Either support new pipelines or your community will be incinerated by an oil-carrying train.

It sounds outrageous, but it’s been a foundational argument made by the pro-pipeline lobby ever since the horrific Lac-Mégantic disaster in 2013.

“This is almost like putting a gun to the head of communities, saying ‘well, if we don’t build our pipeline then we’re going to put more oil-by-rail traffic through your community,’ ” says Patrick DeRochie, program manager of Environmental Defence’s climate and energy program.

“I think that’s dishonest and the oil industry’s really manipulating legitimate public concerns about rail safety to push pipelines.”

On Dec. 20, 2016 — less than a month after the federal approvals of the Kinder Morgan TransMountain and Enbridge Line 3 pipelines — Prime Minister Justin Trudeau clearly stated that “putting in a pipeline is a way of preventing oil by rail, which is more dangerous and more expensive.”

The fact that it’s an oft-repeated sentiment shouldn’t overshadow the fact that this is a completely false binary.

Canada is hardly shipping any oil by rail. It never has.

And the only way that oil-by-rail shipments will seriously increase as predicted by the Canadian Energy Research Institute and National Energy Board is if Canada continues with its plan to allow for the massive expansion of Alberta’s oilsands in the coming decades, a move that will undermine calls for a moratorium on all new fossil fuel infrastructure in order to avoid the effects of catastrophic climate change.

Highest Amount Ever Exported by Rail Was Mere 178,000 Barrels Per Day

Here are the numbers on oil-by-rail.

In September 2016 — the most recent month reported by the National Energy Board on the subject — oil-by-rail exports to the United States were 69,292 barrels per day (bpd).

They had dipped as low as 43,205 bpd in June 2016.

This obviously reflects the extremely low per-barrel price that bitumen is fetching from American refineries, which is also why there’s currently around 400,000 bpd of spare capacity in the pipeline network.

Plus, oil-by-rail generally costs more than shipping oil by pipeline, making it an even less viable option in such economic times.

But rail shipments have never been particularly notable relative to total crude oil production.

In fact, oil-by-rail’s high point in recent years was in September 2014, when 178,989 bpd were transported to the U.S.

The same year, Canada was exporting a total of 2.85 million bpd. In other words, at its very peak, oil-by-rail accounted for a mere 6.28 per cent of total exports.

Newly Approved Pipelines Quadruple Capacity Historically Shipped by Rail

It should also be noted that not all oil transported by rail is exported to the States, with some simply transported to other parts of the country for storage or usage for purposes such as asphalt.

For instance, the Canadian Association of Petroleum Producers reports the oil-by-rail hit “almost 200,000 bpd by the end of 2013,” despite the NEB only reporting 166,570 bpd in rail exports during December 2013.

Domestic transport also helps explain why the Canadian Energy Research Institute reported in 2014 that about 35,000 bpd of oil-by-rail from Western Canada wasn’t exported to the United States (and thus not counted by the NEB).

Incredibly, nobody is keeping detailed, accurate numbers on oil-by-rail.

But we can assume — generously — that the highest oil-by-rail shipments have ever hit in Canada is 225,000 bpd (180,000 bpd in exports and another 45,000 bpd in cross-country transport).

The recent approvals of the Kinder Morgan Trans Mountain and Enbridge Line 3 pipelines will allow for the addition of 900,000 bpd in pipeline capacity from the oilsands, assuming a 15 per cent surplus for outages and maintenance.

That’s four times the amount of oil that has ever been shipped by rail, either for exports or domestic transport.

New pipelines are not about “displacing” oil currently being shipped by rail — there’s simply no evidence for that.

Instead, new pipelines are about preparing for a massive expansion of the oilsands by almost two million bpd between 2015 and 2040, and weaponizing people’s fears of oil-by-rail to do so.

