Our history

Canada’s compensation system has changed since 2016, when the Rail Fund was first created.

Today, we are ready to provide compensation to anyone affected by a major rail accident involving crude oil.

Here are some key moments in the history of the Rail Fund.
 

Key historical moments

  • A runaway train hauling 72 tank cars of crude oil derailed in the centre of the town of Lac-Mégantic, Québec. The cars ruptured and exploded, causing a blaze that burned for days. The derailment, tragically, was responsible for the deaths of 47 people. It also caused extensive damage to properties and the environment.
  • Damages for the Lac-Mégantic accident were estimated to be about $1.5 billion. About 4,300 claims were submitted for:
    • deaths and mental distress
    • economic losses
    • insurance claims
    • government and municipal claims
  • The railway company involved, Montreal, Maine and Atlantic Railway (MMA), had only $25 million in liability insurance. This was not enough to cover all the damages, and the company soon declared bankruptcy.
  • A claims fund was put in place and overseen by the courts. The people who suffered damages and losses, and their families, received mixed messages about where to turn for compensation.

  • The Safe and Accountable Rail Act became law, strengthening the liability and compensation regime for railway companies in Canada.
  • A new class of tank car was adopted, the TC-117/DOT-117, which was a much more robust, jacketed type of tank car.

  • The Rail Fund started its operations. This included collecting a levy from railway companies.
  • Use of the DOT-111 class of tank cars, like those involved in the Lac-Mégantic accident, were prohibited from transporting crude oil in Canada.

  • The Rail Fund distributed the first version of its Claims Manual to key partners.
  • The Rail Fund hosted its first workshops, including the first tabletop exercise, as well as webinars.

  • The Rail Fund hosted a second tabletop exercise.
  • There was a rail accident involving crude oil in Red Deer, Alberta.

  • The Administrator’s objective of engaging with all provinces was reached.
  • There were three rail accidents involving crude oil, in Barwick, Ontario; St. Lazare, Manitoba; and Guernsey (Lanigan), Saskatchewan.

  • The Rail Fund sent its first annual Crude-by-Rail Update forms to the 26 federally regulated railway companies.
  • There were two rail accidents involving crude oil, in Guernsey, Saskatchewan and Emo, Ontario.

  • The Rail Fund reached a five-year readiness milestone and celebrated with activities including publishing a three-episode video series.
  • The Rail Fund also signed a contract with a claims management company to serve on a standby basis.

  • The Rail Fund doubled its engagement in outreach activities.
  • The Rail Fund enhanced its legal preparedness.

  • The Rail Fund signed agreements with railway companies to be prepared for a future transition of claims.

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