Tag Archives: Canada

Crude By Rail, Lac-Mégantic, Rail Safety, Train speed

CEO hopes town where 47 died will OK oil trains

Repost from The San Francisco Chronicle, Biz & Tech

CEO hopes town where 47 died will OK oil trains

David Sharp, Associated Press  |  May 16, 2014

FILE - In this July 6, 2013 photo, smoke rises from flaming railway cars that were carrying crude oil after it a train derailed in downtown Lac Megantic, Quebec, Canada. A large swath of the town was destroyed after the derailment, sparking several explosions and fires that claimed 47 lives. John Giles, top executive of Central Maine and Quebec Railway, that purchased the railroad responsible for the derailment, said Friday, May 16, 2014 that they plan to resume oil shipments after track safety improvements are made.

Paul Chiasson, AP  – FILE – In this July 6, 2013 photo, smoke rises from flaming railway cars that were carrying crude oil after it a train derailed in downtown Lac Megantic, Quebec, Canada. A large swath of the town was destroyed after the derailment, sparking several explosions and fires that claimed 47 lives. John Giles, top executive of Central Maine and Quebec Railway, that purchased the railroad responsible for the derailment, said Friday, May 16, 2014 that they plan to resume oil shipments after track safety improvements are made.

PORTLAND, Maine (AP) — The company buying the assets of a railroad responsible for a fiery oil train derailment that claimed 47 lives in Quebec plans to resume oil shipments once track safety improvements are made, its top executive said Friday.

John Giles, CEO of Central Maine and Quebec Railway, said he hopes to have an agreement with officials in Lac Megantic, Quebec, within 10 days that would allow the railroad to ship nonhazardous goods, restoring the vital link between the railroad’s operations to the east and west of the community.

The company plans to spend $10 million on rail improvements in Canada over the next two years with a goal of resuming oil shipments in 18 months, he said.

“In the interest of safety, and I think being sensitive toward a social contract with Lac Megantic, we have chosen not to handle crude oil and dangerous goods through the city until we’ve got the railroad infrastructure improved and made more reliable,” he told The Associated Press.

The oil industry is relying heavily on trains to transport crude in part because of oil booms in North Dakota’s Bakken region and Alberta’s oil sands.

In July, a train transporting Bakken oil was left unattended by its lone crew member while parked near Lac Megantic. The train began rolling and sped downhill into the town, where more than 60 tank cars derailed and several exploded. The accident killed 47 people and destroyed much of the town. Three workers were charged this week in Canada with criminal negligence.

Canadian Prime Minister Stephen Harper wants the railroad and Lac Megantic residents to work together on a final plan.

“Any plan the company has should take into account the tragedy the people of Lac Megantic have gone through and should be done in collaboration with the administration of the city,” said Carl Vallee, a spokesman for the prime minister.

Transportation Minister Lisa Raitt said only that she was monitoring the situation.

Mayor Colette Roy-Laroche, who had no comment on Friday, previously told the new operator that she wanted the railroad to be re-routed around the downtown.

News that the new railroad is already talking about resuming operations upset Yannick Gagne, owner of the cafe-bar that was at ground zero of the tragedy.

“People are still in distress, in pain, facing financial problems, and we’re talking about the train company starting up,” the Musi-Cafe owner said.

Giles said he intends to move slowly and understands the community’s concerns. He said he hopes to convince the people of Lac Megantic that the rail is safe enough for shipments of dangerous goods by this fall. He said he wouldn’t press for crude oil shipments until later.

“I want to get the railroad in position that by January 2016 that I can at least begin to compete for potential crude business moving east-west,” Giles said.

What business may be available at that point is unclear, the company said.

New York-based Fortress Investment Group was the winning bidder for the assets of Hermon, Maine-based Montreal, Maine and Atlantic Railway, which declared bankruptcy after the disaster. Central Maine and Quebec Railway closed on the sale of U.S. assets on Thursday and is expected to close of the Canadian assets in a couple of weeks.

Giles made his comments Friday in a telephone interview from Bangor, where his company had called former Montreal, Maine and Atlantic workers for a two-day meeting to talk about safety and operations.

