USDOT Issues Emergency Crude by Rail Order & Safety Advisory

Yesterday, the USDOT issued an Emergency Order requiring all railroads operating trains carrying Bakken crude oil in the U.S. to notify State Emergency Response Commissions (SERCs) about the operation of the trains through their states. The Emergency Order (Docket No. DOT-OST-2014-0067) requires railroads operating trains carrying Bakker crude containing more than 1,000,000 gallons (approximately 35 rail cars) to notify SERCs of the estimated volumes of Bakken crude, frequency of anticipated traffic, and the route for transport.

Also yesterday, the FRA and PHMSA issued a joint Safety Advisory, "strongly recommending" the use of tank cars with the "highest level of integrity" when transporting Bakken crude. The advisory recommends that older DOT 111 tank cars not be used "to the extent possible." The Safety Advisory does not constitute a ban on the use of older tank cars.

Needless to say, yesterday's actions follow another high profile derailment and fire involving a train carrying crude oil in Lynchburg, VA on April 30th. USDOT's action also follow the recent NTSB crude by rail forum, during which Canadian authorities announced a ban on the use of certain DOT 111 tank cars for hazardous materials in Canada; here is Transport Canada's order. DOT's action on tank cars is not as drastic as the ban by the Canadians, but it appears to be initial steps while more formal rules are being developed.

PHMSA Cites 3 Shippers for Misclassified Crude Oil

As part of the on-going "Operation Classification" effort of the USDOT's Pipeline and Hazardous Materials Safety Administration (PHMSA), the agency recently announced it had cited three crude oil shippers for allegedly misclassifying crude oil shipped. According to PHMSA's announcement of the Notices of Probable Violation, the agency charges that 11 of 18 samples of crude being loaded onto rail cars were not assigned the proper packing group under the Hazardous Materials Regulations.

The Agency also notes the expansion of the scope of "Operation Classification" to gauge compliance with vapor pressure characterization, corrosiveness, and concentration of entrained gases in materials.

My prior post earlier this year, explains the creation of "Operation Classification" following several accidents involving crude oil shipped by rail.

PHMSA Issues Safety Alert for Crude Oil Shipment Classification

The USDOT's Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Safety Alert on January 2, 2014 following recent crude oil fires from train accidents where Bakken crude oil was involved. The Safety Alert is attached here. The Agency states that initial tests from the recent North Dakota accident involving two BSNF trains, and Lac Megantic Quebec in June 2013, indicate Bakken crude "may be more flammable than traditional heavy crude oil."

Yesterday's Safety Alert also encompasses the ongoing "Operation Classification" effort of PHMSA and the FRA, where the agencies have been conducting unannounced field tests to verify proper classification of crude oil shipments. In particular, the Agencies are concentrating on "Packing Group" classifications of shipments; i.e. does the chemical composition of the oil actually in a tank car reflect the packing group classification (and placard) on the car. Packing Groups are the defined classes of hazardous materials under the Hazardous Materials Regulations (HMR), which classify a material's flashpoint and boiling point, among other things.

PHMSA states that as "Operation Classification" is an on-going effort, it will share its sampling results of Bakken crude and oil from other locations. However, PHMSA reminds the offerors of crude oil that they should not delay their own testing (and classification under 49 CFR 173.22) of oil shipped while PHMSA's effort is underway.