Albany Orders Moratorium on Bakken Crude

This article was written by Oilprice.com -- the leading provider of energy news in the world. Also check out these recent articles:

Authorities in Albany County, New York have issued a moratorium on Bakken crude oil processing at the Port of Albany pending a public health investigation.

The moratorium applies to Global Partners LP and its plans to increase the processing at the port of crude oil from North Dakota's Bakken region, which authorities are concerned may pose a threat to public safety due to its extreme volatility and flammability.

The moratorium follows a January decision by the New York Governor's Office ordering state agencies to conduct a review of safety procedures and emergency response systems for crude oil shipments from North Dakota's Bakken region.

According to the moratorium, residents could be at risk due to the heating and storage of Bakken crude at the port because of the high level of volatility and flammability as well as the possible substandard condition of tank cars used to transport this crude via train into the county.

A recent investigation by the Federal Railroad Administration found that shippers sometimes misclassified the oil they were offering for sale, loading it into tankers that weren't stout enough to safely carry materials in the highest hazard category.

Government investigators found crude oil being transported from the Bakken region was misclassified in nearly one in five samples of truck shipments en route to rail loading stations.

This sets up some obstacles for Global Partners LP, which is seeking to build several boilers to heat crude oil before it is loaded and shipped for refining. Global Partners has the capacity to transport up to 160,000 barrels a day of crude by rail to its Albany terminal.

The moratorium was welcomed by environmental organizations. "The moratorium is the necessary response of local officials to protect their communities in the face of continued foot-dragging and hollow incremental measures by the federal government on dangerous oil trains," media quoted Mollie Matteson, Northeast representative for the Center for Biological Diversity, as saying.

Last month, US Federal regulators issued an emergency order requiring more stringent testing of crude oil before shipment by rail to determine how sensitive the cargo is to explosion or fire.

The order came as response to a string of train accidents since last summer involving oil from the Bakken region of North Dakota and Montana. There have been 10 derailments of trains carrying crude in North America during the past year.

The Transportation Department said the order is aimed at Bakken crude but will cover shipments from anywhere. The testing requirement goes into effect immediately with a stiff penalty for noncompliance.

US Transportation Department said that order also would place crude oil under more protective sets of hazardous materials shipping requirements, rather than allowing some shipments to be treated as less dangerous.

Under the emergency order, companies that ignore the order may be fined as much as $175,000 a day for each violation while the individuals may also be subject to fines and up to 10 years in prison.

A dwindling role for OPEC?
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2876035, ~/Articles/ArticleHandler.aspx, 8/30/2014 12:33:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 15 hours ago Sponsored by:
DOW 17,098.45 18.88 0.11%
S&P 500 2,003.37 6.63 0.33%
NASD 4,580.27 22.58 0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement