1. March 31, 2016 Area Transportation Partnership Fergus Falls, MN
Rail Safety Update
March 31, 2016
Area Transportation Partnership
Fergus Falls, MN

2. Minnesota Rail System 4 Class I Railroads 18 Smaller Railroads
4,500 Route Miles
250 Million tons/year
Rail moved 25% by weight, 20% by value of all freight in MN – approximately double the US average
8th Highest Rail Mileage in Nation
25-40% growth by 2040
The 2015 State Rail Plan updates the system inventory, shows a significant growth in freight and a slow expansion of rail’s modal share.

3. Crude by Rail Overview
Crude oil bought by truck rail loading facilities
These facilities load “unit trains” consisting of up to 110 cars of solely crude oil
Up to 80,000 barrels of oil per train are taken to refineries

4. The Bakken Formation

5. The Bakken Formation Produces 1.1 million barrels of oil per day
Over 60 percent of this oil is shipped by rail
The remainder is shipped by pipeline or consumed locally

6. Bakken Crude Oil Production
North Dakota Industrial Commission, 2015

7. Why Oil Travels by Rail Lack of pipeline capacity Flexibility of rail
Gives oil produces the ability to shop around their product to various rail-served refineries
Lack of refineries in ND

9. Carloads of Crude Oil Originated and Terminated on U. S
Carloads of Crude Oil Originated and Terminated on U.S. Class I Railroads 2006 to 2015

10. U.S. Energy Information Administration

11. U.S. Energy Information Administration

12. Bakken Crude by Rail Destinations
December 2015
U.S. Energy Information Administration

13. Safety Concerns
Bakken crude oil is highly volatile (contains natural gas liquids)

14. Safety Concerns Spills toxic to environment, hard to contain
Different problems for different modes
Pipeline has fewer but larger spills
Pipelines carry most oil, but rail volumes have become significant and growing
Rail exposure in urban areas, grade crossings create conflict points

15. CBR: State Response Increased MnDOT rail safety inspectors to four.
Increased first responder training (funded via railroad assessment).
Required filing of railroad emergency response plans.
Required DPS to file report on emergency response preparedness
Required MnDOT to conduct a CBR grade crossing study
Provided $7M ($2M in 2014 and $5M in 2015) for CBR grade crossing improvements.
Crossing improvements: four gate protection, medians, improved signal interconnects, closings
Grade separations (reduce collisions, improve emergency response and community access)
75 projects totaling $330M over 10 years

16. Crude by Rail: Federal Response
Enhanced tank car standards
Thicker, more puncture-resistant tank of stronger steel
Top-fitting protection and head shield
Thermal insulation encased in steel jacket
New cars must meet these standards and existing cars must be retrofitted between 2018 and 2025
FAST Act calls for ½” thermal blanket, top-fitting protection and ECP braking study

17. Crude by Rail: Federal Response
Train operations
Maximum train speed of 40 mph in high threat urban areas
Requirement for routing analysis
Electronically controlled train braking
Information on hazmat movements to communities
Hazardous Product Labeling
Enhanced sampling and testing
More accurate labeling

18. Crude by Rail: Railroad Response
Increased track inspections (manual and automated)
Slower train speeds
Wheel detectors
Track infrastructure investments
Improved braking systems
Rail routing risk analysis
Increased first responder training
Increased emergency response capacity

19. 2015 State Rail Safety Accomplishments
MnDOT hired and trained four rail safety inspectors
Two track inspectors enforce federal track safety standards
One hazardous materials inspector enforces federal hazardous materials transportation safety regulations
One motive power & equipment inspector enforces safety regulations for rail cars, locomotives, wheels and brakes
During 2015, MnDOT’s rail  inspectors issued 2,219 rail safety defects and 12 more serious rail safety violations

20. Current Freight Rail Trends
Overall U.S. railroad traffic is down
U.S. crude by rail shipments are down 16 percent between and 2015
Additional pipeline capacity in the Bakken has come online
Lower oil prices has caused many refineries to import oil
Railroads added capacity in MN in 2015, but 2016 capacity expansion spending is down
5-8 Bakken oil trains/day still reported through MN
The 2015 State Rail Plan updates the system inventory, shows a significant growth in freight and a slow expansion of rail’s modal share.

21. FAST Act Rail Provisions:
Freight Rail Funding
Highway grade crossing
safety funds
Community Safety Grants
for hazmat response
Positive Train Control
deadline extended and
one-time total funding of
$199M
FASTLANE grants program provides new opportunities for rail & freight funding

22. Antiquated Equipment About 4,000 public grade crossings in the state
About 1/3 or 1,500 are
signalized
If the design life of signals
is 20 – 30 years, then
we should be replacing
50 to 75 signal locations
per year

23. Rail Safety Bonding Requests
Rail Grade Separation on Crude Oil Lines: $ million
Rail Quiet Zones: $10 million
Hwy/RR Grade Crossing Warning Device Replacement: $5 million

24. Thank You!
Peter Dahlberg Freight, Rail and Waterways Section Office of Freight & Commercial Vehicle Operations