Northwest’s “supreme shipping commodities” crowding our trade dependent economy.

In watching the Seattle City Council’s ritual of passing whereas-heavy, symbolic resolutions over the years, an observer can come way believing the council’s prime purpose in life is to send demonstrators home happy.

The response to oil trains, arriving in every greater numbers, is the latest example of Seattle’s insular, echo chamber politics.  Its product is meaningless symbolism.

Councilman Mike O’Brien gins up an oil train resolution, much as he did on Occupy Seattle.  Council member Kshama Sawant shows up at the BNSF tracks for her demonstration of the day.  A Sawant mini-me running for the Legislature gets arrested.  The news is telephoned to a Stranger reporter who is supporting the candidate.

Will any of this impact the Burlington Northern-Santa Fe Railroad?  Will it influence the business of giant refiners like BP and Tesoro, increasingly dependent on rail shipments of Bakken crude oil from North Dakota?

Of course not.  The carbon economy has the Interstate Commerce Act on its side.  The U.S. Department of Transportation seems intent on accommodating shippers in its rule-making. Refineries support 2,000-plus jobs in northern Puget Sound.

For instance, the USDOT’s proposed safety rules tout a “two year” required phase out of old, explosion-prone tanker cars.  When you read the fine print, phase out period begins in September 2015.

Seattle_City_Hall_2014-02-21
Concerned citizens rally for the need of a statewide moratorium on potentially dangerous oil-by-rail projects Friday, Feb. 21, 2014, at City Hall in Seattle. Oil trains have exploded in different regions in the U.S., causing death and property damages. (Jordan Stead, seattlepi.com)

Here is how critics can effectively put the heat on, and deal their way into the safety debate. The recent and ongoing coal port/coal train battle is a model for dealing with obtuse agencies and potentially more lethal cargoes:

– Mass support, not just driblets:  Somewhere in Seattle, somebody (usually Kshama Sawant) is demonstrating every day.  Protests pant after a moment on the evening TV news.  Often, they leave as much impression as footprints in the snow.

By contrast, a well-planned event can signal (to politicians) that a movement has staying power.  It registered when 395 people packed a Bellingham City Club meeting for a debate on the proposed Gateway Pacific Terminal.  Sponsors had appears to have it greased.  A bigger impression was made 2,500 people who showed up for a federal-state “scoping” hearing in Seattle.

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)

– An agenda, not 1960′s slogans:  Coalport/coal train port critics asked  for an independent, comprehensive look  at impacts trains will have across Washington.  They wanted environmental studies to look at climate consequences of providing economical fuel to keep aging Chinese power plants in operation.

It is absurd, for instance, for the Army Corps of Engineers to limit “transportation” to the seven-mile spur line from Custer to Cherry Point in Whatcom County.  Big coal, railroads and construction unions were flummoxed by a reasonable demand.

– A real coalition, not just a paper list:  Seattle “coalitions” are populated by the usual suspects.  A real movement gets a cross-section of recruits.  Montana ranchers are not keen to see their land torn up.  Firefighters worry that long trains will block waterfront access, and (with oil) that they’ll be left holding the bag when a 1960′s-vintage tanker car blows up.

The proposed Pebble Mine, near Alaska’s Bristol Bay, shows REAL reach-out.  Opposition began with greens, quickly embraced Alaska’s commercial and sport fisheries, gained backing from the powerful Bristol Bay Native Corp., expanded to Washington fishermen, and found roles for restaurant chefs and major jewelry companies.

– Political work horses, not show horses:  Behind all the posturing on coal ports, state Rep. Reuven Carlyle, D-Seattle, put together letters to the feds and state laying out — precisely — potential impacts that must be known.  The letters helped shape the charge given by Gov. Jay Inslee to the Department of Ecology.

Security vehicles are shown at a gate to a Tesoro Corp. refinery , Friday, April 2, 2010, in Anacortes, Wash. An overnight fire and explosion at the refinery killed at least three people working at the plant. (AP Photo/Ted S. Warren)

With oil trains, Sen. Maria Cantwell, D-Wash., recently cornered — and treed — USDOT Secretary Anthony Foxx at a recent hearing.  She delivered a message that MUST be driven home.  Faux safety measures won’t cut it.  Cantwell and Carlyle don’t go for whereas clauses.

– Fact and evidence, not just hyperbole:  Exaggeration is a basic activist weapon, broadly deployed.  It gets people riled, but has limited staying power.  What’s needed are activist-experts who learn the stuff, and steep themselves in places to be impacted.

A lighter touch should be put on heavy handed manipulation of the media.  Certain web sites and outlets can be counted on to spout the party line.  Others aren’t content to simply be fed.

The carbon economy is coming our way — big time — with proposed coal export terminals, a big terminal to receive oil trains (in Vancouver, Wash.), coal and oil trains taking over the rails, plus pipeline terminals and oil export ports in British Columbia.

