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DM&E Financing revisited.
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[quote user="Murphy Siding"][quote user="TheAntiGates"][quote user="Murphy Siding"] <P> The sad truth, I believe, is that the sum accomplishment of the DM&E PRB extention would only be the re-distribution of money from BNSF and UP's stockholders to someone else's pockets.[V]</P> <P>[/quote]<BR><BR>In one of the reports on Matt Rose's objection(s) to DM&E, the comment was made that BNSF and UP already hold all the contracts for PRB coal .<BR><BR>Sure would like to understand that claim better, Are they saying that there is a franchise-like relationship, with the two majors having an exclusive right to deal with the mines, or are they saying that <B>all</B> the contracts for delivery with the end user utilities are currently with them?<BR><BR>The former might be a big deal, but the latter seems like only a matter of time before contracts need to be renewed, and utilities currently using a seperate source could always create new contracts with DME that previously used eastern coal<BR><BR>So, I'm at a loss to appreciate what Rose was trying to imply with that comment.<BR>[/quote]</P> <P> I take that as meaning that BNSF and UP have all the long term contracts at this point. When the contracts come up for renewal, then it will be a 3-way pricing battle. At that point, doesn't DM&E have a 1 in 3 chance of getting the business?</P> <P>[/quote]</P> <P>You see Murph? Use a catchphrase like "re-distribution of wealth" in describing the DM&E vs BNSF/UP battle, and suddenly AG seems almost reticent in his critisism of DM&E.</P> <P>I guess Solz and I had it all wrong regarding the framing of this debate - we should have portrayed DM&E as the oppressed proletariat fighting for equality against the bourgeoisie BNSF/UP/Mayo elite, and AG would have been all over those evil capitalist Mayo pigs.[soapbox]</P>
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