Rail

In tandem with its counterpart regulators in Canada, the U.S. National Transportation Safety Board (NTSB) on Thursday issued a series of recommendations calling for tougher standards for rail shipments of crude oil in both nations. NTSB and the Transportation Safety Board of Canada issued the recommendations jointly in recognition that the same companies operate crude rail trains in both nations, frequently crossing the U.S.-Canada border.

In a meeting hosted by the U.S. Department of Transportation (DOT) Thursday, rail and oil industry representatives pledged to improve the safety of rail transport of U.S. crude oil. Following the meeting, however, news media reported criticism among the various representatives.

Federal safety investigators said Tuesday they have completed their on-site work regarding the twin oil tank rail derailments on Dec. 30 in Casselton, ND, and will continue their probe in Washington, DC.

California Gov. Jerry Brown on Thursday outlined a multi-billion-dollar state budget that includes $850 million of revenues from the state’s cap-and-trade auction for greenhouse gas (GHG) emissions credits, a preparedness program for increased rail shipments of oil into the state from Wyoming, and additional spending to implement new rules on hydraulic fracturing (fracking).

A recent series of explosions and accidents involving crude oil trains “demands an investigation and review of our current safety practices and regulations,” said a pair of powerful U.S. Senators. Thursday the pair called on the Department of Transportation (DOT) and Department of Energy (DOE) “to quickly resolve issues with the transportation of crude oil.”

The National Transportation Safety Board (NTSB) had a team of investigators on the scene Tuesday near Casselton, ND, where a BNSF train carrying crude oil smashed into another train that had derailed earlier, setting off explosions and fires in nine tanker cars.

The Association of American Railroads (AAR) is calling on the U.S. Department of Transportation (DOT) to update regulations and require operators that use tank cars to transport flammable liquids — including crude oil and ethanol — to retrofit or phase-out older models and build new cars with more stringent standards.

Cargoes from and to the U.S. oil and gas patch are filling up a lot more rail cars than they were one year ago, according to data from the Association of American Railroads (AAR), continuing a trend of increasing rail crude oil movement that began in 2009.

Inergy Midstream LP and Enserco Midstream LLC have formed a joint venture to own and operate a crude oil rail terminal in Douglas County, WY. They expect to expand the facility to take advantage of growing production from the Niobrara formation.