Refining industry representatives breathed a sigh of relief on Thursday as federal authorities clarified a Feb. 25 emergency order related to crude oil transported by rail. The Department of Transportation’s (DOT) modified order states that oil shipped by rail must have been tested within the “reasonable, recent past” to determine flash point and boiling point. The statement allayed refiners’ fears they would be required to test crude oil before every rail shipment. The American Fuel & Petrochemical Manufacturers (AFPM) said such a mandate could deter shippers from transporting oil by rail.
DOT did not define precisely what it means by “reasonable” or “recent.” Nevertheless, AFPM, which earlier this week requested DOT clarify its original order, was satisfied with the department’s response.
“We appreciate PHMSA’s judicious response to the issues we raised in our letter to [DOT Secretary Anthony Foxx] and hope that the agency’s response will bring clarity to the Emergency Order that is necessary to avoid potential disruptions in supply,” AFPM President Charles Drevna said in a statement.
Recent studies have shown that crude oil from the Bakken formation, a large portion of which is transported by rail, may be more combustible than other types of crude produced in the U.S.
Photo: Harvey Henkelmann