He said the rail is in rough shape, with speeds reduced to 10 mph in many sections in Canada. He said the goal is to improve the track to safely increase train speeds to 25 mph. He also said he has no plans to operate trains with a single crew member.

With repairs, the company can transport crude safely, Giles said.

“The railway is important to the community, people, jobs and commerce,” he said. “We believe and we’ve proven … that we can handle every type of commodity safely and efficiently.”

___

Associated Press writer Rob Gillies contributed to this report from Toronto.
Bakken Crude, DOT-111, Federal Regulation (U.S.), Oil Industry, Rail industry

Canada: 3-year phase out or retrofit of DOT-111 tank cars

Repost from Canada’s Financial Post

Canada to phase out in 3 years old rail tankers of type that exploded in Lac-Megantic disaster

Associated Press | April 23, 2014

Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac-Megantic, Que., July 6, 2013.

Canadian Press – Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac-Megantic, Que., July 6, 2013.

TORONTO  — Canada will require a three-year phase out or retrofit of the type of rail tankers involved in last summer’s massive explosion of an oil train that destroyed much of a Quebec town and incinerated 47 people, a government official told The Associated Press Wednesday.

Last July, a runaway oil train derailed and exploded in Lac-Megantic, Quebec, near the Maine border. Forty-seven people were incinerated and 30 buildings destroyed.

A government official confirmed the phase out of the DOT-111 tanker cars used to carry oil and other flammable liquids. The official spoke on condition of anonymity because the official was not authorized to speak publicly ahead of the plan’s official announcement.

Canada’s Transport Minister will announce new rules later Wednesday in response to recommendations by Canada’s Transportation Safety Board in the aftermath of the tragedy. U.S. officials will be watching closely as the rail industry is deeply integrated across North America and both nations’ accident investigators implored their governments earlier this year to impose new safety rules.

The DOT-111 tank car is considered the workhorse of the North American fleet and makes up about 70% of all tankers on the rails. But they are prone to rupture. The U.S. NTSB has been urging replacing or retrofitting the tank cars since 1991.

Canada’s safety board has said a long phase-out would not be good enough.

Safety experts have said the soda-can shaped car has a tendency to split open during derailments and other major accidents.

There’s been intense political and public pressure to make oil trains safer since a runaway train with 72 tank cars of North Dakota oil derailed and exploded in Lac-Megantic. The train was left unattended by its lone crew member while parked near the town. The train came loose and sped downhill into Lac-Megantic. More than 60 tank cars derailed and caught fire, and several exploded, destroying much of the downtown.

Oil trains also have exploded and burned in Alabama, North Dakota and New Brunswick in recent months.

The oil industry has been increasingly using trains to transport oil in part because of a lack of pipelines.

U.S. freight railroads transported about 415,000 carloads of crude in 2013, up from just 9,500 in 2008, according to government and industry figures.

The oil trains, some of which are 100 cars long, pass through or near scores of cities and towns.

Some companies have said they will voluntarily take the DOT-111 tank cars offline. Irving Oil Ltd., a large Canadian refiner, has said it will stop using the older DOT-111s by April 30. Canada’s two largest railways, Canadian National Railway and Canadian Pacific Railway, have already said they would move away from the DOT-111. But it is the oil companies or shippers that own or lease many of the cars.

Derailment, Explosion, Lac-Mégantic, Victim compensation

The legal quagmire of Lac-Mégantic

Repost from The Montreal Gazette

Plans are finally taking shape for financial compensation of derailment victims

By Monique Beaudin, Gazette environment reporter April 20, 2014
The legal quagmire of Lac-Mégantic
The light fades over the Appalachian Mountains in Lac-Mégantic a couple of weeks after the train derailment in July 2013. Eight months later, plans for compensation are coming together. Photograph by: Allen McInnis , Montreal Gazette

Nine months after a runaway oil train derailed in Lac-Mégantic, killing 47 people and destroying a large chunk of the town, a plan for financially compensating disaster victims is taking shape.

Judges in Quebec and Maine have approved a joint cross-border process for victims of the accident to file claims against Montreal, Maine and Atlantic Railway and its Canadian operations, Montreal, Maine and Atlantic Canada. The two companies have been under bankruptcy protection since August.

