DOT Issues Emergency Order Requiring Bakken Crude Train Operators To Notify State Emergency Response Commissions; FRA and PHMSA Urge Shippers To Avoid Older DOT-111s

Yesterday, the U.S. Department of Transportation issued an emergency order mandating that all railroads operating trains containing more than 1,000,000 gallons of Bakken crude oil notify State Emergency Response Commissions (SERCs) about the operation of such trains through their states within 30 days.  The written notification must provide a reasonable estimate of the number of trains implicated by the Order that are expected to travel, per week, through each county of the state, identify the routes through which Bakken crude oil will be transported, and identify at least one point of contact for SERCs and emergency responders.  The Order also requires railroads to update notifications prior to making any material changes in the estimated volumes or frequencies of trains traveling through a county.

DOT’s Federal Railroad Administration (FRA) and Pipeline and Hazardous Materials Safety Administration (PHMSA) also issued a Safety Advisory urging shippers and rail carriers of Bakken crude oil to select and use the railroad tank car designs with the highest level of integrity reasonably available in their fleets.  In addition, PHMSA and FRA advise offerors and carriers to avoid the use of older legacy DOT Specification 111 or CTC 111 tank cars for the shipment of Bakken crude oil.

The moves were announced exactly one week after a crude train derailment in Lynchburg, VA, and are the latest in a line of efforts to improve the safety of crude-by-rail.  In connection with the announcement, Transportation Secretary Anthony Foxx stated that “All options are on the table when it comes to improving the safe transportation of crude oil, and today’s actions, the latest in a series that make up an expansive strategy, will ensure that communities are more informed and that companies are using the strongest possible tank cars.”