Crude-By-Rail Update: PHMSA Rejects Administrative Challenges To CBR Rule

Despite challenging oil prices and a decrease in the volume of crude oil traveling by rail,¹ recent events have renewed the spotlight on crude-by-rail (CBR) transportation. First, two trains derailed in Wisconsin last weekend – one carrying ethanol and the other hauling crude oil.² Second, the Pipeline and Hazardous Materials Safety Administration (PHMSA) reaffirmed its commitment to its CBR Rule.

Although the Wisconsin derailments resulted in no injuries, the crude oil derailment caused home evacuations and spilled roughly 1,000 gallons, and the ethanol derailment spilled an estimated 20,000 gallons directly into the Mississippi River. The incidents will likely refocus public and special interest group ire on CBR at a sensitive time when the fate of the CBR Rule rests with the judicial system.