Hazardous Materials

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Today, May 8, 2015, the Pipeline and Hazardous Materials Safety Administration published a final rule for rail transport of crude oil in the Federal Register. These rules come after several high-profile oil train derailments, including one recently in North Dakota that caused the evacuation of a nearby town.

The final rule applies to “high-hazard flammable trains,” defined as trains with a continuous block of 20 or more tank cars loaded with a flammable liquid or 35 or more tank cars loaded with a flammable liquid dispersed through a train. The final rule regulates: (1) tank car design standards, (2) braking systems, (3) speed restrictions, (4) routing restrictions, (5) classifications of unrefined petroleum-based products, and (6) notification requirements.

Tank Car Design

New tank cars constructed after October 1, 2015 are required to meet new design criteria. Tank cars must be constructed with 9/16 inch steel walls and a head shield with a minimum thickness of 1/2 inch. The entire protection system must be covered with a metal jacket of at least 11 gauge steel. Tank cars must also include improved pressure relief valves and bottom outlet valves. All existing tanks must be retrofitted according to a risk based schedule in the next three to five years.
Continue Reading New Federal Oil-By-Rail Regulations Published

On Wednesday, July 23, 2014 the Pipeline and Hazardous Materials Safety Administration (“Administration”), an agency within the U.S. Department of Transportation (“USDOT”), issued a Notice of Proposed Rulemaking (“NOPR”) for rail transport of crude oil and ethanol.  The NOPR, titled “Enhanced Tank Car and Operational Controls for High-Hazard Flammable Trains,” is available online, but has not yet been published in the Federal Register. 

There are three main provisions of the NOPR: “(1) new operational requirements for certain trains transporting a large volume of Class 3 flammable liquids; (2) improvements in tank car schedules; [and] (3) revision of the general requirements for offerors to ensure proper classification and characterization of mined gases and liquids.”  (NOPR, at p. 1.)  Notably, the USDOT proposes to phase out the use of older USDOT tank cars for the shipment of certain liquids within two years, unless the tank cars are retrofitted to comply with new tank car design standards.  (See USDOT, U.S. DOT Announces Comprehensive Proposed Rulemaking for the Safe Transportation of Crude Oil, Flammable Materials.)  This rule would include gradual prohibition on transport of most Bakken crude oil.…

Continue Reading USDOT Proposes New Rules for Rail Transport of Fossil Fuels

In response to questions raised by the petrochemical industry, the federal Department of Transportation (USDOT) amended its emergency order restricting those who transport crude oil by rail in the United States last Thursday.  Among other revisions, the amended order requires that shippers test their oil cargoes with sufficient frequency to ensure that their hazardous…

In response to safety concerns over trains carrying crude oil extracted from Bakken shale, the federal Department of Transportation (USDOT) issued an Emergency Restriction/Prohibition Order yesterday, affecting all those who transport crude oil by rail in the United States.

Specifically, the USDOT stated that its investigations into train accidents and derailments in North Dakota…

On August 2, 2013 the Federal Railroad Administration (“FRA”) released Emergency Order No. 28, Notice No. 1 and Safety Advisory 2013-06 in response to the July 2013 tragedy in Lac-Mégantic, Quebec, Canada where a cargo train derailed, exploding portions of the 72 cars of petroleum crude oil it carried. The explosion killed 47 people and…

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Here Stoel Rives shares insight and analysis about key mineral law developments. Drawing on a very active natural resources practice, we aim to keep readers informed about the legal aspects of news that impacts exploration and development of all things mineral.