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

Two years since that tragic day....

http://www.theglobeandmail.com/news/nat ... e25328238/" onclick="window.open(this.href);return false;

According to Irving there is no chance of it happening again

http://bangordailynews.com/2015/07/14/n ... egionstate

I think Giles is finally starting to see the light. His Rosie predictions were a little far fetched. BTW....1 trip to newport last week and word on the street is all major track work has been cancelled for vt for the next 5 years. Hopefully they unload vt soon. They have also chased away Columbia Forest Products by mothballing the old Quebec central spur. It just keeps getting better down here... lol

More locos on the way and they are putting in a new interchange track at NMJ, as well as rebuilding many yard tracks. Also, new ties and yard work in Canada with speeds in most places 25 now. What were you getting at about farfetched rosie predictions? Also, they just signed leases on upwards of 200 railcars. Sorry the conn river traffic isn't to your liking yet but why don't you visit other parts of the RR and have a bit more patience.

While Irving is denying the Megantic disaster was a factor in their decision,
Irving is paying a share of the overall settlement. While CMQ is upgrading
track, Irving may not want to take a chance of another mishap on that line,
and the track conditions of much of PAR in Maine are very suspect. Even
Irving's own line from NMJ to St. John is probably not in tip top shape.

CN9634 wrote:More locos on the way and they are putting in a new interchange track at NMJ, as well as rebuilding many yard tracks. Also, new ties and yard work in Canada with speeds in most places 25 now. What were you getting at about farfetched rosie predictions? Also, they just signed leases on upwards of 200 railcars. Sorry the conn river traffic isn't to your liking yet but why don't you visit other parts of the RR and have a bit more patience.

The funny thing is traffic is growing on conn river, just as fast as they can get the sidings in, local traffic is on the verge of transforming the line, and none of it will have anything to do with cmq. New customers look to be setting up as fast as cmq is driving theirs in vermont away. Look for some very exciting things in the near future, SOUTH of newport that is....

CN9634 wrote:More locos on the way and they are putting in a new interchange track at NMJ, as well as rebuilding many yard tracks. Also, new ties and yard work in Canada with speeds in most places 25 now. What were you getting at about farfetched rosie predictions? Also, they just signed leases on upwards of 200 railcars. Sorry the conn river traffic isn't to your liking yet but why don't you visit other parts of the RR and have a bit more patience.

It's no revelation that Giles was banking on oil.

Interesting article in tomorrows BDN. Quoting Irving personnel, they have NO thought of bringing oil through Maine. They are looking at a new pipeline to bring oil to St. John through Canada.

Having actually seen and heard their three year plan, oil isn't a part of their initial strategy to make the railroad profitable. Oil is a low hanging fruit for sure, but it isn't the end game as even other railroads are hesitant to put all their chips on one play for oil... no one things it'll last more than 10 years.


Here is your article: http://bangordailynews.com/2015/07/14/n ... f=comments" onclick="window.open(this.href);return false;

I am quite sure though, this news went over like a lead balloon in the CMQ headquarters as they more than likely counted on some of the CBR/Irving traffic when things cooled off. Reading the news article the greenies and nimbys are going off their rockers, as usual, maniacally battling any device that can transport the pathologically hated fossil fuels. I assume tight wad Irving, getting pinched big time with the Megantic fine, has it in for the MMA's reincarnation CMQ. The CN is in the cat bird seat for any CBR until the pipeline is built or the Saudi's pound the oil price down to 10 dollars a barrel and decimate the North American fracking industry. This entire event has turned into a multi chapter tragic soap opera with so many far reaching consequences, it really is hard to get the head around.

From the Portland Press Herald:

Portland Press Herald wrote:John Giles, CEO of Central Maine & Quebec Railway, had been seeking an agreement with Lac-Megantic officials to restart oil train shipments through the Canadian town. On Tuesday, Giles said the railroad does not need to carry oil to be profitable.

“I was never counting on moving crude oil in the first place,” Giles said.

Giles said his railroad spent $10 million to upgrade the rail line last year and is spending $6 million this year, with about half of that investment in Maine.

Read the rest of the article at: http://www.pressherald.com/2015/07/15/i ... ugh-state/" onclick="window.open(this.href);return false;

With the world price of crude now in the low $50s, rail transport of Bakken and other western sourced crude is at a pricing disadvantage with foreign sourced oil. If US and Canadian sourced oil becomes cheaper than foreign oil, then there will be pressure to restart the trains, and perhaps, even through Maine.

From the Portland Press Herald:

Portland Press Herald wrote:A U.S. bankruptcy judge Friday approved a $338 million settlement fund for victims of the fiery 2013 oil train derailment that claimed 47 lives in Quebec, clearing the way for payments to victims by year’s end.

Judge Peter Cary announced his approval after Canadian Pacific dropped its objection and after a Canadian judge gave conditional approval Thursday.

Barring any surprises, payments could be made to victims by the end of November or by year’s end at the latest, said Robert Keach, U.S. bankruptcy trustee. About $83 million – about $110 million in Canadian dollars – will be used to settle wrongful death claims.
. . .
The fund, worth $446 million in Canadian dollars, came about after negotiations with about two dozen companies with potential liability. In addition to settling wrongful death claims, the money will go to personal injury victims, property damage claimants and government entities.
. . .
Canadian Pacific had fought the settlement, saying it shouldn’t be asked to contribute because it bore no responsibility and arguing the settlement would have hampered its ability to defend itself from lawsuits by providing legal immunity only to contributors.

Keach argued Canadian Pacific bears some responsibility for failing to properly classify the volatility of the Bakken region crude oil. The crude was as volatile as gasoline, contributing to the severity of the fire, Keach said.

The amended settlement plan calls for a “judgment reduction provision” that allowed Canadian Pacific to drop its opposition, but Canadian Pacific still isn’t contributing to the settlement.

Read the rest of the article at: http://www.pressherald.com/2015/10/09/j ... -disaster/" onclick="window.open(this.href);return false;

First, this settlement was reported on CBS Radio News this morning.

Gotta say, how in heaven's name could CP contend with a straight face, they had no liability. I guess they conveniently forgot that their US subsidiary, the SOO Line, originated the shipment. The Trustee wisely "saw through that one", but I do think he overstretched when he said Bakken Crude was as volatile as gasoline.

So it's been over two years, has Lac Megantic started building the new track around town? If not, CM&Q can argue that point to get these oil shipments running again.