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WATCO abandoning service on Washington State owned lines! (read: BNSF does it again!)
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[quote]QUOTE: <i>Originally posted by Murphy Siding</i> <br /><br />[quote]QUOTE: <i>Originally posted by futuremodal</i> <br /> The State went to all this trouble to purchase the PCC lines with the thought that by doing so they could keep rail service on those lines viable and keep trucks off State and county roads. Then BNSF refuses to provide the promised service levels for their former share of the State purchased lines <br />[/quote] <br /> <br /> You make it sound as if the state would have grounds for a lawsuit. I mean, they did get get this *promised service levels* issue in writing? Right?[}:)] <br />[/quote] <br /> <br />Actually, it's a little more tricky than that, and Gabe could do a better job of explaining the legallese involved in such situations, but my understanding is thus: <br /> <br />When WATCO bought the ex-BN lines from BN, BN is alleged to have made certain car supply promises, which I am told is normal SOP for such line sales, otherwise the potential short line buyer would walk. Of course, the information is confidential, so then WATCO turned and sold the trackage to the State while maintaining operating rights, WATCO retained the contractual rights and obligations of the original sale. And now that WATCO wants out of operating rights altogether, the State would probably have to get a court order to see what is contained in the original sales contract. Without that, the State can only go on hearsay when calculating what BNSF did or did not promise in terms of guaranteed car supply to WATCO, and hearsay usually won't hold up in court! And WATCO probably is too afraid of retribution from BNSF on it's hundreds of other shortlines throughout North America to bring forth this info themselves. <br /> <br />AKA, it's all probably in legal limbo right now!
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