How the Spectre of Oil Trains is Deceptively Used to Push Pipelines https://t.co/mWbMw5F4SK @james_m_wilt #cdnpoli #oilbyrail #propaganda

— DeSmog Canada (@DeSmogCanada) January 6, 2017

Oil-By-Rail Unsafe Because of Regulatory Lack

But there’s a second and related key problem with the pipeline versus rail debate, further undermining the argument for new pipelines.

Specifically, that there are technologies and regulations available to ensure that oil being shipped by rail is far safer than what the current rules mandate.

As a result, combined exports and domestic transport via rail could even rebound to 200,000 or 250,000 bpd and we’d never have to seriously worry about a Lac-Mégantic-like disaster again.

How?

Transport Canada could require rail companies to increase the number of inspectors and crew members on trains, reduce speed limits and require certain braking system protocols and better public disclosure.

The phase-out of the old CPC-1232 tank railcars and transition to new and safer TC-117 tank railcars could be accelerated. The federal environment minister could be required to order an environmental assessment of oil-by-rail projects, as recommended in September 2016 by NDP MP Linda Duncan.

‘Neatbit’ Would Reduce Risk of Explosions and Spills, But Initially Increase Costs

And then there’s the increasingly popular idea of “neatbit.”

Bitumen from the oilsands is current shipped in both pipeline and train in a form called “dilbit,” which requires about 30 per cent of diluent to allow it move. The diluent, usually made of a natural gas-based condensate, makes the mixture highly flammable, explosive and difficult to contain in spills.

These characteristics are dangerously compounded in the case of train accidents.

Conversely, “neatbit” only requires one to two per cent of diluent.

The product thus has the consistency of peanut butter, meaning it won’t flow in the event of a spill. It also doesn’t catch fire or explode.

David Hughes, expert on unconventional fuels and author of multiple reports for the Canadian Centre for Policy Alternatives (CCPA), says: “In effect, shipping raw bitumen by rail is likely a safer alternative than pipelines.”

Shipping bitumen as neatbit would arguably save companies money in the long term. But it would also require a bit of upfront capital, and policy direction from governments.

Heavy oil refineries don’t have the infrastructure to receive it. It would take longer to unload. Upstream companies would have to build diluent recovery units and invest in insulated tank railcars with heated coils to keep the bitumen somewhat soft during transport.

And unlike pipelines, oil-by-rail doesn’t result in a “carbon lock-in” given that many other commodities can be transported by rail.

Bruce Campbell of the CCPA has concluded the oil industry “is not in any hurry to make the transition because of the (relatively modest) upfront investment.”

Kai Nagata of the Dogwood Initiative agrees: “The oil companies don’t want to do anything that is inconvenient or that would require them to build new facilities or spend more money. So far, I don’t think there’s much interest in moving that inert form of bitumen in regular rail cars.”

‘It’s Purely Out of a Profit Motive That They Invoke the Comparison’

Not only is it deceptive to claim that new pipelines are needed to replace oil-by-rail, but it also ignores the fact that oil-by-rail can be made much safer than it is at the moment (although it will continue to be more carbon-intensive due to its current reliance on diesel as fuel).

Yet Lac-Mégantic continues to be subtly weaponized by corporate execs and politicians as if these two facts aren’t true, or even worthy of acknowledgement.

Oil-by-rail has never been a major player in Canada. It never will be if international climate commitments are honoured. And even if it is used as a way to offer some flexibility to producers, it can be done in a way that’s safer than current practices require.

Nagata suggests that such players are relying on people’s fears about a non-issue in order to force them to a point of compromise that would allow them to build pipeline expansion infrastructure.

“It’s purely out of a profit motive that they invoke the comparison,” he says. “Not out of any sense of concern for the safety of communities along the route.”

DeRochie agrees: “It’s a legitimate concern. And I think the oil industry grasped onto that and used it as a scare tactic to push pipelines.”

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“We’re seeing strong growth. We’re seeing some large accounts come back. The future is bright.”