It’s not going to be turned back by sit-ins or Council resolutions in a city with less than 10 percent of Washington’s population.

Seattle politics is sandlot.  What we’re facing, and trying to influence, is a big-league challenge.

 

 

Emergency Management Magazine: States Focus on Rail and Energy Pipeline Safety

Repost from Emergency Management Magazine
[Editor: Note the source of this article.  From the “About” page: “Emergency Management is the award-winning, all-hazards publication of record for emergency management, public safety and homeland security stakeholders charged to protect our communities, critical infrastructure and the security of our nation.”  – RS]

States Focus on Rail and Energy Pipeline Safety

Sharp increases in U.S. oil production have caused safety problems transporting the liquid. Now states are trying to fix the problem.
Jeffrey Stinson, Stateline | July 31, 2014

The sharp increase in U.S. oil production and its promise of energy independence is coming with a disastrous byproduct: spills that threaten lives, communities and the environment.

In the past 18 months, about 1.2 million gallons of crude oil produced in the U.S. or Canada has been spilled from train cars and pipelines in at least seven states, sparking explosions, fires, or the evacuation of homes or offices in four instances.

Nobody has to tell the residents of Lynchburg, Virginia about the danger of the millions of gallons of crude oil rolling along rail lines or through pipelines every day. On April 30, more than a dozen train cars filled with crude oil derailed near Lynchburg’s downtown, causing a fire that forced hundreds of people in a 20-block area to evacuate. Nobody was injured, but thousands of gallons of oil spilled into the James River.

In response to the growing problem, the U.S. Department of Transportation last week issued proposed rules calling for upgraded railroad cars, better braking systems and tighter speed controls.

The federal action followed stepped-up efforts by several states to try to prevent spills and respond to disasters:

  • The California legislature last month approved a new 6.5-cent fee on every barrel on crude oil carried by rail and some pipelines through the state. The state will use the money, estimated to bring in $11 million in the first full year, to expand its coastal spill prevention and response program to inland streams, rivers, lakes and wetlands. It’s also beefing up its rail safety inspection program.
  • Minnesota Gov. Mark Dayton, a Democrat, signed legislation in May to implement stricter oversight of railroad companies, require more rail inspections and provide for better emergency response training and preparedness. To pay for it, Minnesota this year will collect $6.4 million in fees from railroads and pipeline companies.
  • New Hampshire Gov. Maggie Hassan, a Democrat, signed legislation earlier this month that authorizes the state to impose stricter preparation and response requirements on pipelines than federal law requires. The state Public Utility Commission also was given authority to inspect interstate pipelines to provide more frequent checks than federal officials give.
  • Oregon Democratic Gov. John Kitzhaber last week released a study of oil moving through his state that calls for more state rail inspectors, more money for training and improved cooperation with railroads. Last month, Washington Gov. Jay Inslee, a Democrat, ordered a similar review of risks, regulations and preparedness in his state. In January, New York Democratic Gov. Andrew Cuomo also issued a similar order and dispatched inspectors to rail yards to look for defects on cars that could cause derailments.

Nearly all the action in the states was prompted by disasters governors and lawmakers saw in other states or across the border in Canada. Their worst fear is what happened in Lac-Megantic, Quebec, where 47 people were killed last July when an unattended 74-car train derailed. The spilled crude caught fire, then several cars exploded and about half the downtown was destroyed.

“I want to know how much oil will be shipped through my state and how we can be assured the kind of tragedy that happened in Quebec won’t devastate families in our communities,” Inslee said last month in ordering the study in Washington.

Matt Swenson, Dayton’s press secretary, said Minnesotans only needed to look at neighboring North Dakota to see what could happen: Last December, a train carrying grain derailed in front of a mile-long train carrying crude oil near Casselton, not far from the Minnesota border. Twenty cars spilled oil, some exploded. Fire forced evacuation of the town, but nobody was injured.

Every day, seven similar oil trains with about 110 cars carrying about 3.3 million gallons of crude travel through Minnesota, the state said. Other states are witnessing similar traffic, and it’s on the rise.

About 264 million gallons of crude oil were shipped by rail through California last year, said Alexia Retallack in the state Fish and Wildlife Department’s Office of Spill Prevention and Response. That’s 46.2 million gallons more than in 2012.

Railroads Pick Up Slack

More crude oil is on the move across states as production in North America booms from the fracking of Bakken oil deposits underlying North Dakota, Montana, and Canada’s Saskatchewan and Manitoba provinces, and from the tar sands of Alberta.

Production in the U.S. alone will be 8.5 million barrels a day this year, the U.S. Energy Information Administration estimates. That’s estimated to grow to 9.3 million barrels daily next year. And there aren’t enough pipelines to get the crude to the nation’s 115 refineries to be turned into gasoline and other products.

