Determination No. R-2018-275

INTRODUCTION

[1] STPP applied to the Canadian Transportation Agency (Agency) for a certificate of fitness to operate a railway in the province of British Columbia, through a lease agreement with BNSF Railway Company (BNSF), between the Canada/United States border at or about mileage 139.9 near Waneta, British Columbia and mileage 144.0 near Columbia Gardens, British Columbia of the Kettle Falls Subdivision.

[2] Subparagraph 90(1)(b)(ii) of the CTA requires that no person shall operate a railway without being the holder of a certificate of fitness that is issued under paragraph 92(1)(b) for the portion of the operation that does not relate to a passenger rail service. Section 87 of the CTA defines a railway, in part, as a railway within the legislative authority of Parliament.

[3] Paragraph 92(1)(b) of the CTA states that the Agency shall issue a certificate of fitness for the proposed operation of a railway that does not relate to a passenger rail service, if the Agency is satisfied that there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

[4] Therefore, in order to obtain a certificate of fitness pursuant to subsection 92(1) of the CTA, an applicant must demonstrate that the certificate applied for relates to a railway that is within the legislative authority of Parliament.

[5] The Agency finds that STPP is subject to federal jurisdiction by virtue of paragraph 88(2)(a), as it is a company operating a railway from the United States of America into Canada.

[6] Based on its review, the Agency is satisfied that STPP holds the applicable minimum liability insurance coverage in respect of the freight traffic that it carries on its railway.

[7] The Agency’s review of STPP’s financial capability to self-insure for the amount of the self‑insured retention is based on the confidential financial statements of its parent company, Progressive Rail Inc., and the indemnity agreement between Progressive Rail Inc. and STPP in respect of the amount of self-insurance.

[8] Accordingly, pursuant to subsection 92(1) of the CTA, the Agency will issue a certificate of fitness to STPP permitting it to operate a railway in the province of British Columbia through a lease agreement with BNSF between the Canada/United States border near Waneta and Columbia Gardens of the Kettle Falls Subdivision