Order No. 2005-R-46

February 1, 2005

File No. R 8005/P2

Under Certificate of fitness No. 03001 dated January 13, 2003, Prairie Alliance for the Future Inc. (hereinafter PAFF) is authorized pursuant to section 92 of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) to operate a railway in the province of Saskatchewan through a lease agreement with the Canadian National Railway Company (hereinafter CN).

Pursuant to Decision No. 19-R-2003 dated January 13, 2003, the Canadian Transportation Agency (hereinafter the Agency) issued this certificate of fitness as it found that PAFF had a railway proposal, that PAFF's railway proposal was controlled by CN and as such fell within the jurisdiction of the Parliament of Canada pursuant to paragraph 88(2)(b) of the CTA and that PAFF had adequate third party liability insurance coverage, including self-insurance, for the proposed subject railway operation.

By LET-R-309-2004 dated November 5, 2004, PAFF was provided with a period of thirty (30) days from the date of that letter to show cause why the Agency should not, pursuant to subsection 94(2) of the CTA, suspend or cancel Certificate of fitness No. 03001 as a result of PAFF not maintaining adequate third party liability insurance coverage and to provide evidence that it still intends to operate the proposed railway operation as identified in the certificate of fitness.

To date, PAFF has failed to show cause why its certificate should not be suspended or cancelled. The Agency has considered this matter and finds that PAFF's insurance coverage is no longer adequate.

Subsection 94(1) of the CTA provides that the holder of a certificate of fitness shall notify the Agency in writing without delay if the liability insurance coverage is cancelled or altered so that it may no longer be adequate or if the construction or operation has changed so that the liability insurance coverage may no longer be adequate.

Pursuant to subsection 94(2) of the CTA, the Agency may suspend or cancel a certificate if it determines that the liability insurance coverage is no longer adequate.

The Agency is of the opinion that in the present circumstances it should suspend Certificate of fitness No. 03001 and provide PAFF with a period of thirty (30) days to show cause why the said certificate of fitness should not be cancelled.

Accordingly, the Agency, pursuant to subsection 94(2) of the CTA, hereby suspends Certificate of fitness No. 03001.

In addition, PAFF is provided with a period of thirty (30) days from the date of this Order to show cause why the Agency should not, pursuant to subsection 94(2) of the CTA, cancel Certificate of fitness No. 03001.