Main US railroad merger may deliver extra tar sands to south-east Texas | Rail business

A freight train stopped at a crossing in Houston’s East End. Trains in the neighborhood have stopped up to eight hours, according to a neighborhood funded security camera.

When Lindsay Williams moved into her residence close to the railroad tracks on Houston’s east aspect, she knew freight trains would go by frequently. What she wasn’t anticipating have been trains longer than a mile steadily stalled for hours on the neighborhood tracks, blocking a number of intersections of visitors throughout the day and rumbling her home at evening.

“A number of nights in the past, we had a locomotive simply idling proper outdoors our residence for six hours all through the evening, shaking the complete home,” Williams stated.

Within the coming months, the rail visitors issues may worsen. Two main North American railways, Canadian Pacific and Kansas Metropolis Southern, have proposed a $27bn (£22bn) merger that might make it simpler to maneuver freight throughout North America with the first unified continental rail network. The merger is awaiting ultimate approval from US regulators. In Houston, that might imply an extra eight trains passing by way of every day.

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Nonetheless, the rail merger doesn’t simply pose extra inconveniences for residents of Houston’s East Finish. If it goes by way of, it will create the first direct route from Canada’s bitumen oil sands mines in Alberta to heavy crude refineries in Port Arthur, an industrial metropolis on the Texas coast. “We absolutely anticipate that the mix of the 2 railroads will solely strengthen their assist for this new supply of bitumen,” the vice-president of USD Group, a Texas-based midstream firm, informed a Canadian newspaper final yr.

Native environmentalists say the rise in fossil gas refining alongside the Gulf coast will affect their well being – and improve carbon emissions. It additionally may put residents like Williams prone to a hazardous oil spill. “I reside shut sufficient to the observe that if there’s a derailment, and there’s hazardous supplies, it’s going to affect me straight,” she stated. “To not point out the entire tons of of different residents that these traces are on – it’s fairly alarming.”

In Houston, one native espresso store proprietor says enterprise can drop as much as 40% when trains block clients from making it in. Educators have shared tales of scholars crawling underneath or between prepare vehicles to make it to highschool on time. And metropolis information reveals hearth vehicles and ambulances confronted delays practically 1,400 instances in 2021 attributable to stalled trains blocking their typical routes.

Williams and others in her neighborhood put up a safety digicam going through the tracks and found that roughly one-third of the trains that go by way of come to a whole cease, idling on common for about an hour. In probably the most extreme circumstances, trains stopped for upward of six hours.

A spokesperson for Canadian Pacific stated the corporate has “met with Houston-area leaders to debate the merger and has dedicated to facilitating ongoing conferences as a part of our voluntary mitigation”.

On 3 February, residents of East Palestine, Ohio, skilled the risks from accidents first-hand when a prepare carrying chemical compounds crashed and exploded, inflicting 2,000 folks to be evacuated. Prepare derailments aren’t unusual – in 2021, there have been more than 1,000 throughout the US, based on the Division of Transportation.

A freight train stopped at a crossing in Houston’s East End. Trains in the neighborhood have stopped up to eight hours, according to a neighborhood funded security camera.
A freight prepare stopped at a crossing in Houston’s East Finish. Trains within the neighborhood have stopped as much as eight hours, based on a neighborhood funded safety digicam. {Photograph}: Courtesy of Katie Watkins/Houston Public Media

The merged rail firm wouldn’t be the one rail line seeking to deliver extra oil sands to south-east Texas. In Utah’s oil sands-rich Uinta basin, a Fort Value-based railway, Rio Grande Pacific Corp, has proposed a railroad that would cut through a nationwide forest after which connect with current routes that run parallel to the Colorado River – the consuming water supply for 40 million folks – to deliver even more oil sands to refineries on the Texas coast.

Oil from the Uinta basin is at the moment shipped to Salt Lake Metropolis, and manufacturing from the basin is capped at about 80,000 barrels, stated Deeda Seed, the senior public lands campaigner on the Heart for Organic Variety.

But when the railway opens up entry to Gulf coast refineries, manufacturing from the Uinta basin may improve fourfold, to 350,000 barrels a day, based on a government estimate. Native officers in Utah appear to have indicated their assist for the plan: a regional governmental physique paid out $28m in public funds to finance analysis and allowing for the privately owned and operated railway.

A dirtier gas

Oil sands, typically known as tar sands, comprise bitumen, a hydrocarbon, that’s trapped between molecules of sand, water, clay and different substances. Extracting the bitumen is an intensely polluting course of. Due to how harmful the method is, significantly on land that’s vital to Canada’s First Nations, oil sands mining has lengthy been controversial. And from a local weather perspective, refining bitumen into usable sorts of gas, like gasoline, additionally takes extra vitality and pollutes greater than refining different, lighter fuels. A 2014 examine from the Congressional Analysis Service estimated that refining oil sands produces 14% extra carbon dioxide than typical oil, for instance.

“Tar sands are an additional heavy oil and require a specialised refinery to refine it,” stated Josh Axelrod, a senior advocate on the Pure Sources Protection Council. “A lot of the world’s heavy oil refineries are situated [in Texas], in order that’s why all efforts level there.”

