The alert began when a gas cylinder used by a builder caught fire
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The centre of Cookstown remains cordoned off because of the risk of a gas explosion after a cylinder used by welders caught fire on a building site.
Schools and houses were evacuated and surrounding streets could remain closed until Thursday evening. The fire began at about 1100 BST.
Residents of the evacuated area who need overnight accommodation are being put up at Loughry College in the town.
An explosion could still happen 24 hours after the gas has burned out.
An emergency point was established at the Burnavon Centre on the Burn Road.
As a precaution, two primary schools, a nursery school and a leisure centre were all evacuated.
Pupils were evacuated during the alert
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Chapel Street, Molesworth Road and Fountain Road have all been cordoned off and are likely to remain closed for at least 24 hours.
Fire Service Western Area Commander Ian Doyle said it would take time to deal with the fire.
"It's a particularly hazardous situation - 200 metres of the area has been evacuated," Mr Doyle said.
"We're in a defensive mode in terms of tackling the situation, standing back and trying to eliminate the risk to firefighters."
He said the fire would cause disruption to the town centre for some time.
"Unfortunately that's unavoidable, but it's absolutely essential to ensure the safety of firefighters and members of the public."