(The Associated Press circulated the following on July 29.)
HELENA, Mont. — BNSF Railway says it took a $175 million earnings hit this month in order to prepare for environmental lawsuits in Montana.
The company told Gov. Brian Schweitzer that it estimated the figure after evaluating the potential effect of a 2007 Montana Supreme Court decision dealing with liability in environmental cases.
BNSF Chief Executive Matt Rose says the court set a higher standard than found in any other state. He says judges can now order recovery to a pristine level.
He says most places simply require cleanup to a level found acceptable by state regulators.
Rose says the company arrived at the large figure by estimating potential liability at all of its sites in the state.