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OIL AND GAS
NTSB: Oil by rail needs scrutiny after W. Va. incident
by Daniel J. Graeber
Washington (UPI) Feb 18, 2015


3 oil spills reported in North Dakota
Bismarck, N.D. (UPI) Feb 18, 2015 - Slightly less than 1,000 barrels of oil spilled in incidents involving road transportation and operational issues, North Dakota's government said.

The North Dakota Department of Health said it was notified by Hess. Corp. of two spills from wells located three miles apart in the northwest city of Tioga. The department estimated the total spill volume at 960 barrels of oil, attributing both incidents to an open valve at the well sites.

"Some of the spilled fluid escaped the site and may be impacting a nearby wetland," the department said in a Tuesday statement. "The company is evaluating that site."

There was no statement on the incident from Hess Corp. and the state government made no indication public health was at risk.

A total of 30 barrels of oil spilled from an overflow vent of a truck carrying residual oil in western North Dakota. Some of the oil made its way to a small isolated body of water, though the nearby Charbonneau Creek was spared.

The Health Department said cleanup of that release is under way.

North Dakota's oil production is in part behind the steady rise in overall crude oil output from the United States. State data released last week show oil production in December, the last full month for which data are available, was 1.2 million barrels per day, an all-time high.

More than 90 percent of the production comes from the Bakken and Three Forks shale region of the state.

The derailment of a train carrying crude oil from North Dakota through West Virginia is another sign of the need to address safety, a federal regulator said.

The National Transportation Safety Board estimated 28 tank cars of the 109 from a CSX line slipped the rails early Monday afternoon near Mt. Carbon, W. Va.

The state Department of Military Affairs & Public Safety estimated that about a dozen of the cars were carrying crude oil, which would equate to approximately 8,000 barrels. The NTSB said an undetermined amount of crude oil spilled into an area river.

U.S. crude oil production levels are more than the existing pipeline infrastructure can handle, forcing energy companies to use rail as an alternative transit method. The increase in crude oil transport by rail has raised safety concerns, most notably in the wake of a deadly 2013 accident in Lac-Megantic, Quebec.

Most rail incidents involving crude oil spills were tied to cars labeled DOT-111. The incident in West Virginia involved newer model cars designated CPC 1232.

"This accident is another reminder of the need to improve the safety of transporting hazardous materials by rail," NTSB Acting Chairman Christopher Hart said in a statement Tuesday.

The NTSB said it has a team on the ground working alongside local, state and federal officials, as well as those from CSX, to review the events leading up to the incident. The federal safety agency said investigators are comparing data on tank car designs to similar U.S. derailments in 2013 and 2014.

West Virginia Gov. Earl Ray Tomblin declared a state of emergency for the areas in and around the derailment. At least one home was destroyed, minor injuries were reported and water supplies were disrupted as a result.

The cause of the derailment is under investigation.


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Houston (UPI) Feb 18, 2015
Oil and gas services companies Baker Hughes and Halliburton unveiled plans to review stakeholder options for the planned Halliburton takeover. Halliburton made a move to acquire rival Baker Hughes in November. David Lesar, Halliburton's top executive, said the combined company would create a "bellwether global oilfield services company" that would trade under the Halliburton ticker, HA ... read more


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