Decision No. 230-R-2001

May 9, 2001

APPLICATION by Hudson Bay Railway Company, pursuant to paragraph 93(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10, for a variance of Certificate of fitness No. 96006 to reflect the authority to operate the following lines of railway: between mileage 0.05, approximately, and mileage 19.4 of the Arborfield Subdivision, in the province of Saskatchewan; and by virtue of a running rights agreement to operate over the line of railway of the Canadian National Railway Company, between mileages 55.0 and 57.0 of the Tisdale Subdivision.

File No. R 8005/H1

Hudson Bay Railway Company (hereinafter HBRC) has applied to the Canadian Transportation Agency (hereinafter the Agency) for a variance of the certificate set out in the title. The application was received on April 30, 2001.

Certificate of fitness No. 96006 dated April 29, 1997 permits HBRC to operate lines of railway as set out below:

1. Between Flin Flon Junction, Manitoba and Flin Flon, Saskatchewan.
2. Between Sherritt Junction and Lynn Lake, Manitoba.
3. Between The Pas and Churchill, Manitoba.
4. Between Thompson Junction and Thompson, Manitoba.

HBRC requests a variance of its certificate of fitness to reflect the operation on the Arborfield Subdivision on behalf of the Rural Municipality of Arborfield, the Village of Zenon Park and the Town of Arborfield which purchased the Arborfield Subdivision from the Canadian National Railway Company. In addition, HBRC requests that the certificate be varied to reflect the operation over the line of railway of the Canadian National Railway Company, between mileages 55.0 and 57.0 of the Tisdale Subdivision.

Pursuant to paragraph 93(1)(b) of the CTA, the Agency may, on application, vary a certificate of fitness to add a railway line to the certificate.

The Agency has reviewed the material filed and is satisfied that there continues to be adequate third party liability insurance coverage, including self-insurance, for the operation of the line of railway.

The Agency's review of HBRC's financial capability to self-insure for the amount of self-insured retention was based on HBRC's annual reports filed with Transport Canada and other financial statements.Accordingly, pursuant to paragraph 93(1)(b) of the CTA, the Agency hereby varies Certificate of fitness No. 96006 issued on April 29, 1997 to permit HBRC to also operate the following lines of railway: between mileage 0.05, approximately, and mileage 19.4 of the Arborfield Subdivision, in the province of Saskatchewan; and by virtue of a running rights agreement to operate over the line of railway of the Canadian National Railway Company, between mileages 55.0 and 57.0 of the Tisdale Subdivision.

Certificate of fitness No. 96006-1 supersedes Certificate of fitness No. 96006 issued to HBRC on April 29, 1997.