American Oil and Gas Reporter - June 2015 - 124
gas transportation sector and its increased
call on gas production. "Building the
filling station infrastructure can only help
New York's natural gas industry," he assesses. "LNG and CNG are catching on.
It is not a big deal yet, but it will be."
State Assembly
Because of the drilling moratorium,
the oil and gas industry has not received
a lot of direct attention from state legislators, Gill assesses. One bill that emerged
two years ago, which sought to give DEC
more authority to assess natural gas damages, resurfaced this session, he says.
AB 5895, by Assemblyman Steve Englebright, D-East Setauket, would establish
a natural gas production contamination
damage recovery and remediation fund.
According to the legislative website,
the fund's structure would parallel the
state's Oil Spill Fund. If a natural gas incident occurred, the state controller's office
would be authorized to investigate and
identify responsible parties. The recovery
fund would be tapped to pay for remediation
in cases where those parties could not be
identified, or the parties were unable to
clean up the contamination, it states.
"IOGA NY opposed this bill when it
was introduced two years ago," Gill says.
"I expressed opposition to AB 5895,
based on that same memorandum. There
is nothing really exciting happening in
the statehouse. It is fair to say that the
New York State Assembly still is limiting
itself to preparing draft legislation to
extend the drilling moratorium another
five years, and bills such as AB 5895."
He adds another such bill is AB 6859,
also introduced by Englebright, which
would classify all oil and gas wastes as
hazardous, and require them to be treated
as such. Gill says IOGA NY opposed the
bill, and continues to oppose it, based on
several factors. Fortunately, he says the
New York Senate is Republican controlled
and generally supports the oil and gas
industry, and often is a buffer against
certain bills that otherwise might pass
through both houses.
Summer Meeting
In a first for IOGA NY's summer
meetings, Gill says the 2015 event will
offer a business succession, estate planning
workshop for oil and gas professionals.
The seminar, offered in conjunction with
Hodgson Russ, one of the association's
member law firms, will be held on Tuesday, July 7.
The technical seminars on Wednesday,
July 8, include sessions covering pipelines,
marketing, best management practices
for shale development, storage issues,
crude supply challenges and natural gas
vehicles, Gill says. On Thursday, July 9,
the Stripper Well Consortium will present
an oil and gas technology update.
The summer meeting also offers a
golf tournament, shooting clays competition and a motorcycle run around Chautauqua Lake, Gill says, adding the Thursday schedule also features the annual
barbecue and oil field equipment show.
"The association is taking advantage
of the slowdown of unconventional activities to be more member centric," Gill
says. "In only one example, the association
now has a new logo. It is almost like a
rebirth after six years of waiting for Governor Cuomo's decision. We are redefining
our focus."
For meeting information, contact IOGA
NY at 38 Lake St., Hamburg, N.Y. 14075;
call 716-202-4688; or visit www.iogany.org.
❒
API Opposes DOT Timetable
To Impose New Rail Car Rules
WASHINGTON-The American Petroleum Institute has filed a legal challenge
to new federal railroad rules, saying Washington's timetable for upgrading or replacing older tank cars used to move crude
oil and its requirement to use a new braking
system are arbitrary and capricious.
API filed the lawsuit in U.S. Court of
Appeals for the District of Columbia. The
association contends the new requirements
were not based on fact or science, and is
asking the court to overturn the provisions
related to retrofitting tank cars and mandating new braking technology.
According to the regulations, unveiled
by U.S. and Canadian officials in early
May, the next generation of rail cars for
moving flammable liquids, such as crude
oil and ethanol, must be built using thicker
steel with increased thermal protection,
a full head shield, and improved pressure
relief and bottom outlet valves.
The U.S. Department of Transportation
says it developed the new rail transport
rules jointly with Transport Canada. DOT's
Pipeline and Hazardous Materials Safety
Administration (PHMSA) and the Federal
Railroad Administration (FRA) created
the U.S. version. Other federal agencies,
including the Department of Homeland
Security, Environmental Protection Agency,
and Federal Emergency Management
Agency, are considering imposing standards
in their areas of authority, DOT says.
The agency says its rule requires:
* New braking standards for certain
trains;
* New operation protocols for trains
moving large volumes of flammable liquids, including routing requirements,
speed restrictions, and providing information to local agencies; and
* Changes in sampling and testing
requirements to improve classification of
energy products.
The new TC-117 standards apply to
high-hazard flammable trains (HHFT),
which DOT defines as a continuous block
124 THE AMERICAN OIL & GAS REPORTER
of 20 or more tank cars loaded with a
flammable liquid, or 35 or more tanks
cars with such cargoes dispersed throughout a train. DOT says the standards will
be applied first to railway companies in
Canada and the United States with cars
carrying crude oil.
Both countries will require any tank
car used for flammable-liquid dangerous
goods service manufactured on or after
Oct. 1, 2015, to be built to TC-117 standards. The new requirements also include
a retrofit schedule for older DOT-111 as
well as the CPC-1232 tank cars (manufactured since 2011) used to transport
flammable liquids.
The agency says the final rule will require replacing the entire fleet of DOT111 tank cars for Packing Group One,
which covers most crude shipped by rail,
within three years, and all nonjacketed
CPC-1232s within five years.
"Our close collaboration with Canada
on new tank car standards is recognition
that the trains moving unprecedented
amounts of crude by rail are not U.S. or
Canadian tank cars-they are part of a
North American fleet and a shared safety
challenge," says U.S. Transportation Secretary Antony Foxx.
New Requirements
PHMSA published a notice of proposed
rule making for the new standards Aug.
1, saying it acted in response to the increasing amounts of crude oil transported
by rail. According to the agency, the volume of crude oil carried by rail increased
423 percent between 2011 and 2012.
PHMSA adds that U.S. ethanol production
also has increased during the past decade,
and now constitutes 26 percent of the
total number of hazardous-material rail
shipments. Crude oil and ethanol comprise
68 percent of flammable liquids transported by rail.
Under the revised standards, new tank
cars used in HHFTs must have a 0.5625-
American Oil and Gas Reporter - June 2015
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