Bakken Shale

Mon, 2014-03-10 06:00Steve Horn
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Testimony Reveals Record 36% of North Dakota Fracked Gas Was Flared in December

The recent March 6 House Energy & Commerce Subcommittee on Energy and Power hearing titled “Benefits of and Challenges to Energy Access in the 21st Century: Fuel Supply and Infrastructure” never had over 100 online viewers watching the livestream at any point in time. And it unfolded in an essentially empty room. 

But the poor attendance record had no relation to the gravity of the facts presented by testifiers. Among other things, one presenter revealed 36 percent of the gas by-product from oil obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin was flared off as waste during a brutally cold midwest winter with no end in sight.

These damning facts were brought forward by Coalition for Environmentally Responsible Economies (Ceres) Oil & Gas and Insurance Programs Director Andrew Logan, one of eight people called to testify around topics ranging from domestic propane markets to fossil fuels-by-rail markets, to pipeline markets and flaring. 

A topic covered previously by DeSmogBlog, Logan submitted to the Subcommittee that flaring “is getting worse, not better.”

“Flaring in North Dakota hit 36% in December, a new record,” Logan told the subcommittee“This means that more than 1/3 of all natural gas produced in the state is going up in smoke, at the same time as consumers around the country are seeing price spikes from natural gas in this cold winter, along with actual shortages of propane in many places.”

Logan also said that wasteful flaring is also a growing quagmire in Texas, which has seen a 10-fold increase in flaring permits since 2010.

At least one influential Subcommittee member has taken notice.

Tue, 2014-02-25 11:37Justin Mikulka
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Past Time to Close Loophole That Exempts Oil by Rail Companies from Spill Response Planning

In 2013, with the rapid expansion in the use of rail to transport crude oil, we learned that there was a huge increase in the the amount of oil spilled as a result of rail incidents.  

Just two weeks ago, a train
derailed near Pittsburg and spilled 4,000 gallons.  More than 1.15 million gallons of crude spilled from rail cars in 2013.  And this does not include the 1.6 million gallons that spilled in July of 2013 in Lac-Megantic in Canada.   

To put this in perspective, the 2010 Marshall Michigan Pipeline spill — currently the largest and most costly spill on land in US history according to the National Transportation Safety Board (NTSB) — only spilled 843,000 gallons.

These rolling unit trains of crude oil can be carrying over three million gallons of crude oil at one time. The train that derailed and exploded in Aliceville, Alabama in November 2013, was
carrying 2.7 million gallons of Bakken crude oil.  

However, as noted in the recent NTSB recommendations, thanks to a loophole in regulations set up in 1996, the companies transporting this oil by rail are exempt from having comprehensive spill response plans.  According to the January 23, 2014 Safety Recommendation from the NTSB (link to PDF):

oil spill response planning requirements for rail transportation of oil/petroleum products are practically nonexistent compared with other modes of transportation.”

Estimates are that 90% of the oil produced in the Bakken fields in 2014 will be transported by rail. This is up from a rate of 63% in September of 2013.  And as the NTSB notes, current regulations do not require the companies moving this crude to have comprehensive spill response plans despite the amounts of crude oil they are moving.

Wed, 2014-02-05 10:00Steve Horn
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Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Mon, 2014-01-27 05:00Ben Jervey
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Oil on the Tracks: More Oil Spills from Railcars in 2013 than in Previous Four Decades [Updated]

As a direct result of the Bakken shale oil boom, more crude oil was spilled from rail cars last year than in the previous four decades combined. That’s according to a McClatchy analysis of federal data from the Pipeline and Hazardous Materials Safety Administration, which governs rail transport of liquid fuels like crude.

The analysis revealed more than 1.15 million gallons of crude spilled in 2013, considerably more than the 800,000 gallons spilled from 1975 (when the government started collecting data on spills) to 2012.

The rail industry likes to boast a 99.99% success rate in delivery shipments without incident, and that number remained consistent in 2013, with 1.15 million of the roughly 11.5 billion gallons shipped by rail being spilled. What did change was the volume of actual crude being shipped by rail.

As we’ve covered before, there is a massive boom in crude-by-rail throughout North America, with a nearly 2400-percent increase in crude railcar shipments in five short years from 2008-2012. As it turned out, 2013 was another record-setting year.

Tue, 2014-01-07 14:11Steve Horn
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Days Before Casselton Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law. 

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767's sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-NDreceived $111,050 from the oil and gas industry since her 2012 electoral victory.

Sun, 2014-01-05 21:01Steve Horn
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Exclusive: Permit Shows Bakken Shale Oil in Casselton Train Explosion Contained High Levels of Volatile Chemicals

On January 2, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a major safety alert, declaring oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale may be more chemically explosive than the agency or industry previously admitted publicly.

This alert came three days after the massive Casselton, ND explosion of a freight rail train owned by Warren Buffett's Burlington Northern Santa Fe (BNSF) and was the first time the U.S. Department of Transportation agency ever made such a statement about Bakken crude. In July 2013, another freight train carrying Bakken crude exploded in Lac-Mégantic, vaporizing and killing 47 people.

Yet, an exclusive DeSmogBlog investigation reveals the company receiving that oil downstream from BNSF — Marquis Missouri Terminal LLCincorporated in April 2012 by Marquis Energy — already admitted as much in a September 2012 permit application to the Missouri Department of Natural Resources (DNR).

