The effects of Lac-Mégantic are still being felt almost two years later, as Ottawa introduces proposed amendments to enhance railway safety – especially in regards to crude oil shipments.
Minister of Transport Lisa Raitt introduced the new Safe and Accountable Rail Act, proposing amendments to the Canada Transportation Act and Railway Safety Act. Changes include a new liability and compensation regime for federally regulated railways, including minimum insurance requirements; a compensation fund financed by levies on crude oil shippers; increased information-sharing provisions; and stronger oversight powers for the Minister and Transport Canada inspectors.
“The Government of Canada continues to make the safety and security of Canadians a top priority,” said Raitt. “This new legislation will improve railway safety and strengthen oversight while protecting taxpayers and making industry more accountable to communities.”
The new liability and compensation regime will be consistent with those the Government has introduced for other modes of transport, such as marine tankers and oil pipelines. It is based on the “polluter pays” principle and makes railways and shippers responsible for the cost of accidents, protecting taxpayers and communities by ensuring that adequate resources are available for compensation if an accident were to occur.
It was back in January that a multi-million dollar wrongful-death settlement was reached for the victims of the 2013 Lac-Megantic, Que. rail disaster.
According to Peter Flowers, the lawyer who was handling the lawsuits, $200 million will be distributed in settlement funds to the victims’ families and other parties involved in the legal battle.
The companies involved in the settlement are the Montreal Maine and Atlantic Canada Co., its insurance carrier, rail-car manufacturers and some oil producers.
According to Flowers, the amount will go even higher because three other companies – World Fuel Services, Canadian Pacific Railway and Irving Oil – have yet to contribute. (continued.)
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The proposed amendments by Raitt to the Railway Safety Act will broaden the powers of the Minister and inspectors to order railway companies and others to take specified measures or stop any activity deemed necessary for safe railway operations.
They will also create new regulation-making powers requiring railway companies to share information with municipalities. These changes are part of the Government's commitment to strengthen oversight and increase collaboration between communities and the rail industry, addressing issues raised in the Transportation Safety Board's final report on the Lac-Mégantic derailment as well as concerns of the Federation of Canadian Municipalities.
Quick Facts
- Proposed amendments to the Railway Safety Act provide the Minister with the authority to issue a Ministerial Order requiring a company to take corrective measures if it is believed to be implementing its SMS in a way that could compromise railway safety;
- Federal railway companies must obtain and maintain legislated minimum levels of insurance based on the type and volume of dangerous goods they carry. Minimum insurance levels will vary from $25 million for no or low quantities of dangerous goods up to a maximum of $1 billion for substantial quantities;
- Shippers of crude oil will be required to pay a levy per tonne of crude oil shipped to build up a supplementary fund to pay for damages exceeding a railway's minimum insurance level if an accident involving crude oil occurs.
