"Tank Car Fleet Inadequate for Crude Oil, Rail Industry Says"

"WASHINGTON — None of the tank cars currently in service carrying Bakken crude oil is adequate for carrying that product, a rail industry representative testified Tuesday, but until new federal regulations are completed, the use of inadequate cars will continue.

That includes tank cars built to higher standards adopted by the industry since 2011. Such cars have failed in at least two recent derailments. Yet in the absence of the new rules, crude oil shippers and refiners continue to rely on them to meet the demands of North America’s energy resurgence.

In testimony opening a two-day hearing at the National Transportation Safety Board, rail companies and rail car makers agreed that crude-by-rail shipments would continue to grow."

Curtis Tate reports for the McClatchy Washington Bureau April 22, 2014.

Wednesday, April 23, 2014