Preview Newsletter
ACC PM 4/5/16
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(ACC Mentioned) Washington Governor Signs Flame Retardant Ban into Law
Apr 5, 2016 | Chemical Watch
By Kelly Franklin
Washington state’s governor has signed into law aban on the use of five flame retardants above de minimis levels in children’s products and residential furniture. -
Industry Reiterates Call To Narrow Nano Rule As EPA Seeks Further Clarity
Apr 5, 2016 | Inside EPA
By Dave Reynolds
Industry officials are reiterating calls for EPA to narrow the scope of its proposed Toxic Substances Control Act (TSCA) section 8(a) reporting rule for nanoscale materials, arguing the agency is exceeding its TSCA authority and has failed to justify certain provisions, though in recent statements EPA staff has suggested only minor, clarifying changes. -
US Alternative Testing Body to Convene Public Forum
Apr 5, 2016 | Chemical Watch
The US National Toxicology Program's Interagency Coordinating Committee on the Validation of Alternative Methods (Iccvam) will hold its third public forum on 25 May. -
Echa Publishes Second Progress Report on SVHC Roadmap
Apr 5, 2016 | Chemical Watch
By Luke Buxton
Echa says its screening, generation and assessment and risk management option analysis (RMOA) measures are now well in place for supporting the identification of substances "that matter most". -
Industry Sues to Block Silica Rule
Apr 5, 2016 | E&E Energywire
By Pamela King
Construction and manufacturing groups have filed a pair of lawsuits in the 5th U.S. Circuit Court of Appeals, asking to block the Labor Department's final crystalline silica rule. -
Oil & Gas Sector Sees Challenges For EPA Crafting Scope Of Methane ICR
Apr 5, 2016 | Inside EPA
By Bridget DiCosmo
Oil and gas industry officials are warning that EPA faces challenges in crafting the scope of its planned information collection request (ICR) to collect data that could inform first-time methane limits for the sector, including deciding how to account for varying drilling well sizes, productivity levels, and other factors influencing emissions data. -
Researchers Drill Down on 'Sour Gas' Savings
Apr 5, 2016 | E&E Energywire
By Nathanial Gronewold
Researchers at Rice University think they may have found a way to eke more cost savings from Bakken Shale wells. -
Oil/Gas Rout Makes Its Mark on Texas Economy
Apr 5, 2016 | Natural Gas Intelligence
By Joe Fisher
exas oil and natural gas industry employment fell 19.4% last year amid a nearly 66% decline in the price of oil and a 75% reduction in the number of active drilling rigs, according to economists at the Federal Reserve Bank of Dallas. Within the state, though, regions vary in their economic performance. -
Entire Western Gulf Area to be Up for Lease in August
Apr 5, 2016 | E&E Greenwire
By Nathanial Gronewold
The Obama administration this morning announced another offshore oil and gas lease sale for August, this one covering the entire Western Planning Area of the Gulf of Mexico. -
Will Crude Oil Travel Through Calif.?
Apr 5, 2016 | E&E Climatewire
Northern California is weighing whether to allow crude oil trains through the region. -
USDOT Agencies Unveil Online Training for First Responders to Hazardous Rail Spills
Apr 5, 2016 | Progressive Railroading
The Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration yesterday announced the launch of the Transportation Rail Incident Preparedness and Response (TRIPR) program, an online training resource that provides emergency responders with information and best practices related to rail incidents involving hazardous liquids such as crude oil and ethanol. -
Rail Supplier Updates from Burns Engineering, WSP Parsons Brinckerhoff and Predikto; Also, in Memoriam: Josef Neuhofer (April 5)
Apr 5, 2016 | Progressive Railroading
Burns Engineering Inc. has teamed up with Ansaldo STS to furnish a complete positive train control (PTC) system on the Massachusetts Bay Transportation Authority's (MBTA) commuter-rail network. -
Greenbrier Profit Misses Expectations as Railcar Orders Fall 70%
Apr 5, 2016 | Wall Street Journal
By Austen Hufford
Greenbrier Cos. on Tuesday reported quarterly revenue and profit that missed analyst expectations amid a 70% drop in new railcar orders, as the downturn in the energy sector continued to drag on results. -
EPA Chief: Agency Reassessing Flint Response
Apr 5, 2016 | The Hill - E2 Wire
By Devin Henry
The head of the Environmental Protection Agency said she and other officials are reassessing the agency’s response to the Flint, Mich., water crisis after a top Republican called for her to resign over the scandal. -
Hogan Signs Bills to Slash Greenhouse Gas Emissions, Expand Open Space
Apr 5, 2016 | Washington Post
By Ovetta Wiggins and Josh Hicks
Maryland must sharply reduce its greenhouse gas emissions and restore funding to preserve open space as a result of two bills that Gov. Larry Hogan (R) signed into law Monday. -
U.S. Poised to Create Good Jobs, Safer Environment by Curbing Methane Leakage
Apr 4, 2016 | The Hill - Congress Blog
By Michael Brune and Leo Gerard
Too often workers and environmentalists confront the false narrative that we can have either good jobs or a clean environment. In fact, we can and must have both. Reducing our nation’s methane emissions is a prime example of how we can simultaneously achieve our economic and environmental goals.
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(ACC Mentioned) Washington Governor Signs Flame Retardant Ban into Law
Apr 5, 2016 | Chemical Watch
By Kelly Franklin
Washington state’s governor has signed into law aban on the use of five flame retardants above de minimis levels in children’s products and residential furniture.
The state joins several that restrict the use of certain flame retardants in products. These include California, Minnesota and, most recently,Washington DC.
But the passage of Bill ESHB 2545 represents the first restriction on the use of TBBPA anywhere in the US, according to NGO, Washington Toxics Coalition.
From 1 July 2017 the act bans the sale of covered products that contain more than 1,000 part per million (ppm) of:
TDCPP (tris(1,3-dichloro-2-propyl)phosphate);
TCEP (tris(2-chloroethyl)phosphate);
decaBDE (decabromodiphenyl ether);
HBCD (hexabromocyclododecane); and
additive TBBPA (tetrabromobisphenol A).