Delivery oil through rail isn’t that widespread. The all-time high for oil cargo within the US was 11% in 2014. Pipelines are usually less expensive. However the Canadian Pacific and Kansas Metropolis Southern rail merger would make delivery oil by rail cheaper, as the businesses would no longer have to pay fees to switch between tracks owned by totally different corporations. The merger got here on the heels of the Biden administration canceling the controversial Keystone XL pipeline proposal in 2021. That pipeline would have elevated total capability to maneuver Canadian oil sands to the Gulf coast. Different pipelines, just like the Dakota Entry pipeline and Canada’s Trans Mountain, have additionally lengthy been targets of environmental advocates hoping to close them down.

The 2 rail traces have already signed a 10-year take care of ConocoPhillips Canada and USD Group to haul tar sands throughout the continent to USD’s terminal. For its half, USD Group has acknowledged in its annual reports with the SEC that current rail traces – akin to these at the moment operated independently by Canadian Pacific and Kansas Metropolis Southern – provide a much less bureaucratic different to new pipelines.

Kansas Metropolis Southern didn’t reply to requests for remark. When requested concerning the potential improve in oil sands imports, a spokesperson for Canadian Pacific cited the US Floor Transportation Board’s environmental evaluation, which concluded that the federal company “doesn’t anticipate that the Proposed Acquisition would lead to an total improve within the transportation of vitality assets, together with oil”.

Freight trains run throughout Port Arthur bringing supplies to the port and industrial facilities. Arail merger will increase traffic bring oil to refineries along the coast.
Freight trains run all through Port Arthur bringing provides to the port and industrial amenities. Arail merger will improve visitors deliver oil to refineries alongside the coast. {Photograph}: Courtesy of Katie Watkins/Houston Public Media

The stomach of the beast

In Port Arthur, freight rail traces already course all through the town, passing near properties as they convey shipments to the refineries and petrochemical crops. Town itself was based by Arthur Stilwell, the identical man who based what’s now Kansas Metropolis Southern. Stilwell wished a deepwater port and a rail line that would join the Gulf of Mexico to the midwest, serving as a key export and import hub. When in 1901, the Spindletop oilfield was found in close by Beaumont, Port Arthur was transformed into an oil and gas hub. At the moment, the town is residence to the most important refinery within the US.

Air pollution from refining stands to worsen with the rise in oil sands refining.

“Bringing that very waxy and poisonous oil right here poses a substantial amount of issues,” stated John Beard, a Port Arthur native who based the Port Arthur Group Motion Community. “Why are we doing this? Why are we bringing this into our neighborhood and in such shut proximity to the place folks reside?”

In Port Arthur, USD Group says that the producers have used a proprietary mix of product known as DRUbit that’s “formulated to be non-hazardous and non-flammable for transportation by rail”. However advocates say that an oil spill would nonetheless be catastrophic.

In line with the environmental affect assertion for the Canadian Pacific and Kansas Metropolis Southern merger, a complete of practically 13 “releases” of hazardous supplies may happen yearly alongside any level of the rail line, up from the potential for 10 a yr at the moment.

“One of many issues with oil trains generally is that they’re extremely heavy,” Axelrod stated. “If one in all these derailed or ruptured at a water physique, that might be the worst factor – [the oil] would undoubtedly sink.”

What’s extra, because the planet warms, derailments may grow to be extra frequent since temperatures above 105F (40C) can improve their danger of occurring, based on the environmental affect assertion for the merger. In Houston, the local weather disaster is projected to extend the variety of days exceeding 100F within the 2030 decade.

Residents who will probably be most affected by the rail routes additionally expressed feeling neglected of the environmental overview course of. The Floor Transportation Board, which has to approve the merger, held only one public meeting in Texas – and that was in Beaumont, 85 miles east of Houston, final fall, stated Melissa Beeler, previously an advocate with Air Alliance Houston. She stated the draft environmental affect assertion neglected the dimensions of the modifications coming to Houston neighborhoods particularly.

“The information that was out there was fairly generalized and doesn’t come all the way down to what folks expertise on a day-to-day foundation,” Beeler stated.

Freight rail transportation is expected to double by 2045 – which means that will increase in prepare blockages, air pollution and the chance of potential accidents might be right here to remain.

In response to a few of these neighborhood issues, the ultimate environmental affect assertion was up to date so as to add that the rail corporations have made “a dedication to fulfill frequently with neighborhood representatives within the Houston space to work with communities to deal with issues” and that there will probably be a platform for residents to report stopped trains.

The Floor Transportation Board declined to touch upon specifics of the merger or the Uinta basin mission, saying each issues have been nonetheless pending. The company’s spokesperson stated a ultimate determination on the merger was anticipated throughout the subsequent few months, and a call on the Uinta basin line received’t be made until a pending court docket case is settled.

“The burdens are going to fall largely on communities already going through environmental justice points already – past the railroads, pondering of most cancers clusters and port emissions, truck distribution facilities, truck visitors,” Beeler stated. “That is compounding air high quality and public well being impacts for our communities.”

{Photograph}: Courtesy of Katie Watkins/Houston Public Media