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Creosote is toxic, if you are licking it...
It is fairly nasty stuff, definitely not permissible for organic production, but is a great wood preservative.
I've been slowly removing and replacing our railroad tie fence posts because we are certified organic producers. Nobody has ever said anything about them and the hens aren't really in contact with them, but I find them rather ugly and they are a leftover from when they used to run cattle here. We don't really don't need railroad tie fence posts to hold in a bunch of chickens. They are a bear to remove though. Many are eight feet long, weigh a couple hundred pounds, and are sunk three or four feet down into wet clay.