Murray Energy Corp. dropped cases against CSX Transportation Inc. over service delays and other transportation problems.
The coal producer confirmed it had "dismissed, without prejudice," cases brought against the railroad under federal courts and before the U.S. Surface Transportation Board. However, according to a statement released to S&P Global Market Intelligence, "Murray Energy retains the right to refile these cases in the event that CSX's recent service improvements are not sustained."
Murray requested help from the STB in July, alleging delays and service issues caused by the railway during CSX's transition to its new precision railroad service, and sued CSX for "failure to provide reliable service" in two lawsuits filed by Murray and some subsidiaries of its affiliate Foresight Energy LP.
At a public hearing at the STB headquarters in October, a Murray Energy executive told the board that the railway's issues were improving but the coal producer was still losing millions of dollars from missed train shipments.
CSX Corp. CEO and President Hunter Harrison said on a quarterly earnings call in July that fossil fuels are dead and the railway would not be making significant infrastructure investments with regard to its coal shipment business.
A coal industry analyst recently said the precision railroad service plan might help the railway more than coal producers or generators.
Arch Coal Inc. and CNX Coal Resources LP also mentioned problems with the railway in the summer.
