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The previous version of the rules stated that both CP and CN had to move more than 500,000 tonnes per week, while the new requirements vary depending on the time period, but drop as low as 200,000 tonnes over the Christmas period. If the railroads fail to comply, they will be fined $100,000 per violation.

The government is also asking both railroads to submit “formal winter contingency plans” and provide information on car order fulfillment by corridor.

The railways had hoped the rules would not be extended, saying the market is back in balance and there’s no need for further government intervention.

In an interview before the extension was announced, CN chief executive Claude Mongeau said the government “overreacted” to the grain backlog last winter.

“There was a lot of finger-pointing, a lot of emotions, and I think some bad decisions were made,” he said.

CN reiterated its opposition to the rules after the extension was announced over the weekend.

“More regulation threatens to increase costs, stifle innovation and potentially discourage investments that are critical to building the strong, safe and resilient supply chains of the future,” the company said in a statement.

CP, which has also opposed the requirements, pointed out that it is only “one link in the global supply chain.”

“More than anything, it is market forces that have driven the record volumes of grain that CP has delivered this year and last,” the railway said in a statement.

Farmers, meanwhile, applauded the government’s decision.

“Transport Minister Lisa Raitt and Agriculture Minister Gerry Ritz are once again demonstrating leadership in providing key support for Canada’s agriculture and agri-food sector,” Gary Stanford, president of the Grain Growers of Canada, said in a statement.

“Canadian farmers grow some of the highest quality grain in the world — it is in everyone’s best interest to see it get to market.”