All five are listed as chemicals of high concern to children under the state’s Children’s Safe Products Act. This requires manufacturers of children’s products containing listed substances to report their presence to the state’s Department of Ecology.
A separate provision in the act will require the Department of Ecology to consider listing six additional flame retardants as chemicals of high concern to children:
IPTPP (isopropylated triphenyl phosphate);
TBB ([2-ethylhexyl]-2,3,4,5- tetrabromobenzoate);
TBPH (bis [2-ethylhexyl]-2,3,4,5- tetrabromophthalate);
TCPP (tris [1-chloro-2-propyl] phosphate);
TPP (triphenyl phosphate); and
V6 (bis[chloromethyl] propane-1,3-diyltetrakis [2-chloroethyl] bisphosphate).
Should it list any of these substances, the bill requires that the agency then work with the Department of Health and stakeholders to make recommendations on whether use restrictions are warranted.
Laurie Valeriano, executive director of the Washington Toxics Coalition, said the NGO is "thrilled" with the state's continued leadership in chemicals management.
But industry groups such as the American Chemistry Council’s (ACC) North American Flame Retardant Alliance (Nafra) and the Toy Industry Association opposed the measure.
They had hoped that the state would allow the ongoing federal review of flame retardant clusters to play out prior to its taking regulatory action.
TSCA and state regulations
Washington’s measure is one of almost 100 chemical regulations that are under consideration in 23 states, according to the latest figures collected by NGO Safer States.
Washington’s measure is one of almost 100 chemical regulations that are under consideration in 23 states
A central issue in ongoing discussions to reform the Toxic Substances Control Act (TSCA) is the extent to which federal regulation of substances will preemptsuch activities.
Several states’ attorneys general and NGOs have advocated the preservation of states’ regulatory authority, while industry groups have pushed for stronger federal preemption.
At the recent industry event, GlobalChem, Maureen Gorsen, a former head of the California Department of Toxic Substances Control (DTSC) and now a partner at law firm Alston & Bird, said that the reform to the decades-old chemical safety regulation would have a "negligible" effect on state regulatory agencies.
But state legislative efforts to ban specific chemicals that the EPA has acted on would probably be preempted under a reformed law, according to analysis by groups like the Environmental Defense Fund (EDF), However the timing and extent of such a preemption remains in flux.
Informal negotiations to reconcile the TSCA reform bills that have passed the House and Senate remain ongoing.
https://chemicalwatch.com/46055/washington-governor-signs-flame-retardant-ban-into-law
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Industry Reiterates Call To Narrow Nano Rule As EPA Seeks Further Clarity
Apr 5, 2016 | Inside EPA
By Dave Reynolds
Industry officials are reiterating calls for EPA to narrow the scope of its proposed Toxic Substances Control Act (TSCA) section 8(a) reporting rule for nanoscale materials, arguing the agency is exceeding its TSCA authority and has failed to justify certain provisions, though in recent statements EPA staff has suggested only minor, clarifying changes.
EPA last summer took comments on its April 6 proposal that would require a one-time submission of data on chemicals' properties to EPA six months after the final rule is issued. The rule also would require that companies that intend to manufacture reportable substances after the rule takes effect report to the agency at least 135 days before commencing manufacturing.
On March 23, at the chemical sector's annual GlobalChem regulatory conference in Washington, D.C., industry officials reiterated calls from past comments for EPA to narrow the rule's scope by dropping the requirement for future reporting, contending the 135-day data review period exceeds EPA's authority under TSCA section 8(a).
"Perhaps what EPA should do is go ahead with the one-time collection proposed and then look at what the agency has received," Martha Marrapese of the NanoManufacturing Association (NMA) told an agency official during a conference panel session. After that, the agency can "evaluate whether it needs an ongoing reporting obligation."
The call to scrap the proposal's requirement for future reporting of new forms of nanoscale materials comes after industry made the push in a meeting earlier this year with EPA staff and in a subsequent March 16 letter.
In the letter to Maria Doa, director of the EPA Office of Pollution Prevention and Toxics' Chemical Control Division, NMA says the group met with Doa Feb. 24 and offered "solutions for creating a more manageable rule."
Specifically, industry faulted the ongoing reporting obligation and the 135-day waiting period that would delay products from getting to market.
"NMA is gravely concerned about the anticompetitive effect of having to submit new reports on an on-going basis, and having to wait for close to half a year afterward before a product could be lawfully commercialized," the letter says. "We think this waiting period is a barrier to commerce that exceeds EPA's authority under section 8(a)."
Reporting Rule
At GlobalChem, EPA's Jim Alwood backed the agency's authority for the rule and downplayed its potential burdens, noting that the TSCA reporting rule would require companies to submit only available data. "We can't compel companies to do testing under 8a rules," Alwood said. "This will be on the available information that you have."
He also outlined potential changes to the proposal the agency is weighing in response to comments, though most focused on clarifying what substances would require reporting, rather than significantly changing proposed obligations.
In response to Marrapese' request to limit the current proposal to a one-time reporting requirement, Alwood noted the agency has received that comment before and would address it in either the final rule or in a response to comments document.
Although EPA has said in the Unified Agenda it intends to finalize the data collection rule in June, Alwood toldInside EPA the agency would not issue a final rule by then. He declined to give a deadline, but said agency officials hope to finalize the rule by the end of the year.
EPA and other federal agencies have long struggled with how to assess and regulate nanomaterials, whose unique, technology-advancing properties may also present health and safety risks. The data collected under the rule will guide EPA's future policies on nanomaterials, including potential regulation of some substances found to pose risks to human health or the environment.
The April 6 proposal followed years of wrangling with the nano industry and White House officials over the rule's scope, and since its release industry has urged EPA to reconsider major aspects. The U.S. Small Business Administration also has argued the plan is overly burdensome.
