A Canadian railroad's withdrawal of opposition to a $338 million fund for victims of an oil train derailment that killed 47 people in Quebec has set the stage for final approval and compensation for victims, The Associated Press reported today. A U.S. bankruptcy trustee and Canadian Pacific agreed to modify the settlement fund to give the railroad some legal protection, prompting the railroad's decision to end its objections. A Canadian judge gave conditional approval on Thursday, and a U.S. bankruptcy judge is to consider the plan Friday. Victims and the province of Quebec have until Tuesday to confirm their support of the changes in Canada. Barring any surprises, the timeline would allow payments to be made to victims of the disaster by year's end, said former ABI President Robert Keach, who is serving as bankruptcy trustee. About $83 million is being set aside to settle wrongful death claims. "We're very happy for the victims that we were able to get to this point. They're the primary focus here," Keach said. A runaway train with 72 oil tankers derailed on July 6, 2013, in Lac Megantic, Quebec, setting off powerful explosions and causing fires that wiped out much of the downtown. The disaster led to greater regulatory scrutiny of the use of trains to transport crude oil amid a production surge thanks to new technologies including hydraulic fracturing. After the disaster, the train's operator, the Maine-based Montreal, Maine & Atlantic, filed for bankruptcy and the settlement fund is tied to proceedings in both the U.S. and Canada. The fund, worth $446 million in Canadian dollars, was the product of negotiations with about two dozen companies with potential liability.
