Canada to Create Special Fund to Pay for Crude Rail Spills

The Canadian government will create a special fund to pay for damages and cleanup in rail disasters, supported by levies on shipping crude oil, a person with direct knowledge of the plan said.

Last week Transport Minister Lisa Raitt discussed the proposal in detail, including specifics on the fees.

The plan includes the creation of a compensation fund to be supported by “shippers” of crude oil, and used in the event of a disaster, the person said, speaking on condition they not be identified because the proposal has not been made public.

The fund is part of legislation Raitt is expected to introduce today to boost rail safety.