Wednesday, February 5, 2014

U.S. Oil Companies Fined For Mislabeling Crude Shipments In First Move After Series Of Derailments

 From:  HuffPost 

By Patrick Rucker

WASHINGTON, Feb 4 (Reuters) - Three oil companies operating in North Dakota were fined $93,000 on Tuesday for wrongly classifying fuel shipments in the first sanctions since a series of fiery derailments put the energy industry under a spotlight.

The Department of Transportation said Hess Corp, Marathon Oil Corp and Whiting Petroleum Corp were cited for wrongly classifying cargo tanks that were hauling crude oil from the field to a railhead.

Fuel shipments must be designated with a hazard class to alert emergency responders in the event of an accident. Eleven of eighteen samples of one survey were mislabeled, the DOT said in a statement.

"The fines we are proposing today should send a message to everyone involved in the shipment of crude oil: You must test and classify this material properly," said Transportation Secretary Anthony Foxx.

A spate of explosive derailments, including one in Quebec last July which killed 47 people, has led to concerns over the safety of shipping crude oil by rail and improper labeling.

Officials have already warned that some fuel found in North Dakota's energy patch, the Bakken, could be more volatile and explosion-prone than other crude oil and that shippers should take precautions.

Typically, crude oil carries a 'hazard class 3' classification and can be shipped in a standard tank car. The shipments are further assigned a 'packing group' to alert to dangers - that portion of the shipping paper was faulty, the DOT said.  MORE

No comments:

Post a Comment