North Dakota will from Wednesday require the more-than 1.2 million barrels of crude extracted each day from the state's Bakken shale formation be run through machines that remove volatile gases linked to recent crude-by-rail disasters.
The controversial step is designed to abrogate the damage North Dakota crude oil - 70 percent of which is transported via rail - can cause during derailments.
In the absence of concrete regulations from the U.S. Department of Transportation, North Dakota's new rules become the de facto national standard on the treatment of crude before tankcar loading.
"North Dakota's crude oil conditioning order is based on sound science and represents an important step in the ongoing work to ensure that oil-by-rail transportation is as safe as possible," said Governor Jack Dalrymple, who has also been pushing federal regulators for stricter rail car designs.
The new regulations require every single barrel of North Dakota crude to be filtered for ethane, propane and other natural gas liquids (NGLs), which are found naturally co-mingled with oil.
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