Irving Oil Reaches Multimillion-Dollar Settlement In Lac-Megantic Disaster

Nov 13, 2017

The Canadian federal government has reached a settlement with Irving Oil, four years after the deadly Lac-Megantic derailment in which 47 people died. The Saint John, New Brunswick-based company pleaded guilty last month to 34 charges relating to the misclassification of rail shipments of crude oil and improper training of employees.

According to the Public Prosecution Service of Canada, Irving Oil was not in compliance with safety standards under the Transportation of Dangerous Goods Act when a 74-car freight train carrying crude oil derailed and exploded three years ago in Lac-Megantic, Quebec.

On Oct. 26, The company was fined more than 400,000 Canadian dollars (about $314,000) in Saint John Provincial Court and ordered to pay almost 3.6 million CA$ ($2.82 million) for research programs in the field of safety standards.

In a prepared statement, Irving Oil representatives said the company strongly believes in the importance of safety and regulatory compliance while also emphasizing that its misclassification of crude oil did not contribute to the derailment.

The investigation into the derailment also concluded that Irving Oil had not properly trained its employees in the transportation of dangerous goods.