(The Associated Press circulated the following article on February 16.)
WASHINGTON – Burlington Northern Santa Fe Corp. Wednesday said the antitrust arm of the Department of Justice is looking into the prices it charges for shipping coal.
The department requested information on the price of coal shipping from the southern Powder River Basin in Wyoming.
The Fort Worth, Texas-based railroad company said in its annual report, filed with the Securities and Exchange Commission late Tuesday, that it’s responding to the request.
No further information about the investigation was provided in the filing.
In 2004, Burlington said that it got 21 percent of its freight revenue transporting coal.
For the year, coal revenue totaled roughly $2.3 billion, up 12 percent from the prior year.
Burlington’s Railway unit is the largest transporter of low-sulfur coal originating from the Powder River Basin.
Demand for Powder River Basin coal has increased substantially over the past 20 years due to environmental compliance issues, abundant reserves, and relatively inexpensive mine production, the filing said.
Separately, the company said it expects to save $20 million in 2005 as a result of the American Jobs Creation Act of 2004 that was signed into law in October 2004.
Burlington said the new law will save it about $10 million in 2006 and $30 million in 2007.
Part of the new legislation includes the repeal of a 4.3-cent tax per gallon of diesel fuel. The tax will be gradually phased out this year and 2006, and will be completely phased out by 2007.
Shares of Burlington fell 16 cents, or 0.3 percent, to $47.55 in early afternoon trading Wednesday on the New York Stock Exchange.