Saturday, August 2, 2014

NEW PROPOSED RULES FOR SHIPPING CRUDE OIL BY RAIL ANNOUNCED

By TONI ELLINGTON

The Department of Transportation (“DOT”) and the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) have proposed new safety regulations related to the shipment by rail of crude oil.  These regulations apply to crude oil and other flammable liquids.  Specifically, shippers must upgrade DOT-111 type cars within two years.  In addition, a speed limit of 50 mph will apply to any trains with 20 or more cars carrying flammable liquids, and a 40 mph speed limit will apply to trains with DOT-111 cars.

These proposed regulations are partially a response to recent derailments of trains carrying crude oil in Casselton, North Dakota, Aliceville, Alabama, and Lac Megantic, Quebec.

For the full text of the proposed regulations, see the DOT website at www.dot.gov, or the PHMSA website at www.phmsa.dot.gov.  Public comments will be accepted on the proposed rules for 60 days after publication in the Federal Register.

For more information, contact Toni Ellington at (504) 599-8500.

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