Saturday, October 25, 2014

Report concludes CBR risks real/ BNSF adds surcharge for DOT-111s

New crude oil report concludes risks of train spills are real

Mile-long oil trains that are expected to crisscross California daily in the coming years pose significant risks to residents of urban areas, including Sacramento, a new report concludes, contradicting earlier studies that found no major safety concerns.

The report, issued by San Luis Obispo County officials, is based on a plan by Phillips 66 to transport crude oil on 80-car trains, five days a week, to its Santa Maria refinery, some likely through Sacramento. The authors looked at the cumulative impact of all oil trains that could come through California on a daily basis and came to the conclusion that the risk of oil spills and fires is real, and offered suggestions on how those issues should be addressed.

“Up to seven crude oil trains a day could travel on the stretch of track between Roseville and Sacramento,” the report reads. “The cumulative risk would be significant.”....

.... San Luis Obispo County officials said they decided to go beyond what was done in Benicia and Kern County — breaking new ground in California’s evolving crude-by-rail debate — by conducting a qualitative risk assessment, to understand the ramifications of “reasonable” worst-case oil spill scenarios. The new report is an amended version of an earlier report San Luis Obispo issued last year, which also had been challenged as inadequate....  read more here

Berkshire Hathaway railroad adds surcharge on older oil tank cars

BNSF Railway Co. plans to apply a $1,000 surcharge for each older crude tank car, denting profits for shale drillers in North Dakota.

The railroad owned by Warren Buffett’s Berkshire Hathaway Inc. is the first major U.S. operator using fees to encourage shippers to scrap the puncture-prone older cars. The charge, which goes into effect Jan. 1, would add about $1.50 a barrel to the cost of transporting oil on them.....

....The surcharge will pertain to cars known as DOT-111s and won’t apply to cars called CPC-1232s that are built to higher standards adopted in October 2011, according to a BNSF notice. .... read more here

No comments:

Post a Comment