Ontario Northland train wreck blamed on weakened track

NEWS RELEASE

ONTARIO NORTHLAND TRANSPORTATION COMMISSION

************************* Ontario Northland releases investigation report

NORTH BAY, ON - Ontario Northland has released a report into the cause of a March 30, 2007 derailment of one of its freight trains north of Englehart, Ontario, which resulted in approximately 220 tons of sulphuric acid being spilled, some of which flowed into Miller Creek.

The cause of the derailment, which occurred on a curved section of track, was found to be a weakened condition of the track structure.

The report can be found at www.OntarioNorthland.ca

As a result of this derailment and the subsequent deposit of sulphuric acid into Miller Creek, Ontario Northland has pled guilty to the offence of depositing a deleterious substance in water frequented by fish, a prohibition under subsection 36(3) of the Federal Fisheries Act.

Ontario Northland acted immediately to contain the spill and remediate the area following the incident.

By June 1, 2007, Ontario Northland and its consultants determined that the area had returned to its regular environmental state.

By continuing to monitor conditions in the derailment area, Ontario Northland has confirmed that there have been no residual impacts on the soil, pond and Miller Creek, and no impacts at all on the Blanche River.

"Ontario Northland is committed to the safety of its employees, customers, communities and the environment. We sincerely apologize for this incident and wish to assure all residents of our region that it has been taken extremely seriously," said Paul Goulet, president and CEO of Ontario Northland.

An investigation into the incident recommended a review of internal track maintenance and inspection procedures.

This review was subsequently undertaken and enhancements were implemented, along with associated training for personnel and improved oversight of track inspection and monitoring practices.

In addition, Ontario Northland engaged an independent consulting firm to audit its track inspection and maintenance practices.

This audit proceeded over a 14 month period.

It confirmed many aspects of Ontario Northland's track inspection, training and repair standards and practices; it also identified opportunities for improvement.

"We are committed to meeting regulatory standards. We have made enhancements to our systems based on our own internal assessments as well as the recommendations of a third party auditor in order to prevent future incidents. We have also committed to undertaking third party audits of the managements systems, policies and quality assurance within our rail infrastructure department every two years to ensure that our standards continue to meet industry requirements," said Goulet.

Ontario Northland, an agency of the Province of Ontario, was established in 1902 and is a recognized leader in promoting sustainable economic growth by establishing and operating transportation and telecommunication links, primarily in Northeastern Ontario.

With more than 1,000 employees who live and work in the North, Ontario Northland and the economic activity it stimulates, has a dramatic impact in the region.

Ontario Northland's rail services division operates a 700 mile rail systems and provides both passenger and freight rail solutions to the residents and businesses of Northeastern Ontario.

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