Governor Schweitzer Says BNSF is Overcharging Montana Shippers

Date: March 16, 2006
Location: Helena, MT


Governor Schweitzer Says BNSF is Overcharging Montana Shippers

DEQ to Start Cleanup on BNSF Livingston Site

Governor Schweitzer talked today to the Rail Service Competition Council at their meeting in Helena. "It costs grain growers in South Sioux City, Nebraska $1.67 per mile to ship grain to the Pacific Northwest yet it costs Montana shippers $3.29 per mile to ship grain a shorter distance," said Governor Schweitzer.

The Governor pointed out that shipping rates are significantly lower for places twice the distance to the Pacific Northwest as Montana. "Clearly there is no correlation between rates and fuel costs, labor or track costs."

BNSF grain rates to Pacific Northwest from Iowa, South Dakota, North Dakota and Nebraska:

Grain BNSF Rates$/BU Miles $/Mile
West Milbank SD $0.85 1620 $1.85
Hinton IA $0.85 1801 $1.54
South Sioux City NE $0.85 1796 $1.67
Grand Forks ND $0.86 1458 $2.51

BNSF grain rates to Pacific Northwest from Montana:

Grain BNSF Rates$/BU Miles $/Mile
Big Sandy MT $0.89 911 $3.29
Great Falls MT $0.83 873 $3.19
Havre MT $0.89 884 $3.39
Sidney MT $1.09 1193 $3.06

Governor Schweitzer added, "The effect of the lack of rail competition is both excessive freight rates and poor service. Further, it is not acceptable for BNSF to leak diesel into our drinking water. Enough is enough."

Governor Schweitzer announced today that he will direct the Department of Environmental Quality (DEQ) to move forward on their recommendations to terminate any further negotiations with Burlington Northern Santa Fe (BNSF) related to implementation of the selected remedy and take over the cleanup of the Livingston site. In a letter outlining his recommendations DEQ Director Richard Opper said of the Livingston site cleanup, "BNSF's obligation will be to timely pay all the bills."

"BNSF is responsible for nearly one-tenth of the sites on the state's superfund list," continued Governor Schweitzer. "They have been dragging their feet for nearly two decades even though in a meeting only two months ago they told DEQ that they have an "open checkbook" for addressing sites in Montana. It is time for them to follow through on their commitment to cleanup their mess."

Director Opper continues in his letter, "BNSF has impeded progress at this and other sites, bogged down negotiations with technical issues, and failed to respond to DEQ's requests and requirements in a timely manner. This is not acceptable."

http://governor.mt.gov/news/pr.asp?ID=315

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