Last fall, after EPA declined an industry request to withdraw and re-propose the rule, a chemical industry attorney told Inside EPA that the agency's proposal lacks sufficient detail to adequately justify certain provisions and that the agency would likely face a lawsuit if it did not consult with industry to refine the proposal prior to finalizing the rule.
Specifically, the attorney said EPA should better define terms in the proposal to clarify reportable substances and argued the agency has not provided adequate justification for why the 135-day notification period is necessary.
Sufficient Clarity
Alwood told the conference that EPA has received numerous comments that the rule lacked sufficient clarity to identify substances requiring reporting. The agency is revising the proposal to better define terms, he said, including a criteria that reportable substances demonstrate "unique and novel" properties because of their size, as well as a statement that chemicals with "trace amounts" of certain substances may not require reporting.
Alwood also said the agency has received comments seeking to exempt certain substances, and that the agency is considering those, though staff is not inclined to vastly limit the proposal.
"We will be reluctant to exempt too many categories of chemicals," Alwood said. We "need to focus on chemicals that have unique or novel properties and need to do a better job of defining what that is to clarify what chemicals need to be reported and which do not."
On the sidelines of the conference, Marrapese told Inside EPA that while the agency has suggested it may clarify aspects of the rule, staff has given no indication that they will drop major provisions. She also said that while Alwood contends the rule will not require additional testing, companies may have to conduct new studies to determine whether the substances they use require reporting.
Despite industry's calls for EPA to first issue a rule requiring a one-time data collection and then consider additional reporting at a future date, Marrapese said the agency has not indicated it will heed that request.
"Everything is still on the table," she said of the Feb. 24 meeting with EPA. While the agency is looking to clarify the rule, she said it appears "they intend to go forward with everything they proposed."
http://insideepa.com/daily-news/industry-reiterates-call-narrow-nano-rule-epa-seeks-further-clarity
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US Alternative Testing Body to Convene Public Forum
Apr 5, 2016 | Chemical Watch
The US National Toxicology Program's Interagency Coordinating Committee on the Validation of Alternative Methods (Iccvam) will hold its third public forum on 25 May.
Iccvam has held annual public forums since 2014. They aim to foster partnerships and encourage information sharing among interested stakeholders. These include national and international governmental groups, academia, industry and NGOs.
This year's forum, in Bethesda, Maryland, will focus on the committee's ongoing development and validation of alternative test methods and approaches.
Interested persons may provide public oral statements and attend either in person or via webcast.
https://chemicalwatch.com/46080/us-alternative-testing-body-to-convene-public-forum
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Echa Publishes Second Progress Report on SVHC Roadmap
Apr 5, 2016 | Chemical Watch
By Luke Buxton
Echa says its screening, generation and assessment and risk management option analysis (RMOA) measures are now well in place for supporting the identification of substances "that matter most".
This is the conclusion of its second annual progress report on the implementation of the substances of very high concern (SVHC) roadmap developed by the agency, member states and European Commission.
Echa’s shift, from known carcinogenic, mutagenic, toxic for reproduction (CMR) substances to identification and regulatory action on substances with other properties, such as persistent, bioaccumulative and toxic (PBT) and endocrine-disruption (ED), is bearing fruit, it says.
Split into three sections, the report covers activities carried out last year, outlines activities planned this year and updates on the implementation of regulatory risk management measures.
The agency's activities in 2016 will mainly focus on further developing and improving the common screening approach. It will do this by integrating compliance checks and implementing the changes related to the update of the agency's IT system, Iuclid.
Screening
Echa established a common screening approach to help identify potential substances for harmonised classification and labelling (CLH), authorisation, restriction or the Community Rolling Action Plan (Corap) for substance evaluation, and to minimise the risk of the same substance being subject to more than one of these processes.
In last year's second round of screening, 254 substances were added to the shortlist as a result of IT-screening. A further 14 substances were added by member states.
Of the 268 substances, 180 were picked for manual screening with the following allocation of procedures:
117 Corap;
40 CLH;
20 SVHC; and
15 supplementary SVHC.
In some cases, substances were shortlisted for more than one indicative process and about three-quarters of the screened substances were found to require follow-up regulatory action.
Assessment
For substances with potential endocrine disrupting properties, 55 are listed under substance evaluation, or an informal assessment has been carried out.
The second round of screening did not result in identifying any new potential PBT substances for further assessment. However, four substances with endocrine disrupting properties were identified for further assessment. These are likely to be discussed by the Endocrine Disruptor Expert Group in 2016.
The number of substances with potential endocrine disrupting properties in the Corap, for which the Expert Group has been consulted, has increased with nine out of ten substances discussed.
And 106 CMRs and 45 sensitisers are (or have been) under assessment in the context of substance evaluation.
In 2015, 107 of the compliance checks concluded by Echa addressed high priority substances with the evaluation outcome being a draft decision in 82% of the cases and no action in the remaining 18%.
The most common suspected concerns were:
82% suspected of CMR concerns;
63% suspected of PBT concerns;
45% suspected of other human health related concerns; and
9% suspected of ED or sensitisation concerns.
RMOA
Since the start of the SVHC Roadmap in February 2013, 50 RMOAs have been concluded and 89 are ongoing.
In addition, 14 member states have submitted RMOAs since the SVHC Roadmap began. This is an increase of four from the last progress report.
For 15 substances, for which there is a conclusion, the proposed follow-up was the identification as an SVHC. This is an increase compared with 2015, where the number of RMOAs concluding SVHC identification as a follow-up was five.
"This seems to indicate that the impact of the SVHC Roadmap implementation starts to be visible particularly in identifying substances as being substances of very high concern," the report says.
https://chemicalwatch.com/46085/echa-publishes-second-progress-report-on-svhc-roadmap
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Industry Sues to Block Silica Rule
Apr 5, 2016 | E&E Energywire
By Pamela King
Construction and manufacturing groups have filed a pair of lawsuits in the 5th U.S. Circuit Court of Appeals, asking to block the Labor Department's final crystalline silica rule.
