Decision No. 210-R-2012
June 6, 2012
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Issues
[3] The Agency has determined that this complaint raises the following issues:
Did the City, when it purchased the Bridge, acquire a railway line for continued operation?
If the City acquired a railway line for continued operation, has the City discontinued operating the railway line?
Conclusion
[4] As indicated in the reasons that follow, the Agency finds that the City acquired the Bridge for continued operation. The Agency also finds that, for the purposes of the CTA, the City has not discontinued operating the railway line.
[5] The Agency orders the City to comply with section 141 of the CTA.
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The City
[17] The City submits that at the time of the purchase it had no immediate plan or legal authority to operate trains across the Ottawa River. The City states that it has never obtained nor sought to obtain a certificate of fitness to authorize it to operate a railway line across the Bridge. The City also points out that the Certificate of Fitness issued, and later varied, by the Agency does not provide the City with the authority to operate a railway line across the Ottawa River, by way of the Bridge or any other means.
[18] The City submits that there are currently no railway operations on the Bridge such that it is not part of any railway line. The City states that it cannot take steps to discontinue a railway line that it does not operate. The City therefore claims that it is under no statutory obligation to include the Bridge in its plan.
[19] The City denies that the lack of an annotated line on the Bridge on Schedule B of the City’s plan indicates its intention to discontinue use of the Bridge.
[20] The City submits that it has at all times complied with the provisions of Division V of the CTA with respect to its ownership of the Bridge. The City claims that there is no requirement or obligation under the CTA to maintain the Bridge in a state of ready use for passenger rail service.
ANALYSIS AND FINDINGS
[21] In making its findings, the Agency has considered all of the evidence and arguments submitted by the parties during the pleadings.
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Issue 1: Did the City, when it purchased the Bridge, acquire a railway line for continued operation?
Bridge acquired for continued operation
[22] MOOSE submits that CP never filed a plan to discontinue the operation of the railway line over the Bridge. The City did not file any submission indicating that the railway line over the Bridge was discontinued by CP prior to the sale. Accordingly, the Agency finds that CP did not discontinue the railway line over the Bridge prior to its sale to the City. For the purposes of brevity, the railway line over the Bridge shall be referred to as the “railway line”.
[23] Subsection 141(3) of the CTA states that a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation. The City filed with the Agency the Agreement of Purchase and Sale of Railway for Continued Railway Operations between CP and the City, signed March 21, 2005. The Agreement includes the Ellwood and Prescott corridors, and the Bridge. The Agreement also includes the Vendor’s Conditions, which state: “Subject to the Purchaser executing an Acknowledgement and Undertaking, in a form satisfactory to the Vendor’s Solicitor, acting reasonably, acknowledging that the Lands, Fixtures and documents are being sold for continued railway operations.”
[24] The Agency finds that CP entered into the Agreement of Purchase and Sale of Railway for Continued Railway Operations with the City in accordance with subsection 141(3) of the CTA. That agreement was for the sale of railway lines, including the railway line across the Bridge, for continued operation. There is no evidence indicating that CP had discontinued operation of the railway line prior to the sale.
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CONCLUSION
[41] In light of these findings, the Agency orders the City to comply with section 141 of the CTA within 90 days from the date of this Decision.
https://otc-cta.gc.ca/eng/ruling/210-r-2012