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Vol. 19, No. 9 Week of March 02, 2014
Providing coverage of Bakken oil and gas

Feds boost rail safety

USDOT, AAR agree to adopt wide range of new crude-by-rail shipping standards

Maxine Herr

For Petroleum News Bakken

Crude oil trains will be slowing down across the country as part of a voluntary agreement between the U.S. Department of Transportation, DOT, and the Association of American Railroads, AAR. On Feb. 21, the two entities announced new safety practices in response to several fiery derailments in recent months.

The new practices state that any train carrying more than 20 cars of crude oil that includes at least one older model DOT-111 tank car will reduce its speed from 50 to 40 miles per hour through urban areas. Additional safety measures include more track inspections, enhanced braking systems, better emergency response plans and an analysis to determine the safest route for trains carrying more than 20 tanks of oil. They are set to go into effect between March and July.

In a letter to AAR, U.S. Transportation Secretary Anthony Foxx said “the rapid increase in the production and transportation of crude oil requires additional vigilance.”

“We share the Administration’s vision for making a safe rail network even safer, and have worked together to swiftly pinpoint new operating practices that enhance the safety of moving crude oil by rail,” said AAR President and CEO Edward R. Hamberger.

A timeline toward safety

Starting March 25, railroads will conduct at least one additional inspection annually on main line routes for trains moving 20 or more cars of crude oil beyond those inspections required by new Federal Railroad Administration, FRA, regulations. In January, the FRA strengthened its track safety standards by requiring performance-based rail inspections to maintain low rail failure rates. Railroads will also conduct at least two high-tech track geometry inspections each year on those same lines, something current federal regulations do not require.

Improved braking systems will be in place no later than April 1, giving trains the technology that allows crews to stop faster by applying emergency brakes from both ends of the train. Railroads have until July 1 to ensure that wheel bearing detectors are in place every 40 miles along tracks.

Also by that date, railroads will determine the safest and most secure rail routes for the 20-plus tank car trains by using the Rail Corridor Risk Management System, RCRMS. It is a tool the railroads currently use for routing security sensitive materials, and considers commodity volume, trip length, population densities, local emergency response capability and track quality to assess safety.

Oil trains will slow down in the 46 federally designated cities of highest threat. From the list, Denver, Colo., and the Twin Cities are the closest in proximity to the Bakken. The oil train that caused a plume of smoke to soar into the sky near Casselton in December was traveling about 43 mph, 17 mph under the speed limit. But for communities like Casselton in eastern North Dakota with frequent crude oil trains traffic, AAR said railroads will continue to work with them regarding location-specific concerns.

Finally, railroads will develop an inventory of emergency response resources along routes used to haul 20 or more cars of crude oil, making appropriate equipment and notification information available to those at the scene. AAR said railroads have committed $5 million toward tuition for 1,500 local first responders for specialized crude by rail training this year.

Tank car and classification standards yet to come

But train speeds, routes, and track improvements are only part of the equation. Since Bakken crude has proven to be more flammable and prone to explosion than other crude oil, according to the Pipeline and Hazardous Materials Safety Administration, PHMSA, railroads continue to work with the administration to address tank car standards and proper labeling of oil transported by rail. After reviewing public comments on potential changes to federal tank car standards, the DOT met with the House Transportation and Infrastructure Committee on Feb. 26 to review the safety of transporting crude oil by rail. A day earlier, the DOT issued an emergency order requiring oil from North Dakota to be tested and properly labeled prior to loading it on trains. (See sidebar)

On Feb. 20, Reuters reported that BNSF Railway plans to buy its own fleet of 5,000 new crude oil tank cars designed to exceed the latest industry standards. The cars would have thicker walls and ends fitted with better safety and pressure valves. It’s a unique move for BNSF because railroad companies do not typically own the cars, but only the tracks and locomotives that pull the trains.

False documents provoke needs for tighter regulation

Since many rail cars are not designed to carry the flammable crude and can puncture easily, PHMSA has also cracked down on the misclassification of car contents. The agency upgraded its inspections, what it terms “the Bakken Blitz,” in western North Dakota since the Casselton incident.

As a result, three North Dakota companies were fined in February for the alleged violations after investigators found 11 of 17 oil samples were misclassified. DOT officials say further review may necessitate additional enforcement action.

“Today, our railways move more hazardous materials than ever before,” Cynthia Quarterman, head of PHMSA wrote on the Transportation Department’s website. “DOT will continue to enforce safety regulations — and revise them if necessary — to protect our communities and the environment.”

North Dakota state Sen. Connie Triplett told a legislative committee that she is unnerved by the misclassifications, and said the state needs to step in to keep the public safe.

“We can’t just keep saying this is up to the federal government because we know they don’t have the money to send inspectors,” Triplett said. “We need to ask our agencies how it could be done better.”

She proposed giving oversight to the state’s Public Service Commission, and Commissioner Julie Fedorchak briefly addressed the idea at a separate meeting with energy officials.

“We need to look at what some of the changes the feds are considering,” Fedorchak said. “The industry is ahead of the feds on the rail side. There are some legitimate shortcomings, and there are ways to address those things.”

Federal officials said they will use regular inspections to check for compliance with the industry agreement, but with no formal rules in place, inspectors could not issue fines or take other punitive measures.



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USDOT orders testing of Bakken crude

Federal regulators are cracking down on those transporting Bakken crude oil by rail. On Feb. 25, the U.S. Department of Transportation, DOT, issued an emergency order requiring oil from North Dakota to be tested and property labeled to reflect its volatile nature prior to being loaded onto trains.

Following a large explosion after an oil train collided with another train near Casselton, N.D., in December, DOT declared that Bakken crude is more dangerous to ship by rail than other oil due to its flammability. DOT recently fined three companies in North Dakota for misclassifying the crude oil sent by rail.

“If you intend to move crude oil by rail, then you must test and classify the material appropriately,” Department of Transportation Secretary Anthony Foxx said in a statement.

The new rules come on the heels of new voluntary safety measures developed by DOT and the American Association of Railroads for transporting oil due to concerns arising from recent fiery derailments. (See rail story, page 1)

Regulators also acknowledge that tank cars need improvements, and older DOT-111 cars make up much of the crude-by-rail fleet yet they are prone to puncture during accidents. However, hazardous materials rules still permit the crude to be carried on the older tank cars.

The order states that all crude oil shipments must be labeled in Packing Group 1 or 2, not the less strict Group 3, the DOT said. Packing Group 1 represents explosive materials and Group 2 is for flammable gases, while Group 3 indicates flammable liquids.

—Maxine Herr