Dakota Access Owner Says Pipelines Safer Than Rail Yet Owns Rail Hub Connected to Pipeline

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In response to the ongoing battle over the Dakota Accessย and Keystone XL pipelines, the oil industry and the groups it fundsย haveย started a new refrain: transportingย crude oil throughย pipelines is safer thanย by โ€œdangerousโ€ย rail.

It’s a talking point wedded to the incidents over the past several years which have seen mile-long oilย trains derail and even explode, beginning with the 2013 Lac-Megantic oil-by-rail disaster in Quebec, which killed 47 people. These trains were carrying oil obtained via hydraulic fracturing (โ€œfrackingโ€) from North Dakota’s Bakken Shale basin. Bakken crudeย may be more flammableย than other crude oils and is the same oil which would travel through the Dakota Access pipeline (DAPL), owned by Energy Transferย Partners.

What goes unsaid, however, is that the Dakota Access pipelineย actually connects to an oil-by-rail hub, also owned by Energy Transfer Partners,ย in Patoka, Illinois. Patoka is the end point of this pipeline, where it linksย to both the rail hub and theย Energy Transfer Crude Oil Pipeline Projectย (ETCOP).

โ€œDAPL will provide shippers with access to Midwestern refineries, unit-train rail loading facilities to enable deliveries to East Coast refineries, and the Gulf Coast market through an interconnection in Patoka, Illinois, with ETCOP, which will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, Texas,โ€ Energy Transfer stated in an August 2016 press releaseย (emphasisย ours).

โ€œSafest Mode ofย Transportationโ€

While Energy Transfer Partners has not hidden the fact that it ownsย the Patoka oil-by-rail hub,ย entities the company funds are taking a different tact, presenting inland oil transport options as being eitherย pipeline orย oil-by-rail, but not bothย together.

โ€œThe Dakota Access Pipeline has always been committed to providing low-cost energy as safety [sic] as possible,โ€ย Standing Rock Fact Checker, a project funded by Energy Transfer Partners in reaction to protestsย unfolding near the Standing Rock Sioux Reservation in North Dakota, wrote in a blog post. โ€œPipelines are already the safest means of transporting crude oil โ€” 5 times safer than rail, 13 times safer than shipping, and 530 safer than trucking โ€” and the Dakota Access Pipeline will be noย exception.โ€

This comparison also is made openly on the pipeline’sย own website, Dakota Access Pipelineย Facts.

โ€œNumerous studies have shown that pipelines are safer than shipping oil by trucks or rail,โ€ reads the website. โ€œDAPL will replace 100- to 120-car trains that carry crude oil every day from North Dakota โ€” greatly reducing the risk of train accidents andย spills.โ€

Another group funded by Energy Transfer Partners, the Midwest Alliance for Infrastructure Now, has also used the rail vs. pipeline framework to promote the Dakota Accessย pipeline.

However, as Reuters has reported,ย data from the Pipeline and Hazardous Materials Safety Administration (PHMSA) shows pipelinesย experience more reported crude oil spills than the railย industry.

Argument Repeated to (and by)ย Government

The pipeline vs. rail schema has also been deployed by Energy Transfer Partners inย official government settings. At aย South Dakota Public Utilities Commission hearing in October 2015, Energy Transfer Partners’ Vice President for Engineering, Joey Mahmoud, delivered his own version of thisย paradigm.

โ€œPipelines are, by far, the safest mode of transportation,โ€ Mahmoud said at the time. โ€œIn my mind, absolutely, itโ€™s going to remove crude that otherwise would be transported by rail or truck thatโ€™s coming out of theย Bakken.โ€

Mahmoud, who did not respond to a request for comment, spoke similarly at a February 15 hearing convened by the U.S. House Energy and Commerce Committee’sย Subcommittee onย Energy.

Image Credit:ย U.S. House Energy and Commerce Committee, Subcommittee onย Energy

โ€œPerhaps the most prominent, and ill-founded, of [the misconceptions about] Dakota Access [is that it] represents a threat to the Missouri River and those who rely on it for drinking water,โ€ reads Mahmoud’s testimony. โ€œNothing could be further from the truth. Much of the oil from the Bakken is currently being transported across the Missouri River via truck and rail transportation โ€” modes which, statistically, are far more likely to experience an oil spill than a new, state-of-the-artย pipeline.โ€

The oft-repeated framework by Energy Transfer Partners proved so convincing that the Iowa Utilities Board cited it in March 2016 when it grantedย the permit needed to build the Dakota Access pipeline across theย state.

Dakota Access Pipeline vs. Rail

Image Credit: Iowa Utilitiesย Board

โ€œSimply aย Distractionโ€

Meanwhile, Patoka does not get an either-or, but rather, a reality of both. It will have oil traveling into the small town both from the end of the Dakota Access pipeline and out of town by railย to East Coastย refineryย markets.ย 

Coincidentally, two pipelines owned by Dakota Access co-owners Enbridge and Phillips 66 have recently exploded, one in Texas and the other in Louisiana, respectively. North American environmental groups have long decried the pipelines vs. railย framework.ย 

โ€œBoth oil-by-rail and pipelines are dangerous,โ€ said Annette McMichael, an activist for Illinois Peopleโ€™s Action who helped organize an anti-Dakota Access pipeline event in Patoka in September. โ€œThe argument that one is safer than the other is simply a distraction. The last thingย families living in and around Patoka need is moreย pipelines.โ€

Energy Transfer Partners spokesperson Vicki Granado did not respond to a request for comment for thisย story.

Main image: Oil train Credit: Russ Allison Loar,ย CC BYNCNDย 2.0

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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