Thousands of claims related to the derailment are expected to be filed against MMA. Public information meetings on the financial-claims process are to begin in Lac-Mégantic next week. Claims must be filed by the middle of June.

People who lost family members, homes and businesses have turned to Canadian and American courts for financial compensation, but the process has been slow. The estates of several of the 47 people killed on July 6 have filed wrongful-death lawsuits in the U.S. Lawyers have also begun proceedings to bring a class action in Quebec. Quebec has already ordered six companies to clean up and decontaminate the town, a move that is facing a legal challenge.

The American lawyer overseeing MMA’s U.S. bankruptcy proceedings himself admits figuring out how victims will be compensated is “quite complicated”.

One of the biggest questions is who has the money to pay for the accident — compensating victims and secured creditors, covering cleanup costs and paying damages that several companies are claiming as a result of the derailment.

MMA was sold in January to New York-based Railway Acquisitions Holdings, for $14.25 million, less than what it owes its secured creditors.

That leaves a $25-million insurance policy and the possibility of a settlement fund composed of contributions from several companies targeted by legal action after the accident, said Robert Keach, MMA’s U.S. Chapter 11 trustee.

Another possible source of financial compensation for victims could come from a lawsuit Keach filed against World Fuel Services, Western Petroleum and Petroleum Transport Solutions, the companies that arranged for the shipment of the crude oil on the train. Keach argued they were to blame for the accident since the oil had been mislabelled as being less volatile than it actually was.

New York-based lawyer Luc Despins is counsel to a victims’ committee made up of residents, the town of Lac-Mégantic and the Quebec government. The committee represents victims’ interests in MMA’s American bankruptcy proceedings, offering input on issues like the compensation process, he said.

Despins said the committee’s goal is to get as much money as possible to the Lac-Mégantic victims as quickly as possible. But, he cautioned, not all claims filed may be accepted.

“If someone agrees their house was worth $600,000 and they got the full $600,000 from their insurance company, and that’s their only claim, they should not be recovering twice, this is not a lottery,” he said. “They may have other claims, but as far as the house I gave as an example is concerned, they can’t recover twice.” The courts will decide who has a valid claim, Despins said.

LOGISTICS: WHAT’S NEXT FOR VICTIMS OF THE DISASTER

Victims of the accident have until June 13 at 5 p.m. to file a proof of claim against Montreal, Maine and Atlantic.

Public information meetings on the claims process are to be held in Lac-Mégantic between April 22 and May 5, and assistance will be provided to help people complete the claims forms, according to an order issued by Quebec Superior Court. Victims who do not file a claims form by June 13 will not be permitted to participate in the Canadian or U.S. bankruptcy proceedings or receive any payment made available in those proceedings.

Claims forms and information about the claims process are posted on the website of Montreal-based Richter Advisory Group, the company’s Canadian bankruptcy monitor, at www.richter.ca under “Insolvency Cases” or  http://bit.ly/mmamonitor.

LEGAL ACTIONS INVOLVING VICTIMS OF LAC-MÉGANTIC

A request has been filed to approve a class-action lawsuit in Quebec against MMA, World Fuel services, Irving Oil, Canadian Pacific, the federal government and others. More than 1,550 people have registered with the class action so far.

A committee of three Lac-Mégantic residents, a representative of the Quebec government and the town of Lac-Mégantic represents victims’ interests in MMA’s U.S. bankruptcy proceedings.

The estates of 19 people killed in the Lac-Mégantic train derailment filed wrongful-death lawsuits in Illinois, naming several defendants, including MMA, company chairman Edward Burkhardt, MMA’s parent company Rail World, and World Fuel Services, which arranged for the transportation of the crude oil on the train. All except two of those lawsuits have been withdrawn while American courts decide where they will be heard. A law firm representing the estates says it plans to appeal a recent decision from a U.S. federal judge ordering the cases transferred to Maine, where MMA’s bankruptcy proceedings are being held. One of the issues at play is the amount of money that could be awarded as damages. Illinois has no cap on such payments, while Maine limits them to $500,000 in wrongful-death cases.

POSSIBLE SOURCES OF FINANCIAL COMPENSATION

A $25-million insurance policy MMA has with XL Insurance. Many people and companies are interested in the insurance policy. They include:

– Victims of the Lac-Mégantic derailment, such as the families of people killed in the accident, those who were injured or those who suffered losses to their businesses or homes.

