North Dakota Proposes New Rules for Bakken Crude

[mahatmakanejeeves]

Hat tip, Trainorders: New rules for Bakken crude

Date: 11/14/14 07:58
New rules for Bakken crude
Author: Lackawanna484

North Dakota has issued new proposed rules for Bakken crude shipped out of state. The rule would require that all crude be heated and tested, and that which contained excess levels of butane, propane, etc (often referred to as gassy liquids, or natural gas liquids) be treated and those elements removed.

The rules are consistent with an earlier requirement that flaring off of natural gas liquids be eliminated and the liquids captured for shipment. I haven't compared them to the federal pipeline safety administration's offer of a waiver to common carrier rules, but they seem consistent with those requirements, too.

Lackawanna484 got the story from Reuters:

UPDATE 1-North Dakota proposes rules to make its oil less volatile

Thu Nov 13, 2014 3:56pm EST

(Adds decision to delay vote on standards)

By Ernest Scheyder

BISMARCK, N.D. Nov 13 (Reuters) - North Dakota's energy regulators proposed standards on Thursday to remove volatile elements from all crude oil produced in the state, part of a response to concerns about the safety of crude-by-rail transport.

Gov. Jack Dalrymple and the two other members of the North Dakota Industrial Commission opted to delay approval until at least December, however, but appeared likely to support the spirit of the proposal: effectively requiring oil producers to boost the temperature at which they heat crude oil to remove propane, butane and other volatile elements.

"Our crude oil leaving North Dakota will behave like the gasoline you put in your car," Lynn Helms, the head of the Department of Mineral Resources, which came up with the recommendations, told the commission.
....

(Reporting by Ernest Scheyder; Editing by Terry Wade and James Dalgleish)