Do you know the economics of building a small refinery to take out the volatiles prior to placing on railway cars?
That is one solution to keep the explosion risk down.
Most of the Bakken crude I saw was over 40 deg API.
All unconventionals have lighter crudes with volatiles as that is simply the only type of crude that can be produced in the tite rock, and a lot of it like in the Eagleford is not crude at all but liquids that existed as gas in the ground.
It does not take a refinery. North Dakota has already put the rule in place to make this happen. I believe it will take effect by the end of the month or so.
Pending North Dakota oil rules may have limited W. Virginia disaster
http://bakken.com/news/id/233179/pending-north-dakota-oil-rules-may-have-limited-w-virginia-disaster/
The article above calls it a filter but I believe it is more in the line of a separator/stablizer.
North Dakota to Reduce Volatility of Bakken Crude-By-Rail
http://www.planetizen.com/node/72791
I believe this is what was approved, if you want the legalize:
IN THE MATTER OF A HEARING CALLED ON
A MOTION OF THE COMMISSION TO
CONSIDER AMENDING THE BAKKEN,
BAKKEN/THREE FORKS, THREE FORKS,
AND/OR SANISH POOL FIELD RULES TO
ESTABLISH OIL CONDITIONING STANDARDS
AND/OR IMPOSE SUCH PROVISIONS AS
DEEMED APPROPRIATE TO IMPROVE THE
TRANSPORTATION SAFETY AND
MARKETABILITY OF CRUDE OIL.
https://www.dmr.nd.gov/oilgas/Approved-or25417.pdf
May 10, 2013 - MAKOTI, N.D. — The Three Affiliated Tribes have broken ground for a $450 million oil refinery on the Fort Berthold Indian Reservation in northwestern North Dakota. The Thunder ... It will create as many as 100 full-time jobs.
The tribes have wanted to use a 469-acre piece of land near Makoti to build the refinery and produce feed for a buffalo herd. Plans call for the refinery to be built on a 190-acre portion of the land. The other land will be used for the buffalo.
Tribal members and others at the event praised Tribal Chairman Tex “Red Tipped Arrow” Hall for having the vision to pursue a refinery, a plan that began 10 years ago before the Bakken oil boom. Initially the proposal called for refining Canadian tar sands, but in 2008 the plans switched to refine the tribe’s own Bakken crude.
During the celebration, Hall reflected about his ancestors.
“We grew up poor. We were lucky if we had a pair of clean overalls,” Hall said. “But our parents made sure we went to school and got educated. They did the best they could for us. They didn’t know we’d have this oil and gas resource, but now we do. It’s our responsibility to manage it and we are.”
Three Affiliated Tribes officials are talking to other tribes about inter-tribe commerce agreements to distribute diesel from its refinery. Representatives from several tribes, including the Spokane Tribe of Indians, attended the event and are interested in distributing the diesel.
- See more at: http://www.prairiebizmag.com/event/article/id/14552/#sthash.3HLh0wf3.dpuf