– CIT Group, a company that owned some of the locomotives and tank cars involved in the accident. CIT has said it plans to settle any claims against it from wrongful-death lawsuits tied to the derailment with the XL insurance policy.

– MMA chairman Edward Burkhardt, who has been named in several legal actions linked to the derailment, argued in U.S. bankruptcy court that he is covered by the policy.

Settlements from legal action taken by MMA’s bankruptcy trustee against World Fuel Services.

The creation of a settlement fund made up of financial contributions from companies that may be liable for the accident.

TIMELINE OF THE LEGAL FALLOUT

July 6, 2013: A 72-car oil train pulled by five locomotives unexpectedly rolls down railway tracks into the town of Lac-Mégantic. Most of the cars derail, leading to explosions and a fire that kills 47 people and destroys much of the downtown core. Nearly 6 million litres of crude oil spill in the accident.

July 15, 2013: Lac-Mégantic lawyer Daniel Larochelle and two other law firms file a request in Quebec Court to begin class action proceedings against MMA and 14 other companies and individuals.

July 22, 2013: Annick Roy files a wrongful-death lawsuit in Illinois court on behalf of the estate of Jean-Guy Veilleux and their daughter. Veilleux was killed July 6.

Aug. 7, 2013: MMA files for bankruptcy protection in Canada and the U.S.

Aug. 14, 2013: A total of 19 wrongful-death cases have been filed in Illinois court.

Aug. 22, 2013: The Quebec government announces the creation of a victims’ committee to represent Lac-Mégantic residents, the government and the town in the U.S. bankruptcy proceedings.

Jan 23, 2014: Bankruptcy judges in Canada and the U.S. approve the sale of MMA to Railway Acquisitions Holdings of New York for $14.25 million U.S.

Feb. 12, 2014: Lawyers for the proposed Quebec class action add Transport Canada to the list of more than 50 organizations and people it plans to sue.

Feb. 26, 2014: A joint Canada-U.S. bankruptcy meeting between creditors tries to speed up the pace of the claims process.

April 2014: The MMA sale to RAH is expected to be finalized.

June 13, 2014: This is the proposed deadline for victims and creditors to file claims against MMA in the Canadian and U.S. bankruptcy proceedings.

WHAT’S HAPPENING WITH MONTREAL, MAINE AND ATLANTIC

The railway company whose runaway oil train derailed in Lac-Mégantic on July 6, 2013. It is in the process of being sold to Railway Acquisition Holdings, a New York City -based company, for $14.25 million U.S. RAH plans to change the name of the company to Central Maine and Quebec Railway, and offer rail service on MMA’s 800 kilometres of tracks in the two countries.

RAH is acquiring two companies:

Montreal, Maine and Atlantic Railway

  • Parent company of Montreal, Maine and Atlantic Canada.
  • Operates a shortline railroad in Vermont and Maine.
  • Under Chapter 11 bankruptcy protection since August.

Montreal, Maine and Atlantic Canada

  • Railway operating in Quebec.
  • Under bankruptcy protection since August.
Oil Industry, Oil prices, Pacific Northwest, Rail routing

Changes in fossil fuel transport – maps of the Pacific Northwest

Repost from The Seattle Times
[Editor: Regarding CUMULATIVE IMPACTS, we in the San Francisco Bay Area need to learn from the Pacific Northwest.  Their maps are excellent – check out this great resource.  Who among us can work on this?  It seems to me that the Bay Area Air Quality Management District should be held responsible to prepare maps like this as soon as possible.  – RS]

Fossil fuels and spill risk: A changing landscape

By Seattle Times staff  |  April 19, 2014

Washington has long been a fossil fuel depot. But changes in how and where we get our oil — and the addition of proposals to export coal — are increasing the risk of spills and major accidents. Here is how fossil fuel distribution is changing.

(The maps and charts below are formatted as a single PNG IMAGE. Click on the image for a full-size readable version.)
fossil fuels and spill risk-A changing landscape(pacificnorthwest)
The maps and charts above are formatted as a single PNG IMAGE. Click on the image for a full-size readable version.