Billing Procedure for BNSF Traffic to/from Stations Located on Panhandle Northern Railroad
On December 5, 2016, the Panhandle Northern Railroad (PNR) issued a customer communication to certain customers requiring a new billing practice and suggesting that new tariff rates would apply to the movement of traffic between Borger, Texas and Panhandle, Texas currently covered by BNSF tariffs or contracts. BNSF is operating under the assumption that on and after January 1, 2017, customers will continue to follow their current procedures for requesting rail transportation, including the procedures for the creation of bills of lading. BNSF’s rates will continue to include compensation for PNR’s rail service between Borger and Panhandle as provided for by the agreement between BNSF and PNR.
BNSF has taken legal action to protect against any disruption to the current rail service on the line between Borger and Panhandle, which is an interest shared by both BNSF and its customers who utilize the line. The case is pending in the federal district court for the Northern District of Texas. The court did not grant BNSF’s request for an injunction to prevent PNR from unilaterally changing the billing procedures and issuing a separate tariff but we will notify you of further developments in the case.
We understand that customers share BNSF’s serious concerns regarding the impact of PNR’s actions on the efficient transportation services provided today that are important for our customers’ businesses. While PNR has threatened not to move traffic for any customer that fails to follow its new procedures, PNR has at the same time assured us that it “is committed to fulfilling its common carrier obligations” in 2017. However, in the event of any actual or threatened suspension or reduction of service by PNR, please contact BNSF immediately. If you have questions, please contact your BNSF sales representative or BNSF Customer Support at 888-428-2673 option 4, then option 3.
Please continue to communicate with us regarding new information or concerns related to rail service between Borger and Panhandle. We look forward to continued success for our business relationship in the New Year.