explosions

Tue, 2014-03-18 06:00Sharon Kelly
Sharon Kelly's picture

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.

Sat, 2012-04-07 11:57Laurel Whitney
Laurel Whitney's picture

Spruce Mine Mountaintop Removal Coal Permit Restored

In late March, a federal court ruled to open the Spruce No. 1 mine in Logan County, WV, to mountaintop removal coal mining. The EPA had originally vetoed the permit back in January of 2011, explaining that the destructive practices of mountaintop removal would endanger communities' health and access to clean water.

The permit authorizes the largest single mountaintop removal site in West Virginia's history.

Federal Judge Amy Berman Jackson ruled that the EPA overreached when it tried to revoke the permit using the laws of the Clean Water Act. Berman declared,

It posits a scenario involving the automatic self-destruction of a written permit issued by an entirely separate federal agency after years of study and consideration. Not only is this nonrevocation-revocation logistically complicated, but the possibility that it could happen would leave permittees in the untenable position of being unable to rely upon the sole statutory touchstone for measuring their Clean Water Act compliance: the permit.”

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