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Eastern Railroad Discussion > Oil companies agree to pay share of Lac Megantic - precedent?


Date: 06/11/15 06:20
Oil companies agree to pay share of Lac Megantic - precedent?
Author: Lackawanna484

The Wall Street Journal reports that Irving, Shell and Marathon Oil have agreed to make substantial contributions to litigation funds established for settlement of claims in the Lac Megantic rail explosion. The contribution is significant as it shields these companies from additional liability.  Cases continue against the bankrupt Maine Montreal & Atlantic.  Tank car makers have also contributed to the accounts

Observers note that the shield is important as it caps involvement.  Ominously, drillers and wholesalers, terminal operators, etc are not covered, although World Fuel has contributed to the fund. World loaded the cargo and had a role in brokering it.

[OPINION: I'd expect that the oil companies will take a much greater interest in how oil shipments are managed, how railroads safeguard their oil and haz-mat cargo, etc. This pierces the veil that there's no responsibility once the railroad takes the cargo.]


Subscription site, but should be available online

Comp Fund



Date: 06/11/15 06:27
Re: Oil companies agree to pay share of Lac Megantic - precedent?
Author: Jimbo

Would this apply to the US and Canada or just Canada?



Date: 06/11/15 09:44
Re: Oil companies agree to pay share of Lac Megantic - precedent?
Author: Lackawanna484

The matter appears to be in the Canadian bankruptcy court which is setting the pattern for the US.

The precedent will almost likely be confirmed by the US courts.

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Date: 06/11/15 19:36
Re: Oil companies agree to pay share of Lac Megantic - precedent?
Author: Lackawanna484

Canadian Pacific has not agreed to pay into the trust fund.  CP has taken the position that the folks who caused the derailment should pay for the compensation trust.   I'm not surprised CP decided to take a hard line.  It will be interesting to see if the trustee of the fund has enough info to tie CP to the ultimate tragedy.



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