City proposes fining railroad for all oil cars passing through Spokane

SPOKANE, Wash. — A proposal by the city of Spokane, Wash., that would fine rail companies for cars carrying crude oil sets a “dangerous precedent” of targeting specific commodities that move by rail, according to BNSF Railway.

But the Spokane political leaders say the risk, no matter how small, is too great to leave to chance.

The proposed $261 fine per car “could impede North Dakota’s producers and others from getting their commodities to markets around the country and world,” BNSF spokeswoman Amy McBeth said in a statement.

The North Dakota Petroleum Council also voiced its objection.

“NDPC would most definitely have members that are affected by the proposal,” Kari Cutting, vice president of NDPC, said in an email. “If passed, NDPC will evaluate and see what path or recourse is available to our organization and our members.”

In January, 500,000 barrels of Bakken crude were transported via rail daily, according to Justin Kringstad, director of the North Dakota Pipeline Authority. Of that, 60 percent or about 300,000 barrels was sent east, according to the U.S. Energy Information Administration. About 7 percent goes to the Gulf Coast, leaving roughly 10 percent traveling west.

Breean Beggs, a member of the Spokane City Council, said the city has been considering the issue of crude by rail transport as there have been a dozen oil train derailments in North America since 2010 which have resulted in fires, explosions and oil spills. But the most recent derailment and spill in Mosier, Ore., involving a train that had passed through the city of Spokane prior, spurred the council into action.

The rail lines in Spokane run through the heart of the city, within 500 feet of two hospitals and within a half mile of 17 schools, as well as the business center of the city.

About four trains carrying crude oil pass through the town each day, according to Beggs, who pointed out that the core downtown would be gone if there was an explosion.

The lines also cross Latah Creek, the Spokane River and the Spokane Valley-Rathdrum Prairie Aquifer, which is the sole source of drinking water for about 500,000 people.

“We’re in a unique situation that we have a unique danger,” Beggs said. “Even if the chances of derailment are so small, the disaster would be so huge we can’t risk it in Spokane …. The damage would be so catastrophic.”

The fines are meant to encourage rail companies to find a new route around the city, according to Beggs.

The U.S. Dept of Transportation, specifically the Pipeline & Hazardous Materials Safety Administration, is charged with the jurisdiction for safe transport of all hazardous materials across the United States.

However, a situation like Spokane’s aquifer could leave an opening.

“Generally federal law regulates rail transport but it gives states the right to regulate in the case of uniquely local dangers when it is not federally regulated,” Beggs said.

Cutting also raised the argument that new regulations requiring additional track inspections, preventive maintenance, speed restrictions and the phasing out of older railcars that were deemed less safe for transport of crude oil have been passed.

But the cars in the Mosier derailment had been “upgraded to the 1-2-3-2 standard,” according to a Union Pacific spokesman.

“So obviously, it’s not enough,” said Beggs, who does not know of any other cities with fines for transporting crude oil. “Spokane has the potential to be leading other communities.”

Should the city council approve the rule it will go to a citywide vote in November.

“What we really wanted was residents to vote and express themselves,” said Beggs, adding that the popular vote of tens of thousands of people would send a message.

If the measure should pass, the city’s code enforcement department would be charged to develop an enforcement plan.