September 20, 2017
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Railway in Quebec crash allowed to operate until Oct. 18

By Reuters
Updated:
MATHIEU BELANGER | REUTERS | BDN
MATHIEU BELANGER | REUTERS | BDN
A police officer walks amongst axle gear in Lac Megantic, Quebec in this July 9, 2013 file photo. Montreal, Maine & Atlantic Ltd, the railway involved in last month's deadly derailment in Lac-Megantic, Quebec, filed for Chapter 11 bankruptcy protection on Aug. 7, 2013, saying the move would enable the company to preserve the value of its assets.

TORONTO — The U.S. company whose runaway oil tanker train exploded and killed 47 people in a small Quebec town in July can operate trains through Oct. 18, Canadian regulators said on Thursday in a ruling that prolongs a temporary extension by about two weeks.

But the Canadian Transportation Agency said it had not yet decided whether to grant a request from Montreal, Maine and Atlantic Railway and its Canadian subsidiary for permission to continue operations until Jan. 15, 2014.

The company filed for bankruptcy protection in August, just weeks after the Lac-Megantic disaster.

The explosion obliterated the center of the lakeside town, and some 1.5 million gallons of oil were spilled, causing hundreds of millions of dollars in damages and cleanup costs.

The transportation agency said it is satisfied that the rail company holds adequate insurance to operate until Oct. 18, and that it will rule on the request for an extension by then. An Oct. 9 bankruptcy court hearing could affect that decision, it added.

The agency had originally ordered MMA, which runs rail lines in Quebec and Maine, to cease operations in August due to inadequate insurance.

It lifted the order after the company provided documentation showing it had sufficient third-party insurance and enough funds to cover the self-insured portion of its operations.

 


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