Tuesday, December 13, 2011

STB examines UP tariff on TIH commodities

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The Surface Transportation Board announced that it has initiated a proceeding to determine the reasonableness of “certain tariff provisions requiring shippers to indemnify Union Pacific Railroad Company (UP) against future liabilities, other than those resulting from UP's negligence or fault, when UP transports toxic by inhalation hazardous (TIH) commodities.” STB is inviting participation by the public.

The board acted in response to UP’s request for a declaration on the reasonableness of the indemnification provisions. “Those provisions require TIH shippers to indemnify UP against all liabilities resulting from shipper negligence or fault, the negligence or fault of third parties, or from acts of God, among other liabilities, regarding TIH transportation,” said the board.