Category Archives: Volatility

Rail agency’s new head draws kudos, despite string of crashes

Repost from The Boston Globe

Rail agency’s new head draws kudos, despite string of crashes

By Ashley Halsey III, Washington Post, March 22, 2015
Smoke and flames erupted from railroad tank cars loaded with crude oil that derailed March 5 near Galena, Ill.
Smoke and flames erupted from railroad tank cars loaded with crude oil that derailed March 5 near Galena, Ill. Mike Burley / Telegraph Herald via Associated Press

WASHINGTON — After a string of deadly train crashes, a pair of angry US senators stood in New York City’s Grand Central Terminal four months ago to denounce the Federal Railroad Administration as a ‘‘lawless agency, a rogue agency.’’

They said it was too cozy with the railroads it regulates and more interested in ‘‘cutting corners’’ for them than protecting the public.

In the past two months, photos of rail cars strewn akimbo beside tracks have rivaled mountains of snow in Boston for play in newspapers and on television.

But the reaction by Congress to the railroad oversight agency’s performance has been extremely positive recently.

Accolades were directed at its acting head, Sarah Feinberg, even though her two-month tenure in the job has coincided with an astonishing number of high-profile train wrecks:

  • Feb. 3: Six people were killed when a commuter train hit an SUV at a grade crossing in Valhalla, N.Y.
  • Feb. 4: Fourteen tank cars carrying ethanol jumped the tracks north of Dubuque, Iowa, and three burst into flames.
  • Feb. 16: Twenty-eight tank cars carrying crude oil derailed and caught fire in West Virginia.
  • Feb. 24: A commuter train derailed in Oxnard, Calif., after hitting a tractor-trailer at a grade crossing.
  • March 5: Twenty-one tank cars derailed and leaked crude oil within yards of a tributary of the Mississippi River in Illinois.
  • March 9: The engine and baggage car of an Amtrak train derailed after hitting a tractor-trailer at a grade crossing in North Carolina.

At first glance, Feinberg seems an unlikely choice to replace Joseph Szabo, the career railroad man who resigned after five years in the job. She is 37, a former White House operative, onetime spokeswoman for Facebook’s Mark Zuckerberg, and, most recently, chief of staff to the US Department of Transportation secretary.

Nothing on her résumé says ‘‘railroad.’’

‘‘Sometimes it’s good to have an outside person,’’ said Senator Charles Schumer, Democrat of New York, who got a call from Feinberg immediately after the Feb. 3 crash in Valhalla. ‘‘She’s smart, she’s a quick study, she knows how to bring people together. I think she’s the right person for the job.’’

‘‘Whether she’s had a lifetime experience riding the rails or working on the rails, she knows how to get to the crux of things and move things forward,’’ said Senator Joe Manchin III, a West Virginia Democrat who arrived at the Feb. 16 crash shortly before Feinberg did. ‘‘I was very impressed.’’

Schumer calls Feinberg ‘‘hard-nosed’’ and says she isn’t worried if she ruffles some in an industry grown accustomed to a more languid pace of change.

After the Valhalla crash, Feinberg pulled together a team to come up with a better way to address an issue that kills hundreds of people at grade crossings each year.

‘‘We’re at a point where about 95 percent of grade-crossing incidents are due to driver or pedestrian error,’’ Feinberg said. ‘‘While I don’t blame the victims, this is a good example of a problem that needs some new thinking.’’

A month later, she called on local law enforcement to show a greater presence at grade crossings and ticket drivers who try to beat the warning lights. Next, the railroad agency says it plans ‘‘to employ smarter uses of technology, increase public awareness of grade crossing safety, and improve signage.’’

‘‘When it comes to the rail industry, that is lightning fast, and it’s really impressive,’’ said a congressional aide who focuses on transportation.

Grade-crossing deaths pale in comparison to the potential catastrophe that Feinberg says keeps her awake at night. ‘‘We’re transporting a highly flammable and volatile crude from the middle of the country, more than 1,000 miles on average, to refineries,’’ she said.

