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Oil Trains Are Hazardous – So Why Are U.S. Taxpayers Helping Fund Them?

Oil Trains Are Hazardous – So Why Are U.S. Taxpayers Helping Fund Them?
Mon, 12/22/2014 - by Ralph Nader
This article originally appeared on Counterpunch

Back in 1991 the National Transportation Safety Board first identified oil trains as unsafe — the tank cars, specifically ones called DOT-111s, were too thin and punctured too easily, making transport of flammable liquids like oil unreasonably dangerous. As bad as this might sound, at the very least there was not a lot of oil being carried on the rails in 1991.

Now, in the midst of a North American oil boom, oil companies are using fracking and tar sands mining to produce crude in remote areas of the U.S. and Canada. To get the crude to refineries on the coasts the oil industry is ramping up transport by oil trains. In 2008, 9,500 crude oil tank cars moved on U.S. rails. In 2013 the number was more than 400,000.

With this rapid growth comes a looming threat to public safety and the environment. No one — not federal regulators or local firefighters — are prepared for oil train derailments, spills and explosions. Unfortunately, the rapid increase in oil trains has already meant many more oil train disasters. Railroads spilled more oil in 2013 than in the previous 40 years combined.

Trains are the most efficient way to move freight and people. This is why train tracks run through our cities and towns. Our rail system was never designed to move hazardous materials, however; if it was, train tracks would not run next to schools and under football stadiums.

Last summer, environmental watchdog group ForestEthics released a map of North America that shows probable oil train routes. Using Google, anyone can check to see if their home or office is near an oil train route.

ForestEthics used census data to calculate that more than 25 million Americans live in the oil train blast zone (that being the one-mile evacuation area in the case of a derailment and fire.) This is clearly a risk not worth taking — oil trains are the Pintos of the rails. Most of these trains are a mile long, pulling 100-plus tank cars carrying more than 3 million gallons of explosive crude. Two-thirds of the tank cars used to carry crude oil today were considered a “substantial danger to life, property, and the environment” by federal rail safety officials back in 1991.

The remaining one-third of the tank cars are not much better — these more “modern” cars are tested at 14 to 15 mph, but the average derailment speed for heavy freight trains is 24 mph. And it was the most “modern” tank cars that infamously derailed, caught fire, exploded and poisoned the river in Lynchburg, West Virginia, last May. Other derailments and explosions in North Dakota and Alabama made national news in 2014.

The most alarming demonstration of the threat posed by these trains happened in Quebec in July 2013 — an oil train derailed and exploded in the City of Lac Megantic, killing 47 people and burning a quarter of the city to the ground. The fire burned uncontrollably, flowing through the city, into and then out of sewers, and into the nearby river. Firefighters from across the region responded, but an oil fire cannot be fought with water, and exceptionally few fire departments have enough foam flame retardant to control a fire from even a single 30,000 gallon tank car, much less the millions of gallons on an oil train.

Given the damage already done and the threat presented, Canada immediately banned the oldest of these rail cars and mandated a three-year phase-out of the DOT-111s. More needs to be done, but this is a solid first step. Of course, we share the North American rail network — right now those banned trains from Canada may very well be transporting oil through your home town while the Department of Transportation dallies.

The immense public risk these oil trains pose is starting to gain the attention it deserves, but not yet the response. Last summer, the U.S. federal government began the process of writing new safety regulations. Industry has weighed in heavily to protect its interest in keeping these trains rolling. The Department of Transportation, disturbingly, seems to be catering to industry’s needs.

The current draft rules are deeply flawed and would have little positive impact on safety. They leave the most dangerous cars in service for years. Worse yet, the oil industry would get to more than double its tank car fleet before being required to decommission any of the older, more dangerous DOT-111s.

We need an immediate ban on the most dangerous tank cars. We also need to slow these trains down; slower trains mean fewer accidents, and fewer spills and explosions when they do derail. The public and local fire fighters must be notified about train routes and schedules, and every oil train needs a comprehensive emergency response plan for accidents involving explosive Bakken crude and toxic tar sands. In addition, regulations must require adequate insurance. This is the least we could expect from Secretary Anthony Foxx, who travels a lot around the country, and the Department of Transportation.

So far, Secretary Foxx is protecting the oil industry, not ordinary Americans. In fact, Secretary Foxx is meeting with Canadian officials this Thursday, December 18, to discuss oil-by-rail. It is doubtful, considering Canada’s strong first step, that he will be trying to persuade them to adopt even stronger regulations. Will Secretary Foxx ask them to weaken what they have done and put more lives at risk? Time will tell. He has the power, and the mandate, to remove the most dangerous rail cars to protect public safety but he appears to be heading in the opposite direction. Earlier this month ForestEthics and the Sierra Club, represented by EarthJustice, filed a lawsuit against the DOT to require them to fulfill this duty.

Secretary Foxx no doubt has a parade of corporate executives wooing him for lax or no oversight. But he certainly doesn’t want to have a Lac Megantic-type disaster in the U.S. on his watch. It is more possible now than ever before, given the massive increase in oil-by-rail traffic.

Pipelines, such as the Keystone XL, are not the answer either. (Keystone oil would be routed for export to other countries from Gulf ports.) Pipelines can also leak and result in massive damage to the environment as we have seen in the Kalamazoo, MI spill by the Enbridge Corporation. Three years later, $1.2 billion spent, and the “clean up” is still ongoing.

Here’s the reality — we don’t need new pipelines and we don’t need oil by rail. This is “extreme oil,” and if we can’t transport it safely, we can and must say no. Secretary Foxx needs to help make sure 25 million people living in the blastzone are safe and that means significant regulations and restrictions on potentially catastrophic oil rail cars.

