Letter Decision No. LET-R-98-2013

August 16, 2013

Canadian Transportation Agency Order No. 2013-R-266 dated August 13, 2013

File No.: 
R 8005/M5

Reference is made to your letter dated August 16, 2013 requesting the Canadian Transportation Agency (Agency) to vary Order No. 2013-R-266, which suspended Montreal, Maine & Atlantic Canada Co. (MMAC) and Montreal, Maine & Atlantic Railway, Ltd. (MMA) Certificate of Fitness, effective August 20, 2013. Your request is to allow MMAC/MMA to maintain its Certificate of Fitness No. 02-004-3 until October 1, 2013.

The Agency suspended the said Certificate of Fitness because it was not satisfied that MMAC and MMA have adequate third party liability insurance coverage and the financial capacity to cover the self-insured portion for the continued operation.

The Agency has considered your submission and finds that you have demonstrated that there are new facts and circumstances warranting a review of the order. Your submission provides evidence that MMAC and MMA have insurance coverage, including per occurrence. Further, your submission indicates that “MMA undertakes to ask the CCAA judge on or before September 6, 2013, to order pursuant to the CCAA, that the Canadian assets of MMA be made subject to a charge and security for the payment of the self-insurance portion of the policy.” The Agency is satisfied that this provides adequate insurance coverage for operation over a short period from August 20 to October 1, 2013.

Therefore, the Agency, pursuant to section 32 and paragraph 28(1)(b) of the Canada Transportation Act, S.C., 1996, as amended varies Order No. 2013-R-266 by amending the date of effect of the suspension of MMAC and MMA’s Certificate of Fitness to October 1, 2013. This variance is conditional on MMAC/MMA filing with the Agency by 5:00 p.m. Eastern Time August 23, 2013 confirmation that it has secured funds for the self-insured retention portion of the policy. If MMAC and MMA do not fulfill this commitment, the suspension shall take effect as of 5:00 p.m. August 23, 2013.

Member(s)

Geoffrey C. Hare
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