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U.S. Crude-by-Rail Rules Face Fresh Challenge

ENLARGE Burning oil-tank cars from a BNSF train that derailed at Heimdal, N.D., lay askew along the railroad tracks on May 6. Photo: Associated Press Environmental groups are the latest challengers to push back against the new crude-by-rail rules with filings in federal court that argue the new regulations are too weak. Earthjustice filed a petition with the U.S. Court of Appeals for the Ninth Circuit in San Francisco on Thursday on behalf of seven nonprofits, arguing the timeline to phase out dangerous older tank cars is too long and that the standard for upgrades is too weak. The Earthjustice filing also seeks lower speed limits for trains carrying hazardous flammable liquids and requirements that railroads provide more information about the routing of dangerous goods to the public. “Explosive oil trains present real and imminent danger, and protecting the public and waterways requires an aggressive regulatory response,” said Marc […]

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Two Illinois Municipalities Challenge New Oil-Train Rules

In the latest legal challenge to the federal government’s new crude-by-rail rules, two Illinois municipalities on Wednesday filed a petition asking a Chicago-based federal appeals court to review the rules, saying regulators didn’t go far enough. The village of Barrington and the city of Aurora jointly filed the petition, asking for the U.S. Seventh Circuit Court of Appeals to set aside and remand parts of the rules. The municipalities are specifically challenging an exemption that allows some trains to continue using dangerous older tank cars, as well as a phaseout schedule for certain tank cars hauling flammable liquids that they deem to be “unreasonably long.” They also want the rules to require railroads to provide electronic documentation of the contents of the train to emergency workers when an accident occurs. The Transportation Department didn’t immediately respond to a request for comment. The Federal Railroad Administration doesn’t comment on pending […]

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Oil industry challenges U.S. train safety rules in court: NYT

WASHINGTON A U.S. oil industry group has launched a legal challenge to federal rules aimed at tightening safety standards in oil-by-train transport, the New York Times reported on Tuesday. The American Petroleum Institute on Monday petitioned the U.S. Court of Appeals for the District of Columbia to block important provisions of the rules presented earlier this month by Transportation Secretary Anthony Foxx, the newspaper said. The United States and Canada announced on May 1 long-awaited safety rules for trains carrying oil, as regulators seek to reduce risks after a series of explosive accidents that accompanied a surge in crude-by-rail shipments. The rules call for a rapid phase-out of older tank cars considered unsafe during derailments, and are more aggressive than even some of the toughest proposals yet put forward. The petition filed on Monday seeks to bar a rule requiring older tank cars to be fitted with new safety […]

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Exclusive: Oil on fiery North Dakota train less volatile than limit

WILLISTON, N.D. Crude oil aboard a BNSF train that derailed in North Dakota on Wednesday caught fire even though it was less flammable than required by a state law that took effect last month. Test results sent to federal investigators and seen by Reuters show the state’s new rule may not be stringent enough to significantly reduce the risks of fireballs after derailments of trains carrying crude. In this crash, the crude on board contained about 20 percent fewer volatile gases than regulations mandate. The oil, transported in tank cars owned by Hess Corp, had a vapor pressure of 10.83 psi, according to test results. This pressure is less than the new threshold of 13.7 psi. State regulators have used vapor pressure as a proxy for measuring the amount of flammable gases known as light-ends that are present in crude. Samples of the crude oil involved in this latest […]

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Rail traffic to resume through N.D. town

Rail traffic set to resume through small North Dakota town where cars carrying Bakken oil derailed. File Photo by Steven Frame/Shutterstock. HEIMDAL, N.D., May 8 (UPI) — Rail traffic is expected to continue through a small North Dakota town at the center of latest oil train debate before the weekend, rail company BSNF said. Six of the 107 cars carrying Bakken crude oil through Heimdal, N.D. caught fire after derailing Wednesday. BNSF said most of the oil still in the derailed cars was removed and rail traffic should continue through the area before the weekend. "BNSF crews are currently working to clean up the area, remove the derailed cars, and repair the damaged track at that location," the company said in a late Thursday statement. Fires associated with the derailment were extinguished Thursday afternoon. The 40 or so residents of Heimdal who were evacuated after the incident were cleared […]

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Oil train derailment prompts evacuation in North Dakota town