Republican North Dakota Gov. Jack Dalrymple said last month that pipeline capacity in his state needs to double to about 1.4 million barrels a day by 2016 to carry all the crude produced there. Currently, the state is producing about 220,000 barrels a day more than pipes can carry.

Railroads are picking up the slack, even though the Congressional Research Service said in a May report that it can cost from $5 to $10 more a barrel than pipeline delivery. The number of carloads of crude oil, each carrying about 30,000 gallons, that ended up inside the U.S. rose to 435,560 last year, the Association of American Railroads says. That’s up from about 30,000 in 2010.

In a recent analysis of data from the federal Pipeline and Hazardous Material Safety Administration, the McClatchy News Service found that 1.15 million gallons of crude oil spilled from rail cars in the U.S. last year. That’s more than in all the years combined since the data was first collected nearly four decades ago.

The worst accident was in November in Aliceville, Alabama, where 748,800 gallons spilled from a 90-car train after 12 cars derailed and three exploded. Nobody was injured.

Although widely considered safer than rail shipment of crude, pipelines do spill. A split in a pipeline in March 2013 dumped as much as 5,000 barrels of Canadian tar sands oil into a neighborhood in Mayflower, Arkansas.

Concern over pipeline spills is what drove New Hampshire state Sen. Jeff Woodburn to sponsor the legislation giving his state greater control over pipelines. The source of worry is that the 236-mile Portland-Montreal Pipeline, built to carry conventional crude oil from Maine, through New Hampshire and Vermont to Canadian refineries, can instead be used to ship to the U.S. tar sands oil, which is heavier and dirtier.

A spill, Woodburn, a Democrat, said, could devastate the fragile environment in his northern area of the state, which attracts tourists.

An analysis of federal spill data by the Manhattan Institute for Policy Research last year found that through 2009, pipelines released more oil per spill than rail.  Even with the recent increase in oil transported by rail, pipelines still carry much more. Furthermore, because pipelines often run through isolated areas, it often takes longer to get to the site of a leak and seal it.

But there’s a difference between pipeline spills and rail car spills, said Carl Weimer, a Whatcom County, Washington, commissioner and executive director of the Pipeline Safety Trust that studies and advocates for greater pipeline safety.

Pipelines may spill more oil when an accident happens, Weimer said, but they usually cause mostly environmental damage because they’re located in out-of-the-way places. Railroads travel through populated areas and their spills can endanger more people and cause greater property damage.

“The real question is: Is either one as safe as they need to be?” Weimer said. “I don’t think they are.”

Lighter and Sweeter

The nature of much of the oil being shipped is heightening states’ concerns. Bakken crude is a lighter, sweeter crude that federal regulators say may be more flammable than other crude – though the American Petroleum Institute that represents the oil and gas industry disputes that.

Bakken crude was involved in the fiery crashes in Virginia, North Dakota, Alabama and in Quebec.

The new proposed federal rules are largely aimed at Bakken crude. Older rail tanker cars will be banned from shipping it across the states within two years unless they’re retrofitted with thicker skins and anti-rollover protection to meet the newest standards.

At present, the freight railroad industry says it uses about 92,000 tank cars to carry flammable liquids, such as crude, and that 18,000 are built to the latest standards.

The Association of American Railroads says the industry already has moved to reduce speeds on oil trains with 20 or more cars carrying crude and include at least one older tank car to no faster than 40 mph in 46 urban areas around the country.

Federal regulators are weighing whether they should go even slower, possibly 40 mph in all areas and 30 mph in urban areas. But the association, which represents major carriers, said going just 30 mph in urban areas could cost it 10 percent of its capacity to ship cargo, and slow down some freight and Amtrak passenger trains traveling across parts of the country.

Railroads also are alerting states when and where trains carrying 1 million gallons or more of Bakken crude will travel in keeping with a May 15 order from the U.S. Department of Transportation. And they’ve said they’ll work with the states and communities on any new spill response efforts just as they have so far.

“We take our responsibility for moving oil in a safe and efficient manner seriously,” the railroad association said. “That is why the rail industry is working with our customers, suppliers and (federal regulators) to find ways to make a safe network even safer.”

That’s what states say they’re doing, too, as they know their citizens need the energy and at a reasonable price.

“We need to move crude oil,” said California’s Retallack. “But we need to do it in a way that doesn’t pose risks to citizens or the environment.”

Or, as Sen. Woodburn of New Hampshire put it: “We want to be accepting to changes and challenges on the energy front – but we want to be in the driver’s seat.”

This article was originally published by Stateline. Stateline is a nonpartisan, nonprofit news service of the Pew Charitable Trusts that provides daily reporting and analysis on trends in state policy.