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Industrial Commission delays action on oil conditioning rules

In the wake of a number of accidents involving trains carrying Bakken crude, North Dakota’s Department of Mineral Resources has been working on new rules to treat the oil before it’s loaded onto tanker cars.

The Department outlined its rules to the state’s Industrial Commission. But as Prairie Public’s Dave Thompson reports, the Industrial Commission wants a little more time to look at the proposal.

There’s a perception that Bakken crude is volatile – more volatile than most other crude oil. Given that perception, state officials are looking at rules to make that oil less volatile before it’s shipped out of state by train.

“I just want to emphasize that the focus of this hearing and this proposed order is, number one, safety,” said state mineral resources director Lynn Helms. He says the order also emphasizes science – and enforceability.  Helms says the goal is to have all Bakken crude be treated , whether on site or at a treating facility.

“Our crude oil leaving North Dakota will behave like the gasoline you put in your car,” said Helms.

But members of the Industrial Commission weren’t ready to adopt the order.

“Having just seen this today, I just think it might be useful , if we have a little bit of time to sort through this,” said Attorney General Wayne Stenehejm, a member of the Industrial Commission. Stenehjem also wants to give the industry some time to react to it.

And industry isn’t happy.

“We’re somewhat frustrated the focus is back on the commodity,” said North Dakota Petrolem Council president Ron Ness. “Trains go off tracks. There’s crashes involved. And there’s flammable liquids – whether it’s gasoline, ethanol or crude oil. And I think today what we saw was a bit of an overreaction.”

Ness says the Industrial Commission should set the bar – and let industry figure out how to meet it.

The comment period is open until next Wednesday – and the Industrial Commission will hold a special meeting sometime before mid-December to take action on the proposed order.

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