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Published byChristian Sullivan Modified over 9 years ago
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Cleveland Jones Drew Pendleton Timisha Neal
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http://www.cbsnews.com/news/explosive- train-disasters-prompt-emergency-order-for- rail-oil-transport/
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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.
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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
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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.
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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.
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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.
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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!
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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
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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.
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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.
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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.
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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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1. http://www.insurangle.com/u-s-to-mandate-tests-of- oil-being-transported-by-train.html http://www.insurangle.com/u-s-to-mandate-tests-of- oil-being-transported-by-train.html 2. http://www.cbsnews.com/news/explosive-train- disasters-prompt-emergency-order-for-rail-oil- transport/ http://www.cbsnews.com/news/explosive-train- disasters-prompt-emergency-order-for-rail-oil- transport/ 3. http://thehill.com/blogs/e2-wire/e2-wire/199223-dot- mandates-shippers-test-crude-oil-transported-via- rail#ixzz2wFTO6P6U http://thehill.com/blogs/e2-wire/e2-wire/199223-dot- mandates-shippers-test-crude-oil-transported-via- rail#ixzz2wFTO6P6U http://news.msn.com/us/accidents-spur-us-to- mandate-tests-of-oil-moving-by-train http://news.msn.com/us/accidents-spur-us-to- mandate-tests-of-oil-moving-by-train
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