The standards, which the Occupational Safety and Health Administration finalized late last month, would slash silica exposure limits and ramp up protective measures for affected industries, including hydraulic fracturing operations (Greenwire, March 24).
"This regulation raises serious and significant legal questions, lacks economic and technical feasibility and justification and will cost billions," National Association of Manufacturers Senior Vice President and General Counsel Linda Kelly said in a statement yesterday. "Relying on incredibly out-of-date data, this rule places undue burdens and irreparable harm on manufacturers, especially small and medium-sized businesses, some of which could be forced to shut their doors. Manufacturers are and have always been committed to safe workplaces, and we take pride in continuing to find ways to improve the work environment, but this unnecessary regulation is not the solution."
Labor officials have estimated that the rule would prevent 642 deaths and 918 cases of silicosis per year at an annual cost of $1.03 billion.
But the department's calculations are based on outdated health information and faulty economic data, the American Road & Transportation Builders Association wrote in a news release yesterday. ARTBA is one of eight construction industry groups that have filed a separate petition to review the silica rule.
"OSHA's silica regulation is based on flawed science, flawed economic data, and flawed logic," ARTBA President Pete Ruane said in a statement. "The unintended consequence of the proposal is that it will actually expose road workers to greater risk by diverting resources away from other legitimate safety programs."
Like oil and gas operations, construction sites are mobile, which means Labor's air sampling requirements would produce meaningless results, ARTBA wrote. By the time the results are in, the workplace will have moved to a different location.
Press officers for the Labor Department and OSHA did not respond to requests for comment.
http://www.eenews.net/energywire/2016/04/05/stories/1060035076
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Oil & Gas Sector Sees Challenges For EPA Crafting Scope Of Methane ICR
Apr 5, 2016 | Inside EPA
By Bridget DiCosmo
Oil and gas industry officials are warning that EPA faces challenges in crafting the scope of its planned information collection request (ICR) to collect data that could inform first-time methane limits for the sector, including deciding how to account for varying drilling well sizes, productivity levels, and other factors influencing emissions data.
"This is a big lift for the agency," one oil and gas industry source says, pointing out that the ICR is in the works as many smaller natural gas production companies are "really struggling" given low gas prices -- although the U.S. Energy Information Administration said recently that the price of natural gas has slightly increased.
A second industry source says EPA must ensure that the ICR captures an accurate sample of the sector, including "marginal" wells that make up roughly 80 percent of existing oil production wells and older oil or natural gas wells that are lesser producing than wells drilled more recently. Otherwise, the agency could receive data skewed toward larger producers even though marginal wells may represent a majority of existing wells, the source says.
The source says that receiving ICR data focused on larger sources would make it difficult to craft Clean Air Act methane limits for existing sources, because EPA must consider cost as a factor, and the agency might deem strict controls reasonable based on larger sources' data.
Further complicating EPA's ICR -- which the agency says it plans to issue this month -- is the fact that Clean Air Act section 111(d), which outlines how to regulate existing sources, targets the "remaining useful life of the source." Industry officials say this could make it difficult for the agency to craft a "best system of emissions reductions" if the ICR does not accurately represent all types and productivity levels of wells.
Some industry groups have already met with EPA to argue that the ICR must capture a broad universe of well and other source data and adequately account for smaller operators.
"We'd like to see EPA make sure they cover the entire breadth of the industry -- from very large to mom and pop operations" which include a wide range of wells, from those that are high-producing to so-called stripper wells at the end of their lifecycle, says a third oil and gas industry source.
NSPS Controls
Another possible factor that could represent a challenge in crafting the ICR includes accounting for sources that may have already implemented the controls required by EPA's oil and gas new source performance standards (NSPS) issued in 2012 as they came online after the rules took effect Oct. 15, 2012. "Many existing sources may have already been covered as new sources," resulting in fewer emissions than expected, the second industry source says.
The NSPS, issued under Clean Air Act section 111(b), did not target methane but instead set new controls on volatile organic compounds (VOC) from a host of production sources including first-time controls for gas wells, touting methane reductions as a co-benefit. The agency has proposed to revise the NSPS to regulate methane and expand VOC controls for some sources not regulated under the 2012 standards, such as hydraulically fractured oil wells, downstream compressors and other equipment. EPA is expected to finalize the NSPS in June.
Environmentalists have argued that under the Clean Air Act, once EPA sets regulations for new and modified sources under section 111(b), the agency "shall prescribe regulations" for states to craft plans for meeting standards for existing sources under section 111(d). EPA has regulated greenhouse gases (GHGs) from new power plants under NSPS authority and also issued a separate GHG rule for existing utilities under section 111(d).
But EPA officials until recently refused to commit to section 111(d) regulations for the oil and gas drilling sector despite proposing an NSPS to curb emissions of the potent GHG methane from new drilling, saying more information was needed and that implementing the NSPS would help inform the need to regulate existing sources.
Pending ICR
EPA announced on March 10 that it is planning in April to issue the draft ICR requiring industry to provide data on emissions from existing sources and potential technologies to reduce methane.
Agency Administrator Gina McCarthy during a March 10 press call said, "We're not at this point taking any tools off the table in terms of what else we might do this year, but we have no further announcement at this point," but sources have speculated that the agency is unlikely to complete a rulemaking before the Obama EPA leaves office in January.
The data gathered as a result of the ICR will therefore likely be used in the context of a potential rulemaking by a future administration, and could help strengthen the administrative record to accelerate such a rulemaking or bolster environmentalist litigation to force a rule.
Some have suggested that the ICR could target "super-emitters," excluding marginal wells or other sources not emitting high volumes of methane.
An EPA March 10 fact sheet on the ICR says the agency will seek information "that will help the agency identify sources with high emissions and the factors that contribute to those emissions."
The consulting firm ClearView Energy Partners in a March 10 note to clients says that "rather than a blanket rule affecting all existing sources, EPA could potentially prioritize the largest methane emissions sources -- so-called 'super-emitters' -- in addition to wells and infrastructure responsible for significant emissions."
