Category Archives: Tank car identification

Oil industry recommends: use “highest-danger” labeling on bakken oil tank cars

Repost from Reuters
[Editor: The oil industry recommends highest-danger labeling on Bakken crude oil tank cars despite its misleading claim that Bakken is no different from other light sweet crudes.  This stance puts pressure on the rail industry to come up with stronger tank cars sooner.  Um… follow the money?  – RS]

Oil group wants highest-danger label for Bakken rail shipments

New York, Aug 5, 2014

Aug 5 (Reuters) – A U.S. oil industry group is recommending that all crude shipped by rail from North Dakota’s Bakken fields be labeled as the most-dangerous type of oil cargo, a designation that could hasten the use of new or upgraded tank cars.

On Monday, the North Dakota Petroleum Council (NDPC) released the final results of a wide-scale study on the quality characteristics of Bakken crude, which has been involved in several fiery oil-train derailments over the past year.

The study confirmed preliminary findings released in May suggesting that Bakken was little different from other forms of light, sweet U.S. crude and posed no greater threat versus other fuels when transported by rail.

The NDPC also issued a series of recommendations following the study, however, including one urging oil-by-rail shippers to classify all Bakken crude oil as “Packing Group I” hazardous materials.

That is the highest-risk level of a three-tiered danger assessment, and the NDPC said it was recommended “even though the majority of samples tested for the study would fall within specifications for PG (Packing Group) II.”

Current methods for testing boiling point, the key criteria for differentiating PG I and II classifications, can be inconsistent, the NDPC said. Because it typically contains a high proportion of very light hydrocarbons and petroleum gases, Bakken crude tends to boil at lower temperatures.

“The margin of error for the test methodology can result in different labs testing the same sample with values meeting both PGs. PG I has the more stringent standards and is therefore recommended to avoid further confusion,” said the NDPC report, which was prepared by industry consultants Turner, Mason & Co.

Historically the Packing Group label has made no material difference in how oil is handled on trains; its only purpose was to inform emergency responders about the cargo. The DOT-111 tank car, the model used almost exclusively to ship oil by rail, is able to transport any Packing Group. Many oil companies have been using PG I routinely simply to ensure they were compliant.

But under new regulations proposed last month by the U.S. Department of Transportation, the Packing Group determination could become a pivotal factor in determining how quickly shippers use new or upgraded tank cars that will gradually replace older-model DOT-111s long seen as flawed.

The NDPC represents major producers in the Bakken including Marathon Oil Corp, ConocoPhillips, Continental Resources and Hess.

Authorities had already begun to crack down on misclassified oil shipments after the Lac Megantic tragedy in Canada last year, when a runaway oil-train with cargo from the Bakken energy patch derailed and killed 47 people in the center of a Quebec town.

In February, the DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) fined three companies for using incorrect Packing Group labels for their Bakken cargoes. Two of them had mislabeled shipments as PG II, when in fact they should have been labeled PG I. A third company had used a PG III label rather than PG II.

The DOT rules last month said older model DOT-111 cars would not be allowed to carry Packing Group I crudes within two years, while less dangerous crudes that fall into PGs II and III could still be shipped in the older cars for three and five years.

The rules are open to public comment and may not be finalized for several months.

[Editor: To send a comment, see Two-month comment period starts for new federal oil train rules. -RS]

In its own study released last month, the PHMSA said most crude from the Bakken tested as PG I or II material – “with a predominance to PG I”. It also said the oil was “more volatile than most other types of crude,” a finding disputed by both the American Petroleum Institute and NDPC.

(Reporting by Jonathan Leff; Editing by Tom Brown)

Two studies: Bakken crude by rail – safety and volatility

[Editor: The following studies were recommended to me by a neighbor who supports Valero’s crude by rail proposal.  Both are loaded with valuable information, useful to anyone who wants facts to back up an argument for or against Valero’s project.  You can download the document by clicking on the green text.   Thanks, neighbor!  – RS] 

Center for Strategic and International Studies –
Safety of Crude Oil by Rail

By David Pumphrey, Lisa Hyland, and Michelle Melton, March, 2014

Summary

In the last several years, rail has come to play an important role in the transportation of growing U.S. crude oil production. Over the last seven months, a number of serious accidents have resulted in intense review of the safety of shipping large quantities of oil by rail. The focus has been on classification of the oil, the integrity of tank cars, and rail operations. Regulatory processes have been initiated to attempt to deal with these issues in a timely manner. This issue analysis provides facts that illuminate the players, concerns, current status of regulatory action, as well as the potential issues going forward.

