American Oil and Gas Reporter - June 2014 - 24

IndustryDigest
Collecting data directly from well
operators should provide more timely,
consistent, routine, and accurate
production data, EIA suggests. In
addition, it continues, the rapid rise in
production from tight formations has
made it increasingly important to
identify shifts in the qualities of crude
oil and lease condensate production.
Collecting information on the API
gravity of crude oil and lease
condensate, and possibly the sulfur
content, will provide a clearer picture of
those shifts, it predicts.
EIA says comments should be sent
to Neal Davis, Office of Oil, Gas, and
Coal Supply Statistics, Energy
Information Administration. To ensure
receipt of the comments by the
deadline, EIA recommends submitting
by e-mail to neal.davis@eia.gov. The
mailing address is Neal Davis, EIA,
U.S. Department of Energy, 1000
Independence Ave. SW, EI-24,
Washington, DC 20585. Davis may be
contacted by telephone at 202-586-6581
or by fax at 202-287-1938. ❒

DOT Orders Railroads
Moving Bakken Crude
To Work With Counties
WASHINGTON-The U.S.
Department of Transportation is
requiring railroads operating trains
carrying large amounts of Bakken Shale
crude to notify each county they move
through before transporting those
cargos. The emergency order also
advises against using older tank cars to
move the crude.
The order requires all railroad
carriers that transport more than 1
million gallons, or about 35 tank cars,
of Class 3 crude oil in a single train to
provide advance notice of movement to
the state emergency response
commission (SERC) for each state
involved. According to DOT, each state
has a SERC responsible for supervising
and coordinating with local planning
committees to prepare for emergencies
involving hazardous substances.
Notifications must include the
estimated volumes of Bakken crude
being transported, frequencies of
anticipated train traffic, and planned
routes, DOT says. The emergency order
also requires railroads to provide
contact information for at least one
24 THE AMERICAN OIL & GAS REPORTER

responsible party at the host railroad,
and recommends railroads assist SERCs
as necessary to share information with
appropriate emergency responders in
any communities affected by a train
accident.
The emergency order requires
railroads to make a reasonable estimate
as to how many trains are expected to
travel through a county each week and
to update the notification whenever a
significant change occurs. DOT says it
considers any increase or decrease of 25
percent or more to be a significant
change.
Any railroad carrier failing to
comply with the emergency order is
subject to civil penalties as high as
$175,000 for each violation or each day
found to be in violation.
DOT says the Federal Railroad
Administration and Pipeline and
Hazardous Materials Safety
Administration also issued an advisory
urging those shipping Bakken crude to
use tank car designs with the highest
integrity level available. The agencies
advise carriers to avoid using older
DOT specification 111 or CTC 111 tank
cars for shipping Bakken crude oil to
the extent possible.
Press reports note that Canada has
unilaterally revised its regulations
covering rail crude oil shipments,
ordering the immediate phase-out of
5,000 older cars. The Canadian rules,
issued in April, require DOT-111 tank
cars built before October 2011 out of
operation within a month, reports say.
Any DOT-111 cars built after that date
must be retired or retrofitted to new
standards within three years.
In January, the DOT said its final
rules for U.S. train operators were not
expected before 2015. r

Supreme Court Affirms
EPA Cross-State Rule
WASHINGTON-The U.S. Supreme
Court has upheld the cross-state air
pollution rule developed by the
Environmental Protection Agency to
regulate power plant emissions that
cross state borders.
In Environmental Protection Agency
v. Eme Homer City Generation LP, 14
states and several companies argued the
federal government didn't have the right
to force states to limit emissions in
order to improve air quality in their

downwind neighbors. The states also
argued EPA's regulations did not give
them sufficient time to implement their
own pollution control plans before
federal standards were put in place.
In a 6-2 decision, the justices
reversed the U.S. Court of Appeals for
the District of Columbia, which had
vacated the entire pollution rule.
The Supreme Court held EPA acted
reasonably in requiring the 28 states
affected by the rule to reduce sulfur
dioxide and nitrogen oxide emissions
from coal-burning power plants within
their borders. Justice Ruth Ginsburg,
writing the majority opinion, held the
EPA rule was a cost-effective method of
allocating pollution responsibility
among the upwind states, and that EPA
presented a reasonable argument for
setting its own deadlines.
According to court documents, under
the cross-state air pollution rule, EPA
was required to consider costs, among
other factors, when determining the
emission reductions an upwind state
must make to improve air quality in
downwind areas.
In a decision handed down Aug. 21,
2012, the D.C. Circuit vacated that
provision, ruling the rule's good
neighbor provision required the agency
to consider only each upwind state's
physically proportionate responsibility
for each downward state's air quality
problem. The circuit court explained
that reading was demanded so that no
state would be required to decrease its
emissions by more than its ratable share
of downwind-state pollution.
The Heartland Institute criticized the
Supreme Court ruling, saying the
decision continues to empower EPA to
issue nonsensical interpretations of
statutes with the primary goal of
amassing more money and power.
"Through geographical luck,
emissions from East Coast states such
as Connecticut and Massachusetts
drift over the Atlantic Ocean, where
there are no states demanding
abatement or compensation," the
Heartland Institute says. "Then,
hypocritically, these same East Coast
states complain about emissions
crossing into their state borders from
upwind states. EPA is all too happy to
take advantage of these hypocritical
complaints as an excuse to expand the
agency's power through new rules and
restrictions." r



American Oil and Gas Reporter - June 2014

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2014

Contents
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