Cleveland Jones Drew Pendleton Timisha Neal train-disasters-prompt-emergency-order-for- rail-oil-transport/

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Presentation transcript:

Cleveland Jones Drew Pendleton Timisha Neal

train-disasters-prompt-emergency-order-for- rail-oil-transport/

 In the last seven months, there have been roughly 4 derailments of trains carrying crude oil.  One of the biggest incidents occurred in Quebec where 47 people were killed and 1billion dollars of damages were caused.

 HMSA issued regulations that set standards to companies moving crude oil by train.  HMSA also created a crude oil classification system: ◦ Levels 1&2 represent very volatile oil ◦ Level 3 represent stable oil

 These mandates were not strongly enforced which led to dishonesty of the classification system.  Oil companies, especially transporting oil from the Bakken Oil Field, were guilty of cheating these regulations. ◦ It is likely that no train carrying oil departing from Bakken would be at a level 2 or 3.  Train derailments that came out of Bakken have been known to be the most deadly in the country.

 The Bakken formation is a rock unit occupying about 200,000 square miles of the subsurface of the Williston Basin, underlying Montana and North Dakota.

 Crude oil from Bakken has been said to be one of the most explosive oils in the world!  Due to fracking, chemicals are added to the already hydrogen heavy oil. This leads to extreme volatility.  According to the Wall Street Journal, the volatility pressure of Bakken oil is 2 units higher than crude oil anywhere else in the world.

 90% of oil coming from North Dakota in 2014 will be expected to move by rail.  Due to no oil pipelines in Canada, the risk of another derailment of a crude oil train is always high.  Older DOT 111s (railcars) are more prone to derailments and puncturing, yet they are still in use!

 Minimizing hazardous materials during train derailments ◦ If classified correctly the material will be packed in ways that are suitable to them  Less trains carrying hazardous material on the tracks  More efficient first response prior to derailments ◦ Having accurate information about the type of oil that was spilled

 Out of the 1 billion dollars of damages done in the Quebec train catastrophe, the responsible company were insured up to 25 million dollars, meaning the tax payers were responsible for the difference.

 The penalties for such catastrophes have risen within the past month.  Companies that cheat testing will face criminal penalties of 10 years in prison and civil charges up to 175,000 dollars a day.  These penalties would make a company think twice before cheating.

 Companies that ship dangerous cargo will need better insurance policies to cover their mistakes so tax payers don’t have to.  This fact may come with a price! ◦ Higher insurance rates for the companies means less money to pay employees.

 Pipeline system that runs into Canada so less trains will have to?  Phasing out older DOT 111 railcars and replacing them with newer ones?  Regulating the speed of trains so they are not at risk of going off rail. Installation of speed governors?

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