Commentary

Federal hazmat regulator AWOL from North Dakota oilfields

Whatever the unrevealed reasons for Cynthia Quarterman’s (pictured) Oct. 3, 2014 departure as head of the Pipeline and Hazardous Materials Safety Administration (PHMSA), a change at the top may reverse the federal regulator’s much-criticized lethargy in fixing the core cause of exploding oil trains.

North Dakota seizes initiative in CBR degasification

The vital other shoe in crude by rail reform will drop not in Ottawa or Washington, but in Bismark, N.Dak., where, in the void created by federal inaction, officials are preparing to use state jurisdiction over natural resources to order the degasification of petroleum at the wellhead.

Analysts, legal and financial experts weigh in on DOT’s HHFT NPRM

The Notice of Proposed Rulemaking issued by the U.S. DOT for HHFTs (High-Hazard Flammable Trains) hauling crude oil and other commodities the DOT deems hazardous in tank cars has produced a flurry of commentary and analysis, with varied opinions.

CBR obstacles vary, but multiply

Pushback against crude-by-rail (CBR) oil shipments continues to develop in a variety of ways, from local protests to looming action from the Department of Transportation (DOT) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

PHMSA to DOT-111 defender: Justify Bakken testing

The Department of Transportation hazardous materials regulator has quickly challenged the refinery lobby’s contention that Bakken crude falls comfortably within existing “Class 3 Flammable Liquid” and should continue to be transported in the DOT-111 general purpose tank car.

Most Bakken crude can move under FRA Emergency Order

The most onerous burdens under the Emergency Order issued by the Federal Railroad Administration Feb. 25 fall upon crude shippers and transloaders. The earlier regulatory vagueness concerning the classification of crude oil has now been sharpened by specific prescriptions for evaluating “flash point; boiling point; corrosivity to steel and aluminum; presence and content of compounds such as sulfur/hydrogen sulfide; percentage presence of flammable gases; and the vapor pressure at 50ºC.”

DOT issues CBR Emergency Order

The U.S. Department of Transportation (DOT) on Feb. 25, 2014 issued an Emergency Order requiring crude oil shippers to test product from the Bakken region to ensure the proper classification of crude oil before it is transported by rail, while also prohibiting the transportation of crude oil in the lowest-strength Packing Group. DOT’s action marks the fourth Emergency Order or Safety Advisory on crude oil in the past seven months.

NTSB, TSB issue joint CBR safety recommendations

The National Transportation Safety Board, in coordination with the Transportation Safety Board of Canada, on Jan. 23, 2014 issued a series of recommendations to the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), both of which are part of the U.S. Department of Transportation, to address the safety risks of crude by rail (CBR). The recommendations are not unusual or groundbreaking; that NTSB and TSB have issued them jointly is indicative of increased cooperation among U.S. and Canadian regulatory bodies regarding CBR.

Will safety investments to protect railroads, public increase CBR costs?

A sell-off of shares in companies engaged in extracting oil from the mid-continent Bakken formation was the first indication from investors that they expect government scrutiny of the potentially explosive crude will disrupt crude-by-rail (CBR) and escalate its costs.

Canada cracking down on CBR shippers

Canada’s government has ordered Transport Canada to crack down hard on crude oil shippers who they say continue to evade a directive that they test the contents of tank cars before classifying them as hazardous materials for crude by rail (CBR) transportation.
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