Investor Alert

New York Markets Open in:

June 10, 2015, 9:25 p.m. EDT

Oil firms put millions into fund for train blast

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Russell Gold

1 2

"They have to be fully aware of what it is they are selling and give an accurate representation of it to the company they are selling it to," he said.

Earlier this week, World Fuel Services Corp. said it agreed to pay $110 million into the Lac-Mégantic fund. The Miami-based company bought oil in North Dakota and was shipping it, but wasn't operating the ill-fated train. In a statement, its chief executive said participating in the settlement was "in the best interests of our shareholders."

In 2013, World Fuel was actively involved in the burgeoning North Dakota crude-by-rail industry. It owned a 50% stake in a joint venture that purchased crude oil from various producers in North Dakota and then loaded it onto trains at a terminal it co-owned in the Bakken Shale.

World Fuel put together the shipment that was hauled first by Canadian Pacific Railway Ltd., and then by Montreal, Maine & Atlantic Railway.

The crude was to be delivered to Irving Oil, a refiner in New Brunswick that has agreed to pay $60 million into the compensation fund.

"Everyone involved in transport of crude oil is responsible for safety," said Robert J. Keach, the bankruptcy-court trustee.

Canadian Pacific hasn't agreed to pay into the fund. A Canadian Pacific spokesman said compensation should be from companies "responsible for the derailment," and not from companies that want to be shielded from future lawsuits.

A spokeswoman for Lac-Mégantic's local government said she hoped the settlement will let the town's 6,000 residents "turn the page" on the accident.

Write to Russell Gold at russell.gold@wsj.com and David George-Cosh at david.george-cosh@wsj.com

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MLX29

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MM408

Access Investor Kit for Marathon Oil Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US5658491064

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802591070

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802592060

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

1 2
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.