Irving Oil ordered to pay $4 million over Lac-Mégantic

The company importing the oil carried on the train that derailed in Lac-Mégantic has been sentenced for failing to comply with safety standards and inadequately training its employees to transport dangerous goods.

After entering guilty pleas to offences under the Transportation of Dangerous Goods Act, Irving Oil has been ordered to pay more than $400,000 in fines and $3.6 million to implement research programs on safety standards.

The train that derailed in LacMégantic, killing 47 people and destroying much of the town’s downtown core, was carrying crude oil from North Dakota en route to the Irving Oil refinery in Saint John, N.B.

Following the derailment in July 2013, Transport Canada and the RCMP launched an investigation into the company, the Public Prosecution Service of Canada (PPSC) said in a statement stated Thursday.

The investigation determined Irving Oil didn’t comply with applicable safety requirements: it failed to determine the classification of dangerous goods for the crude oil it transported by rail and had erroneous shipping documents onboard trains.

“Irving Oil also failed to adequately train its employees in the transportation of dangerous goods,” the PPSC said.

The offences occurred in the eight months before July 2013. During that time, the PPSC said, approximately 14,000 cars transported crude oil for Irving Oil.

In a statement issued Thursday, Irving Oil said it “believes strongly in the importance of safety and regulatory compliance” and takes the charges very seriously.

“The misclassification of crude oil did not cause or contribute to the railway accident in any way,” the company said.