Decision No. 391-R-2013

Kelowna Pacific Railway Ltd. (KPR) applied to the Canadian Transportation Agency (Agency) for a cancellation of Certificate of Fitness No. 00001.

Pursuant to Certificate of Fitness No. 00001, KPR is authorized to operate a railway:

• through a lease agreement with the Canadian National Railway Company (hereinafter CN), over trackage collectively known as CN’s Okanagan Lines, consisting of CN’s Okanagan Subdivision between Kelowna (mileage 85.5) and Vernon (mileage 118.9) and between Armstrong (mileage 70.8) and Campbell Creek (mileage 14.4);
• and of CN’s Lumby Subdivision between Lumby Jct. (mileage 0.0) and Lumby (mileage 14.4); and, by virtue of running rights ensuing from a Joint Section Agreement between CN and the Canadian Pacific Railway Company (hereinafter CP) dated February 12, 1977, between Vernon (mileage 85.5) and Armstrong (mileage 70.8) on the railway lines of the Okanagan Valley Railway Company (hereinafter OVR), leased by OVR from CP; and between Campbell Creek (mileage 14.4) and Can. Pac. Jct. (mileage 3.5) on the railway lines of CP; and between Can. Pac. Jct. (mileage 3.5) and Kamloops (mileage 0.0) on the railway lines of CN; all said mileages being points on CN’s Okanagan Subdivision in the province of British Columbia.

On July 5, 2013, KPR filed an assignment under section 49 of the Bankruptcy and Insolvency Act, R.S.C., 1985, c. B-3. Boale, Wood & Company Ltd. was appointed as Trustee. On September 30, 2013, the Trustee requested the cancellation of Certificate of Fitness No. 00001, confirmed that KPR ceased all railway operations and advised the Agency that the Trustee requested KPR’s insurer to cancel the third party liability insurance coverage prescribed in the Railway Third Party Liability Insurance Coverage Regulations, SOR 96-337.

Subsection 94(2) of the Canada Transportation Act states that the Agency may suspend or cancel the certificate of fitness.

Given that KPR has filed an assignment for bankruptcy, that KPR has ceased all railway operations and that the cancellation of the third party liability insurance for KPR has been requested, the Agency hereby cancels Certificate of Fitness No. 00001.