Updates
September 27, 2014: another story to add to the list of those whining about CBR but not demanding more pipeline.
The Dickinson Press is reporting:
Runaway oil production could slow road traffic as drivers face longer
delays to cross train tracks in many congested regions, a U.S. study
released on Friday predicted.
Oil, coal and grain shipments are taxing the national rail grid as
the deliveries of those commodities are expected to climb along with
commercial shipments in the coming years, according to the report from
the Government Accountability Office, an investigative arm of Congress.
Freight
movements on the tracks are due to rise 51 percent over 2007 levels by
2040, according to the Transportation Department, and so exceed 28
billion tons per year.
One factor is oil train deliveries out of
North Dakota’s energy patch that neared 250,000 carloads in 2012
compared with roughly 10,000 in 2007, according to the study.
The
increased oil shipments will translate into tie-ups at highway-rail
crossings, though the study said it was hard to judge what areas of the
country would be most affected.
As soon as I saw "runaway" -- which, by the way, was the first word in the story -- I knew it would be another "whining" story. Note also the dateline of the story (Washington, DC): this was no doubt sent out by some "advocacy group" disguising the "press release" as a story.
"... it was hard to judge what areas of the country would be most affected." Well, one could start with the northern tier, Minnesota to Washington State, and then go from there. I can't make this stuff up.
Original Post
Marketplace is reporting:
The electric utility that serves the Duluth region is
mothballing four coal-powered generators, and not because the
Environmental Protection Agency told it to.
No, Minnesota Power is idling these generators for three
months because the railroad isn’t delivering enough coal. Railroads are
crazy busy— carrying oil from North Dakota for one thing— and the delays
are driving their customers nuts.
Al Rudeck is the vice president of strategy and planning
for Minnesota Power. The Burlington Northern Santa Fe railroad has
delivered the utility’s coal for decades. I asked him: Has this kind of
thing happened before?
"This is unprecedented," he said. "We’ve never had to shut
our units off because we can’t get the coal we need. This year they’ve
had a lot of challenges on the rail system, in terms of congestion,
weather, and a lot of business."
Railroads have also had a lot of unhappy customers.
Farmers
can’t get a bumper crop to market.
On some days, according to the
Alliance of Automobile Manufacturers, car-makers have had as many as
200,000 vehicles sitting outside factories, waiting to be picked up by
trains.
That's interesting about the auto-makers. I posted that same prediction some time ago; this is the first time I've seen the "predication" "validated." Don't whine for me:
Don't Cry For Me, Argentina; Evita, Madonna
Don't cry for me, Minnesota. The Minnesota and Iowa farmers have pretty much decided they prefer CBR instead of crude oil pipelines.
The Dickinson Press is reporting the Minnesota PUC took the unusual step to further complicate any movement on this issue:
An official of the union representing workers who hope to help build an
oil pipeline through northern Minnesota is raising alarms over
regulatory delays.
David Barnett, a special representative to the United Association of
Journeymen and Apprentices of the Plumbing and Pipe-Fitting Industry,
said Wednesday a recent decision by a Minnesota regulatory board to look
into alternate routes could put Enbridge’s Sandpiper pipeline in
jeopardy.
The Minnesota Public Utilities Commission voted earlier
this month to study the environmental implications of six system
alternatives for the pipeline, which would carry Bakken crude oil from
western North Dakota to Clearbrook, MN, and then Superior, WI.
“We
want it to be the best environmental route for the state of Minnesota,”
Barnett said.
“But we don’t think that this course of action is geared
at finding the best environmental route.”
The PUC also separated
the Certificate of Need application from the route-permitting process,
which are typically considered jointly.
Enbridge spokeswoman
Lorraine Little stopped short of saying the $2.6 billion project was at
risk, but said the company expects it to be delayed.
********************************
A contributor to another board had some positive news with regard to
BNSF efforts to relieve the logjam and shortage of coal reaching those Minnesota power plants:
Deliveries will be increasing shortly in my opinion. I live along
the Burlington Northern southern mainline in Montana and ride my bicycle
along a couple hundred miles of their routes.
BNSF started new sidings
in 4 locations between Fallon, MT, and Forsyth, MT (80 highway miles), and
have completed 3 for sure now.
In addition, BNSF has installed new
routing gear at Terry, MT, to remotely switch trains at 40 mph from the
west to either: a) the old Milwaukee tracks heading east through southern North Dakota; or, b) northeast into northwest North Dakota and the Bakken-Three Forks shale
developments.
There were large numbers of brand new Cat/Deere excavators, scrapers, etc at each of those sites.
Then
last week end I took the Amtrak train east from Wolf Point, MT, to
Minot, ND. In one spot I saw 2 brand new Cat backhoes -- I no longer know
the numbers but they would have been about 225's when I used them a lot
and 5 comparable Deere backhoes -- not a scratch on them.
The Amtrak
schedule has been lengthened to give more time to get through the
construction areas plus Amtrak warns of up to 6 hour delays. My train
managed to make up enough time for the extended schedule coming in less
than an hour late each way.
From Williston east,
there is now double track most of the way. And Amtrak is rerouted
away from Rugby and Grand Forks as those tracks are in the process of
being upgraded -- I suspect those would go into Duluth.
Last
year the mines in Colstrip on the southern route were not even willing
to price low enough to get any business. The tracks which carried coal north from Colstrip mines to Forsyth and the main BNSF track sat idle with
excess coal cars piled up on that single line. Trainloads of coal did
come through Forsyth, Miles City, Terry, but not as many as we are used
to.
I strongly suspect BNSF will be capable of
carrying at least twice the freight on the two routes which was carried
in past years in just a few more weeks.
We don't see nearly as much oil
going west as coal going east, but with longer sidings, they should be
able to move trains much more effectively.
Capitalism works
wonders--it just takes a bit of time.