But others have suggested that section 111(d) might not give the agency the flexibility to target specific types of emitters, but it is not entirely clear given that the statutory provision has not been widely used, the second industry source says, adding that the scope of a section 111(d) rule would likely be restricted to the sources covered under the two separate NSPS rules.
http://insideepa.com/daily-news/oil-gas-sector-sees-challenges-epa-crafting-scope-methane-icr
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Researchers Drill Down on 'Sour Gas' Savings
Apr 5, 2016 | E&E Energywire
By Nathanial Gronewold
Researchers at Rice University think they may have found a way to eke more cost savings from Bakken Shale wells.
A study focused on the Bakken formation sought to investigate the origin of hydrogen sulfide gas in wells drilled there. Aside from its toxicity and potential lethality in high concentrations, hydrogen sulfide is also highly corrosive and must be removed to protect oil field equipment.
Drillers try to mitigate against hydrogen sulfide by applying biocides to wells, chemicals that kill microbes that can be a source of the gas. Engineer Pedro Alvarez, who led the study, and his team of geologists and graduate students believe biocide application may not be necessary in areas of the Bakken they looked at, as their study strongly suggests that microbes are not the cause of the "souring" of crude in Bakken oil wells.
By developing more accurate temperature maps for wells extending about 2 miles beneath the surface, the Rice team concluded that down-hole temperatures are likely too high for microbial life to survive. "Seven of the eight wells studied equal or exceed the upper known limit of microbial life," they wrote in Environmental Science and Technology Letters, a journal by the American Chemical Society.
They also could not find DNA signatures indicative of microbial origins for the hydrogen sulfide.
The study points to a geochemical process that may be behind the hydrogen sulfide production. The presence of anhydrite in or near hydraulic fracturing zones is the likeliest cause in the wells they studied, lead author Jason Gaspar said in an email.
Moving away from biocide application would further lower well costs, and cost cutting is key to companies' survival in the current oil price downturn.
"Biocide application incurs significant operation costs and the potential for environmental impact," the team wrote. "Curtailing the use of biocides in cases when the source of souring is abiotic would reduce operation costs and mitigate environmental impacts of unconventional oil and gas production."
Gaspar argued that efforts to better understand the Bakken's geology as firms seek ways to account for the presence of anhydrite may introduce new costs at the outset, but would likely lead to longer-term cost savings overall.
"To mitigate against geochemical souring they'd have to characterize the drilling area more beforehand so they know if there's any problem ores below the subsurface so they could avoid them," he said. "Could this be done? Yes, but there are technical challenges, which I would argue are workable."
http://www.eenews.net/energywire/2016/04/05/stories/1060035077
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Oil/Gas Rout Makes Its Mark on Texas Economy
Apr 5, 2016 | Natural Gas Intelligence
By Joe Fisher
Texas oil and natural gas industry employment fell 19.4% last year amid a nearly 66% decline in the price of oil and a 75% reduction in the number of active drilling rigs, according to economists at the Federal Reserve Bank of Dallas. Within the state, though, regions vary in their economic performance.
"Job growth was weak in metropolitan areas such as Midland, Odessa, Longview, Corpus Christi and Houston that have a larger share of jobs in mining [which includes oil and natural gas extraction]," the Dallas Fed said in a note published last week. "Conversely, regions more closely linked to the U.S. economy, such as Dallas, or to sectors benefiting from low energy prices, such as leisure and hospitality in San Antonio, continued growing robustly."
What low prices of oil and natural gas take away in one area, they can give back elsewhere, the Fed economists said. A "flurry" of petrochemical projects along the Gulf Coast will take advantage of low-cost energy and feedstock.
"In the Houston area alone, $50 billion in planned petrochemical plants will bolster construction jobs through 2017, when most of these projects are slated for completion," the Fed said. "Other multi-billion-dollar projects along the coast, including several large liquefied natural gas export terminals, will continue supporting construction jobs. The expansion of these downstream industries allowed the larger metropolitan areas along the Texas Coastal Bend to avoid job losses in 2015."
Meanwhile, the downturn continues in the oil and gas patch. Texas Comptroller Glenn Hegar said Monday that March oil and natural gas production taxes totaled $107.2 million, which is down 55% from March 2015. However, state sales tax revenue was up modestly, charting a 2.1% increase from a year ago to hit $2.17 billion in March.
"The modest growth in sales tax collections for March was in line with expectations and comes after five consecutive months of declining sales tax revenues," Hegar said. "Stronger growth in receipts from the retail trade, restaurant and construction sectors was offset by continued weakness in net collections from oil and gas-related sectors."
Texas produces more than one-third of the nation's oil output, and a price collapse like the one taking place now "is a body blow," the Austin-based Texas Taxpayers and Research Association said last week. "Oil and gas are five times more important to the Texas economy than they are to the nation as a whole".
http://www.naturalgasintel.com/articles/105934-oilgas-rout-makes-its-mark-on-texas-economy
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Entire Western Gulf Area to be Up for Lease in August
Apr 5, 2016 | E&E Greenwire
By Nathanial Gronewold
The Obama administration this morning announced another offshore oil and gas lease sale for August, this one covering the entire Western Planning Area of the Gulf of Mexico.
The announcement comes shortly after the administration rescinded a planned lease sale for the Atlantic Basin. The Bureau of Ocean Energy Management (BOEM) and administration officials cited local community opposition and the current oil price downturn for that decision, which angered oil and gas industry representatives.
Previous recent offshore lease sales have attracted only muted interest since crude oil prices began declining precipitously in the summer of 2014. The industry will have a chance to show its interest in western Gulf blocks this summer, though generally the Central Planning Area attracts the most bidding activity.
"Proposed Western Gulf of Mexico Lease Sale 248, scheduled to take place in New Orleans in August of 2016, will be the eleventh offshore sale under the Administration's Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program)," BOEM said in a release.
