Letter to Secretary Perry, Administrator Batory, and Administrator Elliott - Publish Study and Create Stabilization Standards for Volatile Crude Oil Before It's Shipped Through Backyards

Letter

Dear Secretary Perry, Administrator Batory, and Administrator Elliott,

I urge you to propose and quickly finalize a rule establishing federal volatility standards for the shipment of crude oil by rail in the United States. As you are aware this has been an ongoing issue for a number of years, and has become even more important as the volume of oil shipped by rail, after steadily declining last year, has recently increased throughout the northeastern United States. In New York, the dangers posed by shipping volatile crude by rail have become increasingly clear, with hundreds of tank cars full of crude traveling through the state every day. I applaud the Department of Transportation for heeding my call and taking an important first step in issuing a proposed rule on new tank car standards. I further appreciate the response to my call as the Department of Transportation engaged in a formal request for comments from stakeholders and the Department of Energy initiated a study on crude oil volatility. However, as has been demonstrated both in studies and in recent incidents, a new tank car standard alone, while an important piece to the puzzle, is not enough to protect communities from the dangers of crude by rail shipments. Therefore, I urge both the Department of Transportation and the Department of Energy to work together to develop new regulations that would require the stabilization of crude oil prior to shipment.

The inherent dangers in the shipment of unstable crude oil have become only too clear in recent years. The Lac-Mègantic derailment, which left 47 people dead in the Canadian Province of Quebec, as well as more derailments in Aliceville, AL; Casselton, ND; Lynchburg, VA; and Charleston, WV, demonstrate clearly that transporting crude by rail carries large risks. It is critical that both of your agencies do everything they can to help mitigate those risks. Proposing and finalizing a new comprehensive standard for tank cars is an important part of the equation, and so I applaud DOT for taking this step. In addition, operational changes like speed limits, and reporting requirements so that first responder can be prepared for a disaster is another key component to protecting public safety. However, until the stability of the crude being loaded into the tank cars themselves is improved disasters like those listed above could continue to occur. That is why it is critical that your agencies work together to develop a standard to address this issue as quickly as possible.

The stability of crude oil, and in particular Bakken crude, is not a new issue. PHMSA released a report in 2014 that concluded that Bakken crude was "more volatile than most other types of crude -- which correlates to increased ignitability and flammability." The report went on to say that "given Bakken crude oil's volatility, there is an increased risk of a significant incident involving this material." This report made it clear that because of its higher gas content and vapor pressure, as well as its lower flash point and boiling point Bakken crude is less stable than other types of crude, making it more dangerous in the event of a derailment. That is why your agencies must work together on a plan to require the stabilization of this crude oil prior to transport.

Stabilization technology is not a new concept, and has previously been used in oil fields in other regions of the country and the world. While North Dakota has attempted to address this issue on a state level, it seems apparent that their regulation did not go far enough. They required that oil be stabilized to at least 13.7 psi, a standard that the oil involved in the Lac-Mègantic disaster would have met. I ask that your agencies work together to develop a standard for stabilization that would greatly reduce the risk of Lac-Mègantic type disasters.

When it comes to protecting communities in New York from the dangers of crude by rail shipments we need an all-of-the-above approach. This approach must include both comprehensive tank car standards to prevent derailment and reduce the risks of breaches when those derailment do occur, available and accessible information and resources so that emergency response personnel can prepare for disasters, and finally a stabilization requirement that will reduce the volatility and subsequent risk posed by the crude itself.

I appreciate your consideration of this request and your joint efforts to help address this problem.

Sincerely,

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