national transportation safety board

Tue, 2014-03-18 06:00Sharon Kelly
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A Record Year of Oil Train Accidents Leaves Insurers Wary

Spurred by the shale drilling rush that has progressed at breakneck speed, the railroad industry has moved fast to help drillers transport petroleum and its byproducts to consumers. Last year, trains hauled over 400,000 carloads of crude oil, up from just 9,500 carloads in 2008, according to railroad industry estimates.  Each carload represents roughly 30,000 gallons of flammable liquids, and some trains haul over 100 oil cars at a time.

But with this fast expansion has come some astounding risks — risks that have insurance companies and underwriters increasingly concerned.

A string of oil train explosions have highlighted the potential for harm. A train hauling 2.9 million gallons of Bakken oil derailed and exploded on November 8 in Aliceville, Alabama, and the oil that leaked but did not burn continues to foul the wetlands in the area.

On December 30th, a train collision in Casselton, North Dakota 20 miles outside of Fargo, prompted a mass evacuation of over half the town’s residents after 18 cars exploded into fireballs visible for miles. 400,000 gallons of oil spilled after that accident, which involved two trains traveling well below local speed limits.

Those crashes are all on the radar of the insurance industry,” attorney Dean Hansell recently told Law360.

All told, railcar accidents spilled more than 1.15 million gallons of crude oil in 2013, federal data shows, compared with an average of just 22,000 gallons a year from 1975 through 2012 — a fifty-fold spike.

Fri, 2014-03-14 13:29Justin Mikulka
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Why Nothing Will Happen On Oil by Rail Safety

In the past month, there have been numerous public relations efforts suggesting that much is being done to improve oil by rail safety. Unfortunately, it seems these efforts will not involve much more than press releases and hollow promises, as regulators have made no meaningful changes to a broken and ineffective regulatory system.  

That approach, combined with the realities of the rail tank car industry, basically ensure that oil will be transported in the unsafe DOT-111 tank cars for many years to come, despite testimony at a recent congressional hearing from Robert Sumwalt of the National Transportation Safety Board (NTSB).

Sumwalt testified that, “multiple recent serious and fatal accidents reflect substantial shortcomings in tank car design that create an unacceptable public risk.”  

Unacceptable to the public, but apparently perfectly acceptable to the industry.

Thu, 2014-02-27 12:38Justin Mikulka
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Bureaucrat Ducks Vital Question on Flawed DOT-111 Tank Cars at Oil By Rail Safety Hearing

On Wednesday February 26th, the long-awaited congressional hearing on oil-by-rail safety finally occurred. The main portion of the hearing featured representatives from the relevant government agencies as well as industry, such as the American Petroleum Institute’s President and CEO, Jack Gerard.  

For those following crude-by-rail safety, there are several pressing issues, but the one question everyone wants to know the answer to is when will the government stop allowing the inferior and unsafe DOT-111 tank cars to be used to ship crude oil?  

At the hearing, Robert Sumwalt of the National Transportation Safety Board (NTSB
testified that “multiple recent serious and fatal accidents reflect substantial shortcomings in tank car design that create an unacceptable public risk.”

Not much of substance was covered in the hours-long hearing but there was one exchange between Congressman Peter DeFazio of Oregon and Cynthia Quarterman, the Administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA), that shed light on where this all stands.  

Congressman DeFazio asked the question about the DOT-111s several times — and Administrator Quarterman refused to answer several times. The video below highlights the heated exchange which ends with Congressman Defazio cutting off Adminstrator Quarterman mid-sentence as it is clear she is not going to answer, thus highlighting the extent of the problem.  



The one official who can actually make something happen when it comes to improving rail car safety refuses to answer questions on when that might get done, despite the fact that the flaws in the existing DOT-111 tank cars have been known for over a decade and members of congress have been requesting this hearing for over six months. 

Thu, 2014-01-30 12:47Justin Mikulka
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New York Governor Cuomo Issues Executive Order on Oil by Rail Safety

Yesterday, New York Governor Andrew Cuomo issued an executive order directing several state agencies to review the risks posed by trasportation of crude oil by rail in New York. This issue has recently gained attention in Albany as the public has become aware of the large amounts of Bakken crude oil being shipped into Albany by rail, where it is then transferred to tankers that travel down the Hudson River.  

