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Oil Train Derailment and Fire near Casselton, ND

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Posted by n012944 on Sunday, January 5, 2014 7:25 PM

schlimm

Thanks for the post.  It would be interesting to read the opinion on the case.   certainly it is a precedent.

http://www.stb.dot.gov/decisions/readingroom.nsf/UNID/5E59A6C2D2A853A2852575D2004B8A7B/$file/39995.pdf

"In this decision, the Board is granting a petition for declaratory order to the extent
necessary to clarify that Union Pacific Railroad Company (UP) has an obligation to quote
common carrier rates and provide service for the transportation of chlorine"

"Railroads have a statutory common carrier obligation under 49 U.S.C. 11101 to provide
transportation for commodities that have not been exempted from regulation pursuant to
49 U.S.C. 10502. This obligation creates two interrelated requirements. Railroads must provide,
in writing, common carrier rates to any person requesting them. 49 U.S.C. 11101(b). And, they
must provide rail service pursuant to those rates upon reasonable request. 49 U.S.C. 11101(a)."

"Regardless, a rail carrier may not avoid its
common carrier obligation to provide service"

"Court and Board precedent have addressed the extent of the common carrier obligation
with regard to transporting hazardous materials. Rejecting the claim that railroads should not
have a common carrier obligation to transport radioactive materials because of the extraordinary
risks involved, the Board’s predecessor, the ICC, explained that “a carrier may not assert before
this Commission that, as a general proposition, shipments meeting DOT and [Nuclear Regulatory
Commission] requirements are too hazardous to transport.”16 In Akron, 611 F.2d at 1169, the
court upheld the ICC’s holding that the common carrier obligation included the transportation of
radioactive materials, stating that a “carrier may not ask the Commission to take cognizance of a
claim that a commodity is absolutely too dangerous to transport if there are DOT … regulations
governing such transport.” Thus, the common carrier obligation requires a railroad to transport hazardous materials where the appropriate agencies have promulgated comprehensive safety regulations"

As pointed out, the UP tried, and was denied.  It is cut and dry.  No need to ask the same question, regardless of of "public awareness."

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Posted by Norm48327 on Sunday, January 5, 2014 6:21 PM

schlimm

 But the public is far more aware now after the Bakken spills than it was about the chlorine issue.  

The public has been aware of the hazards of chemical transportation via rail for several decades. Circa thirty years ago there was considerable publicity and controversy regarding a train Dow Chemical moved from Midland, MI to Freeport, TX. It was a regular move, and was labeled "The Death Train" by the media. Public awareness was actually pretty good back the when only TV and newspapers were reporting it. The speed and persistence of today's media seeks to intensify the threat. Means of transport other than rail are not a viable option at this time.

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Posted by schlimm on Sunday, January 5, 2014 5:23 PM

Thanks for the post.  It would be interesting to read the opinion on the case.   certainly it is a precedent.  But the public is far more aware now after the Bakken spills than it was about the chlorine issue.   The STB is an agency which is far from immune from public/political pressure, then and now.

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Posted by n012944 on Sunday, January 5, 2014 4:48 PM

erikem

n012944

The UP had a stronger case when it refused to haul chlorine, and they lost.  To repeat Mudchicken, 'nuf said.

I think MC's "'nuf said" would have had more impact had he mentioned the the UP case involved chlorine.

- Erik

http://usatoday30.usatoday.com/news/nation/2009-05-19-chemrail_N.htm

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Posted by CMStPnP on Sunday, January 5, 2014 3:54 PM

schlimm
And if one railroad simply refused to transport the cargo in a DOT-111A car what would happen?  Yes, yes, I know "common carrier."  But exceptional circumstances have arisen.  The conclusions are not so cut and dried as some would like to think they are.  It is quite possible that the legal department and top execs of one of the the relevant railroads will conclude that it is their best interest financially to temporarily place an embargo on handling DOT-111A cars, pending investigations.  They will weigh possible liability vs. being sued by the oil company/shipper and fines and loss of revenue.

