From and energy e-mag:

MORAN, Wyo. - Jun 23


A BNSF Railway official asked the Wyoming mining industry to pressure Congress not to further regulate the rail industry, saying anything that might impede railroad profits would reduce the carriers' ability to expand their lines in Wyoming.

Speaking Thursday at the Wyoming Mining Association's annual convention, Steve Bobb, vice president of BNSF's coal business unit, said the industry is working to expand lines into coal country, even though returns from hauling coal aren't that great.

"If they cap our ability to raise our revenue, then we will pull capital out of this business, very quickly," Bobb said.

Earlier this week, members of a U.S. Senate subcommittee criticized the chairman of the Surface Transportation Board, saying more needed to be done to strengthen railroad competition and lower fuel surcharges. Shippers in some states have complained that a lack of competition leaves them "captive" to higher prices and equipment shortages, and argue that they are forced to pay inflated fuel surcharges.

Bobb said the industry is working hard to expand capacity so it can better handle producers' shipping needs. He said railroads expect that by 2009 they'll be able to ship 425 million tons of coal per year from Wyoming on the southern line alone.

"That's a big number, and it's going to require us to build a lot of railroad," Bobb said. "We are spending the money today because we think we can get those returns where they need to be."

But Shawn Taylor, executive director of the Wyoming Rural Electric Association, said utilities aren't asking that railroads be re-regulated _ they're asking for transparency in the shipping industry. Some power plants have complained of price gouging and say they have no choice but to stick with regional carriers.

"We need the railroads, and we want them to thrive and be successful," Taylor said. "But we want assurances on delivery, fair and transparent rates and accountability."

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Information from: Star-Tribune, http://www.casperstartribune.net


Jim