Wednesday, May 13, 2009

STB approves settlement between DuPont, CSX

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The Surface Transportation Board (STB) has approved a request from Wilmington, Del.-based chemical shipper E.I. du Pont de Nemours & Co. (DuPont) to withdraw its November 2008 rate case complaint against CSX Transportation. Specifics of a settlement, however, have not been made public.


STB Acting Chairman Francis P. Mulvey did say in a statement that this is the first large rate case mediated to settlement under STB’s oversight. "This mediation demonstrates that active Board staff involvement at the early stages of the case process can help narrow or, as here, completely resolve, disputed issues," said Mulvey. "I commend DuPont and CSXT, and the Board's staff mediators for their efforts. The agency will continue to promote mediation as an alternative to formal and more expensive dispute resolution processes."


DuPont’s complaint, filed last November, said CSX rates for the movement of 38 commodities between 99 origin and destination pairs "possesses market dominance over the traffic and requested that the maximum reasonable rates be prescribed along with other relief pursuant to the Board's Stand-Alone Cost [SAC] test." The SAC test is used in the most complex rate cases that involve large sums of money.

STB’s announcement is available on its website,, under "E-LIBRARY," then under "Decisions & Notices," beneath the date "05/11/09."

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