No injuries occurred, but the fire forced 150 residents to be evacuated.
The incident follows a string of recent derailments, putting the crude-by-rail business under scrutiny, with a mile-long train carrying crude oil derailing and bursting into flames in North Dakota last month.
Meanwhile, a report commissioned by the Alberta and British Columbia governments to examine the idea of transporting crude oil from the Alberta oil sands to the BC coast has come under scrutiny.
The report aims to determine the capability of rail to step into the place of pipelines to manage the transport of energy resources between the two provinces.
The report has come under fire from environmental groups, which say the process is happening without public oversight.