Accelerated Phase-Out of Certain Tank Cars Used for Crude Oil
Transport Canada has announced that both jacketed and
non-jacketed DOT-111 tank cars built prior to the introduction of
safety standard CPC-12321 must be taken out of service
prior to November 1, 2016. This announcement accelerates the
previous phase-out timeline which required the phase-out of legacy
DOT-111 tank cars by May 1, 2017 for non-jacketed cars and March 1,
2018 for jacketed cars.
The timeframe for phase-out of DOT-111 tank cars built in
compliance with safety standard CPC-1232 remains unchanged and such
tank cars must be phased out by April 30, 2025. Similarly, the
timeframe for phase out of other tank cars involved in the
transportation of dangerous goods remains unchanged.
Reminder re: Impact on Documents Previously Deposited Under the
Canada Transportation Act
Where an existing tank car is replaced by a new tank car in
compliance with the Regulations Amending the Transportation of
Dangerous Goods Regulations (TC-117 tank cars)2,
and where a security interest has been granted in the tank car
being replaced, the underlying lease or security agreement must be
examined to determine if such replacement is permitted.
If the underlying lease or security agreement provides for
substitution of collateral, then the tank car can be replaced
(generally with the consent of the secured party). Although the
lease or security agreement may contain language that allows for
substitution and extends the security interest to any replacement
or substitution collateral, an amendment to the corresponding
deposit under the Canada Transportation
Act3 (CTA) may also be required to ensure that
the collateral is sufficiently described for the purposes of the
1 CPC-1232 - Requirements for Cars Built for the
Transportation of Packing Group I and II Materials with the Proper
Shipping Names "Petroleum Crude Oil", "Alcohols,
n.o.s." and "Ethanol and Gasoline
2 Regulations Amending the Transportation of Dangerous
Goods Regulations (TC 117 Tank Cars),SOR/2015-100
3 S.C. 1996, c. 10
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