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Navajo Company Sues North Texas-Based BNSF Railway Over Coal Transportation

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One of the largest coal producers in the United States sued a major freight railroad Tuesday, alleging it breached a contract to transport coal from Montana for use overseas.

The Navajo Transitional Energy Co. alleges that major shortcomings in BNSF Railway service cost it $150 million in lost revenue this year and another $15 million in charges when coal wasn't loaded in a timely manner onto ships destined for Japan and Korea. The lawsuit was filed in U.S. District Court in Billings, Montana.

BNSF told NTEC in late April and early May that it could commit to delivering only 3.1 million tons of coal this year, far short of what NTEC needed to fulfill its own obligations to customers and maintain good working relationships, according to the lawsuit. "BNSF's failure to provide NTEC transportation service has imposed -- and each day continues to impose -- crippling financial hardships upon NTEC amounting to many tens of millions of dollars," the lawsuit read.

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