CN Rail is being accused of not paying its fair share under the provincial Drainage Act.
In 2022, the company told municipalities that it would no longer be paying for drainage assessments for the installation and maintenance of municipal drain infrastructure in rural Ontario.
As a result, Warwick Township is owed $160,000 and the Town of Plympton-Wyoming is owed $80,000.
Warwick Mayor Todd Case said they expressed their concerns at a recent meeting with CN officials.
The company claims that it's federally regulated and doesn't have to follow provincial standards.
"We're not the only municipalities in Ontario that are experiencing the same thing," said Case. "There's many municipalities that CN just decided they weren't going to pay anymore. Let's be honest, they do benefit from the drain just as much as a farmer does or the person living on that country estate. We're just saying that 'look, you have to do the right thing and you've got to pay your fair share'."
Case said CN's refusal to follow provincial law is delaying numerous drainage-related projects across the province.
"Drains are always prorated and everybody pays according to the benefit they get from that drain. When CN just decides that they're not going to pay and hold up the whole process in the system, it causes a backlog. That's an issue that AMO (the Association of Municipalities of Ontario) and other organizations have identified."
He said by not paying for completed projects, CN is withholding millions of much-needed dollars from helping develop rural Ontario municipalities.
Minister of Agriculture and Rural Affairs Lisa Thompson has stated the province's stance is that the Drainage Act applies to all federally regulated railways.
The municipalities have given CN until Friday, March 3 to respond to the concerns.
If a resolution can't be reached, Case said they'll look at other avenues to get compensation.
In a statement to Sarnia News Today, CN Manager of Public Affairs Daniel Salvatore said "safety is a core value at CN and is at the heart of everything we do and every decision we make."
"The management of waterflow in proximity to its tracks is an important priority to ensure the safe movement of goods transported," said Salvatore. "The applicability of the Ontario Drainage Act on federally regulated railways is an issue between all Class 1 railways in Ontario, and the provincial government."
"CN maintains that the cost apportionment of work required on, over, or under its right of way, ought to be determined by existing federal processes found in the Canada Transportation Act. CN has always stated that it is willing to pay its fair share based on the determinations of those federal processes. CN agrees that the current situation requires resolution and is exploring options to address this impasse."