American Fuel & Petrochemical Manufacturers

Thu, 2014-12-11 07:00Justin Mikulka
Justin Mikulka's picture

North Dakota's Meaningless New Bakken Oil Regulations Will Keep Bomb Trains Rolling

Oil train

New regulations purported to make Bakken crude safer for transport instead allow business as usual for the oil and rail industries moving explosive Bakken crude oil in unsafe DOT-111 rail cars.

The regulations announced Tuesday by the North Dakota Industrial Commission state that: “The goal is to produce crude oil that does not exceed a vapor pressure of 13.7 pounds per square inch (psi).”

There are two important things to note about this goal.

The first is that the vapor pressure of the oil that exploded in Lac-Megantic, Quebec, resulting in the death of 47 people, was under 10 psi and was described as being “as volatile as gasoline.” So the new regulations will permit oil that is significantly more volatile than the oil in the Lac-Megantic disaster to continue to be shipped by rail. 

The second important thing to note is that almost all of the oil that the industry and regulators have sampled in the past year has been well below 13.7 psi. Of 99 samples taken in the Pipeline and Hazardous Materials Safety Administration’s sampling study, 94 were below 13.7 psi and the average psi for that study was 12.3 psi.

Sun, 2014-06-15 07:00Justin Mikulka and Steve Horn
Justin Mikulka and Steve Horn's picture

Meeting Logs: Obama White House Quietly Coddling Big Oil on “Bomb Trains” Regulations

When Richard Revesz, Dean Emeritus of New York University Law School, introduced Howard Shelanski at his only public appearance so far during his tenure as Administrator of the White House Office of Information and Regulatory Affairs (OIRA), Revesz described Shelanski as, “from our perspective, close to the most important official in the federal government.”

OIRA has recently reared its head in a big way because it is currently reviewing the newly-proposed oil-by-rail safety regulations rolled out by the Department of Transportation (DOT) and Pipeline and Hazardous Materials Safety Administration (PHMSA).   

During his presentation at NYU, Shelanski spoke at length about how OIRA must use “cost-benefit analysis” with regards to regulations, stating, “Cost-benefit analysis is an essential tool for regulatory policy.”

But during his confirmation hearings, Shelanski made sure to state his position on how cost-benefit analysis should be used in practice. Shelanski let corporate interests know he was well aware of their position on the cost of regulations and what they stood to lose from stringent regulations. 

Regulatory objectives should be achieved at no higher cost than is absolutely necessary,” Shelanski said at the hearing.

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