I am not an expert but I believe current Federal Law concerning the interchange of rail cars trumps that approach.   Railroads have to accept cars for interchange that meet Federally established standards.    I don't know how any railroad can lay a legal foundation with the current Federal law on rail car interchange and "refuse" to transport a rail car that meets current interchange safety standards.

What legal grounds would the railroad have to "refuse" such a car.   It would be like the railroad stating that Federal Interchange standards for railcars are null and void.     Not sure that would hold up in a Federal Court.

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Posted by erikem on Sunday, January 5, 2014 3:47 PM

n012944

The UP had a stronger case when it refused to haul chlorine, and they lost.  To repeat Mudchicken, 'nuf said.

I think MC's "'nuf said" would have had more impact had he mentioned the the UP case involved chlorine.

- Erik

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Posted by n012944 on Sunday, January 5, 2014 3:44 PM

schlimm

 There are serious issues here that go beyond the regulations.  Public opinion has been aroused

If it really is a serious issue, the regulations will be changed.  Like it or not, the general public has little to no knowledge of what is really going on, as a result their opinion should be meaningless to the regulators. That is the way it should be.

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Posted by schlimm on Sunday, January 5, 2014 3:26 PM

When the answers are informative, they are appreciated.  There are serious issues here that go beyond the regulations.  Public opinion has been aroused.  Perhaps you simply don't like it when questions are raised beyond the obvious or superficial answers. 

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Posted by n012944 on Sunday, January 5, 2014 1:56 PM

schlimm

mudchicken
UP threatened and lost. 'nuf sed.

Hardly enough said.  And BNSF is more impacted by Bakken.   

It really is.  The railroads have no choice, the law is clear.  I don't understand why these oil train threads always have one person asking the same question over and over.  They don't like the answer people in the know give them, so they ask again hoping for a different answer. Bang Head The railroads are going about it the legal way,  having the AAR trying to get the tankers upgraded or phased out

The UP had a stronger case when it refused to haul chlorine, and they lost.  To repeat Mudchicken, 'nuf said.

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Posted by narig01 on Sunday, January 5, 2014 12:42 PM
A few questions
How are shipments of Liquified Natural Gas handled? Are there unit trains of the stuff ir is that prohibited? And are they still permitted to be moved as a block or must they be seperated from other carloads of similar material(flammable gas)?

I ask this because it occurs to me that the only other commodity with similar properties is LNG.

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Posted by schlimm on Sunday, January 5, 2014 11:40 AM

mudchicken
UP threatened and lost. 'nuf sed.

Hardly enough said.  And BNSF is more impacted by Bakken.   

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Posted by mudchicken on Sunday, January 5, 2014 10:20 AM

schlimm

mudchicken

schlimm

henry6
After Lac Magentic when the railroads accused the oil companies of spiking the crude did the oil companies finally reveal the extreme differences of volatility and flammability of Bakken crude. If the railroads knew they would have not accepted the Bakken crude in DOT 111 cars, would have taken steps to assure safety and special response enroute.

They have known since the the Canadian investigation revealed the higher volatility, yet they have continued to transport the Bakken anyway.  Maybe they "have to" maybe not.

They have to. NO QUESTION. They can't even  put a surcharge on the load to cover the risk.

And if one railroad simply refused to transport the cargo in a DOT-111A car what would happen?  Yes, yes, I know "common carrier."  But exceptional circumstances have arisen.  The conclusions are not so cut and dried as some would like to think they are.  It is quite possible that the legal department and top execs of one of the the relevant railroads will conclude that it is their best interest financially to temporarily place an embargo on handling DOT-111A cars, pending investigations.  They will weigh possible liability vs. being sued by the oil company/shipper and fines and loss of revenue.

UP threatened and lost. 'nuf sed.

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Posted by Deggesty on Sunday, January 5, 2014 9:09 AM

Thanks, Larry, for pointing out the difference between combustible and flammable liquids. I knew there was a difference, but since it is a little more than seven years since I was actively concerned with the transport of hazardous materials, I did not remember just what it was.

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Posted by MidlandMike on Saturday, January 4, 2014 11:36 PM

dehusman

...