BOEM stressed that the lease sale will give industry the chance to bid on all unleased acreage in the western portion of the Gulf of Mexico off the coast of Texas. This includes more than 4,000 blocks spanning an area of over 23 million acres. The water column varies from shallow to ultra-deepwater blocks with depths below 10,000 feet.
The last offshore lease sale, held on March 23 in New Orleans, drew in revenues of $156 million for the federal government as 30 companies submitted bids, winning rights to explore for oil and gas in 128 blocks, a small fraction of what was put on offer.
The March bid round was also unique in that protesters stormed the event in an attempt to disrupt the proceedings (EnergyWire, March 24).
The August sale could attract more protests. Environmental activists have announced their intention to direct the "keep it in the ground" movement to the Gulf of Mexico, seeing the recent cancellation of planned Atlantic offshore lease sales as a sign of momentum.
Thus far, an offshore lease sale for Arctic waters off Alaska will move ahead, upsetting environmentalists. But there's little chance that an Arctic sale will garner strong interest from drillers so long as crude oil prices stay weak.
http://www.eenews.net/greenwire/2016/04/05/stories/1060035097
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Will Crude Oil Travel Through Calif.?
Apr 5, 2016 | E&E Climatewire
Northern California is weighing whether to allow crude oil trains through the region.
The state is known for its clean fuels push, but the community is also concerned about safety measures against oil train spills and explosions.
The city of Benicia held a public hearing on a Valero Energy Corp. refinery's controversial plan to run as many as two 50-car crude oil trains daily through Northern California.
Up-rail communities in Sacramento and Yolo counties have urged caution. Sacramento County Supervisor Phil Serna asked the town to deny the project altogether in a letter last week.
Another plan would see trains ship coal from Utah to an export terminal under construction in Oakland, passing through central and Northern California. Oakland officials and environmentalists are concerned about the health effects of the coal dust.
"Exporting a product to other countries that no longer has a [future] in the U.S. is irresponsible," said state Sen. Loni Hancock, a Democrat from Oakland.
http://www.eenews.net/climatewire/2016/04/05/stories/1060035063
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USDOT Agencies Unveil Online Training for First Responders to Hazardous Rail Spills
Apr 5, 2016 | Progressive Railroading
The Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration yesterday announced the launch of the Transportation Rail Incident Preparedness and Response (TRIPR) program, an online training resource that provides emergency responders with information and best practices related to rail incidents involving hazardous liquids such as crude oil and ethanol.
The "off-the-shelf" training can be used anywhere in the nation, according to a press release issued by the U.S. Department of Transportation.
TRIPR was developed in conjunction with other public safety agencies such as the Federal Emergency Management Agency (FEMA), the U.S. Coast Guard (USCG), and the Environmental Protection Agency (EPA), and leverages the expertise of rail carriers and industry subject matter experts to better prepare first responders to safely manage incidents involving flammable liquids.
The TRIPR curriculum focuses on key hazmat respond functions and incorporates three animated training scenarios along with introductory videos to help instructors generate discussions. Each module contains a PowerPoint presentation, Student Workbook and Instructor Lesson Plan.
PHMSA plans to host a series of open houses throughout the country to promote the TRIPR curriculum.
"TRIPR is the result of a concerted effort between federal agencies and rail safety stakeholders to improve emergency response organizations' ability to prepare for and respond to rail incidents involving a release of flammable liquids like crude oil or ethanol," said PHMSA Administrator Marie Therese Dominguez.http://www.progressiverailroading.com/safety/news/USDOT-agencies-unveil-online-training-for-first-responders-to-hazardous-rail-spills--47844
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Apr 5, 2016 | Progressive Railroading
Burns Engineering Inc. has teamed up with Ansaldo STS to furnish a complete positive train control (PTC) system on the Massachusetts Bay Transportation Authority's (MBTA) commuter-rail network. Burns is leading wayside design, survey data management, wayside transponder design and programming, and technical support and documentation for the $451 million PTC system. The companies will provide integrated ACSES II and I-ETMS-based PTC systems on all MBTA commuter-rail lines. The agency's service area includes 175 communities, with service stretching to 133 stations across 664 miles of track.
Former Operation Lifesaver Inc. (OLI) President and CEO Joyce Rose has been appointed principal consultant in the Baltimore office of WSP Parsons Brinckerhoff. She'll provide client services nationwide relating to transit/rail operations safety and security. Additionally, she'll serve as a project manager for the on-call systems safety services contract with the Maryland Transit Administration. Before her time at OLI, Rose served for 25 years as a congressional staff member for the U.S. House and Senate transportation committees.
Predikto has added Greg Hrebek as vice president of rail solutions. He'll focus on accelerating the company's innovation in the rail industry for operators, OEMs and aftermarket providers. Hrebek previously served as director of engineering of the train dynamics systems division at New York Air Brake. During his time there, he was responsible for that company's simulation operation and training suite and its controls product LEADER (Locomotive Engineer Assist / Display and Event Recorder). Hrebek's hire comes as Predikto continues building a strong leadership team to address "Big Data" growth, company officials said in a press release.
Josef Neuhofer died March 29 after a short illness. He was 78. Neuhofer started his rail career as a salesman for Plasser & Theurer in Linz, Austria. After moving to the United States, he helped transform Plasser American Corp. into a "worldwide premier manufacturer of railroad technology equipment," according to his obituary. A past president of the Railway Engineering-Maintenance Suppliers Association, Neuhofer earned many awards from the Austrian Embassy for business development. He is survived by his wife, Betty; a brother; three sisters; two children; and three grandchildren.http://www.progressiverailroading.com/supplier_spotlight/news/Rail-supplier-updates-from-Burns-Engineering-WSP-Parsons-Brinckerhoff-and-Predikto-also-in-memoriam-Josef-Neuhofer-April-5--47842
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Greenbrier Profit Misses Expectations as Railcar Orders Fall 70%
Apr 5, 2016 | Wall Street Journal
By Austen Hufford
Greenbrier Cos. on Tuesday reported quarterly revenue and profit that missed analyst expectations amid a 70% drop in new railcar orders, as the downturn in the energy sector continued to drag on results.
