OCTOBER 2005 Transportation Federal Railroad Administration Urges Shippers to Increase Vigilance Over Railroad Transportation of Hazardous Materials A recent railroad tank car emergency in Cincinnati has prompted the Federal Railroad Administration (“FRA”) to issue a Safety Advisory urging railroads, shippers and consignees to increase their efforts to monitor time-sensitive shipments of hazardous materials. Although the Safety Advisory contains only recommendations and does not have the binding effect of an agency rule or emergency order, FRA plans to monitor railroad, shipper and consignee efforts to ensure the safety and timely delivery of railroad hazmat shipments. On August 28, 2005, emergency responders in Cincinnati were called to a smoking tank car in a rail yard operated by the Indiana and Ohio Railway Company (“IORC”). The car contained over 23,000 gallons of styrene monomer (a flammable liquid) and had spent seven months in two IORC rail yards before the incident. The likely cause of the incident was the reaction of the styrene (polymerization) after a chemical added to styrene to prevent the reaction during transport stopped working. The FRA has found no records indicating that IORC ever attempted to contact the consignee in order to arrange for delivery. As a result of the incident, approximately 800 residents within a one mile radius of the yard were evacuated, four nearby schools were closed, and barge traffic on the Ohio River was halted for a short time. The Safety Advisory sets forth three specific recommendations: ■ The FRA strongly encourages all railroads to develop procedures that conform to Association of American Railroads (“AAR”) Circular OT-55-H, “Recommended Railroad Operating Practices for Transportation of Hazardous Materials,” which among other things sets 20day and 30-day transit time limits for rail shipments of prescribed hazardous materials. ■ The FRA recommends that “shippers and consignees monitor the progress of time-sensitive materials that they have shipped and ordered.” Shippers of hazardous materials should notify the consignee of the anticipated arrival deadline and the shipper and/or the consignee should contact the railroad as the due date approaches to get a status report. The FRA notes that the installation of automated car monitoring equipment may be warranted for shippers or consignees with high traffic volumes. The FRA is not presently mandating any particular actions, but plans to evaluate shipper/consignee activity and “determine the need for any future regulatory or other agency action.” ■ The FRA recommends that shippers and consignees work with railroads to explore ways to reduce the risks inherent in the shipment of the full range of time-sensitive hazardous materials, including chemicals shipped with stabilizers or reaction inhibitors. FRA says it will be “monitoring hazardous material movements to ensure that those who offer for transportation or transport such chemicals in commerce work together to minimize the safety risks associated with the movement of time-sensitive materials.” Kirkpatrick & Lockhart Nicholson Graham LLP FRA’s clear message is that railroads have the primary responsibility to monitor the movement of hazardous material shipments, but extra vigilance by shippers and consignees will provide an added layer of safety. As a result of the IORC incident and the recent public focus on the routing of rail hazardous materials shipments, we believe the FRA will continue to broaden the responsibility for monitoring the safety of such shipments. The FRA action also is a further indication that the regulation of hazardous materials transportation has become a priority enforcement issue for various federal agencies.1 1 Kevin M. Sheys ksheys@klng.com 202.778.9290 Edward J. Fishman efishman@klng.com 202.778.9459 Brendon P. Fowler bfowler@klng.com 202.778.9237 See, e.g., K&L Homeland Security Bulletin, “Homeland Security Expands To Regulation of the Manufacture, Use, Transportation and Disposal of Hazardous Substances and Materials, Including Chemical and Biological Agents,” by Barry M. Hartman, Christopher E. Dominguez and Marsha A. Sajer (April 2003). FOR FURTHER INFORMATION, please consult one of the lawyers listed below: Boston Harrisburg Pittsburgh Washington Jeffrey S. King Carleton O. Strouss Theodore A. McConnell Kevin M. Sheys Edward J. Fishman Janie C. I. Sheng Brendon P. Fowler Barry M. Hartman 617.261.3179 717.231.4503 412.355.6566 202.778.9290 202.778.9456 202.778.9855 202.778.9237 202.778.9338 jking@klng.com cstrouss@klng.com tmcconnell@klng.com ksheys@klng.com efishman@klng.com jsheng@klng.com bfowler@klng.com bhartman@klng.com www.klng.com BOSTON ■ DALLAS ■ HARRISBURG ■ LONDON ■ LOS ANGELES ■ MIAMI ■ NEWARK ■ NEW YORK ■ PALO ALTO ■ PITTSBURGH ■ SAN FRANCISCO ■ WASHINGTON Kirkpatrick & Lockhart Nicholson Graham (K&LNG) has approximately 1,000 lawyers and represents entrepreneurs, growth and middle market companies, capital markets participants, and leading FORTUNE 100 and FTSE 100 global corporations nationally and internationally. 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