Wed 31 Jul 2013, 07:14 GMT

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.


Monjasa Oil & Shipping Trainee (MOST) trainees. Monjasa opens applications for global trainee programme  

Marine fuel supplier seeks candidates for MOST scheme spanning offices from Singapore to New York.

Singapore's first fully electric harbour tug. Singapore's first fully electric tug completes commissioning ahead of April deployment  

PaxOcean and ABB’s 50-tonne bollard-pull vessel represents an early step in harbour craft electrification.

Fuel for thought: Hydrogen report cover. Lloyd's Register report examines hydrogen's potential and challenges for decarbonisation  

Classification society highlights fuel's promise alongside safety, infrastructure, and cost barriers limiting maritime adoption.

Bureau Veritas and Straits Bio-LNG sign MoU. BV Malaysia partners with Straits Bio-LNG on sustainable biomethane certification  

MoU aims to establish ISCC EU-certified biomethane production and liquefaction facility in strategic alliance.

Molgas Energy logo. Molgas becomes non-clearing member at European Energy Exchange  

Spanish energy company joins EEX as it expands European operations and strengthens shipper role.

Yiannis Diamandopoulos, Elinoil. Diamandopoulos appointed CEO of Elinoil as Aligizakis becomes chairman  

Greek marine lube supplier announces leadership changes following board meeting on 5 January.

Sustainable Marine Fuel Services webinar hosted by BV graphic. Bureau Veritas to host webinar on sustainable marine fuel transition challenges  

Classification society to address regulatory compliance, market trends, and investment strategies in February online event.

Inchcape Shipping Services logo. Inchcape to provide bunkering services from new Indonesian offices  

Port agency establishes presence in key bulk and tanker operation hubs handling 150 calls annually.

CPN launch of B100 marine biodiesel supply in Hong Kong graphic. Chimbusco Pan Nation launches B100 biodiesel supply in Hong Kong  

Bunker tanker Guo Si becomes Hong Kong's first Type II certified vessel for pure biodiesel operations.

Vox Apolonia vessel. Van Oord completes Dutch beach replenishment using 100% bio-LNG  

Dredger Vox Apolonia deposited 1 million cbm of sand at Noord-Beveland beach under Coastline Care programme.