AP Photo BISMARCK, N.D. (AP) — An oil train derailed and caught fire early Wednesday in a rural area of central North Dakota, prompting the evacuation of a nearby town where about 20 people live. No injuries were reported in the accident about 7:30 a.m. near Heimdal, about 115 miles northeast of Bismarck. Ten tanker cars on the BNSF Railway train caught fire, creating thick black smoke, state Emergency Services spokeswoman Cecily Fong said. Firefighters from four area communities responded, and regional hazardous materials teams from Grand Forks and Devils Lake went to the scene, Fong said. Ten investigators from the Federal Railroad Administration were traveling to the area, said spokesman Kevin Thompson. The National Transportation Safety Board also was sending a team. The Environmental Protection Agency was sending someone to gauge any contamination to waterways in the vicinity, spokesman Rich Mylott said. The rail line through Heimdal runs […]

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Crude oil train derails in North Dakota

Small town in central North Dakota evacuated after train carrying crude oil derails. Image: Google Maps HEIMDAL, N.D., May 6 (UPI) — Federal regulators said Wednesday a North Dakota town was evacuated after several tank cars carrying crude oil derailed and caught fire. Ten responders from the Federal Railroad Administration were dispatched to Heimdal, N.D., to investigate the cause of the incident. The small town of less than 50 residents in central North Dakota was evacuated as a security precaution. "Today’s incident is yet another reminder of why we issued a significant, comprehensive rule aimed at improving the safe transport of high hazard flammable liquids," acting Federal Railroad Administrator Sarah Feinberg said in a statement. "The FRA will continue to look at all options available to us to improve safety and mitigate risks." Cecily Fong, a spokeswoman for the North Dakota State Emergency Services, said in a telephone interview […]

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Schumer bill would phase out older rail tank cars within 2 years

WASHINGTON, DC, May 6 US Sen. Charles E. Schumer (D-NY) said he would introduce legislation requiring US railroads to replace tank cars carrying crude oil and other hazardous substances more quickly than new US Department of Transportation rules require. His announcement came 2 days after US and Canadian railway transportation regulators jointly announced the regulations ( OGJ Online, May 1, 2015 ). The regulations are a step in the right direction, but do not go far enough, Schumer said during a May 4 appearance in Menands, NY. Specifically, he said DOT’s new rules DOT-111 tank cars and their Canadian CPC-1232 tank cars to remain in service through 2023. His measure would require them to be gone within 2 years, he noted. “Allowing these outdated oil cars to continue rolling through our communities for another 8 years is a reckless gamble that we can’t afford to make,” Schumer said. Railroads […]

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Exclusive: Hess-owned oil railcars involved in North Dakota derailment

WILLISTON, N.D. (Reuters) – A BNSF train that derailed in central North Dakota on Wednesday was carrying railcars owned by Hess Corp, 10 of which caught fire and forced the evacuation of a nearby town, the oil producer told Reuters late Wednesday. Emergency crews worked into the night to extinguish the fire. No one was injured. Hess, the third-largest North Dakota oil producer, said BNSF is leading cleanup efforts but added it stands ready to assist. The New York-based company said it is "fully compliant" with new North Dakota crude-treatment standards that went into effect last month. The standards, designed to mitigate the incendiary effect of crude-by-rail disasters, require combustible elements be filtered out of crude oil. It remains unclear whether the new standards helped reduce the fire caused by the derailment, but politicians, first responders and other witnesses described a subdued scene. "The scene is very anticlimactic and […]

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Canadian oil trains shift to carry less-volatile crude

CALGARY, Alberta (Reuters) – A growing share of Canadian oil-by-rail traffic is made up of tough-to-ignite undiluted heavy crude and raw bitumen, say industry executives, as companies scramble to cut expenditures with the price of crude down more than 40 percent since June. By eliminating the cost of diluting with ultra-light condensate, heavy oil offers rail shippers an opportunity to claw back a few dollars per barrel in transportation costs. Official data does not break down the different Canadian crudes shipped by rail but interviews with industry executives suggest undiluted heavy and raw bitumen shipments now make up roughly a quarter of the estimated 200,000 barrel per day (bpd) oil-by-rail market. An added bonus is that heavy crude and bitumen are far less combustible than the Bakken and Canadian synthetic crudes involved in fiery crashes that spurred the Canadian and U.S. governments on Friday to tighten safety rules for […]

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