CEO DATELINE - Oil refiners association sues railroad company on fees
CEO DATELINE - Oil refiners association sues railroad company on fees
- March 17, 2015 |
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Walt Williams
Group argues surchage is unreasonable
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The American Fuel & Petrochemical Manufacturers is suing a major railroad carrier for its policy of adding a $1,000 surcharge to tank cars carrying crude oil, according to Bloomberg Business.
The lawsuit against BNSF Railway was filed last week in U.S. District Court. The company announced last year it would start adding the surcharge to crude oil shipped in DOT-111 tank cars, which are commonly used to transport chemicals but are prone to punctures and leaks.
BNSF wants oil companies to instead use a newer model of tank car that go beyond current regulatory standards. However, AFPM argues the surcharge would raise the cost of transporting oil by $1.50 a barrel, so is asking the court to axe the fee. Railroad companies are required by federal law to provide transportation services at reasonable rates.
Crude oil shipments by train have come under increasing scrutiny since a 2013 train crash in Quebec killed 47 people, Bloomberg reported. More recently, a BNSF train carrying crude oil derailed in rural Illinois, forcing an evacuation of homes within a one-mile radius of the crash. http://bloom.bg/1BMw6C0