All of the recent crude-oil train derailments happened miles from the nearest town. But little more than a year ago, a CSX train with six crude-oil tank cars derailed on a river bridge in the middle of Philadelphia. And an oil-fueled fireball after a derailment in Lac-Mégantic, Quebec, in July 2013 left 47 people dead.

The number of tank-car trains has expanded exponentially since the start of a production boom centered in North Dakota. Seven years ago, 9,500 tank cars of Bakken crude traveled by railroad. Last year, the number was 493,126. In 2013, an additional 290,000 cars transported ethanol.

Mindful of the potential for disaster, the White House tasked the Office of Management and Budget and the Transportation Department with figuring out how to safely transport the oil. At DOT, that fell to Feinberg, who had just signed on as chief of staff to Secretary Anthony Foxx.

‘‘We found her to be very hands-on, firm but fair, and ready to work with all stakeholders in making fact-based decisions,’’ said Ed Greenberg of the Association of American Railroads. ‘‘She is someone who has quickly recognized the challenges in moving crude oil by rail. And the freight rail industry is ready to work with her” in her new role at the Federal Railroad Administration, he said.

North Dakota will rely more on pipelines by 2018

Repost from UPI Business News
[Editor: Significant quote: “Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018”  – RS]

North Dakota reviews oil-train safety

About half of the oil produced in the state is delivered by rail.

By Daniel J. Graeber   |   March 19, 2015 at 9:40 AM
North Dakota Gov. Jack Dalrymple calls for tighter rules to ensure safe transport of crude oil from state’s Bakken shale reserve. Photo by Steven Frame/Shutterstock

BISMARCK, N.D., March 19 (UPI) — There’s no way to offer a single solution that would allay concerns about the safety of crude oil transit by rail, North Dakota Gov. Jack Dalrymple said.

Dalrymple spoke with U.S. Transportation Secretary Anthony Foxx to discuss efforts to improve the safe transport of crude oil by rail from the state. The Republican governor said he called on the secretary to adopt new standards for rail cars carrying crude oil as soon as possible.

“Secretary Foxx and I agree that there is no single solution to improving the safety of rail transportation,” Dalrymple said in a statement Wednesday.

North Dakota crude oil production is more than existing pipeline capacity can handle, forcing many in the industry to use rail as an alternative transit method. The increase in rail traffic has in turn led to an increase in derailments involving trains carrying crude oil, a situation compounded by federal reports showing oil from the Bakken reserve area in North Dakota may be less stable than other types of crude oil.

A 200-page proposal from the Department of Transportation last year called for the elimination of older rail cars designated DOT 111 for shipment of flammable liquid, “including most Bakken crude oil.”

A February derailment in West Virginia involved a train carrying Bakken oil. At least 40 people were killed in Lac-Megantic, Quebec, in the 2013 derailment of a train carrying tankers of crude oil from North Dakota to Canadian refineries.

Dalrymple said rail traffic may drop off once new pipeline infrastructure comes online. Three pipelines — Sandpiper, Dakota Access and Upland — should be in service by 2018 and provide 895,000 barrels per day in new capacity.

North Dakota produces about 1.2 million bpd and about half of that is shipped by rail.

The state government in December approved a new measure that requires oil producers in North Dakota to install equipment at their facilities that would reduce the volatility of Bakken crude.

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

Repost from Bloomberg Business News

Speed Limits May Not Stop Fiery Oil Spills, U.S. Rail Chief Says

By Jim Snyder, March 13, 2015 1:15 PM PDT

(Bloomberg) — Lower speed limits for railroads may be ineffective at keeping oil trains on the tracks and preventing massive fireballs, such as those triggered in a series of recent derailments, the chief U.S. railroad regulator said.