The Lake Oswego, Ore., railcar maker company has been cutting costs in light of slowing orders, which have been hurt by weakness in the broader economy and by low energy prices. The railway industry as a whole has been struggling, as energy companies ship less crude oil, coal and loads of fracking sand used to drill oil and natural-gas wells.
For the fiscal second quarter ended Feb. 29, Greenbrier reported a profit of $44.9 million, or $1.41 a share, down from $50.4 million, or $1.57, a year earlier. Revenue increased 6.2% to $669.1 million.
Analysts polled by Thomson Reuters had forecast earnings of $1.56 a share on $730 million in revenue.
Greenbrier Chief Executive William Furman said the company is adapting to the economic climate, noting that 83% of its total backlog is non-energy related. The total value of its backlog fell 16% from a year earlier to $4 billion.
Greenbrier said it took in new orders of 3,000 railcars valued at $310 million during the quarter, down 70% from the year before. The company trimmed its delivery estimate for the year to 20,000 to 22,000 units, cutting 500 off the top end. It also narrowed its earnings guidance to $5.70 to $6.10 a share for the year from a previous forecast of $5.65 to $6.15 a share.
Also Tuesday, the company announced a joint venture with Sumitomo Corp. of Americas to establish an axle-machining facility on West Coast. The project, known as GBSummit, is expected to open in 2017.
Greenbrier has been expanding its geographic reach, recently entering into markets in the Middle East and South America.
Shares of Greenbrier, which have fallen 12% in the last three months, were inactive in premarket trading.
http://www.wsj.com/articles/greenbrier-profit-misses-expectations-as-railcar-orders-fall-70-1459855093
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EPA Chief: Agency Reassessing Flint Response
Apr 5, 2016 | The Hill - E2 Wire
By Devin Henry
The head of the Environmental Protection Agency said she and other officials are reassessing the agency’s response to the Flint, Mich., water crisis after a top Republican called for her to resign over the scandal.
“Are we doing our job on oversight as effectively as we need to?” Gina McCarthy asked at a Christian Science Monitor event on Tuesday.
“We’re exploring those issues, and our Office of Inspector General is in the middle of doing an investigation that was at my request. They are doing an audit of our entire oversight in the region.”
Critics have charged the EPA with mismanaging the lead contimination problems affecting the Flint water supply, saying it was too slow in working with its regulatory partners and not open enough publicly to help residents in the city.
The agency has said it did what it was it was supposed to do when alerted about the crisis, urging state and local officials to move more quickly to address it. Michigan officials have the primary regulatory responsibility over cities’ water, and McCarthy has said those officials weren’t forthcoming about the scope of Flint’s problems.
“I wasn’t trying to deflect blame — simply get all the facts on the table that it was clearly Michigan and the emergency manager that made decisions that didn’t make sense,” she said.
“We did not catch those decisions as quickly as we would like, we didn’t have the information — we were mislead — but whether or not we should have caught it earlier is a question I think we need to be accountable for.”
McCarthy testified on the Flint crisis during a House Oversight Committee hearing in March. Chairman Jason Chaffetz (R-Utah) suggested at the hearing that she resign her position because, he said later, “she has no confidence from me and I think a lot of members of Congress.”
“It was a difficult hearing,” McCarthy said on Tuesday. “I think the challenge for me was recognizing that we should be scrutinized and accountable in terms of whether or not we should have seen there was a problem there despite Michigan’s assurance there wasn’t.”
http://thehill.com/policy/energy-environment/275177-epa-chief-agency-reassessing-its-response-to-flint-water-crisis
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Hogan Signs Bills to Slash Greenhouse Gas Emissions, Expand Open Space
Apr 5, 2016 | Washington Post
By Ovetta Wiggins and Josh Hicks
Maryland must sharply reduce its greenhouse gas emissions and restore funding to preserve open space as a result of two bills that Gov. Larry Hogan (R) signed into law Monday.
With a week left in the legislative session, the governor also signed a bill to extend the age at which children of police officers who die in the line of duty can receive death benefits.
The House of Delegates, meanwhile, gave preliminary approval to mandatory sick leave and final approval to sweeping criminal-justice legislation that, among other things, would repeal mandatory minimum sentences for some drug offenses. The 105-to-31 vote on the latter bill set up a showdown with the Senate, which passed a significantly different criminal-justice reform bill.
For his first bill-signing ceremony of 2016, Hogan was joined by lawmakers, environmentalists and the families of slain Harford County sheriff’s deputies Pat Dailey and Mark Logsdon, whose deaths at the hands of a gunman in February spurred state lawmakers to approve the benefits bill.
The legislation, which takes effect immediately, raises the maximum age for receiving benefits from 18 to 26.
Senate President Thomas V. Mike Miller Jr. (D-Calvert) was visibly moved by the sight of Dailey’s sons, ages 17 and 20, sitting in the front row. “We saw these two young men,” Miller said, before stopping.
Unable to finish his sentence, he motioned to Hogan to continue.
“Marylanders were incredibly saddened by the tragic loss of two of our heroes,” Hogan said. “Our state owes families like theirs a tremendous debt, and providing these extended benefits is one small way that we can honor their sacrifice.”
The environmental bill, which takes effect Oct. 1, reauthorizes and sets new targets for the Greenhouse Gas Reduction Act, a landmark bill passed in 2009 that required Maryland to reduce greenhouse gas emissions to 25 percent below 2006 levels by 2020. The new target is to slash emissions to 40 percent below 2006 levels by 2030.
Del. Kumar P. Barve (D-Montgomery), who sponsored the House version of the bill, said it will allow Maryland to take “a giant environmental leadership step in addressing climate disruption.”
Environmentalist have hailed the bill as one of the strongest in the country for tackling carbon pollution.
