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STB Orders BNSF to Pay Reparations to Coal Shipper On Thursday, February 18, the Surface Transportation Board (STB) issued a decision that requires BNSF Railway to pay $345 million in reparations and rate reductions to Western Fuels Association, Inc. and Basin Electric Power Cooperative, Inc. The judgment represents the largest award given to a captive shipper, according to the STB. The utilities challenged the rates BNSF charged to move 8 million tons of coal annually from mines in Wyoming’s Powder River Basin to an electric-generating plant in Moba Junction, Wyoming, which is completely reliant on BNSF for rail service. The STB concluded that BNSF’s rates are “now roughly six times the variable cost of providing service” and are “unlawfully high.” BNSF was ordered to lower its rates by about 60 percent. BNSF must also promptly reimburse the utilities for $100 million in overcharges from 2004 through 2008. In a statement, BNSF “strongly opposes” the decision on its merits and believes the process used to arrive at the judgment is “unfair.” The railroad is reviewing the decision and plans to pursue all legal options. The Surface Transportation Board is the federal government agency charged with overseeing railroad rate and service disputes and reviewing railroad mergers. The organization is governed by a three member board – appointed by the President and confirmed by the Senate – each with a five-year term of office. Source: Progressive Railroading |
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The Soy Transportation Coalition is comprised of seven state soybean boards, the American Soybean Association, and the United Soybean Board. The National Grain and Feed Association and the National Oilseed Processors Association serve as ex-officio members of the organization. |
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