http:\/\/www.huffingtonpost.com\/2014\/02\/05\/oil-companies-fined_n_4726738.html?utm_hp_ref=green<\/p>\n
Reuters
\nPosted: 02\/05\/2014 8:43 am EST Updated: 02\/05\/2014 8:59 am EST<\/p>\n
By Patrick Rucker<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
While the DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has been testing crude samples for months and issued several industry warnings, Tuesday’s action is the first sanction.<\/p>\n
Phmsa Administrator Cynthia Quartersman said the fines reflected “initial findings” and that officials would scrutinize the corrosivity, pressure and other traits of Bakken crude.<\/p>\n
The DOT did not specify which companies would be expected to pay what share of the $93,000 fines but by any measure the sums were small for large energy companies.<\/p>\n
Officials from Hess and Marathon could not immediately be reached for comment.
\nJack Ekstrom, a spokesperson for Whiting, said that the company had not yet been contacted by the DOT about a possible fine.<\/p>\n
Special thanks to Richard Charter<\/p>\n","protected":false},"excerpt":{"rendered":"
http:\/\/www.huffingtonpost.com\/2014\/02\/05\/oil-companies-fined_n_4726738.html?utm_hp_ref=green Reuters Posted: 02\/05\/2014 8:43 am EST Updated: 02\/05\/2014 8:59 am EST 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 … Continue reading Huffington Post: U.S. Oil Companies Fined For Mislabeling Crude Shipments In First Move After Series Of Derailments<\/span>