When the brakes failed on a 72-car oil tanktrain on the Montreal, Maine & Atlantic Railways, Inc. in thesmall village of Nantes, Quebec, about seven miles west ofLac-Mgantic, a string of tank cars rolled downgrade and exploded inthe center of the town, killing as many as 50 people, many in theMusi-Cafe enjoying a 1 a.m. Saturday morning dance. What caused theparked train to run away was under investigation by the railroadand the Canadian government, reported Edward Burkhardt, CEO of theMM&A Railways, a Class II railroad, later that week, but it maytake time to sort out the facts.

This accident underscores a type of disaster claim thatadjusters for both insurers and self-insured industries such asutilities, railroads and pipelines will be presented in increasingnumbers in the next decade. Trains of tanker cars full of crude oilfrom the North Dakota Bakken Oil Shale field (Williston Basin) andsimilar oil fields in Texas and Pennsylvania move the valuablefossil fuel to refineries. The accident is bound to renew debate inWashington and Wall Street over the need to construct the KeystoneXL Oil Pipeline from Hardisty, Alberta to Patoka, Illinois orHouston, Texas. Whether the oil is transported by rail or bypipeline can make a difference in the type of claims that mayresult. Claims adjusters need to be familiar with the laws thatwill affect such transport.

Statistics Show Both Are Hazardous