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ARTICLE · 11 MARCH 2016

Off The Tracks: Quantifying Potential Monetary Exposure From Crude-By-Rail Incidents

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This article is the second in a three-part series that began with "Off the Tracks: A Data-Driven Analysis of Crude-by-Rail Liability Factors, Exposure, and Potential Solutions," which was published on December 19, 2015.

United StatesEnergy and Natural Resources

This article is the second in a three-part series that began with " Off the Tracks: A Data-Driven Analysis of Crude-by-Rail Liability Factors, Exposure, and Potential Solutions," which was published on December 19, 2015.

In Part One of this series, we analyzed factors that influence liability for crude-by-rail (CBR) incidents. But knowing the liability factors leads to a second question: What is my monetary exposure?

Rail transportation has a strong operational safety record. And the CBR industry—in response to a meteoric rise in crude oil traffic—has leveraged rail's proven track record to refine risk-management techniques in response to past incidents. Should a CBR incident occur, however, the analysis below provides a benchmark to evaluate potential monetary exposure.

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