Reuters: Bankruptcy News: Canada to let Quebec crash railroad keep operating through end January

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Canada to let Quebec crash railroad keep operating through end January Oct 16th 2013, 16:42 Share this Email Print Reprints Wed Oct 16, 2013 12:42pm EDT Oct 16 (Reuters) - Canada will allow the railroad whose tanker train exploded in the center of a small Quebec town this summer to keep operating for another three months, but noted the company was moving fewer goods and had halted oil transportation completely. The Canadian Transportation Agency said on Wednesday it had granted a request from Montreal, Maine and Atlantic to allow Canadian operations to continue through the end of January. Once the three-month period is up, MMA is expected to cease operations in Canada unless another extension is requested. MMA filed for bankruptcy protection in August, just weeks after the disaster that killed 47 people and obliterated the center of Lac Magentic, Quebec. Some 1.5 million U.S. gallons (5.6 million liters) of oil were spilled, resulting in hundreds of millions of dollars in damages and cleanup costs. The agency said MMA and its Canadian subsidiary had sharply reduced their risk exposure since the accident, had C$25,000,000 third party liability insurance coverage and C$250,000 self-insurance retention, enough to operate until Feb 1, 2014. The CTA said it took into consideration the fact that the rail operator no longer transports crude oil, and has sharply curbed the volume of commodities it transports -- a forecast curb of more than 70 percent in total traffic and more than 80 percent in the transportation of dangerous goods. MMA, which was originally asked to cease operations in August due to inadequate insurance, has also slashed the distance it transports dangerous goods are transported by 90 percent. (Reporting by Solarina Ho; Editing by Janet Guttsman and Andrew Hay) Link this Share this Digg this Email Reprints

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