Net salvage value

(5) If a government accepts the offer, but cannot agree with the railway company on the net salvage value within ninety days after the acceptance, the Agency may, on the application of the government or the railway company, determine the net salvage value.

Discontinuati on

146. (1) Where a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest therein is not entered into through that process, the railway company may discontinue operating the line on providing notice thereof to the Agency. Thereafter, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by VIA Rail Canada Inc. over the railway line.

No obligation

(2) If the railway line, or any interest of the railway company therein, is sold, leased or otherwise transferred by an agreement entered into through the process prescribed by sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by VIA Rail Canada Inc. over the railway line as and from that date.

DIVISION VI

TRANSPORTATION OF WESTERN GRAIN

Interpretation

Definitions

147. In this Division,

``crop year''
« campagne agricole »

``crop year'' means the period beginning on August 1 in any year and ending on July 31 in the next year;

``export''
« exportation »

``export'', in respect of grain, means shipment by a vessel, as defined in section 2 of the Canada Shipping Act, to any destination outside Canada and shipment by any other mode of transport to the United States for use of the grain in that country and not for shipment out of that country;

``grain''
« grain »

``grain'' means any grain or crop included in Schedule II that is grown in the Western Division, or any product of it included in Schedule II that is processed in the Western Division;

``joint line movement'' « mouvement sur ligne conjointe »

``joint line movement'' means any rail traffic that passes over a continuous route in Canada operated by two or more railway companies;

``maximum rate scale''
« barème »

``maximum rate scale'' means a scale of maximum rates per tonne that may be charged for the movement of grain over specified ranges of distance;

``movement''
« mouvement du grain »

``movement'', in respect of grain, means the carriage of grain by a prescribed railway company over a railway line from a point on any line west of Thunder Bay or Armstrong, Ontario, to

      (a) Thunder Bay or Armstrong, Ontario, or

      (b) Churchill, Manitoba, or a port in British Columbia for export,

    but does not include the carriage of grain to a port in British Columbia for export to the United States for consumption in that country;

``port in British Columbia''
« port de la Colombie-Brit annique »

``port in British Columbia'' means Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Steveston, Tilbury and Woodwards Landing;

``prescribed railway company''
« compagnie de chemin de fer régie »

``prescribed railway company'' means the Canadian National Railway Company, Canadian Pacific Limited and any prescribed company operating a railway;

``Western Division''
« région de l'Ouest »

``Western Division'' means the part of Canada lying west of the meridian passing through the eastern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba.

Application of Division IV

Application to tariffs and rates

148. The provisions of Division IV apply, with such modifications as the circumstances require, to tariffs and rates under this Division to the extent that those provisions are not inconsistent with this Division.

Maximum Rate Scale

Maximum rate scale for the 1995-96 crop year

149. (1) The maximum rate scale for the 1995-96 crop year is set out in Schedule III.

Agency to determine maximum rate scale

(2) The maximum rate scale for each subsequent crop year shall be determined by the Agency in accordance with section 150 on or before April 30 of the previous crop year.

Determination of maximum rate scale

150. (1) The maximum rate scale is determined by multiplying the amount per tonne for the movement of grain over each range of distance set out in the maximum rate scale for the 1995-96 crop year by the freight rate multiplier.

Freight rate multiplier

(2) The freight rate multiplier is the product obtained by applying the following formula:

1 + A-Bx1 - C x $10,000
B $1,052,800,000

where

A is the volume-related composite price index, as determined by the Agency, for the crop year for which the Agency is determining the maximum rate scale,

B is the volume-related composite price index for the 1994-95 crop year, and

C is the number of miles of grain-dependent branch line set out in Schedule I whose operation was discontinued from April 1, 1994 to April 1 before the crop year for which the Agency is determining the maximum rate scale.

Tariff of Rates

Rates to conform with this Division

151. (1) The rates of a prescribed railway company for the movement of grain in a crop year must not exceed the rates set out in the maximum rate scale for that crop year.

How rates derived

(2) Each rate must be derived from the rate applicable to the appropriate range of distance in the maximum rate scale for that crop year.

Demurrage, storage costs and benefits excluded from rates

(3) The following are excluded from the rates for the movement of grain:

    (a) demurrage;

    (b) rates for the storage of railway cars loaded with grain; and

    (c) benefits for loading or unloading grain before the expiration of the period agreed on for loading or unloading grain.

Higher rates in respect of joint line movements

152. (1) A prescribed railway company may include in its tariff a rate in respect of a joint line movement that is higher than that provided by section 151 if the higher rate is authorized under subsection (2).

Rates applicable to joint line movements

(2) The Agency may determine an amount by which a rate applicable to a joint line movement may exceed the level provided by section 151, but the amount must not exceed the level that, in the opinion of the Agency, is necessary to defray the additional costs directly attributable to the joint line movement, other than costs that, in the opinion of the Agency, are incurred by a prescribed railway company for the movement of grain in the vicinity of a port for unloading purposes.

