US coal producers Murray Energy and Foresight Energy have escalated their complaints against CSX at the US Surface Transportation Board by calling for a formal proceeding concerning the railroad's service.
In a filing with the STB released Tuesday, the producers urge the agency to institute a proceeding to address CSX's "brazen refusal to meet the demands for coal transportation."
The miners also asked for a public hearing focused on railroad's "specific plans to exigently remedy its service failures, particularly for the coal industry" and for the STB to order CSX to submit public filings that identify steps taken to improve service and the impact those changes.
Murray and Foresight say the railroad has an "open disregard for the coal industry" and point to CSX CEO Hunter Harrison's remarks during the railroad's second-quarter 2017 earnings call on July, 19 when he said "fossil fuels are dead."
The producers allege CSX has "cavalierly announced its intention to neglect the entire [coal] segment."
CSX "intends to choke off this crucial supply chain by refusing to devote further resources to it. This merits a formal and immediate investigation by the board," the producers say.
CSX did not return requests seeking comment Tuesday. A spokesman for Murray and Foresight on Tuesday said the companies had no further comment.
The STB said Tuesday it is reviewing the filing, but had no additional comment.
STB MEDIATION
Murray has been one of the loudest voices since producers first spoke publicly of CSX delays in July as the railroad continued its transition to a precision railroading model under new CEO Harrison.
After receiving multiple complaints, the STB met with CSX officials in mid-July and requested the railroad hold weekly service calls to provide an overview of operations, establish a service hotline for customers and provide frequent operational updates directly and via website postings.
Murray and Foresight then filed lawsuits against CSX on August 1, and last week, in a separate STB filing, said service had worsened and the railroad had stopped daily correspondence facilitated by the STB.
The STB last week again sent a letter to CSX saying it had "continued concerns over the widespread degradation of rail service across" the CSX system and "it is not apparent" that service has improved.
The agency said it wanted more service data ahead of weekly calls with the railroad discussing its network.
In addition, the STB requested that CSX should provide by Thursday a detailed schedule for the remaining implementation of the railroad's new operating plan, including key action items and milestones for the balance of 2017.
