oil-train-railNorth Dakota’s Bakken oil patch has thrived thanks in large part to the once-niche business of hauling fuel on U.S. rail tracks. New safety rules may now test the oil train model.

Within weeks, the Obama Administration is due to unveil a suite of reforms that will rewrite standards conceived long before the rise of the shale oil renaissance, at a time when crude rarely moved by rail and few Americans had ever seen the mile-long oil trains that now crisscross the nation.

Read the complete story at Reuters.

oil-train-railThe oil industry and the railroads that haul its crude have offered U.S. regulators a joint plan to phase out a type of older tank car tied to a spate of fiery accidents, according to two people familiar with the proposal.

The plan also calls for slightly thicker walls for new cars to make them less vulnerable to puncture, according to the people, who asked not to be identified discussing private communications. The parties agreed to scrap a fleet of thousands of DOT-111s within three years if manufacturers agree they can replace or retrofit the tank cars in that period.

Read the complete story at Bloomberg News.

The Transportation Trades Department of the AFL-CIO issued the following statement on the train accident in Lac-Megantic, Quebec, that happened one year this week:

This week marks the one year anniversary of a tragic rail accident – a runaway train carrying 72 cars of crude ran into Lac-Megantic, Quebec killing 47 people and demolishing an entire town. While millions of carloads and containers traverse the country safely each year, too many accidents have occurred lately both in the freight and passenger sector. While the causes of these accidents vary and many investigations are ongoing, what is known is that more must be done to ensure that rail transportation is as safe and secure as possible for employees and the public.

For starters, too many rail workers, especially those responsible for operating trains and maintaining safety-sensitive equipment, are forced to report to work tired and fatigued. TTD has long called for federal rules to be changed to ensure that employees are given proper notice of when they will need to report to work and predictable schedules so that adequate rest can be secured.

Congress must also step in to stop rail companies from only “counting” certain hours that signal employees work as a way to get around federal rules limiting on-duty time. Let’s just say that there are some rail executives using creative calculating when it comes to adding up “covered work.” The problem is that this isn’t a game, and it is jeopardizing safety.

Congress must also adopt a mandated minimum crew size for freight train operations. Last year’s accident in Lac-Megantic, caused by a train that was operated by a single crew member, is a tragic reminder of the dangers posed by risky one-person rail operations. A freight train is massive – up to 19,000 tons and a mile and a half long – that simply should not be operated by one individual, especially given the myriad operating rules and regulations that must be followed. And while two-person crews are the norm on U.S. freight lines, crew size is often an issue determined by collective bargaining rather than federal mandate. Safety should not be bartered at the negotiating table. And by the way, the public agrees with us on this, with a series of polls showing that up to 9 out of 10 Americans believe #2crewtrains should be a national standard.

Fortunately, some lawmakers are taking steps to address rail safety. Reps. Rosa DeLauro (D-CT), Jim Himes (D-CT), Elizabeth Esty (D-CT) and Sean Patrick Maloney (D-NY) introduced legislation (H.R. 4576) earlier this year that mandates predictable and defined work and rest schedules and Congressman Michaud (D-ME) introduced a bill (H.R. 3040) requiring a minimum crew size for freight trains. We also applaud the Department of Transportation and its Federal Railroad Administration for moving on a new proposed rule on two-person train crew requirements. Strong federal action is needed because we know from experience that the rail lobby will dismiss and downplay these dangerous operating practices.

In addition, first responders require the necessary tools and training to effectively respond to rail accidents, particularly those involving hazardous materials. Domestic oil production has boomed and the amount of crude oil being shipped by rail has increased 70-fold in the last decade. Despite that fact, many firefighters receive an inadequate level of training that does little more than teach them to call for help in the case of a hazardous materials incident. Congress must direct adequate resources to states and localities for first responder training but also ensure that the level of training is sufficient.

This week’s anniversary of the tragedy in Lac-Megantic is a glaring reminder that it’s not just the workers on these trains that are endangered by unsafe rail industry practices. The neighborhoods and cities through which these trains travel should care just as much. Congress and the Administration must take strong, immediate action to close gaps in rail safety that expose too many to unnecessary risks.

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.

U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.

Read the complete story at Bloomberg News.

oil-train-railBILLINGS, Mont. – U.S. transportation officials said Wednesday that details about volatile oil train shipments are not sensitive security information, after railroads have sought to keep the material from the public following a string of fiery accidents.

The U.S. Department of Transportation has ordered railroads to give state officials specifics on oil-train routes and volumes so emergency responders can better prepare for accidents.

Read the complete story at the Brandon Sun.

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Szabo

Federal Railroad Administrator Joseph Szabo was interviewed Platts Energy Week host Boll Lovelace May 25 to discuss ongoing concerns about transporting crude oil by rail.

Platts Energy Week is an independent energy news and information program that airs weekly. The program provides a forum where prominent decision makers in government, industry and markets gather to provide information that their peers can use to help gauge opportunities and risks associated with energy investments and trading.

To view the Szabo interview, click here.

oil-train-railSAN FRANCISCO – Shipments of crude by rail into California are expected to increase 25-fold in the next two years.

With derailments and explosions on the rise in other parts of the country you would think the state is making extra sure that the railroads here are in good condition. But as KPIX5 found out, think again.

Read the complete story at Television Station KPIX.

ST. PAUL, Minn. – A Minnesota legislator wants Congress to put teeth into requirements for railroads moving hazardous content tank cars. State Rep. Frank Hornstein (DFL-Minneapolis) is chair of the Transportation Committee in the Minnesota House of Representatives.

The U.S. Department of Transportation Federal Railroad Administration issued a safety advisory earlier in May urging shippers and railroads to use newer, stronger tank cars to ship cargo like the highly flammable Bakken crude oil from North Dakota.

Read the complete story at Television Station KARE.

oil-train-railWASHINGTON – America’s smaller railroads lack the capability to offer safety training in the shipment of crude oil and ethanol, and two top Senate appropriators asked federal regulators Thursday to fund those efforts.

Sens. Patty Murray, D-Wash., and Susan Collins, R-Maine, wrote Transportation Secretary Anthony Foxx requesting the creation of the Short Line Safety Institute to help improve safety on the nation’s smaller railroads, which are carrying an increasing amount of hazardous materials.

Read the complete story at the Miami Herald.

Nobody would reasonably expect you to put up with a bomb in your backyard.

Yet every day, car after car of oil travels on railroads just steps away from people, homes and businesses, putting them at risk of explosions caused by unsafe oil tanker cars. This is increasingly true in Wyoming, where local and regional oil production means more and more crude is loaded on rail cars at terminals across the eastern half of the state.

Read the complete editorial at the Casper Star-Tribune.