Canada to require more oil-by-rail insurance, special fund

Fri Feb 20, 2015 11:22am EST
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OTTAWA Feb 20 (Reuters) - Railways will have to carry additional insurance when they carry crude oil, and an additional fund will be set up with levies on oil shipments to cover major disasters, under legislation to be introduced on Friday, two sources familiar with the bill said.

The legislation is in reaction to a spate of oil-by-rail accidents, the most prominent one being the 2013 explosion of a runaway train in the Quebec village of Lac-Megantic, leveling the heart of the town and killing 47 people.

The government is introducing the bill shortly after noon EDT (1700 GMT). (Reporting by Randall Palmer and David Ljunggren; Editing by Chizu Nomiyama)