Using Violation Tracker to Research Oil Transport Hazards

November 12th, 2015 by Phil Mattera

ViolationTracker_Logo_Development_R3In their disappointed responses to President Obama’s rejection of the Keystone XL project, proponents argued that the decision would do nothing more than force tar sands oil producers to use more dangerous forms of transport such as rail.

It’s true that freight railroads have had their share of accidents, but pipelines are hardly risk-free. The new Violation Tracker database provides documentation on the hazards of both modes of moving dirty oil.

Pipeline regulation is under the purview of the Pipeline and Hazardous Materials Safety Administration (PHMSA), a division of the U.S. Department of Transportation. Violation Tracker has collected data on more than 200 significant enforcement cases brought by the agency since the beginning of 2010. These cases have resulted in total penalties of $28 million.

The largest share of that total comes from Enbridge, the Canadian pipeline giant with extensive operations in the United States. It has had five PHMSA cases with total penalties of $6.3 million. These include a $3.7 million penalty linked to a 2010 accident that spewed more than 800,000 gallons of oil into Michigan’s Kalamazoo River, a major waterway that flows into Lake Michigan. The agency followed the penalty announcement with a statement that there was a “lack of a safety culture” at Enbridge, which had previously been fined $2.4 million for an accident in Minnesota in which two workers were killed when the oil in a leaking pipeline ignited. (For more on Enbridge’s dubious track record, see its Corporate Rap Sheet.)

Second among the top PHMSA violators is BP with $4.6 million in penalties, most of which came from a provision of a larger settlement also involving the Justice Department and the EPA concerning a spill on the North Slope of Alaska. Third is Buckeye Partners with 18 cases involving just under $2 million in PHMSA penalties. Four other companies have been penalized in excess of $1 million by the agency since 2010: Kinder Morgan, Enterprise Products Partners, Exxon Mobil and Marathon Petroleum.

The biggest single penalty from this group was the $1,045,000 fine imposed on Exxon Mobil in connection with a 2011 rupture of a pipeline in Montana that sent more than 40,000 gallons of crude oil into the Yellowstone River.

This is the track record that Keystone XL advocates seem to think argues in favor of pipelines. As noted, they are on stronger ground when criticizing railroads. They can point to incidents such as the derailment of a CSX oil train in West Virginia that caused a fire that burned for days and forced the evacuations of hundreds of people.

The Federal Railroad Administration tends to impose modest penalties but Violation Tracker shows that half a dozen lines have managed to accumulate $1 million or more in safety fines since 2010. In the lead is Union Pacific, with $11.1 million in penalties, including the agency’s single largest fine of $565,000. Second is Berkshire Hathaway (parent of BNSF) with $7.4 million, followed by CSX with $2.7 million and Norfolk Southern with $3.4 million. All of the Class I railroads are well represented on the penalty list.

The debate between pipelines and supposedly safer railroads is a false one. The major companies in both industries have track records that make oil transport a hazardous proposition.

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New in Corporate Rap Sheets: Dollar Tree, now leading the retail sector targeting those too poor to shop at Walmart.

Also note: POGO’s Federal Contractor Misconduct Database, one of the inspirations for Violation Tracker, has been revamped.

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