Canada files Lac-Megantic criminal charges

OREANDA-NEWS. June 25, 2015. The Canadian government filed new criminal charges today against at least six individuals and two companies related to the 2013 crude-by-rail derailment in the Quebec town of Lac-M?gantic which killed 47 people.

Those charged include bankrupt Montreal Main & Atlantic Railway (MMA), Montreal Main & Atlantic Canada, Robert Grindrod, chief executive officer of MMA, and company executives Lynne Labont? and Kenneth Strout, according to Transport Canada. The others charged include the engineer of the train, Thomas Harding and two others — Jean Demaitre and Mike Horan.

The eight defendants were charged with two counts of violating the Railway Safety Act. Transport Canada said that its investigation found that an insufficient number of handbrakes were applied to the train and that the handbrakes were not tested properly.

Under each charge companies could be fined up to C\\$1mn (\\$812mn) and individuals could face a fine of up to C\\$50,000 (\\$40,600) or up to six months in jail, or both. The accused must appear before the court in Lac-M?gantic on 12 November to respond to the charges, Transport Canada said.

Separately, nine defendants were charged with one count under the Fisheries Act, including both MMA entities, according to the Public Prosecution Service of Canada. The other names of defendants were not disclosed.

The investigation under Fisheries Act relates to spilling crude into fish-bearing waters, which includes Lac M?gantic and the Chaudi?re river as a result of the accident.

The Canadian government said that the actions in response to the tragedy were "a testament to its efforts to continually improve both environmental security and rail safety for all Canadians."

Earlier this month, Marathon Oil, Shell and others with potential connections to the 2013 derailment joined shipper World Fuel Services in contributing to a C\\$435mn (\\$353mn) compensation fund for victims.

World Fuel Services, which owned the crude in the explosion, said it would pay \\$110mn toward the victim fund.

Marathon and Shell did not disclose how much they contributed. Both companies denied any liability for the accident.

The deal was reached with the bankruptcy estate of MMA. The fund will be used to compensate parties who suffered losses.