Oil train disaster in Lac-Mégantic, Québec 07-06-2013

Figured someone else would have posted this, published yesterday:

http://www.tsb.gc.ca/eng/recommandation ... -r1403.pdf" onclick="window.open(this.href);return false;

This summarizes TSB's initial recommendations. Interestingly, train operations and securement are barely mentioned.

Thank you KSmitty for a well written and informative post. There has been much discussion about what role 5017 may have played in the disaster. Could anyone tell me what other units where on the train? Thanks.

Mike

From the Bangor Daily News:

Bangor Daily News wrote:A Chicago law firm on Wednesday filed a proposal that would appoint former U.S. Sen. George J. Mitchell to oversee the allocation of available funds in the Montreal, Maine and Atlantic Railway’s bankruptcy case to the victims who have filed wrongful death and personal injury claims.
. . .
The proposed plan “attempts to promote — with Senator Mitchell’s help — a consensual resolution of issues, such as how much the insurance company will pay, which amounts will be distributed through the Chapter 11 case and which amounts through the Canadian Proceeding,” the documents say.

The proposal calls for Mitchell to be appointed as “Plan Fiduciary.” According to the documents filed Wednesday, Mitchell has agreed to take on the job if the plan is approved.

Read the rest of the article at: http://bangordailynews.com/2014/01/29/n ... ads-funds/" onclick="window.open(this.href);return false;

In the U.S. report and recommendations circular OT-55-N noted in an earlier post, it is recommended that:

"- Track on key routes [for transport of crude] must be rated Class 2 or higher."

It is not law or even regulation at this time, but it might be enough to give Fortress second thoughts. At a minimum, it serves as my unconstructive contribution to the discussion.

PBM

ferroequinarchaeologist wrote:In the U.S. report and recommendations circular OT-55-N noted in an earlier post, it is recommended that:

"- Track on key routes [for transport of crude] must be rated Class 2 or higher."

It is not law or even regulation at this time, but it might be enough to give Fortress second thoughts. At a minimum, it serves as my unconstructive contribution to the discussion.

PBM

Second thoughts? They got 500 miles of track, plus equipment and buildings for $15M. Hell, I was almost convinced to throw in my own bid for that price.

My prediction -- Fortress will make a large initial investment in the PP&E to serve as both a PR boost (MMAs reputation is ruined not just because of the derailment but because of allegations of poor track, which is quite exaggerated.) and fodder for the crude oil business. They will also work with local institutions on safety, training and awareness (all of which will be publicized) and then Lac Megantic well finally cave to pressure to ship 1267.

CN9634 wrote:My prediction -- Fortress will make a large initial investment in the PP&E to serve as both a PR boost (MMAs reputation is ruined not just because of the derailment but because of allegations of poor track, which is quite exaggerated.) and fodder for the crude oil business. They will also work with local institutions on safety, training and awareness (all of which will be publicized) and then Lac Megantic well finally cave to pressure to ship 1267.

Sounds about right to me as well.

"My prediction -- Fortress will make a large initial investment in the PP&E"

What do you consider "large"?

More than what they spent for the whole thing.

CN9634 wrote:More than what they spent for the whole thing.

Hell, even if they spend $24MM on maintenance and education in the first year, $40 million is still a pretty good deal. Surprised no one outbid Fortress, honestly.

No-one would ever accuse you of not being optimistic!

"Surprised no one outbid Fortress, honestly." Really? It's more accurate to say - and more telling- that no-one else bid on the whole property. In other words, no railroads/investors see the potential that the proponents see.

There was a great quote from a government official back in the 90's when talking about investing in Russia after the demise of the Soviet Union. It was along the lines of: "If I had a million dollars, I'd invest it in Russia... and if I had $100 million, I'd invest $1 million in Russia." Given the property's salvage value, Fortress' investment is pretty low risk. They start pouring millions upon millions into physical plant, their risk/exposure goes up exponentially.

Cowford wrote:No-one would ever accuse you of not being optimistic!

Mr. Student Of The Iron Horse, I am unable to locate any earlier reference to AAR Operating Topic 55-N; here is such which was revised (supplement N) of of August 12 2013, or post-Megantic. As an aside, interesting to learn where some of the folk I had occasion to 'meet along the way' during my railroad career have gone. In this case I'm referencing Bob VanderClute, who when we met during the '70's was a mid-level manager with Amtrak. Here is the announcement letter of the Circular's revision:

http://www.boe.aar.com/CPC-1258%20OT-55-N%208-5-13.pdf" onclick="window.open(this.href);return false;

I would think that a recommendation made by the industry's trade associatikon, i.e. this is not law, that HAZMAT be handled on Class II or higher track would be a significant change and noted in Mr. VanderClute's letter. Have we established here if MM&A trackage over which the 'train 1267' were routed (CP-M, Moosehead, whatever) met that fairly low standard? Has anyone access to the revised Circular in its entirety?

Enquiring mind wants to know.

Major development in the case of the tragedy of Lac-Megantic according to La Presse newspaper has learned, the company Montreal Maine & Atlantic (MMA) filed a lawsuit Thursday in the United States, against the multinational World Fuel Services . I couldn't find any article in English as of yet:


http://ici.radio-canada.ca/regions/estr ... role.shtml" onclick="window.open(this.href);return false;



Frank

Mr. Norman,

The reference is a bit obscure - it is contained within the January 23, 2014 Canadian TSB Rail Safety Recommendations on page 8, which in turn is referenced and linked within Cowford's January 24 post in this thread . By "second thoughts" I meant that, if Fortress wants the ex-MMA Brownville-Sherbrooke to become a petroleum crude fast track - literally - it will probably require significant investment.

That's Student of the OLD Iron Horse, of course ... but then, I suppose it could be OLD Student of the Iron Horse ...
PBM

From the Wall Street Journal

"World Fuel Services Sued Over Deadly Derailment"

http://online.wsj.com/news/articles/SB1 ... 94458.html" onclick="window.open(this.href);return false;