Tags: train | explosion | deaths | oil

Canadian Pacific to Appeal Quebec Bid for Disaster Clean-up Cash

Thursday, 15 Aug 2013 02:39 PM

The government of the Canadian province of Quebec has added Canadian Pacific Railway Ltd. to the list of companies it says should help pay clean-up costs after an oil tanker train disaster in July that killed 47 people.

Canadian Pacific will appeal the decision, a spokesman for the company said on Thursday.

Quebec has added Canadian Pacific to a legal list of companies it is ordering to help cover the clean-up and decontamination after the train derailed and blew up in the eastern town of Lac-Megantic, spilling some 1.48 million U.S. gallons (5.6 million liters) of oil.

"As a matter of fact, and law, CP is not responsible for this clean-up. CP will be appealing," said spokesman Ed Greenberg.

The train was operated by Montreal, Maine & Atlantic, which filed for bankruptcy protection last week.

A Quebec government statement on Wednesday said CP was hired to transport the tanker cars of oil and had done a deal with MMA, which ran the rail line that passed through eastern Quebec.

"Our duty is to do all we can to ensure that the firms responsible for this accident bear the costs linked to the clean-up and decontamination," Environment Minister Yves-Francois Blanchet said in the statement.

Canada announced on Tuesday it would shut down MMA on Aug. 20, saying the firm did not have enough insurance.

In a court filing, MMA said its insurance covered liabilities up to C$25 million ($24.2 million), while clean-up costs could exceed C$200 million.

 

© 2017 Thomson/Reuters. All rights reserved.

 
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The government of the Canadian province of Quebec has added Canadian Pacific Railway Ltd. to the list of companies it says should help pay clean-up costs after an oil tanker train disaster in July that killed 47 people.
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Thursday, 15 Aug 2013 02:39 PM
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