Other than paperwork there is NO, nada, zilch difference on how the commodity is placarded.  That means the railroad handles it the same.

It doesn't matter what the chemical composition is, any way you slice, any level of volatility, its just a flammable liquid and the railroad, in full compliance with the regulations and rules, will handle it in the same way.

The MM&A train had the right placard for crude, but showed the packing group as PG III instead of more flammable PG II.  With PG III you can get an exception to use lesser grade tank cars, however, they were using the proper DOT 111 cars as they should have been.

Nevertheless, as you say it's handled the same.  In the following link for UN 1267 placard, which covers all crude oils, shows it's highly flammable, explosive,and a rail tank car involved in in fire needs a 1/2 mile evacuation zone.  The railroad doesn't need to know the relative flammability of the crude, they just need to read the standard guidebook response instructions.

http://cameochemicals.noaa.gov/chemical/11018

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Posted by tree68 on Saturday, January 4, 2014 11:29 PM

dehusman

The question on the "chemistry" of the crude oil has come up numerous times on many lists.  My question is what difference does it make?

If the oil has low volatility its a flammable liquid. 

If the oil has high volatility its a flammable liquid.

If the oil is pure naptha its a flammable liquid.

If the oil was pure gasoline its a flammable liquid.

Other than paperwork there is NO, nada, zilch difference on how the commodity is placarded.  That means the railroad handles it the same.

It doesn't matter what the chemical composition is, any way you slice, any level of volatility, its just a flammable liquid and the railroad, in full compliance with the regulations and rules, will handle it in the same way.

Strictly speaking, there is a difference:

https://www.osha.gov/dte/library/flammable_liquids/flammable_liquids.html

Less volatile liquids (flash point over 100 degrees F) are termed "combustible."

More volatile liquids (flash point under 100 degrees F) are termed "flammable."

And even within those parameters, there are more specific designations.

And there lies the rub.

In the end, though, as noted, there are just a few UN (hazmat) codes that are used with regard to this traffic.

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Posted by narig01 on Saturday, January 4, 2014 10:52 PM
Dehusman. : One more comment. UN 1267 covers crude oil classified as both combustible liquid or flammable liquid. The difference being flash point IIRC.

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Posted by narig01 on Saturday, January 4, 2014 10:42 PM
One issue I can see here is this. If this oil has a different chemical makeup, one that makes it more hazardous, it may need to have a new product identity. IE a new UN number. If that is the case it could take a couple of years to work thru the bureaucracy. Having a new hazardous material is a time consuming process.
The other alternative is to reidentify the material.

Comment. My opinion is that the shippers "experts " have been shipping crude for a long time. Are used to doing paperwork one way. And just because the product has properties that make problems does not mean they should change the way they do things. This is bureaucratic inertia. Any large organization falls into this trap. Oil companies and or railroads.
Intentional abuse seldom happens without other issues. And when everyone is making money it gets hard to change things except when disaster happens. And yes it is happening.

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Posted by karldotcom on Saturday, January 4, 2014 10:38 PM

Maybe they will just break up the unit trains and put fewer groups of cars on other trains....will cost more  but would be cheaper than a total ban

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Posted by dehusman on Saturday, January 4, 2014 9:56 PM

The question on the "chemistry" of the crude oil has come up numerous times on many lists.  My question is what difference does it make?

If the oil has low volatility its a flammable liquid. 

If the oil has high volatility its a flammable liquid.

If the oil is pure naptha its a flammable liquid.

If the oil was pure gasoline its a flammable liquid.

Other than paperwork there is NO, nada, zilch difference on how the commodity is placarded.  That means the railroad handles it the same.

It doesn't matter what the chemical composition is, any way you slice, any level of volatility, its just a flammable liquid and the railroad, in full compliance with the regulations and rules, will handle it in the same way.

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Posted by schlimm on Saturday, January 4, 2014 3:24 PM

mudchicken

schlimm

henry6
After Lac Magentic when the railroads accused the oil companies of spiking the crude did the oil companies finally reveal the extreme differences of volatility and flammability of Bakken crude. If the railroads knew they would have not accepted the Bakken crude in DOT 111 cars, would have taken steps to assure safety and special response enroute.

