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Rail industry responds to Canada on oil rules

Eliminating more than 5,000 cars for oil an 'aggressive' goal, rail industry says.

By Daniel J. Graeber
Rail sector responds to Canadian regulations in response to increased crude oil traffic. UPI/Bill Greenblatt
Rail sector responds to Canadian regulations in response to increased crude oil traffic. UPI/Bill Greenblatt | License Photo

WASHINGTON, April 24 (UPI) -- The rail industry will do what it can to meet an "aggressive timeline" spelled out by Canadian regulators for railcars carrying crude oil, a rail official said.

Canadian Transport Minister Lisa Raitt announced new regulations aimed at increasing safety on the Canadian rail system. The measure from regulator Transport Canada starts with an order to remove around 5,000 tanker cars designated DOT-111 from service within 30 days.

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An increase in North American crude oil production has placed a burden on existing pipeline capacity, forcing some energy companies to rely more on railways to deliver crude oil to refineries. DOT-111 cars carrying crude oil have been involved in a series of derailments, including last year's accident in Lac-Megantic, Quebec, which left 47 people dead.

Edward Hamberger, president and chief executive officer of the Association of American Railroads, said the rail industry has been "the vanguard" in calling for an overhaul or elimination of older tank cars.

"Transport Canada has indeed recommended an aggressive timeline and we are confident that the industry will do all it can to meet it," he said in a statement Wednesday.

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New rules extend to speed limits, route assessment and the phasing out or retrofitting of more than 60,000 DOT-111 cars within the next three years.

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