Responsible Energy

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Canada suspends railroad’s operations after disaster



The Montreal, Maine & Atlantic Railway train, carrying crude oil from the Bakken shale fields of North Dakota, was parked overnight at a nearby town when it slipped away, derailed and exploded in the center of Lac-Megantic.

The railway’s chairman has said the disaster appeared to have been caused by an engineer’s failure to set hand brakes on the train properly.

Forty seven dead.

Quebec targets CP Railway for Lac-Mégantic cleanup costs

The Canadian Press

Published Wednesday, Aug. 14 2013, 5:22 PM EDT

The Quebec government added the Canadian Pacific Railway to its list of legal targets Wednesday, casting a wider net to recover millions of dollars in cleanup costs from the Lac-Mégantic disaster.

CPR was included as one of the defendants because, the government said Wednesday, it was the main contractor responsible for the fateful shipment that was supposed to send the cargo from North Dakota to a New Brunswick oil refinery.

It handed off the train in Montreal to the smaller Montreal, Maine & Atlantic Railway Ltd., which then operated the tanker train that jumped the tracks in Lac-Mégantic on July 6.

In one court filing, MM&A said its insurance coverage was $25-million and estimated the cleanup cost would climb past $200-million.

By adding the CPR to its legal notice, the Quebec government locked in on a bigger target than MM&A – one with much deeper pockets.

On Wednesday, the province also added another firm to the notice: World Fuel Services Inc., which is a subsidiary of the petroleum-logistics firm World Fuel Services Corp. The parent company and another subsidiary, Western Petroleum Company, were listed in the initial demand from the government.

The Miami-based World Fuel Services had bought the crude oil that was to be shipped to the Irving refinery in St. John, N.B.

World Fuel Services, Western Petroleum Company and MM&A are among 10 defendants listed in several wrongful-death lawsuits filed last month in an Illinois court. Both World Fuel Services and MM&A have also been named in a proposed class-action suit in Quebec.

Lac-Megantic Disaster: Canadian Pacific Railroad Rejects Quebec’s Demand For Money

By The Canadian Press

Posted: 08/15/2013 1:28 pm EDT

Canadian Pacific says it holds no financial responsibility for the Lac-Megantic disaster and is rejecting a legal demand by the provincial government that it help fund the cleanup of the devastated Quebec town.


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