The Governor’s order requests many relevant actions but also acknowledges that most of this is under federal jurisdiction and thus there isn’t much the state can do about it.  Much of what the Governor is requesting has been suggested by the National Transportation Safety Board (NTSB) many times over the years, as the agency did again this past week.

The new suggested NTSB changes have the support of the American Association of Railroads. However, the companies that actually would be responsible for most of the costs associated with improving rail car safety are the oil companies themselves. The American Petroleum Institute responded to the new safety regulations
by pointing the finger at the rail companies, stating that, “the first step is to prevent derailments by addressing track defects and other root causes of all rail accidents.”

And the dance that has gone on around this issue for years continues on, resulting in more press releases, but no action.

Here is a video I produced about the oil by rail issue in New York: 


Thu, 2014-01-02 10:54Steve Horn
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Warren Buffett Bought Stake in Pipeline Company on Same Day as North Dakota Oil Train Explosion

On December 30, the same day a Burlington Northern Sante Fe (BNSF) oil train derailed and exploded in Casselton, North Dakota, Warren Buffett — owner of holding company giant Berkshire Hathaway, which owns BNSF — bought a major stake in pipeline logistics company Phillips Specialty Products Inc.

Owned by Phillips 66, a subsidiary of ConocoPhillips, Phillips Specialty Products' claim to fame is lubricating oil's movement through pipelines, increasingly crucial for the industry to move both tar sands crude and oil obtained via hydraulic fracturing (“fracking”) in an efficient manner.

“Phillips Specialty Products Inc…is the global leader in the science of drag reduction and specializes in maximizing the flow potential of pipelines,” explains its website.

Buffett — the second richest man in the world — sees the flow lubricant business as a lucrative niche one, increasingly so given the explosion of North American tar sands pipelines and fracked oil pipelines.

“I have long been impressed by the strength of the Phillips 66 business portfolio,” he said of the deal in a press release. “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway.”

Fri, 2012-07-13 13:19Carol Linnitt
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Enbridge Mismanagement Caused Kalamazoo Tragedy, Says NTSB

Enbridge, the Canadian company poised to build the controversial Northern Gateway Pipeline, received a scathing assessment this week from the U.S. National Transportation Safety Board (NTSB) after an inquiry into a 2010 pipeline rupture in Michigan revealed the company’s mismanagement of what unfolded into a “tragic and needless” disaster.

A combination of “human error” and miscommunication culminated in the reckless release of over 843,000 gallons of Albertan diluted bitumen from the Enbridge Line 6B into the Kalamazoo River. The investigation found that 81 percent of the tar sands oil spill was the result of the company’s baffling response to rupture alerts, which prompted monitors to pump additional oil into the line – twice – rather than close the line’s remote controlled valves. The rupture went undetected for over 17 hours, leading to the most expensive onshore clean up effort in American history, with a price tag approaching $800 million.
 
In her opening remarks, NTSB’s chair Deborah Hersman likened Enbridge to the incompetent Keystone Kops of silent film, suggesting their bewildering response amounted to nothing more than a pantomime. “Why didn’t they recognize what was happening,” Hersman asked. “What took so long?”
 
According to the Board’s investigation, Enbridge knew about the ailing condition of Line 6B for at least five years before the rupture. A 2005 report identified about 15,000 defects with the aging pipeline that extends for 471-kilometers from Ontario to Indiana. Although nearly 900 of those defects had since been addressed, the NTSB found the 2010 rupture was caused by external corrosion at a site overlooked during the course of repairs.
Fri, 2011-09-09 09:50Ben Jervey
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San Bruno Gas Explosion One Year Anniversary, Lax Oversight is Blamed

San Bruno natural gas pipeline explosion at night

One year ago today, at about 6:11 pm, a massive natural gas line explosion ripped apart a residential neighborhood in San Bruno, California. The blast was described as “a thunderous roar heard for miles,” and the geyser of fire that spewed forth killed eight people, injured dozens, destroyed 38 homes, and damaged another 70.

Last week, the National Transportation Safety Board (NTSB), which regulates energy and resource pipelines, revealed the findings of their year-long investigation into the causes of that fatal, catastrophic blast.

“Our investigation revealed that for years, PG&E exploited weaknesses in a lax system of oversight,” said NTSB Chairman Deborah A.P. Hersman. “We also identified regulators that placed a blind trust in the companies that they were charged with overseeing to the detriment of public safety.”

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