On February 20, 2015, Parliament introduced Bill C-52, an Act to amend the Canada
Transportation Act and the Railway Safety
Act. Bill C-52 is meant to strengthen the liability and
compensation regime for federally regulated railway companies.
Particularly, the Bill will, among other things:
establish minimum insurance levels for freight railway
establish that a railway company is liable, without proof of
fault or negligence, subject to certain defences, for damages
resulting from an accident involving crude oil, up to the level of
the company's minimum liability insurance coverage; and
establish a fund that is financed by levies on shippers to
cover the damages resulting from a railway accident involving crude
oil that exceed the minimum liability insurance coverage.
Bill C-52 is part of the Federal government's continued
response to the increase in shipments of crude oil by rail, as well
as accidents that have occurred recently, such as the
Lac-Mégantic disaster on July 6, 2013.
The Federal government and the Province of Québec have
encountered problems paying for the cleanup costs resulting from
the Lac-Mégantic disaster. Montreal, Maine & Atlantic
Canada Co. (MM&A), the railway company involved in the
disaster, filed for protection from its creditors in August of
2013, unable to pay for the hundreds of millions of dollars in
cleanup costs and legal claims. MM&A's insurance policy had
a per occurrence limit of $25 million.
We expect that Bill C-52, along with other regulations that have
come into force over the past year, will continue to increase the
costs of shipping crude oil by rail. As these costs rise, there
will be increased pressure to alleviate pipeline capacity issues in
both Canada and the United States.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).