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U.S. gets tough on oil-by-rail rules

WASHINGTON, Feb. 5 (UPI) -- The U.S. Department of Transportation said its inquiry into the transport of Bakken crude oil found some of it wasn't classified properly for rail transit.

The department's Pipeline and Hazardous Materials Safety Administration published the first results from a 2013 investigation into the transport of oil from the Bakken field, which is primarily in North Dakota.

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Transportation Secretary Anthony Foxx said PHMSA proposed $93,000 in penalties each for Hess Corp, Whiting Oil and Gas Corp. and Marathon Oil Co. for not labeling crude oil properly. Foxx said Tuesday shipping crude oil without first classifying it properly could result in its shipment in containers not designed for safe storage.

"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," he said in a statement.

There was no comment from Hess, Whiting or Marathon.

Industry officials say the increase in U.S. oil production is more than the existing pipeline network can handle, forcing some energy companies to use rail to send crude oil to refineries.

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U.S. safety regulators said older DOT-111 cars, some of which were involved in recent derailments, may be more vulnerable to leaks or explosions than other types of rail cars

The PHMSA issued a safety alert in early January saying the type of crude oil in the Bakken reserve area may be more flammable than other grades.

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