Further regulation of crude by rail is a near certainty, but the ultimate scope and pace remains unclear. Whether regulatory action actually slows down what has become a burgeoning transportation option for crude oil producers and refiners is an open question. It is increasingly unlikely that regulatory action—unless truly drastic—will stop shipment of crude by rail. However, moving forward, regulatory action such as phasing out older tank cars, rerouting trains, or imposing stringent requirements for testing, could impact the economics of crude by rail.   [MORE – a 9-page report in PDF format]

Congressional Research Service –
CRS Report – Crude Oil Properties Relevant to Rail Transport Safety

by Anthony Andrews, Specialist in Energy Policy, February 18, 2014

Summary

The dramatic increase in U.S. crude oil production, coupled with the increase in crude oil transport by rail, has raised questions about whether properties (e.g., flammability) of these crude types—particularly Bakken crude oil from North Dakota—differ sufficiently from other crude oils to warrant any additional handling considerations. The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Safety Alert to notify emergency responders, shippers, carriers, and the public that recent derailments and resulting fires indicate that the type of crude oil transported from the Bakken region of North Dakota may be more flammable than traditional heavy crude oil. The alert reminds emergency responders that light sweet crude oil, such as that coming from the Bakken region, pose significant fire risk if released from the package (tank car) in an accident. PHMSA has expanded the scope of lab testing to include other factors that affect proper characterization and classification of crude oil such as volatility, corrosivity, hydrogen sulfide content and composition/concentration of the entrained gases in the material.

All crude oils are flammable, to a varying degree. Further, crude oils exhibit other potentially hazardous characteristics as well. The growing perception is that light volatile crude oil, like Bakken crude, is a root cause for catastrophic incidents and thus may be too hazardous to ship by rail. However, equally hazardous and flammable liquids from other sources are routinely transported by rail, tanker truck, barge, and pipeline, though not without accident.

A key question for Congress is whether the characteristics of Bakken crude oil make it particularly hazardous to ship by rail, or are there other causes of transport incidents, such as poor maintenance practices, inadequate safety standards, or human error.  [MORE – a 13-page report in PDF format]

 

Citizen oil-train spotters challenge railroad secrecy

Repost from The Herald, Everett, Washington
[Editor: Interesting project.  For more detail, see Green News for Snohomish County.  – RS]

Citizen oil-train spotters challenge railroad secrecy

By Jerry Cornfield, June 12, 2014
A placard with the number 1267 indicates that a tank car along West Marine View Drive in Everett carries crude oil.
A placard with the number 1267 indicates that a tank car along West Marine View Drive in Everett carries crude oil. Mark Mulligan / The Herald

OLYMPIA — BNSF Railway doesn’t want civilians to know how often it transports large shipments of Bakken crude oil through Snohomish County, but a mathematician from Everett can give you a pretty good estimate.

Dean Smith, 71, a retired researcher for a federal agency, isn’t on the “need-to-know” list, but he’s got a darn good idea of the frequency and routes of oil trains.

He organized the Snohomish County Train Watch, and he and 29 volunteers monitored train traffic in Edmonds, Everett and Marysville for a week in April. Crude-oil tank cars can be identified by their red, diamond-shaped hazardous-material placards that bear the number 1267.

They tried to keep track around the clock but missed a few shifts. Even so, they counted 16 shipments of oil and 20 of coal, Smith said. They also tallied another 96 trains, including those of Amtrak, the Sounder commuter run between Seattle and Everett and other freight during the period.

Smith presented the results at a meeting Monday and posted them online. He’ll share them with U.S. Rep. Rick Larsen, D-Wash., in a meeting Friday.

“What motivated me was noticing the oil trains. I saw them and thought, ‘What’s going on?’” he said.

Three railroads in the state insist what’s going on should be released only to emergency responders and not the general public. State officials disagree and consider the reports to be public records but aren’t releasing them yet.

