"Rail Agency Probes Possible Safety Flaws in Crude Transit"

"The Federal Railroad Administration said it is investigating the safety of transporting crude oil by rail, including whether chemicals used in hydraulic fracturing are corroding tank cars."

"Regulators in July 29 a letter to the American Petroleum Institute, a Washington-based lobbying and standards-setting group for the oil and gas industry, said the chemical composition of the crude is sometimes misclassified at a lower hazard level, violating existing safety rules.

In some cases, the tank cars shipping the hazardous material may not be equipped with “required design enhancements,” the FRA said in the letter sent three weeks after a deadly explosion in Quebec of a train hauling oil."

Jim Snyder reports for Bloomberg News August 8, 2013.

Source: Bloomberg, 08/09/2013