They have known since the the Canadian investigation revealed the higher volatility, yet they have continued to transport the Bakken anyway.  Maybe they "have to" maybe not.

They have to. NO QUESTION. They can't even  put a surcharge on the load to cover the risk.

And if one railroad simply refused to transport the cargo in a DOT-111A car what would happen?  Yes, yes, I know "common carrier."  But exceptional circumstances have arisen.  The conclusions are not so cut and dried as some would like to think they are.  It is quite possible that the legal department and top execs of one of the the relevant railroads will conclude that it is their best interest financially to temporarily place an embargo on handling DOT-111A cars, pending investigations.  They will weigh possible liability vs. being sued by the oil company/shipper and fines and loss of revenue.

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Posted by Norm48327 on Saturday, January 4, 2014 1:39 PM

Very interesting article in Railway Age regarding Bakken oil and the Lac Megantic disaster. It's relevant to this discussion.

http://www.railwayage.com/index.php/regulatory/controversy-surrounds-lac-megantic-crude-oil-test-data.html?channel=40

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Posted by mudchicken on Saturday, January 4, 2014 10:58 AM

schlimm

henry6
After Lac Magentic when the railroads accused the oil companies of spiking the crude did the oil companies finally reveal the extreme differences of volatility and flammability of Bakken crude. If the railroads knew they would have not accepted the Bakken crude in DOT 111 cars, would have taken steps to assure safety and special response enroute.

They have known since the the Canadian investigation revealed the higher volatility, yet they have continued to transport the Bakken anyway.  Maybe they "have to" maybe not.

They have to. NO QUESTION. They can't even  put a surcharge on the load to cover the risk.

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Posted by henry6 on Saturday, January 4, 2014 9:21 AM

schlimm

But the point isn't about who is liable for damages.  The most important point should be about assuring safety.  If that means a temporary freze on the transport of the Bakken crude in DOT 111A cars, then that may have to be what happens.  And rest assured, this is not going to be conveniently forgotten or ignored.  There is sufficient public alarm to force action by the regulators. 

 

But our society looks for someone to pay the damages...so we will pursue for that reason.

Buy your last statement, Schlimm, about forcing action by regulators is interesting because I haven't heard of any such action as yet.  One congressman somewhere wants railroads hauled in to inspect their safety records. NTSB finally got a notice out to regulators and the pipeline and railroad associations about Bakken crude's properties.  But we've not heard anyone talking about the activities of the oil companies in this matter.  There is a wide open political angle about congress, government, and oil companies relationships that has become the elephant in the room.

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Posted by schlimm on Saturday, January 4, 2014 9:09 AM

As I said,  before Lac Magentic and some of the subsequent proliminary investigation, the railroads were in the dark about the specific dangers posed by bakken when transported in the DOT 111A cars.  Not since, and that is several months ago.  

But the point isn't about who is liable for damages.  The most important point should be about assuring safety.  If that means a temporary freze on the transport of the Bakken crude in DOT 111A cars, then that may have to be what happens.  And rest assured, this is not going to be conveniently forgotten or ignored.  There is sufficient public alarm to force action by the regulators. 

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Posted by henry6 on Saturday, January 4, 2014 8:48 AM

It is plain. The oil companies did not reveal to the railroads that Bakken Crude had properties different than other crude.  The railroad does not have a scientific lab force to study every thing shipped by rail and relies on the shipper to provide accurate, correct and truthful information.  Not only were the railroads not informed of the increased risk of flammability of Bakken Crude but nor was anyone else.  The pipe lines companies learned of it because of the Quebec and Alabama wrecks and it is not know if  the first responder emergency teams have been notified as yet.  The onus of the whole of this problem right now is on the shoulders of the oil industry.  Railroads could not make recommendations and take precautions because they didn't know.  Fire departments and emergency crews were not prepared because they weren't informed.  Pipeline companies had not yet transported this volatile crude so lucked out.  

