The Oil and Railroad Industries are claiming that proposed federal rules to make hauling crude oil by rail safer and avoid fiery wrecks would drive up costs and put the U.S. energy revival at risk. You probably won’t be surprised to learn that these claims were made by the American Petroleum Institute (API), joined by the Association of American Railroads. The two groups proposed keeping older tank cars, which investigators say are vulnerable to puncture, in service for twice as long as envisioned by regulators drafting rules for carrying flammable liquids like oil on trains.
The Transportation Department proposal to phase out older cars known as DOT-111s in two years is “not feasible,” said Jack Gerard, executive director of the Washington-based API, which represents companies including Exxon Mobil Corp. and Chevron Corp. He calims said the rules “could stifle North America’s energy renaissance and curtail substantial volumes of U.S. and Canadian oil production.”
As we previously reported, U.S. regulators drafted the rule after several accidents of oil tank cars, including a July 2013 derailment in Quebec that killed 47 people, and fiery explosions that rattled communities in North Dakota, Virginia and elsewhere. Oct. 2 was the deadline to file comments with the agency, which may issue a final rule this year.
Source: Insurance Journal
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