Rather than choosing either of these destructive options, we are fortunate to be able to choose safe, affordable cleaner energy and more efficient energy products, such as vehicles and furnaces, instead. That is the future and it is not a distant future — it’s happening right now.

Meanwhile, Jarrett Renshaw reports for Reuters:

For the past 18 months, Americans from Albany to Oregon have voiced growing alarm over the rising number of oil-laden freight trains coursing through their cities, a trend they fear is endangering public safety.

In at least a handful of places, the public is also helping fund it.

States and the federal government have handed out tens of millions in public dollars to rail companies and government agencies to expand crude oil rail transportation across the country, a Reuters analysis has found.

The public assistance in states like New York, Pennsylvania, Ohio, Oklahoma and Oregon comes as railroads are posting record profits, and as state and federal authorities press for safety overhauls that the oil and rail industries have opposed, following several explosive derailments.

The Reuters analysis identified 10 federal and state grants either approved or pending approval, totaling $84.2 million, that helped boost the number of rail cars carrying crude oil across the nation.

The funds are a fraction of total public funding for railroads each year, and look small compared to the $24 billion railroads themselves are spending annually on infrastructure.

But with oil-train safety under heavy scrutiny, the public grants could be controversial and add to growing strains between the industry and some local communities who say they are ill-prepared to deal with oil spills or derailments.

"Look at the towns. All they're getting are more trains in their backyard and all the risk with no financial benefits," said Dan McCoy, the County Executive in Albany, New York, where taxpayer funds have contributed to growing oil-train shipments.

In May, Albany's sheriff, Craig Apple, warned that regional emergency crews weren't equipped to respond to any major derailment.

"I am not seeing any increases in tax revenue, but I am seeing an increase in the cost of emergency services," McCoy said.

Since 2008, there have been at least 10 major oil-train derailments across the U.S. and Canada, including a disaster that killed 47 in a Quebec town last July.

Officials and rail executives offer a counter-argument: the funds help improve safety for an industry that is helping revive the economy in some places.

Last year, New York Governor Andrew Cuomo awarded CSX Railroad a $2 million grant to add a second 3.6-mile rail line just south of the state capital in a county that now handles about a fourth of the Bakken's oil, a light, volatile crude whose vapors have exploded in several past derailments.

CSX spokesman Rob Doolitle said the new line allows the railroad to idle fewer trains in the region, block fewer crossings, and serve at least 200 different businesses more efficiently.

"Local communities benefit from increased capacity," Doolittle said. CSX posted record revenues of $3.2 billion in the third quarter.

An Industry Transformed

The taxpayer dollars are going to a rail industry that has transformed the U.S. energy market: Amid a shale-drilling boom that has overwhelmed the nation's pipeline network, oil-train traffic has surged at least 42-fold since 2009, and 415,000 railcar loads of oil plied the nation's tracks last year.

As oil-trains increasingly make up for a lack of pipelines, they share the tracks with passenger and other freight trains on some of the busiest U.S. rail corridors. Emergency responders in several regions have complained that they lack information to track them and quickly respond to accidents.

While federal law now requires rail operators carrying Bakken crude to report routes and the number of trains that transit through each state, railroads have been reluctant to share specifics publicly, citing security risks.

Philadelphia is one of the unlikely locales that has been both alarmed and enriched by the oil-by-rail industry.

In 2012, The Carlyle Group led a rescue of the East Coast's biggest refinery, which had been slated for closure, aided in part by a state-backed aid package that included $10 million to build a new rail terminal.

The 335,000-barrel-a-day plant is making money once again thanks in large part to the rail terminal, which receives six miles of oil-laden railcars daily from North Dakota’s Bakken.

In September, Philadelphia Energy Solutions (PES), an oil refining complex controlled by hedge fund Carlyle Group, announced plans to sell shares in its crude-by-rail terminal, a move that may fetch hundreds of millions of dollars and reduce its corporate tax burden.

Carlyle declined comment, but the company has previously said that government assistance helped to save at least 850 jobs at PES and boost Pennsylvania's economy.

Earlier this year, six railcars transporting Bakken oil to the PES rail terminal derailed on a bridge over the Schuylkill River in Philadelphia’s Center City. No oil spilled from the CSX-operated train, but images of railcars teetering above the city's vital waterway shocked locals and prompted protests.

"It spooked a lot of people in Philadelphia, and really raised the profile of the issue of crude by rail, an issue most people don't think about," said Matt Walker, a director with the local Clean Air Council.

Congestion Relief

Citing high costs, oil and rail industry groups have resisted some of the U.S. Department of Transportation's recent proposals to enhance crude-by-rail safety, which include quick retirement or retrofitting of older, accident-prone railcars, lower speed limits, and mandatory electronic railcar braking systems.

Railroads and local transport authorities say public grants are a public good.

Since 2011, Oklahoma has received two federal grants worth $8.6 million that were used to fund privately-held FarmRail System, a regional rail operator, to move more crude by rail out of the state's Anadarko Basin.

"We see these grants as improving public safety, much like you spend money on improving a highway," said Gary Ridley, the head of the Oklahoma's transportation agency. Trains are better than oil trucks, which clog up roads, he said. Oklahoma Governor Mary Fallin recently announced a $100 million spending package to upgrade rail crossings in the state.

In Oregon, oil terminal giant Global Partners successfully lobbied state and county officials to fund $8.9 million in upgrades to the Portland and Western Railroad, which runs next to the Columbia River. As a result, Global was able to increase the number of oil-trains to its private rail hub in the state by more than a third, to 38 per month. Global declined comment.

"It really doesn't matter whether the train is carrying crude oil or cotton puffs, they have the right to pass through," Jerry Cole, the mayor of Rainier, Oregon, where oil-trains pass through daily. "All I can do is to make it as safe as possible."

Originally published by Counterpunch

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