According to the Portland Press Herald, that was the assessment of the future by Ryan Ratledge, the current chief operating officer for Central Maine and Quebec Railway, the railroad that runs through Lac-Megantic, Quebec.

Central Maine and Quebec Railway is the new name of the railroad that was operating the train that caused the oil train disaster in Lac Megantic in July 2013 that resulted in the death of 47 people. As DeSmogBlog reported previously, cost cutting measures by the railroad were directly linked to the cause of the accident. 

After the accident, the railway declared bankruptcy and the assets were purchased by Fortress Investment Group, which currently manages over $66 billion in assets.

The oil trains will start rolling through downtown Lac-Megantic again by 2016. Other “dangerous goods” are already being shipped on the railway.

While many see the tragedy in Lac-Megantic as a dire warning about what happens when the lust for profit goes unregulated with no regard for the environment or safety, for the multi-billion-dollar hedge fund Fortress, it is just another success story. Every crisis is an opportunity. Disaster capitalism works. 

Meanwhile in Lac-Megantic, the future isn’t quite so bright. The oil that spilled there contaminated much of downtown. And while the train tracks have been rebuilt, downtown has not. 

Rebuilt tracks in downtown Lac-Megantic in blast zone. Photo by Justin Mikulka.

The reopening of the Musi-Cafe, where many of the victims of the accident were that night, was announced this month. But the cafe isn’t reopening in the downtown area where it had been located. While the cafe was being built this year in a new commercial strip mall development above the town where businesses have relocated, the cafe’s original location was still a fenced-off work site where contaminated soil was being removed by the truck load.

Musi-Cafe being rebuilt in new location. Photo by Justin Mikulka.

And while the Musi-Cafe is opening, owner Yannick Gagne is still very much impacted by what happened on July 6, 2013. Gagne told the International Business Times that there are still some people who will look away from him when they see him on the street. "I know it's normal, but it puts a lot of pressure … I'm not the devil, I didn't put the train inside the Musi-Café."

He also didn’t put the oil into the Chaudiere River, a beautiful river that flows out of Lac-Megantic and is popular with fisherman. This year, on the one-year anniversary of the accident, the people of Lac Megantic released 5,000 new trout into the lake, but cleaning up oil spills takes more than just putting new fish in the water. 

Steve St-Pierre has been fishing the Chaudiere River his whole life and the river he knew no longer exists.

“No one comes down here anymore, and why would they?” St-Pierre told the Montreal Gazette. “Last year I led tourists on fishing trips all the time and that hasn’t happened yet this year. People still fish the lake but the river is pretty dead.”

100,000 liters of oil contaminated at least 30 kilometers of Chaudiere River. Photo by Justin Mikulka.

As the town recovers, the lawsuits also continue. The deadline for filings in the bankruptcy case is January 15, 2015. The goal was to get $500 million in compensation. So far the expected amount is $200 million.

So the oil trains will be back in Lac-Megantic by 2016 running on the same dangerous route as always. Residents had proposed rerouting the tracks around the town but that would have cost Fortress Investment Group money they weren’t willing to spend.

And there isn’t much hope for a town the size of Lac-Megantic to make this happen when the mayor of Toronto is not having any luck keeping the oil trains out of his major city.

While the U.S. is supposed to release new oil-by-rail regulations as soon as January 15, 2015, it remains to be seen when they will go into effect. And as reviewed on DeSmogBlog earlier this year, the regulations do very little to make the people living in the bomb train blast zones any safer.

There were two critical safety items that would have avoided or greatly reduced the damage in Lac-Megantic, from the train and oil that originated in the U.S.—properly securing the train so it didn’t roll down the hill into town, and not having explosive oil in the tank cars.

In September, the U.S. Federal Railroad Administration announced a Proposed Rule to Prevent Unintended Movement of Trains. Something as simple as making sure trains full of explosive oil have to be secured is still in the proposed rule stage.

