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ARTICLE · 25 FEBRUARY 2015

New Federal Rules For Oil By Rail: Increased Insurance, Absolute Liability, Compensation Fund

DLA Piper
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Transportation Minister Lisa Raitt announced today that the federal government has introduced Bill C-52, the Safe and Accountable Rail Act.

CanadaEnergy and Natural Resources
Michael Styczen, P.Eng
Michael Styczen, P.Eng
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Transportation Minister Lisa Raitt announced today that the federal government has introduced Bill C-52, the Safe and Accountable Rail Act.  Bill C-52 would significantly tighten the regulation of crude oil rail transportation in Canada in three ways: by imposing a new levy on rail shipments of crude oil to create a compensation fund for accident victims, by increasing insurance requirements, and by imposing absolute (no-fault) liability on railroads for crude oil accidents.

1. Levy / Compensation Fund

The federal government will charge a fee per tonne of crude oil shipped, which will be used by the federal government to fund any cleanup in excess of a shipper's insurance limits.  The fee would be equal to $1.65 per tonne, or approximately 23¢ per barrel.

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