The insurance policies that most railroads have cannot cover the
costs of many crashes or derailments involving oil trains, the
Department of Transportation said.
New safety rules for oil trains proposed last week would not mandate higher insurance levels than the $25 million common to the industry....[snip]
....“At this time, the maximum coverage available in the commercial rail
insurance market appears to be $1 billion per carrier, per incident,”
the DOT said in its analysis. “While this level of insurance is
sufficient for the vast majority of accidents, it appears that no amount
of coverage is adequate to cover a higher consequence event.”.... read more here
....For “higher-consequence events” — such as the one in Lac-Mégantic —
“it appears that no amount of coverage is adequate,” the analysis says.
That’s because the maximum amount of coverage available on the market is
$1 billion per carrier, per incident.
“You should know the railroads are used to running bare — without
adequate insurance,” said Fred Millar, an independent rail consultant
who has criticized the government’s oversight of oil trains. “.....
.... Warren Buffett’s BNSF railroad, the pioneer in the oil train industry,
has been requesting that railroads get some of the same protections now
afforded to the nuclear power industry, using the Price-Anderson Act as a
model. That law requires power companies to contribute to an insurance
fund that would be used in the event of an accident, and it also
partially indemnifies the nuclear power industry..... read more here
PITTSBURGH -- More than 40 percent of Pittsburgh’s residents are
at risk if a train carrying crude oil through the city derails and
catches fire, according to a PublicSource analysis.
That number does not include children at 72 K-12 schools inside that area.
PublicSource created a map using a perimeter of a
half-mile on each side of the rail lines known to carry crude oil in the
city. A half-mile is the federal evacuation zone recommended for
accidents involving crude oil trains.....read more here