From my soap box:: the oil companies have committed a crime which has cost lives and hundreds of millions of dollars in damages in at least three rail wrecks and therefore must be held criminally accountable as well as financially responsible.  They knew what they had, knew what they were doing, and put railroads, pipelines, first responders, and every and all people living along the transportation routes at risk for the benefit of the oil companies.  

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Posted by narig01 on Saturday, January 4, 2014 2:27 AM
Comments and opinion.

Comment. Under current laws and regulations both the shipper and the carrier are responsible to check that a cargo is properly documented packaged and labeled (placards) . This is to insure no one uses the excuse "not my job ". A shipper is responsible for properly doing these things and the carrier is responsible to check.

Opinion : The recent spate of accidents involving bakken crude may bring about a new set of material descriptions for crude oil. This involves a new set of UN #'s and a new set of ways to classify crude. IE break it down by flammability.

Further opinion. One of the reasons bakken crude may be so popular is producers have found it to have some very desirable refining properties. The side effect being an increase in the potential for disaster. The lawyers for Lac-Megantic will love this if there is a paper trail.

I have kind of stayed away from a lot of this thread. I really didn't want to the debate. Sometimes you can laugh at life sometimes it is a tragedy.

I was kindof wrong in one respect I felt this would go the way of the Aliceville, Al wreck.

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Posted by MidlandMike on Friday, January 3, 2014 11:09 PM

tree68

...

What's obvious is that there would seem to be some issues with how the crude is assayed and labelled.  As I see it, that's not the railroad's problem.  Common carrier requirements notwithstanding, they accept a commodity from the shipper and deliver it to the consignee.

We don't expect the railroad to ensure the quality of the orange juice carried in the Tropicana trains.

 I'm not sure we can expect the railroad to do any sampling themselves.

Suppose the sampling protocol is determined by regulatory agency and oil company followed it.  You can't convict someone for following the law.

A railroad could hire from a number of companies to sample oil for them if it was a concern.  It's no more far fetched than thinking they will avoid any responsibility for their fire/wreck.

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Posted by tree68 on Friday, January 3, 2014 10:20 PM

Maybe if we consider the railroad like a pizza delivery guy - he takes the pizza from the shop and delivers it to your house.  If you didn't order an anchovie, garlic, and olive pizza and that's what he brings, you can't really blame him (unless he took the order on the phone and/or actually made the pizza).  

While it would be nice if he checked your pizza for "accuracy" when he picked it up from the shop, it's not really his job, and maybe you don't want someone peeking in on your food anyhow.

What's obvious is that there would seem to be some issues with how the crude is assayed and labelled.  As I see it, that's not the railroad's problem.  Common carrier requirements notwithstanding, they accept a commodity from the shipper and deliver it to the consignee.

We don't expect the railroad to ensure the quality of the orange juice carried in the Tropicana trains.

 I'm not sure we can expect the railroad to do any sampling themselves.

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Posted by MidlandMike on Friday, January 3, 2014 10:02 PM

Deggesty

As I recall, the shipper is responsible for correctly labeling everything it ships. The carrier has no way of knowing if an error has been made--until a disaster occurs because of improper labeling. Every bill of lading is to be completed with the proper name of the hazardous substance--which may not be what the shipper itself calls the substance. Of course, the carrier's agent who accepts the shipment may not know the proper names, but the shipper is responsible for any error.

IIRC in the Lac Magantic investigation, the labeling of the proper subclass was called into question.  I might guess that this classification may have been originally determined thru sampling, which we touched on before.  The investigation would need to determine what sampling protocols were used, if they were the proper ones, and it they were followed.  If they were followed, then they obviously need to be revised, in light of their inadequacy.  They would also have to determine who the shipper was who would have statutory responsibility for the shipment.  It would seem to depend on the agreements between the oil producer, oil logistics company,and perhaps the refiner.  This is why I am waiting to hear what the investigating authority has to say.  So far what we hear, is the various parties blaming each other.

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Posted by schlimm on Friday, January 3, 2014 9:36 PM

Muddier and muddier.  One thing seems clear, however.  Even with input from knowledeable folks in the field, a definitive answer is absent.

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