Rail Transportation
Over the past 20 years, the firm’s lawyers have represented electric utilities and other large users of railroad transportation on a wide range of regulatory and transactional issues surrounding the movement of coal and other commodities by rail. Our representation of clients in rail transportation matters has resulted in the achievement of efficient rail service and literally hundreds of millions of dollars in reduced rail transportation costs.
Strategic Planning and Execution of Cost-Savings Initiatives
The firm’s lawyers have a long history of assisting utilities and other large users of rail transportation to develop and execute strategies for lowering rail transportation costs. Such strategies have included (1) rail transportation contract negotiation; (2) the creation of competitive leverage through rail spur construction and/or the acquisition of rail lines or trackage rights, and; (3) coal and natural gas supply contract negotiation. This counsel has also included analysis of the STB’s jurisdiction, Federal Railroad Administration jurisdiction, Railroad Retirement Board jurisdiction, state and local jurisdiction or preemption, and applicable environmental review requirements.
Railroad Transportation Contracting
The firm has helped utility and other shippers negotiate and draft rail transportation contracts involving all of the major Class I carriers as well as short line railroads for over 20 years. Our experience in this area has been for shippers with competitive options as well as shippers captive to a single carrier for their rail service. This experience has enabled the firm to gain a thorough understanding of the rail transportation industry and the evolution of railroad contracting. In addition to negotiating and drafting contracts, the firm has helped clients administer their existing contracts and resolve contractual disputes through negotiation and, if necessary litigation before courts and arbitration panels.
Rail Construction/Acquisition of Track or Trackage Rights
The firm pioneered the method of lowering fuel costs by constructing rail lines to competitive railroads. In fact, in 1990 Troutman Sanders represented the first shipper to build a rail line out to a competing railroad. We have assisted clients in construction projects that require or benefit from Surface Transportation Board authority and in construction projects that fall outside of Surface Transportation Board authority. In various cases we have assisted the client, in lieu of exercising its authority to construct a rail line, to acquire either (1) the rail line from the carrier serving the faculty or (2) trackage rights which can be used by a competitive carrier.
Stand-Alone Cost Coal Rate Cases at the Surface Transportation Board
The firm’s lawyers have represented complainants in four stand-alone cost rate cases before the STB. We have also helped numerous other utility clients evaluate whether to pursue regulatory relief for high rail rates imposed by the carrier servicing their facility. In addition to serving as counsel for individual complainants and potential complainants, the firm’s lawyers have participated on behalf of its clients in all of the recent proceedings at the STB which have resulted in the establishment of new procedural rules to govern coal rate cases. Thus, we are intimately familiar with the procedural and substantive rules that apply to these unique and very complicated cases.
Coal Supply Contracting
The Troutman Sanders transportation team has decades of experience negotiating coal supply contracts and contract amendments, as well as litigating coal contract disputes in federal and state court. Our work on coal supply is often in conjunction with the development and execution of overall transportation and fuel supply strategies for our utility clients. Because we represent utility clients all over the United States, we have dealt with issues arising from the purchase of coal from mines located in all areas of the country.
Legislative Experience
Troutman Sanders closely monitors and advises clients on legislative developments in the transportation field. Many Troutman Sanders attorneys have had careers working for the government and have worked closely with officials at the White House, Congress, Department of Justice, Federal Energy Regulatory Commission, Department of Transportation, the Surface Transportation Board, the U.S. Coast Guard, the Federal Maritime Commission, and the State Department. This collective experience has enabled the Firm to provide valuable input on legislative proposals and to influence the direction of transportation legislative policy.