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Tougher Rules Not Needed For N. Dakota Oil-By-Rail Cargo

Posted by May 20, 2014

 

Crude oil from North Dakota's energy patch should not be subject to tougher regulations because the cargo is no different than other crude oil, an industry trade group said on Tuesday.

After a series of train derailments and fiery explosions involving crude originating from North Dakota's Bakken fields, U.S. officials have warned that Bakken crude could be more volatile than crude oil from other regions. Even rail industry officials have said the crude is more akin to flammable gas.

But the oil industry has pushed back with self-funded studies meant to shape a debate about whether the oil-by-rail sector needs toughened tank cars and other safety measures to haul the crude oil.

The North Dakota Energy Council organized the tests of roughly 250 samples from across the Bakken and found that the cargoes are rightly being shipped under rules for crude oil.

"Bakken crude oil is very similar to other light crudes and meets all federal regulations and tank car design standards for shipping flammable liquids by rail," the trade group said in a statement.

Last week, the leading voice for the refining industry, the American Fuel & Petrochemical Manufactures, came to the same conclusion in its own self-funded study of the product.

Rail industry officials, though, have said some Bakken fuel is so gas-packed that it should move on the rails like propane which must be carried in heavier, pressure tank cars.

Officials with the U.S. Department of Transportation have not yet finished examining samples of Bakken crude and lawmakers want the agency to weigh in on the debate.

"It is my hope that the DOT soon lives up to its part of the bargain and comes to the table with its data," said Democratic Senator Heidi Heitkamp of North Dakota.

Oil train cargoes have been under scrutiny since a shipment derailed in Lac Megantic, Quebec, last July killing 47 people in an explosion.

(Reporting by Patrick Rucker; Editing by Lisa Shumaker)

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