New Rules for Rail Transport of Oil due to Safety Concerns | Russell T. Rudy Energy LLC
“Rigzone” reports that yesterday the U. S. Department of Transportation proposed an overhaul of safety standards for the shipment of crude oil via rail. The new regulations have been prompted by safety concerns and the increasing volume of crude moving by rail.
Over the last 18 months, there have been a dozen derailments, six of which resulted in major fires, and in one case, 47 deaths. Crude oil from the Bakken shale in North Dakota is considered more volatile than other grades and was involved in these incidents.
Since 2008 rail transport of crude has increased significantly, due to cost savings, flexibility for operators, and the lack of pipeline infrastructure in North Dakota. Currently over 10% of U. S. crude movements involve rail transportation.
The new regulations primarily deal with reducing speed limits for trains and upgrading specifications for tank cars. There is a 60 day period for public comment prior to finalization, and industry feedback is anticipated.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=134174&utm .
