CASSELTON, N.D. -- Authorities urged residents to evacuate a small North Dakota town Monday night after a 1.6-kilometre-long train carrying crude oil derailed outside of town, shaking residents with a series of explosions that sent flames and black smoke skyward.

The Cass County sheriff's office said it was "strongly recommending" that people in the town of Casselton and anyone living eight kilometres to the south and east evacuate. A shelter has been set up in Fargo, which is about 40 kilometres away. Casselton has about 2,400 residents.

The sheriff's office said the National Weather Service was forecasting a shift in the weather that could increase the risk of potential health hazards.

"That's going to put the plume right over the top of Casselton," Cass County Sheriff Paul Laney said at a news briefing.

As many as 10 cars out of more than 100 caught fire when the BNSF Railway Co. train left the tracks about 2:30 p.m. Monday. No one was hurt.

The cars were still burning as darkness fell, and authorities said they would be allowed to burn out.

Authorities hadn't yet been able to determine exactly how the derailment happened, but a second train carrying grain was involved. BNSF spokeswoman Amy McBeth said the train carrying grain derailed first, then knocked several cars of the oil train off adjoining tracks.

Ryan Toop, who lives about a 800 metres away, said he heard explosions and drove as close as about two city blocks to the fire, which erupted on a day when temperatures were below zero Fahrenheit (minus 18 Celsius).

"I rolled down the window, and you could literally keep your hands warm," Toop said.

The derailment happened amid increased concerns about the United States' increased reliance on rail to carry crude oil. Fears of catastrophic derailments were particularly stoked after last July's crash in a Quebec town of a runaway train carrying crude oil from North Dakota's Bakken oil patch. Forty-seven people died in the ensuing fire.

The tracks that the train was on Monday pass through the middle of Casselton, and Cass County Sheriff's Sgt. Tara Morris said it was "a blessing it didn't happen within the city."

The train had more than 100 cars, and about 80 of them were moved away from the site.

Morris said it could take up to 12 hours before authorities could get close to the fire. Jeff Zent, a spokesman for Gov. Jack Dalrymple, said the National Guard was on alert if needed.

Temperatures were forecast to drop to minus 29 C in Cass County overnight.

"Of course, Mother Nature, being North Dakota, it has to be one of the coldest nights of the year. It's deadly cold out there tonight," Laney said.

Mayor Ed McConnell said he didn't want any residents sleeping in their vehicles.

"All the experts say it can be a hazardous situation to their health," McConnell said. "We're going to try to get everybody out of the town."

Hannah Linnard, 13, said she was in the bedroom of her friend's house about 800 metres from the derailment, wrapping late Christmas presents.

"I looked out the window and all of a sudden the train car tipped over and the whole thing was engulfed in flames and it just exploded. The oil car tipped over onto the grain car," she said. Hannah said she could feel the warmth even inside the house.

Terry Johnson, the manager of a grain dealer less than a mile from the derailment, said he heard at least six explosions in the two hours following the incident.

"Each one, you could hear the explosion," he said. "It shook our building and there was a huge fireball."

North Dakota is the No. 2 oil-producing state in the U.S., trailing only Texas, and a growing amount of that oil is being shipped by rail. The state's top oil regulator said earlier this month that he expected as much as 90 per cent of North Dakota's oil would be carried by train in 2014, up from the current 60 per cent.

The number of crude oil carloads hauled by U.S. railroads surged from 10,840 in 2009 to a projected 400,000 this year. Despite the increase, the rate of accidents has stayed relatively steady. Railroads say 99.997 per cent of hazardous materials shipments reach destinations safely.

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Associated Press writers James MacPherson in Bismarck, North Dakota, and Dirk Lammers in Sioux Falls, South Dakota, contributed.