“If you’re going to slow trains down, you’re going to have to slow them down to 12 miles an hour,” Sarah Feinberg, acting chief of the Federal Railroad Administration, told reporters in Washington Friday.

“And then you would just have other dangers. People queuing up at grade crossings while train car after train car of volatile product goes by,” she said. “That’s not good either.”

A surge in U.S. oil production has increased the amount of crude moved by rail 5,000 percent since 2009, much of it from North Dakota’s booming Bakken field. A corresponding jump in accidents, including a 2013 oil-train derailment and explosion that killed 47 people in Lac-Megantic, Quebec, have led U.S. and Canadian regulators to propose tougher standards for trains.

Speeds higher than 25 mph were “irresponsible” given the known weakness of the tank cars carrying the crude, Jim Hall, a former chairman of the National Transportation Safety Board, said in written comments to the Transportation Department.

Hall was responding to a proposed department rule that would require the current fleet of tank cars to be replaced. A draft is being reviewed at the White House Office of Management and Budget and is expected to be final in May.

Sloshing Effect

The Federal Railroad Administration also is studying whether slower speeds can cause a sloshing effect in tank cars, making it harder to prevent the rolling stock from wobbling off the tracks, Feinberg said.

Railroads have lobbied against new limits, saying they would result in costly delays for many of the goods hauled by rail.

Two oil-trains that derailed in the past four weeks, in West Virginia and Illinois, and created massive fireballs were traveling well below federal speed limits, Feinberg said.

Railroads last year agreed to slow trains to 40 mph from 50 mph when carrying crude through High Urban Threat Areas, a designation that covers more than three dozen U.S. communities.

“We are running out of things that I think we can ask for the railroads to do, and there have to be other industries that have skin in the game,” Feinberg said. “There also has to be attention placed on the product actually going into the railcar.”

In April, a regulation in North Dakota that requires oil to be kept at a vapor pressure below 13.7 pounds per square inch goes into effect. Feinberg said a process known as conditioning, which companies can use to meet that standard, is the “bare minimum” step to lower volatility.

Feinberg said the administration is considering further steps to reduce oil’s explosiveness before its loaded into tank cars, though the draft rule under review is silent on the issue.

NPR Interview: Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

Repost from WAMU, American University Radio – The Diane Rehm Show
[Editor: In this lengthy and informative audio, Diane Rehm interviews Anthony Swift, NRDC; Cynthia Quarterman, Atlantic Council (former Administrator of the Pipeline and Hazardous Materials Safety Administration); Dina Cappiello, Associated Press; and Edward Hamburger, Association of American Railroads. Unfortunately, I am unable to embed The Diane Rehm Show here.  To listen to this 51-minute interview, go to the Diane Rehm Show.  – RS]

Another Train Derailment Raises New Concerns About The Safety Of Transporting Crude Oil

The Diane Rehm Show, Mon, Mar 09, 2015
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va.
Firefighters and rescue workers work along the tracks where several CSX tanker cars carrying crude oil derailed and caught fire in April 2014 along the James River near downtown in Lynchburg, Va. AP Photo/Steve Helber

Fueled by the shale oil boom in North Dakota and Montana, trains now carry more than 500,000 carloads of oil and ethanol to coastal refineries. Now, a series of fiery train derailments in the U.S. and Canada is raising public safety concerns. On Saturday, a train crashed in Ontario, leaking oil into a nearby waterway. Here in the U.S., another train derailed last week in Illinois, causing evacuations and fire damage. Safety advocates say rail cars carrying oil need to meet tougher design standards and lower speed limits. Shippers argue that stricter measures are costly and risks are exaggerated. We look at the rise in oil train derailments and what can be done to prevent them.

Guests

  • Anthony Swift attorney with the Natural Resources Defense Council.
  • Cynthia Quarterman distinguished senior fellow, The Atlantic Council; former administrator of the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA)
  • Ed Hamberger president and CEO, Association of American Railroads.
  • Dina Cappiello national environment and energy reporter, The Associated Press.