NEW YORK, July 9 (Reuters) – The oil-laden prepare that derailed and exploded in a small Canadian city on Saturday, possibly killing as many as 50 individuals, included a class of railcar whose vulnerability to leaks and deadly explosions was well known to regulators.

The U.S. Nationwide Transportation Safety Board has issued safety tips on the broadly used, cylindrical tank automobiles referred to as DOT-111s, together with a suggestion that all tank automobiles used to hold ethanol and crude oil be reinforced to make them more resistant to punctures if trains derail.

The new pointers, put forward in March 2012, but which haven’t but been adopted by the Division of Transportation company that oversees the sector, stem from a deadly ethanol prepare derailment and explosion in Illinois in 2009.

The “insufficient design” of the DOT-111 tank vehicles made them “subject to damage and catastrophic lack of hazardous supplies,” the NTSB concluded in its investigation of the 2009 incident, which killed one individual and injured a number of others in Cherry Valley, Illinois.

Saturday’s catastrophe in Lac-Megantic, Quebec, was brought on by a runaway oil freight train that leveled the town’s heart and killed not less than 13 individuals. One other 37 individuals are nonetheless lacking.

It is not recognized if the prepare’s DOT-111 tanker vehicles were manufactured up to the upper standards. It’s also removed from clear if extra puncture-resistant fittings might have withstood the crush of a practice hurtling downhill and leaping the tracks into the middle of town.

Ed Balkaloul, an investigator for the Transportation Safety Board of Canada, said the “resistance” of the tanker cars can be a part of the investigation.

“These automobiles are designed to carry all kinds of products. They could include corn oil. They aren’t vehicles which can be protected, like for example the automobiles that carry propane, which are double hulled or which have shields on the entrance to provide resistance against shocks in case of impacts,” Balkaloul stated on Tuesday.

The rail trade has met regulators half-method on the NTSB’s recommendations. DOT-111 railcars ordered after October 2011 have been manufactured to the new code, however the trade has resisted spending an estimated $1 billion to retrofit practically 300,000 present tank vehicles.

In Lac-Megantic, Reuters noticed a number of derailed but undamaged railcars that were made earlier than 2011, which suggests they weren’t manufactured to the new code. There have been also some vehicles made in late 2011, simply because the trade adopted greater standards. The hearth burnt the markings on many automobiles.

Montreal, Maine and Atlantic Railway, whose prepare derailed on Saturday, doesn’t personal the railcars, in line with Chairman Ed Burkhardt. He stated the cars were leased by the same firm that was shipping the crude, but declined to establish it.

World Fuel Companies Corp confirmed it was transport the crude, however didn’t reply to questions about the vehicles. It mentioned it had bought the crude to Irving Oil, which owns the refinery in Canada that the train was traveling to. World Gas Services shares have fallen 7 % because the derailment.

HAMMERING OUT THE Regulations

U.S. regulators have been debating the security of the railcars for more than 20 years.

Most of the present DOT-111 fleet was constructed to carry ethanol, refined fuels or petroleum liquids, all of which are usually more flammable than crude. Of an estimated 290,000 tank cars in service over a yr ago, sixty nine percent of them were DOT-111s, in accordance with the NTSB’s March 2012 letter. Until recently, only a handful of these would have carried crude.

Now, about 10 p.c of the fleet is used for crude because of railroads are more and more used to transport shale oil, similar to from North Dakota’s Bakken, to refineries. A lot of the crude is shipped within the DOT-111 class railcars, business experts say.

“There isn’t any technically official car for crude oil. Folks just use no matter tank automotive is obtainable, whether or not it is a automobile constructed for ethanol, or a automobile constructed for gasoline or corn oil or every other product,” stated Keith Kronfeld, director of transload operations for Atlas Oil, a nationwide gasoline supply and distribution firm in Oregon.

The Association of American Railroads (AAR) beforehand opposed retrofitting, saying it might price the business “properly over” $1 billion. As compared, derailment prices totaled about $sixty four million over the past 5 years, the group stated in a March 2011 letter. It mentioned there had been one fatality and 11 accidents from the derailments within the 2004-2008 interval.

The nation’s largest railroads made $70 billion in working revenues in 2012, in accordance with an AAR estimate.

AAR spokeswoman Patricia Reilly mentioned there are “technical difficulties” with the NTSB’s retrofitting requirement, but noted the business has already adopted the tougher security standards for all tank automobiles ordered after October 2011.

“The AAR believes that improving the security requirements of tank cars is an ever-evolving course of and may contain the input and experience of those whose purpose is making certain the protected transport of all hazardous supplies, together with crude oil and ethanol,” she stated in an emailed assertion.

In a March 2012 letter, the NTSB steered that imposing harder safety necessities solely on newly constructed DOT-111 cars was insufficient. It stated present railcars must be made extra puncture resistant by making their shell walls thicker and including further safety at the ends, where the pile-up of decoupled cars can pose further risk.

A spokesperson for the U.S. Division of Transportation’s Pipeline and Hazardous Materials Security Administration said it’s “considering amendments to present rules that would improve rail security,” together with for the DOT-111s, however the principles are nonetheless being hammered out.

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