Coal dust hearing at STB set July 29
Written by William C. Vantuono, Editor-in-ChiefCan a railroad deny service to coal shippers who fail to follow the carrier’s rules on coal dust dispersal? A public hearing scheduled by the Surface Transportation Board for July 29 will give affected parties the opportunity to weigh in on the issue.
STB says the case, Arkansas Electric Cooperative Corporation–Petition for Declaratory Order, Docket No. FD 35305, raises the issues of whether BNSF Railway “may establish rules regarding coal dust dispersion from coal trains operating over its lines and if it can refuse to provide rail service to shippers who do not comply with its rules. The Board will decide if this constitutes an unreasonable practice and whether the provision would violate BNSF’s common carrier obligation.”
Remarked one industry observer, “If something fell off a railcar and fouled the track leading to a derailment, the railroad would be justified in seeking indemnification from the shipper. I can think of no other customer than utilities who think they can drop their property on a railroad right-of-way without penalty. If I were a railroad coal pricing official, I would include in my coal rates the cost of a certain number of derailments caused by coal dust fouling my substructure. That would allow a rate considerably higher than 180% of variable cost.”
The hearing is scheduled for 9:30 a.m. at STB Headquarters, 395 E Street SW, Washington, D.C., and is open to the public, but only parties of record will be permitted to speak.
A video broadcast of the hearing will be available through the Board’s website at www.stb.dot.gov.