Higher rates in respect of certain railway cars

153. (1) A prescribed railway company may include in its tariff a rate in respect of the movement of grain by means of railway cars, other than box cars, hopper cars or shipper supplied tank cars, that is higher than that provided by section 151 if the rate is authorized under subsection (2).

Rates applicable to movement by certain railway cars

(2) The Agency may determine an amount by which a rate applicable to a movement of grain by means of railway cars, other than box cars, hopper cars or shipper supplied tank cars, may exceed the rate provided by section 151, but the amount must not exceed the level that, in the opinion of the Agency, is necessary to reflect the difference in costs.

Regulations

Prescribed railway companies

154. The Governor in Council may make regulations prescribing railway companies for the purposes of this Division.

Review

Review

155. (1) During 1999, the Minister shall, in consultation with shippers, railway companies and any other persons that the Minister considers appropriate, conduct and complete a review of the effect of this Act, and in particular this Division, on the efficiency of the grain transportation and handling system and on the sharing of efficiency gains as between shippers and railway companies.

Determination

(2) The Minister shall, as part of the review, determine whether the repeal of this Division and Schedules I, II and III will have a significant adverse impact on shippers and whether they should be repealed.

Repeal

(3) If the Minister determines that this Division and Schedules I, II and III should be repealed, then they are repealed on a day to be fixed by order of the Governor in Council.

DIVISION VII

OTHER MATTERS

Accounting

Uniform accounting system for CN and CP

156. (1) The Agency may prescribe for the Canadian National Railway Company and the Canadian Pacific Limited a uniform classification and system of accounts of their assets, liabilities, revenues, working expenditures, capitalization, traffic and operating statistics relating to railway operations.

Uniform accounting system for other railway companies

(2) The Agency may prescribe for any other railway company a uniform classification and system as described in subsection (1) or in a condensed form.

Items to be classed

(3) The Agency may prescribe the items to be classed as items relating to railway operations in the accounts.

Depreciation

(4) The Agency may prescribe the classes of property for which depreciation charges may properly be included under operating expenses in the accounts, and the rates of depreciation to be charged with respect to each of the classes of property.

Requirements to keep accounts

(5) A railway company for which a classification and system of accounts is prescribed shall keep its accounts in accordance with the prescribed classification and system.

Determination of Costs

Regulations for determining costs

157. (1) The Agency may make regulations prescribing items and factors that it shall consider in determining costs under this Part, including depreciation and the cost of capital.

Additional considerations

(2) The Agency may also consider

    (a) the principles of costing adopted by the Royal Commission on Transportation appointed by the Order in Council dated May 13, 1959 in arriving at the conclusions contained in its report; and

    (b) later developments in railway costing methods and techniques and current conditions of railway operations.

Computation of costs of a portion of an undertaking

(3) If the costs of a portion of the railway of a railway company, or one of its operations, are to be computed

    (a) for a particular period, the Agency must include in the computation any of the costs of the whole railway, or any other portion of it, that, in the opinion of the Agency, are reasonably attributable to the portion or operation, irrespective of when, in what manner or by whom the costs were incurred; and

    (b) in respect of future operations of the company, the costs must be determined in accordance with estimates made on any basis that, in the opinion of the Agency, is reasonable in the circumstances.

Determination final and binding

(4) A determination of costs by the Agency under this Part is final and binding on all interested or affected parties.

Agreements to apply transportation law to provincial railways

157.1 (1) The Minister may enter into an agreement with a provincial minister responsible for transportation matters providing for the administration, in relation to persons who operate railways within the legislative authority of the province, of any law respecting railway safety, accident investigation and railway crossings.

Designation

(2) The Minister may designate any body established under an Act of Parliament, or any person or class of persons employed in the public service of Canada, to administer the law in accordance with the agreement.

Functions, duties and powers

(3) The designated body, person or class of persons may perform any function or duty and exercise any powers necessary for the enforcement of the law, to the extent specified in the agreement.

Police Constables

Appointment of police constables

158. (1) A judge of a superior court may appoint a person as a police constable for the enforcement of this Part and for the enforcement of the laws of Canada or a province in so far as their enforcement relates to the protection of property owned or administered by a railway company and the protection of persons and property on that property.

Limitation

(2) The appointment must only be made on the application of a railway company that owns or administers property located within the judge's jurisdiction.

Police constables peace officers

(3) The police constable has jurisdiction on property under the administration of the railway company and in any place within 500 m of property that it owns or administers.

Power to take persons before a court

(4) The police constable may take a person charged with an offence under this Part, or any law referred to in subsection (1), before a court that has jurisdiction in such cases over any area where property owned or administered by the railway company is located, whether or not the person was arrested, or the offence occurred or is alleged to have occurred, within that area.

Court's jurisdiction

(5) The court shall deal with the person as though the person had been arrested, and the offence had occurred, within the area of the court's jurisdiction, but the court shall not deal with the person if the offence is alleged to have occurred outside the province in which the court is sitting.

Dismissal or discharge of police constable

(6) A superior court judge referred to in subsection (1) or the railway company may dismiss or discharge the police constable and the dismissal or discharge terminates the powers, duties and privileges conferred on the constable by this section.