Federal Government Foot-Dragging Helps Oil Industry Delay Oil-by-Rail Rules

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In an attempt toย reduce the riskย of fiery oil train accidents,ย the state of Washington is working to pass a bill that would limit the vapor pressure of oil on trains to below 9 pounds per square inch (psi).ย Vapor pressure is a measure of the volatility of flammable liquidsย and correlates to their likelihood of igniting. Higher vapor pressureย means an oil is more volatile and more likely to ignite and burn when a trainย derails.

โ€œIf the federal government wonโ€™t act to protect public safety and adopt a safer nationwide standard, we will adopt our own,โ€ state Sen. Andy Billig (D-Spokane) said of the bill he sponsored. โ€œThere is just too much to lose โ€”ย for people and ourย environment.โ€

Billig’s comments point to theย federal government’s repeated failure to address the volatility of the oil moving by rail inย America.

The Obama administration specifically left this issue out of the Department of Transportation’sย 2015 regulations onย moving oil by rail. In May 2017, half a dozen state attorneys general petitioned the federal government to regulate vapor pressure, which resulted in a proposed rule at the end of the Obamaย administration.

This oil train vapor pressure ruleย has gone nowhere in the Trumpย administration.

As DeSmog reported in 2016, the American Petroleum Institute has said that even having these discussions aboutย regulating oil vapor pressure isย โ€œdangerous.โ€

Exploding oil train fireball in Casselton, North Dakota
The fireball that followed the derailment and explosion of two trains, one carrying Bakken crude oil, on December 30, 2013, outside Casselton, North Dakota. Credit: U.S. Pipeline and Hazardous Materials Safetyย Administration

Unsurprisingly, the state of North Dakota, where much of the highly volatile crude oil moved by rail in America is produced, opposes Washington state’sย ruleย and is preparing to sue the state overย it.

However, in a surprising moment of honesty, North Dakota’s top oil regulator didnโ€™t bother pretending this opposition was about safety and instead revealed the real motivation:ย money.

Lynn Helms, director of the North Dakota Department of Mineral Resources,ย said that taking the steps to stabilize the crude oil (remove its volatile natural gas liquids) and achieve a vapor pressure of less than 9 psi would โ€œdevalue the crude oilย immensely.โ€

The crude coming out of oil fields like North Dakota’s Bakken Shale is rich in natural gas liquids such as propane and butane, which make the oil more dangerous to transport but also more valuable. A value the industry and its allies in government aren’t willing toย relinquish.

However, this isnโ€™t really news. I wrote about a similar messageย from a North Dakota oil producer in 2014 when he too was opposing regulations to reduce the vapor pressure of Bakken oil before railย transport.

โ€œThe flammable characteristics of our product are actually a big piece of why this product is so valuable. That is why we can make these very valuable products like gasoline and jet fuel,โ€ said Tony Lucero of oil producerย Enerplus.

North Dakota Using Federal Government Delays to Avoidย Regulation

Once trains carrying volatile oil from theย Bakken Shale started blowing up on a regular basis in 2013, it became clear that the oil itselfย was part of the problem.ย Itsย high amounts of natural gas liquids make the oilย more volatile and therefore more likely to catch fire andย explode.

After the deadly oil train accident in Lac-Mรฉgantic, Quebec, that killed 47 people, there was confusion about the associated explosions and intense fires that burned for days. As the Wall Street Journal reported at the time, an oil executive said, โ€œCrude oil doesnโ€™t explode likeย that.โ€

Which is true. But crude oil mixed with lots of propane and butane, such as the Bakken’s crude oil, does explode like that. And trains carrying oil from the Bakken continued to explode like that after derailing again andย again.


Rainy Day Train Message/Oil Train Protesters.ย Credit: Joe Brusky, CC BYNCย 2.0

The Obama administration argued that it couldnโ€™t regulate oilย vapor pressureย because the issue was disputed scientifically and required more study. More than three years ago, I wrote that this was simply a delay tactic and that claiming the oil industry didnโ€™t understand the fundamentalย science of crude oil wasย absurd:

โ€œThe oil industry and the government regulators in charge of regulating the industry donโ€™t understand the basic science of oil. This is the core of the argument used to justify why they continue to run dangerous trains filled with Bakken oil through communities across North America. Do you believeย them?

Despite the audacity of this position, it is being used to delay any new regulations and to support the idea that the mystery of why Bakken crude oil explodes must be studied for years before it would be possible to make any regulatoryย decisions.โ€

Meanwhile, as Iโ€™ve also been writing for years, if you ask an oil expert like Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston, you learn that couldn’t be further from theย truth.

โ€œThe notion that this requires significant research and development is a bunch of BS,โ€ Krishnamoorti wrote in an email response to Al Jazeera.ย โ€œThe science behind this has been revealed over 80 years ago, and developing a simple spreadsheet to calculate risk based on composition and vapor pressure is trivial. This can be done today.โ€ [emphasisย added]

The Departments of Energy and Transportatin announced the start of a study that was supposed to resolve this issueย โ€”ย four years agoย โ€” in April of 2015. At the time, regulatorsย referred to it as a two-yearย study.

In late 2016, at the Energy by Rail Conference in Arlington, Virginia, Suzanne Lemieux of the American Petroleum Institute gave a presentation on crude oil volatility and stabilization. While arguing once again that there wasnโ€™t clear evidence that stabilizing oil reduces its volatility and risk, Lemieux notedย that the federal study on the issue had been delayed. She said now it was expected to conclude sometime inย 2018.ย 

The explanation for the delay wasย that the researchers at Sandia National Laboratoriesย were still collecting samples of the oil in late 2016 โ€” almost a year and a half after the โ€œtwo-yearโ€ study wasย announced.

And now, four years later, according to The Bismarck Tribune, North Dakota oil regulatorย Lynn Helms โ€œencouraged [Washington] legislators to wait for the results of a Sandia National Laboratories study that was commissioned by the U.S. Department of Transportation and the U.S. Department ofย Energy.โ€

Four years later. The federal government is unable to complete a two-year study in four years on a questionย which oil experts already knowย the answerย to.

A very effective delay tactic that means no one can โ€œdevalueโ€ the oil implicated in multiple explosions and 47ย deaths.

Main image:ย Screen shotย of McClatchy article combined with Justin Mikulka’s oil train photo and text. Credit: Justinย Mikulkaย 

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Justin Mikulka is a research fellow at New Consensus. Prior to joining New Consensus in October 2021, Justin reported for DeSmog, where he began in 2014. Justin has a degree in Civil and Environmental Engineering from Cornell University.

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