ABC13 reported that nobody was harmed during the incident in which 14 cars, all carrying crude oil, derailed.

Oil also leaked into the James River, causing mass concern for the city’s drinking water.

It is estimated that more than 70,000 gallons of crude oil poured into the river.

Witnesses reported seeing flames of 80-100 feet high engulfing the cars and coursing into the river.

The city of Lynchburg subdued the worries via social media, assuring local residents that drinking water had not been affected.

Parts of the city were evacuated including the densely populated downtown area and streets bordering the contaminated river.

It was reported that the local fire services assessed the situation and allowed the fire to burn out on its own.

At 4.30pm on Wednesday (local time) the CSX confirmed the fire had been distinguished.

Residents have been advised by local authorities they may return to the evacuated areas to retrieve their vehicles but were reminded to check in with police before doing so.

Witnesses told local media the train derailed when the earth beneath gave way, tossing part of the train into the river.

One witness described the enormous “boom” when hearing the cars collide into one another.

Another witness said the spillage “sounded like deep-fryer” as burning crude oil poured into the river.

The cause of the incident is unknown but investigations will be taking place over the coming weeks.