That means it will not be part of the new regulations that are supposed to be out on January 15. It also means that lobbyists will be able to schedule private meetings with the regulators at the Office of Information and Regulatory Affairs for the next several months to influence any final new regulations on securing trains, just like they did this year when they worked against any new oil-by-rail regulations.

One other safety factor not addressed in the new regulations is the actual oil and how it is more explosive than traditional crude oil.

After the Lac-Megantic disaster tests showed that the oil—which was from the Bakken shale formation in North Dakota—was as explosive as gasoline, something that is not true about most crude oils but that is a characteristic of oil obtained by fracking tight shale formations like the Bakken. And that explained why downtown Lac-Megantic was consumed by explosions and fire.

After the new proposed federal regulations completely failed to address the issue of the Bakken oil’s volatility, there was still hope that North Dakota regulators would require the oil to be stabilized prior to shipment in rail cars.

Those hopes were dashed last month when North Dakota regulators released new “standards” allowing oil significantly more volatile and dangerous than the oil involved in the Lac-Megantic accident.

So when the oil trains return to Lac-Megantic in 2016, they can still carry the same dangerous oil they did in 2013—in the same unsafe rail cars. No executives of any rail or oil corporation will have been charged with any wrongdoing.

Just as BP is currently promoting that it’s “back to work in the Gulf of Mexico”, the future is indeed bright for the oil and rail companies who will be running oil trains through Lac-Megantic.

The same can’t be said for the 25 million people who, like the people of Lac-Megantic, continue to live in the blast zones of the bomb trains.

Photo credits: Justin Mikulka.

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A fiery CN train derailment in rural Saskatchewan has many people asking what could have happened if the accident occurred in a more populated area.

The 100-car freight train derailed Tuesday about 190 kilometres east of Saskatoon. Twenty-six cars left the track, including six carrying dangerous goods. Two cars containing petroleum distillate caught fire, sending 30-metre flames into the air. Several explosions were also confirmed.

The area around Clair, Sask., was evacuated overnight. Families were allowed to return to their homes Wednesday morning according to Harold Narfason, chief of the Wadena & District Fire Department.

The volunteer fire department was the first on the scene.

Narfason told DeSmog Canada his department has long been aware that dangerous commodities are being shipped by rail through the area.

“I’ve attended numerous meetings with CN to get informed and there are more cars moving through,” Narfason said.

On the scene of the derailment, his team quickly accessed the hazmat sheets, which indicated they were dealing with the explosive petroleum distillate.

“Everything is going as good as it can under the circumstances,” Narfason said.  

The railway industry has been in the spotlight since July 2013 when 47 people died after an oil train derailed and exploded in downtown Lac-Megantic, Que.

In August, the Transportation Safety Board issued a report into the Lac-Megantic tragedy that called for improved safety measures and cited inadequate oversight by Transport Canada.

Overall shipments of oil by rail in Canada have increased by 28,000 per cent since 2009.

The surge in rail transport of petroleum products has outpaced regulatory oversight, according to the Canadian Centre for Policy Alternatives.

In an October 2013 report, CCPA executive director Bruce Campbell, wrote, “In my view, the evidence points to a fundamentally flawed regulatory system, cost-cutting corporate behaviour that jeopardized public safety and the environment, and responsibility extending to the highest levels of corporate management and government policy making.”

Adam Scott, a spokesman for the advocacy group Environmental Defence, told the Canadian Press that an accident like the one in Saskatchewan could have happened anywhere in Canada.

“The freight rail lines actually go right through the centre of almost every major urban centre in the entire country … so the risk of accidents is significant,” Scott said.

Scott said rail companies in Canada are not required to publicly disclose the types of hazardous materials being transported on trains.

ForestEthics has set up a ‘blast zone’ website, which allows users to search by address for oil train routes in Canada and the U.S.

A quick look at the blast zone map indicates CN ought to be counting its lucky stars this latest derailment happened in a town of 50 people instead of a city of 500,000.

Photo: Wadena News

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