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Rail Safety Update

Rail Safety Update. March 31, 2016 Area Transportation Partnership Fergus Falls, MN. Minnesota Rail System. 4 Class I Railroads 18 Smaller Railroads 4,500 Route Miles 250 Million tons/year

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Rail Safety Update

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  1. 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

  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

  8. Carloads of Crude Oil Originated and Terminated on U.S. Class I Railroads2006 to 2015

  9. U.S. Energy Information Administration

  10. U.S. Energy Information Administration

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

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

  13. 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

  14. 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.

  15. 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

  16. 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

  17. 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

  18. 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

  19. Current Freight Rail Trends • Overall U.S. railroad traffic is down • U.S. crude by rail shipments are down 16 percent between 2014 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

  20. 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

  21. 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

  22. Rail Safety Bonding Requests • Rail Grade Separation on Crude Oil Lines: $69.624 million • Rail Quiet Zones: $10 million • Hwy/RR Grade Crossing Warning Device Replacement: $5 million

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

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