Feds Hit Three Oil Companies Over Crude Labeling

An oil drilling rig is seen September 29, 2010 near Stanley, North Dakota. The well is being drilled into the Bakken Formation, one of the largest contiguous deposits of oil and natural gas in the United States. It is an interbedded sequence of black shale, siltstone and sandstone that underlies large areas of northwestern North Dakota, northeastern Montana, southern Saskatchewan and southwestern Manitoba.
National Journal
Ben Geman
Add to Briefcase
See more stories about...
Ben Geman
Feb. 4, 2014, 1:19 p.m.

Trans­port­a­tion De­part­ment reg­u­lat­ors are pro­pos­ing fines total­ing $93,000 against three oil com­pan­ies for al­leged im­prop­er clas­si­fic­a­tion of crude oil bound for ship­ment on rail­ways.

The vi­ol­a­tion no­tices an­nounced Tues­day ar­rive amid safety con­cerns about grow­ing use of rail­ways to trans­port oil from North Dakota’s Bakken re­gion, and fol­low sev­er­al rail trans­port ac­ci­dents in re­cent months.

“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 if you want to use our trans­port­a­tion sys­tem to ship it,” Trans­port­a­tion Sec­ret­ary An­thony Foxx said in a state­ment Tues­day.

Ac­cord­ing to DOT, 11 of 18 samples taken from cargo tanks de­liv­er­ing crude oil to rail load­ing fa­cil­it­ies were not as­signed to the cor­rect “pack­ing group.” And that’s dan­ger­ous, reg­u­lat­ors said.

“Ship­ping crude oil — or any haz­ard­ous ma­ter­i­al — without prop­er test­ing and clas­si­fic­a­tion could res­ult in ma­ter­i­al be­ing shipped in con­tain­ers that are not de­signed to safely store it, or could lead first re­spon­ders to fol­low the wrong pro­tocol when re­spond­ing to a spill,” DOT’s Pipeline and Haz­ard­ous Ma­ter­i­als Safety Ad­min­is­tra­tion said in an­noun­cing the al­leged vioations.

PHMSA is is­su­ing the no­tices of pro­posed vi­ol­a­tions to Hess Cor­por­a­tion, Whit­ing Oil and Gas Cor­por­a­tion, and Mara­thon Oil Com­pany, the agency said Tues­day.

Reg­u­lat­ors have stepped up over­sight and last year launched an ef­fort called “Op­er­a­tion Clas­si­fic­a­tion” to boost in­spec­tions and sampling. The find­ings un­veiled Tues­day are the first an­nounced test res­ults of that probe.

What We're Following See More »
EXPECTED TO BE READY BY LATE SUMMER
DHS to Start Building Prototypes of Border Wall
2 hours ago
THE DETAILS

"Prototypes of what new sections of a wall on the Mexican border might look like should be completed by late summer, a Department of Homeland Security official said Tuesday. Ronald Vitiello, acting deputy commissioner of Customs and Border Protection, said up to eight prototypes will be up by September so that DHS can decide which design is best for building hundreds of miles of new barrier along the border, as called for by President Trump."

Source:
ON FOREIGN FLIGHTS BOUND FOR U.S.
DHS Beef Up Airline Security
3 hours ago
THE DETAILS
AS A CONTRIBUTOR
Chaffetz Joining Fox News
6 hours ago
THE DETAILS

Rep. Jason Chaffetz, who will resign from Congress on Friday, will contribute to Fox News Channel and the Fox Business Channel starting July 1.

FOR BASTILLE DAY
Trump Will Visit France
7 hours ago
WHY WE CARE
TWO YEARS OF WORK FOR UKRAINE
Manafort Formally Registers as Foreign Agent
11 hours ago
THE LATEST

"A consulting firm led by Paul Manafort, who chaired Donald Trump’s presidential campaign for several months last year, retroactively filed forms Tuesday showing that his firm received $17.1 million over two years from a political party that dominated Ukraine before its leader fled to Russia in 2014."

Source:
×
×

Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.

Login