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Refinery switching to newer rail cars for crude

BELLINGHAM, Wash. (AP) — A refinery in northwest Washington state says it will no longer accept any volatile North Dakota crude oil unless it arrives on newer-model tank cars.

By the first week of October, the BP Cherry Point facility had stopped using pre-2011 standard tank cars, known as DOT-111 cars, for the shipments, The Bellingham Herald reported (http://is.gd/XmHxHN ).

The change comes amid public concern about the safety of shipping crude by train. Since 2008, derailments of oil trains in the U.S. and Canada have seen the older 70,000-gallon tank cars break open and ignite on multiple occasions, resulting in huge fireballs. A train carrying Bakken-formation crude from North Dakota in the older tanks crashed in a Quebec town last year, killing 47 people.

The National Transportation Safety Board, which recommended upgraded regulations for crude oil and ethanol cars in 2011, is working on updating rail safety standards and could require companies to phase out the DOT-111 cars for shipping crude oil during the next couple of years

Cherry Point was already using newer, safer tank cars to receive about 60 percent of its crude oil, but expedited the switch to the newer cars in response to community concerns, BP spokesman Bill Kidd said. The refinery now uses a fleet of about 700 newer cars, called CPC-1232s.

The newer cars have thicker shells, head shields on both ends and improved valve protection.

But Matt Krogh, of the group ForestEthics, which has sued the U.S. Department of Transportation over the shipment of volatile crude oil in older railroad tank cars, told The Associated Press on Saturday that there’s little evidence the newer tank cars will truly prevent explosive spills. He argued that the newer cars are tested at slower speeds than the speed at which most derailments occur, and he noted that it was one of the CPC-1232s that exploded in a fireball during a derailment in Lynchburg, Virginia, in April.

Krogh called switching to the newer cars “a red herring.”

“It’s a marginal improvement, but it’s nowhere near safe,” he said. “They’re essentially grasping at straws to convince people that they can do it safely. I don’t think you can safely and profitably run trains of crude.”

Trains carrying Bakken oil from North Dakota have been supplying Washington refineries at Tacoma, Anacortes and Cherry Point. Oil-train export terminals are proposed at Vancouver and Grays Harbor on the Washington coast.

About 70 percent of the crude-oil rail cars that BNSF Railway currently moves through Washington state are already the newer design, railway spokesman Gus Melonas said.

For two decades, the Cherry Point refinery received crude oil only by pipeline, Kidd said. It later added shipments by sea.

But Alaskan crude oil has turned into the last type the refinery is interested in because of the higher price. Crude oil from mid-continent shale formations has become a cheaper option for the refinery, Kidd said.

“It’s completely turned the industry on its head,” Kidd said. “Without access to crude by rail, this refinery cannot compete.”

Refinery Manager Bob Allendorfer said the facility is always going to be progressive when it comes to safety. “Safety is always first, and you have to get it right,” Allendorfer said.

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Information from: The Bellingham Herald, http://www.bellinghamherald.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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