Wed 31 Jul 2013 07:14

WFS questions legality of payment order


World Fuel Services says it has 'serious objections' to being ordered to pay for crash cleanup operation.



Marine, aviation and land fuel specialist World Fuel Services Corporation has said that it has "serious objections" to being ordered by the government of Quebec to help pay for the cleanup of the train derailment in Lac-Mégantic, Quebec, earlier this month, Reuters reports.

Quebec Environment Minister Yves-François Blanchet invoked powers under a provincial law on Monday to force the rail and fuel companies involved in the devastating train crash to take financial responsibility for the damage caused by the incident, which killed 47 people and destroyed the centre of the small town of Lac-Mégantic.

"World Fuel Services will continue to meet any and all obligations it may have with respect to the accident; however, we have serious objections to the legality of the order," the fuel company said in a statement.

"We intend to promptly discuss these issues with the relevant authorities."

The tanker train had been parked at Nantes station for the night when it broke loose and sped away without a driver on Saturday, July 6. The subsequent derailment and explosion sent a fireball and black smoke into the air, forcing the evacuation of around 1,000 people, and dozens of buildings were destroyed.

In the days after the incident, World Fuel Services confirmed that crude oil sold by one of its subsidiaries was being carried by railcars involved in the deadly train derailment and that the product was destined for Irving Oil in Saint John, New Brunswick.

In response to Monday's move by the Quebec government to force World Fuel Services to pay for the cleanup, the company said it was surprised by the government action as it was the first time the government had said World Fuel Services bore any responsibility.

Cleanup crews have begun to recover an estimated 5.7 million litres of oil from the nearby lake, river and ground. Minister Blanchet promised on Monday that taxpayers would not have to pay for it.

Last week, Lac-Mégantic Mayor Colette Roy-Laroche said that Montreal, Maine & Atlantic Railway (MMA) - the train operator involved in the derailment - had stopped paying for the cleanup operation, forcing the town to pick up the tab.

As a result, the town sent a lawyer’s letter to MMA, giving the firm 48 hours to repay Lac-Mégantic for the cost of retaining the three firms initially hired by MMA.

On Tuesday, July 30, Roy-Laroche said in a press conference that MMA had not still not paid the companies it hired to help clean up after the disaster. She said that the town has so far paid approximately C$7.8 million ($7.57 million) for the work and has given notice to MMA for a second time that it needs to be reimbursed.

Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.

Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.

Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.

Stanley George, VPS Group Technical and Science Manager, VPS. How to engineer and manage green shipping fuels | Stanley George, VPS  

Effective management strategies and insights for evolving fuel use.

Sweden flag with water in background. Swedish government bans scrubber wastewater discharges  

Discharges from open-loop scrubbers to be prohibited in Swedish waters from July 2025.

The ME-LGIA test engine at MAN's Research Centre Copenhagen. MAN Energy Solutions achieves 100% load milestone for ammonia engine  

Latest tests validate fuel injection system throughout the entire load curve.

Terminal Aquaviário de Rio Grande (TERIG), operated by Transpetro. Petrobras secures ISCC EU RED certification for B24 biofuel blend at Rio Grande  

Blend consisting of 24% FAME is said to have been rigorously tested to meet international standards.

Avenir LNG logo on sea background. Stolt-Nielsen to fully control Avenir LNG with acquisition  

Share purchase agreement to buy all shares from Golar LNG and Aequitas.

Seaspan Energy's 7,600 cbm LNG bunkering vessel, s1067, built by Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. Bureau Veritas supports launch of CIMC SOE's LNG bunkering vessel  

Handover of Seaspan Energy's cutting-edge 7,600-cbm vessel completed.

The world's first methanol-fuelled container ship, Laura Maersk. Methanol as a marine fuel | Steve Bee, VPS  

How environmental legislation has driven the development of low-sulphur fuels and methanol-ready ships.


↑  Back to Top