The BNSF Direct ”bomb train” that exploded in Casselton was destined for Marquis' terminal in Hayti, Missouri, according to Reuters. Hayti is a city of 2,939 located along the Mississippi River. From there, Marquis barges the oil southward along the Mississippi, where Platts reported the oil may eventually be refined in a Memphis, Tennessee-based Valero refinery.

Thu, 2014-01-02 10:54Steve Horn
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Warren Buffett Bought Stake in Pipeline Company on Same Day as North Dakota Oil Train Explosion

On December 30, the same day a Burlington Northern Sante Fe (BNSF) oil train derailed and exploded in Casselton, North Dakota, Warren Buffett — owner of holding company giant Berkshire Hathaway, which owns BNSF — bought a major stake in pipeline logistics company Phillips Specialty Products Inc.

Owned by Phillips 66, a subsidiary of ConocoPhillips, Phillips Specialty Products' claim to fame is lubricating oil's movement through pipelines, increasingly crucial for the industry to move both tar sands crude and oil obtained via hydraulic fracturing (“fracking”) in an efficient manner.

“Phillips Specialty Products Inc…is the global leader in the science of drag reduction and specializes in maximizing the flow potential of pipelines,” explains its website.

Buffett — the second richest man in the world — sees the flow lubricant business as a lucrative niche one, increasingly so given the explosion of North American tar sands pipelines and fracked oil pipelines.

“I have long been impressed by the strength of the Phillips 66 business portfolio,” he said of the deal in a press release. “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway.”

Wed, 2013-11-27 10:58Steve Horn
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Firm with History of Spill Cover-Ups Hired to Clean Up North Dakota Oil Spill

Tesoro Logistics — the company whose pipeline spilled more than 800,000 gallons of fracked Bakken Shale oil in rural North Dakota in September — has hired infamous contractor Witt O'Brien's to oversee its clean-up of the biggest fracked oil spill in U.S. history.

The oil was obtained via hydraulic fracturing (“fracking”) in the Bakken Shale basin.

As revealed after ExxonMobil hired the same firm in the aftermath of a 210,000-gallon tar sands oil spill in April 2013, Witt O'Brien's — formerly known as OOPS, Inc. — is a firm with a history of oil spill cover-ups dating back to the Exxon Valdez oil spillIt also oversaw the spraying of toxic oil dispersants into the Gulf of Mexico during BP's summer 2010 mega-spill and a literal cover-up of Enbridge's massive “dilbit disaster” tar sands pipeline spill in Michigan. 

Witt O'Brien's also won a $300,000 contract to develop an emergency response plan for TransCanada’s Keystone XL tar sands export pipeline in August 2008.

The same firm is now maintaining Tesoro's website dedicated to offering updates — also known as crisis communications management — for the massive spill's recovery efforts at TesoroAlert.com

Buried at the bottom of the website is a mention that the site is “powered by the PIER System.” PIER — short for “Public Information Emergency Response” — is owned by Witt O'Brien's.

Screen Shot Taken Nov. 25, 2013

Wed, 2013-11-13 08:10Mike G
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Oil Train Derailment, Explosion In Alabama Points To Need For Tighter Regulation

We’re all used to seeing oil spills at sea, or oil spewing from a ruptured pipeline. But lately we’ve been presented with a new image of oil spills with increasing frequency: train derailment.

Last Friday, a train carrying crude oil from the Bakken shale in North Dakota was traveling through a rural part of Alabama when 20 of its cars derailed and exploded. Firefighters left 11 of the cars to burn themselves out overnight. Flames were reportedly shooting 300 feet into the air.

The cause of the accident, as well as the extent of the oil spill into a surrounding wetlands area, can’t be determined until the fire stops burning, which officials say could take several days.

This was not the only train carrying crude oil that derailed in recent memory. It wasn’t even the only train derailment last week.

Fri, 2013-11-01 12:37Steve Horn
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Revealed: Never Before Seen Photos of Tesoro Fracked Oil Spill in North Dakota, Pipeline Restarted Today

A month after over 865,200 gallons of oil spilled from Tesoro Logistics' 6-inch pipeline near Tioga, North Dakota, the cause of the leak is still largely unknown to anyone but Tesoro. The pipeline resumed operations today.

Carrying oil obtained via hydraulic fracturing (“fracking”), the controversial horizontal drilling method used to capture oil and gas found embedded in shale rock basins worldwide, the Bakken Shale pipeline spill on September 29 was the largest fracked oil spill in U.S. history. Oil spill experts say the spill may be even bigger than originally estimated. 

Yet few details of what caused the spill - and how to prevent it from happening again - have arisen in the month since it occurred. 

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) believes a lightning strike may have created the quarter inch hole in the pipeline, leading to the spill

PHMSA says it will carry out a rigorous investigation into the cause of the spill, but allowed the restart after Tesoro agreed to the agency's safety order mandating aerial monitoring of the pipeline over the next three days during the restart and then weekly for the next year, along with 20 other things.

The safety order also mandates Tesoro provide a documented updated within six months indicating how it enhanced its control room monitoring, instructs Tesoro to finish the final mechanical and metallurgical testing report of the failed pipe within 30 days and dictates that within “90 days complet[ion of] a root cause failure analysis for the Line that contains a detailed timeline of events.”

Documents obtained by Greenpeace USA under North Dakota's Open Records Statute show the oil has settled over 12 feet below the ground layer of the soil. The oil that settled on the surface was burned off.   

“At 10-12 feet below surface, there is a extensive clay layer that underlies the entire hill top,” Kris Roberts, Environmental Response Team Leader for the North Department of Health's Division of Water Quality, explained in an October 3 field report.

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