United States Department of Transportation Issues Emergency Order

On May 7, 2014, the United States Department of Transportation issued an Emergency Order (Docket No. DOT-OST-2014-0067 available at http://www.dot.gov/briefing-room/emergency-order) requiring all railroad carriers that transport 1,000,000 gallons or more of Bakken crude oil in a single train to notify the State Emergency Response Commission (“SERC”) for each state where the railroad operates such trains.  The notification shall include the expected movements of the trains through the counties/parishes in the states.  The notification shall also include the number of trains involved, the material to be transported (Bakken crude), provide emergency response information, and identify the route the train will take.  Each railroad must also identify an appropriate emergency response point of contact to the SERC.  The railroad must provide the SERC with updates of any changes.

 

The Emergency Order references several incidents involving Bakken crude including the Lac-Megantic, Quebec, Canada incident involving an unattended train that escaped and derailed in the center of town causing 47 confirmed deaths and substantial property damage.  Accompanying the Emergency Order is  a Safety Advisory (http://www.fra.dot.gov/eLib/details/L05222) that suggests carriers avoid legacy tank cars, DOT Specification 111 or CTC 111 to the extent reasonably practicable.  The recommendation is based, at least in part, on the higher volatility found in Bakken crude compared to other sources of crude oil.