Lynchburg, VA Train Derailment Sparks Increased Scrutiny of Bakken Crude Oil

May 7, 2014 Kirk Eggleston

In late April of 2014, a train carrying Bakken crude derailed and burst into flames in Lynchburg, VA. No one was injured, but the incident has once again raised safety concerns about the transportation of crude by rail.

Currently, the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) is conducting tests of Bakken crude. In February of 2014, PHMSA announced it would pursue fines against Hess, Marthon Oil, and Whiting for failing to properly classify their oil. PHMSA requires the use of nine hazardous materials classifications.

In a May 2014 Wall Street Journal Report, the publication cited the DOT's claim that most energy companies operating in the Bakken haven't provided the requested testing data on crude they ship by rail. Exxon Mobil Corp., Continental Resource and Savage Services Corp. have voluntarily provided the data. A statement released by the U.S. DOT suggested it may take steps to force companies to submit data.

Is Bakken Crude More Flammable?

Bakken oil is produced at a high quality that makes it easier to refine into commercial products and makes it easier to ignite. Light oil production growth in the Bakken isn’t something the industry has never handled before, but the Bakken boom is bigger than anyone expected. As a result of lack of pipelines and additional infrastructure, nearly 70% of all Bakken crude is transported by rail.

Read more: Is Bakken Oil More Flammable?

History of Bakken Crude Oil Train Derailments and Explosions

The incident in Lynchburg, VA is the most recent in a chain of train derailments and explosions connected to Bakken crude. In July 2013, a train derailed and exploded in LacMegantic, Quebec, killing 47 people. The most recent incident, prior to the Lynchburg, VA, incident, occurred when two BNSF operated trains carrying Bakken crude collided and derailed near Casselton, ND, in late December 2013.

In early April of 2014, a Senate Appropriations Subcommittee hearing was held to examine the level of federal resources that should be allotted for railway safety. Multiple U.S. Senators appealed to the committee for more railway safety funding, including Senators John Hoeven (R) and Heidi Heitkamp (D) of North Dakota.

U.S. Senators Appeal to Senate Appropriations Committee for Railway Safety Funding

April 9, 2014 Kirk Eggleston

Approximately 70% of the oil produced in North Dakota is transported by rail. Safety concerns mounted after an incident where two BNSF operated trains carrying Bakken crude collided and derailed near Casselton, ND, in late December 2013. The National Transportation Safety Board (NTSB) said about 400,000 gallons or ~950 bbls of oil were spilled. Now, Senators from across the country are appealing to the Senate Appropriations Committee for railway safety funding this month.

In early April of this year, North Dakota Republican Senator John Hoeven, who sits on the Senate Appropriations Committee, called on fellow members to support railway safety measures and a push for more rail inspectors. Specifically, Hoeven would like to see funding go to the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

In January of this year, PHMSA issued a safety alert for Bakken crude due. The alert reinforced the need to test, characterize, classify, and where appropriate de-gassify the crude oil before transportation. PHMSA is also working on new regulations for double hulled tankers.

On a related note, several U.S. Senators appealed to the Senate Appropriations Committee in Washington D.C. for rail safety funding in a joint-letter on April 4th. The letter was signed by 16 U.S. Senators, and highlighted the "Safe Transportation of Energy Products Fund".

“A Safe Transportation and Energy Products Fund would provide U.S. Department of Transportation new flexibility to address emerging issues related to the transportation of Bakken crude and other energy products – including, but not limited to: more expeditious rulemakings, technical studies, increased rail and energy product inspections, safety mitigation and response planning, first responder training, and community outreach. Additionally, the Fund would provide needed additional resources to complete Operation Backpressure, a study of the qualities and characteristics of crude oil in the United States. Completion of this study is an important step because its results will inform future regulatory action.”

Senate Appropriations Subcommittee hearing will take place this week, Wednesday, April 9th, to examine the level of federal resources that should be allotted for railway safety. North Dakota Democratic Senator Heidi Heitkamp will be in attendance at the hearing to ask questions of the scheduled witnesses.

“The derailment in Casselton and other recent rail crashes have rightly kept this issue on the minds of many in Washington and across the country. And I’m continuing to push for the issue of rail safety to remain front and center, said Heitkamp.”

Department of Transportation's PHMSA Issues Bakken Shale Oil Shipping Safety Alert

January 3, 2014 R.T. Dukes

The Department of Transportation's (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a safety alert for Bakken crude.

PHMSA issued the alert to reinforce the need to test, characterize, classify, and where appropriate de-gassify the crude oil before transportation.

PHMSA also wants to remind first responders of that light sweet crude is assigned a packing group of I or II. Those packing groups mean the flash point is below 73 degrees Farenheit and the boiling point for packing group I is below 95 degrees Farenheit.

"Operation Classification" will be an ongoing effort, and PHMSA will continue to collect samples and measure the characteristics of Bakken crude as well as oil from other locations.

Read the full releast at phmsa.dot.gov