“Maryland is taking a historic and notably bipartisan step toward the protection of our health, our economy, and our children’s future,” Mike Tidwell, director of the Chesapeake Climate Action Network and a member of the Maryland Commission on Climate Change, said in a statement.
The legislation for preserving the state’s open space includes a requirement that Hogan increase the amount of grant money that is provided to Baltimore City for parks. Instead of spending $4.5 million over the next three years, the bill allocates $10.5 million to parks in Baltimore over the next three fiscal years.
Miller, Hogan and House Speaker Michael E. Busch (D-Anne Arundel) made no mention at the ceremony of the battle that is expected to ensue in coming days, when the General Assembly plans to override Hogan’s recent veto of a transportation bill.
But Democratic Party officials did criticize Hogan for supporting the open-space bill, which includes automatic spending increases, even as the governor has strongly criticized other spending mandates. Patrick Murray, executive director of the Maryland Democratic Party, accused the Hogan of “political doublespeak.”
The criminal-justice bill approved Monday by the House is aimed at reducing incarceration and recidivism rates by altering criminal penalties and guidelines for sentencing and parole.
Much of the bill deals with penalties for nonviolent crimes such as low-level drug possession that disproportionately affect African Americans. But black lawmakers disagreed Monday in floor debate over whether the measure moves the state in the right direction.
“If you keep lessening time on drug dealers, you are not doing the right thing,” said Del. Jay Walker (D-Prince George’s), adding that drug dealers have created “the most violent culture in the state of Maryland.”
Del. Erek L. Barron (D-Prince George’s) countered that experts and evidence suggest that stricter punishment has increased incarceration and recidivism rates while not necessarily reducing the drug problem. “This smart-on-crime act changes that,” he said.
In addition to repealing some mandatory minimums, the House version of the bill would increase penalties for gang leaders and for child abusers who kill their victims; reduce from 65 to 60 the age at which inmates can receive geriatric parole; and give judges less discretion over sentencing those who commit technical probation violations.
The House and Senate must reconcile the differences between their versions of the bills before sending the legislation to Hogan’s desk.
The sick-leave statute would require employers of at least 15 workers to provide paid sick leave, putting Maryland at the forefront of a national push by progressive activists for that benefit.
A similar measure stalled at the committee level in the Senate, creating doubt about whether the House bill has enough support in that chamber to pass before the legislative session ends next Monday.
https://www.washingtonpost.com/local/md-politics/hogan-signs-environmental-bills-and-a-benefits-bill-for-surviving-children-of-police-officers-killed-in-the-line-of-duty/2016/04/04/ae686530-fa6c-11e5-80e4-c381214de1a3_story.html
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U.S. Poised to Create Good Jobs, Safer Environment by Curbing Methane Leakage
Apr 4, 2016 | The Hill - Congress Blog
By Michael Brune and Leo Gerard
Too often workers and environmentalists confront the false narrative that we can have either good jobs or a clean environment. In fact, we can and must have both. Reducing our nation’s methane emissions is a prime example of how we can simultaneously achieve our economic and environmental goals. That is why we applaud the newly announced efforts by President Barack Obama to curb methane pollution from the oil and gas industry.
Methane—a greenhouse gas and the main component of natural gas—is the second largest contributor to climate change. According to the U.S. Environmental Protection Agency, methane is far more damaging in the near term than carbon dioxide.Every year, billions of cubic feet of natural gas are deliberately flared and accidentally leaked by the energy sector, pouring uncombusted methane into our air and putting American workers and our communities at risk. In the United States, we could heat over 5 million homes each year with the wasted natural gas emitted by the oil and gas industry alone. As with so many of our problems today, eliminating these methane emissions would simultaneously address climate change, protect American workers, and ensure that our communities are safer and healthier.
In 2015, the Obama administration set a goal of reducing methane emissions across the United States 40 - 45 percent below 2012 levels by 2025. Already, the EPA has proposed safeguards to reduce methane leaks from new and modified oil and gas infrastructure, and now it is moving forward a process to develop comprehensive standards for existing oil and gas sources.
Just a few months ago, a gas well at the Aliso Canyon natural gas storage facility in the Los Angeles community of Porter Ranch, began to leak uncontrollably. The dangers of methane and other chemicals contained within the leaking gas forced more than 2,000 families from their homes, as efforts to contain the leak for over four months. The long-term effects could be devastating. At one point, the leak was estimated to be the single largest source of climate change pollution in the state.
Incidents like Porter Ranch and the recent gas line explosion in Crooksville, Ohio demonstrate the need for comprehensive methane safeguards. Proposing and finalizing standards for existing oil and gas operations—in addition to the administration’s current proposal for new oil and gas facilities—would prevent significant waste and pollution and ensure that the energy sector is doing its utmost to protect workers and communities.
Waiting to modernize these systems results in a squandered opportunity to eliminate waste, create jobs, and reduce dangerous emissions. Those low-cost solutions—manufactured here in America—are another reason why it only makes sense to plug these leaks now through sensible and reasonable safeguards.
Union workers, such as members of the United Steelworkers, are at the forefront of manufacturing cost-effective, reliable materials to reduce methane leaks, which advances safety, training, and quality throughout the energy sector. This includes facilities like the Dresser-Rand facility in Olean, New York represented by United Steelworkers local 4-4601, which manufacture methane mitigation products like compressors.
States like Colorado have already initiated strong policies to rein in natural gas leaks in oil and gas processing and transport operations, and this January, Governor Tom Wolf of Pennsylvania announced his intention to enact similar policies and expand them to existing facilities. California is also advancing comprehensive policies to reduce leaks both in natural gas distribution and upstream oil and gas operations.
As efforts continue to protect workers, communities, and our climate from pollutants like methane, we must invest in job-creating sectors like clean and renewable energy as well. Doing so is another example of how our communities can tackle environmental challenges to the benefit of our workers and our economy.http://thehill.com/blogs/congress-blog/energy-environment/275094-us-poised-to-create-good-jobs-safer-environment-by
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