By Justin Franz

BILLINGS, Mont. — A coal company owned by the Navajo Nation has alleged that BNSF Railway prioritized shipments from other mines over its operation in southeast Montana. The company, Navajo Transitional Energy Company, filed a breach of contract lawsuit against BNSF in U.S. District Court in Montana this week seeking damages. 

Navajo Transitional Energy Company owns the Spring Creek Mine in Big Horn County, Montana, and it is served by BNSF. The railroad usually sends about 28 coal trains a month from Montana to Roberts Bank, British Columbia, where the coal is then offloaded onto ships for export to Asia. But earlier this year, BNSF was only providing about 18 trains per month to the mine, and railroad officials told the company there would be even fewer in the months ahead. Railroad officials blamed the ongoing service issues impacting all of the Class Is.

But attorneys representing the coal company allege that BNSF was actually prioritizing other customers. In fact, from January to August 2021, the railroad moved 561 coal trains to the Westshore Terminal in Roberts Bank, British Columbia; during that same period in 2022, the railroad moved 570 coal trains to the port. NTEC’s attorneys say some of those trains were for new customers who had not shipped coal with BNSF in 2021. 

The coal company says it has lost $150 million in revenue this year because of BNSF. The company said it tried to resolve its issues through the U.S. Surface Transportation Board, but that did not work. 

“BNSF is, simply put, abusing its monopoly power and picking winners and losers,” said Matt Babcock, NTEC’s vice president of sales and marketing, in a press release. “And it’s not only at the expense of our business and our customers but at the expense of the Navajo Nation.”

BNSF declined to provide a comment for this story.