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ARTICLE · 29 JUNE 2015

Update: Safe And Accountable Rail Act Receives Royal Assent

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On June 18, 2015, the Governor General of Canada gave Royal Assent to Bill C-52, the Safe and Accountable Rail Act.

CanadaTransport
Ryan Gallagher
Ryan Gallagher
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On June 18, 2015, the Governor General of Canada gave Royal Assent to Bill C-52, the Safe and Accountable Rail Act. As a previous bulletin described in greater detail, Bill C-52 responds to a number of concerns that gained wide attention following the tragic derailment at Lac-Mégantic, Québec as well as railway company efforts to pass risks of liability onto shippers.

Specifically, Bill C-52 imposes a levy on shipments of crude oil and requires railway companies subject to the authority of Parliament to hold minimum liability insurance set at various thresholds for prescribed third party and contamination risks. Transport Canada's June 18, 2015 news release in respect of Bill C-52 receiving Royal Assent indicates that "The new liability and compensation regime under the Canada Transportation Act will be brought into force one year from today".

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