US rail regulators have ordered western US railroad BNSF to haul 4.2mn short tons of coal this year from producer Navajo Transitional Energy Company’s (NTEC) mine in Montana to a Canadian export terminal.

The delivery of those 4.2mn st (3.8mn metric tonnes) must be spread equally throughout the year at a pace of 23 trains/month, the US Surface Transportation Board (STB) ruled today. The agency also ordered BNSF to delivery another 1mn st this year if additional trains and crews become available. That would raise the pace of shipments to 29 trains/month.

The dispute over future service is not fully resolved, but today’s decision sets rail transportation requirements until STB makes a final decision or BNSF and NTEC reach a resolution.

NTEC in April petitioned STB to require BNSF to transport a minimum of 29 trains/month from the Spring Creek mine in Montana to Westshore Terminals in British Columbia. Rival producer Arch Coal last month asked STB to deny the petition, saying that action might interfere with its own PRB coal shipments.

NTEC made a “very strong showing” during a 10 May oral argument that it is likely to succeed on the merits of its claim that the railroad’s failure to provide the requested service constitutes a failure of BNSF to comply with its common carrier obligation, STB said in today’s decision. The so-called common carrier obligation requires railroads to provide service upon reasonable request.

The railroad’s comments during the oral argument undercut its own claims that requiring specific service would harm its other customers, STB said.

The STB petition is separate from a federal court case that NTEC filed in December 2022 in which it sued BNSF for allegedly failing to honor its rail contract to move as much as 5.5mn st of coal to Westshore Terminals last year. The lawsuit is still working its way through the legal system.

The US District Court for the District of Montana has scheduled oral arguments for 28 June.

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