Tesoro upgrading rail car fleet for Bakken crude shipments

By Tesoro Corporation | February 19, 2014

Tesoro Corp has announced  that Tesoro Refining & Marketing Company LLC  has proactively begun replacing older cars in its crude oil rail car fleet with post-October 2011 design, CPC 1232-compliant rail cars, after evaluating rail car safety features.

Specifically, Tesoro is committing that its rail car fleet will consist entirely of the newer DOT-111 design rail cars equipped with reinforced shields and relief devices by mid-2014. While this action applies to the vast majority of crude oil deliveries into Tesoro facilities, beginning in mid-2014 Tesoro will also make rail car design a part of its commercial considerations with all business partners who may ship crude oil into company-owned facilities. This includes Tesoro's refinery in Anacortes, Wash., and the proposed Tesoro-Savage Energy Distribution Terminal in Vancouver, Wash.

"Tesoro is committed to the safe and environmentally sound handling of crude oil. The safe design of rail cars in crude service is of paramount importance," said Keith Casey, senior vice president of strategy and business development, Tesoro. "We're proactively making these commitments today, before expected changes in future federal regulations, because we believe it's the right thing to do for all of our stakeholders."

The upgrades to Tesoro's rail car fleet will be completed before construction of the proposed Tesoro-Savage Energy Distribution Terminal would begin and before the terminal would start accepting crude oil deliveries. Because Tesoro is underpinning the initial capacity of the facility, many of the crude oil deliveries handled at the terminal at start-up will be owned by Tesoro and will arrive in Tesoro rail cars.