Statoil says crude on derailed BNSF train complied with volatility limit

(Revises amount leaked, type of railcar, crude volatility limits and expected reopening of track)

By Kristen Hays

HOUSTON, July 17 (Reuters) - The North Dakota crude on a Berkshire Hathaway Inc (Sao Paolo: BERK34.SA - news) -owned BNSF Railway Co train that derailed this week in Montana was produced by Norway's Statoil (Stockholm: 63644.ST - news) and complied with regulations that limit flammability, a Statoil (Xetra: 675213 - news) spokesman said on Friday.

The train was bound for BP Plc's refinery in Washington state, sources familiar with the shipment said.

Twenty-two of 106 railcars loaded with crude derailed on the westbound train Thursday evening east of Culbertson, Montana.

Statoil spokesman Peter Symons said the crude was "fully compliant" with North Dakota regulations imposed in April that limit vapor pressure in crude before it is loaded into railcars for transport to market.

The state has used vapor pressure as a proxy for measuring the amount of flammable natural gas liquids that are present in crude that can ignite in a crash.

BNSF spokesman Michael Trevino said late Friday that five railcars leaked 35,000 gallons of oil, or about 1,100 barrels. There was no fire.

He said repairs to the track were under way and BNSF expected to re-open it to traffic late Friday or early Saturday (Shenzhen: 002291.SZ - news) .

He also said the railcars were of the latest design adopted by the industry in October 2011, known as CPC-1232s, and not older, less fortified DOT-111s.

The U.S. Department of Transportation said late Friday that the train was loaded with crude by Savage Services in Trenton, North Dakota, and that about 35,000 gallons, or 1,100 barrels, of oil leaked.

Companies like Savage take samples of crude slated for rail transport and test it to ensure it meets North Dakota's limit of 13.7 psi. Symons said Statoil's shipment met that threshold.

North Dakota imposed the vapor pressure rule to lessen likelihood of a fire or explosion in a derailment after a spate of fiery crashes.

DOT in May issued new rules for more fortified railcars carrying crude and ethanol for the same reason.

New (KOSDAQ: 160550.KQ - news) railcars built from October this year on must have thicker hulls and more reinforcements than CPC-1232s, but thousands of CPC-1232 cars on the rails have several years to undergo retrofits to meet the new standards. (Reporting by Kristen Hays; editing by Chizu Nomiyama and Andrew Hay)