BNSF and the two other railroads have complied with a federal order and given the state government an idea of the volume, frequency and routes along which they move the highly flammable North Dakota crude in Washington.

But the BNSF, Tacoma Rail and the Portland and Western Railroad have until the end of next of week to obtain a court order preventing disclosure. If they don’t, the state will hand over records to those requesting them, including The Herald.

“We continue and will continue to work with the railroads to address their concerns and still meet the requirements of the state’s Public Records Act,” said Karina Shagren, spokeswoman for the state Emergency Management Division.

The shipment of crude oil by rail has greatly increased in recent years, and notable serious accidents in the U.S. and Canada, including a deadly crash in Quebec, have drawn attention to tank-car safety. Such incidents prompted the federal rule requiring railroads to disclose information about shipments.

The state Department of Ecology estimates Bakken crude shipments by rail in Washington rose from zero barrels in 2011 to nearly 17 million barrels in 2013.

Gov. Jay Inslee on Thursday said he wants state agencies to move more swiftly to assess the risks to public safety posed by the increasing number of oil trains traveling through Washington.

Inslee directed the Department of Ecology to analyze the risk of accidents along rail lines, compare the danger of Bakken crude to other types of crude and identify any gaps in the state’s ability to prevent and respond to oil spills from rail tank cars.

These issues are already getting a look as part of a $300,000 study of oil transportation approved by state lawmakers earlier this year. Work on that report will begin this month, and findings due to Inslee and lawmakers in December.

Inslee’s directive seeks some recommendations by Oct. 1, when he will be in the midst of drafting his next state budget proposal.

“It speeds up certain parts of that analysis,” said Inslee spokeswoman Jaime Smith. “There is a lot of increased scrutiny on oil shipments. The public is demanding some answers. The sooner we get the information, the sooner we can act.”

The U.S. Department of Transportation in May ordered railroads carrying more than 1 million gallons of Bakken crude in a single train – about 35 tank cars – to tell state authorities how many such shipments they expect to move through each county each week and on what routes. They were not required to provide the days and times of the shipments.

BNSF Railway, the dominant carrier north of Seattle and to points east, averages one-and-a-half to two trains loaded with Bakken going to “facilities in the Pacific Northwest in a 24-hour period,” according to company spokesman Gus Melonas.

He wouldn’t reveal how much oil those trains carry to refineries in Anacortes and Ferndale or which routes they travel.

“BNSF believes this type of shipment data is considered security-sensitive and confidential, intended for people who have ‘a need to know’ for such information, such as first responders and emergency planners,” Melonas told The Herald in an email.

Lyn Gross, director of the Emergency Services Coordinating Agency in Snohomish County, is one of those with a need to know and has received the information.

She declined to share details but said what she read didn’t incite her to consider revising the group’s handling of hazardous-material incidents. Her agency handles emergency management for 10 cities in south Snohomish County.

“It doesn’t really change much for us. It gives us more of an awareness of how much of this product is moving through our area that we didn’t know about before,” said Gross, who forwarded copies of the data to the member cities. “We’re going to respond like we would for any hazardous materials incident involving a train.”

Regular citizen Smith wants to repeat the train-watching exercise every two to three months to keep city, county and state leaders informed. He said he hopes that will spur a critical examination of the need for changes in emergency response plans.

Snohomish County residents are not the only ones tracking trains. The Vancouver Action Network is keeping watch and spreading data and photos through online sites and social media. Oil train activists are planning a statewide summit in Olympia in August.

Train monitoring is on the rise because rail transport of all types of crude oil, including Bakken, is multiplying in Washington. Until the federal order took effect last week, railroads did not need to tell anyone about the amount of Bakken they were taking to refineries in Whatcom and Pierce counties.

Tacoma Rail estimated that each week it runs three unit trains of 90 to 120 railroad tank cars apiece, according to a copy of the report obtained by The Herald. Those trains are traveling on tracks in and around the Tacoma Rail train yard in Pierce County.

Union Pacific, which doesn’t have a large presence in Western Washington, told the state it has nothing to report.

That doesn’t mean the Union Pacific isn’t shipping Bakken crude to locations in Washington — only that it isn’t handling quantities large enough to be subject to disclosure, Shagren said.