08/12/08 Railroads and anhydrous ammonia

Farm and Ranch August 12, 2008 Major U.S. railroads really don't want to transport toxic-by-inhalation or T-I-H materials. And that includes anhydrous ammonia, which is essential in the production of nitrogen fertilizers. What the railroads are concerned about is liability stemming from accidents. They have even gone so far as to ask Congress to relief them of their common carrier responsibility to transport such materials. Short of that, the railroads want Congress to enact a liability cap similar to what it did for the nuclear industry. Pam Guffain with The Fertilizer Institute, an industry trade organization, says the railroads made another proposal at a recent Surface Transportation Board hearing. Guffain; "They have asked the Board to issue a policy statement that would in effect indemnify them in the event there were an accident involving a T-I-H material. In other words, the shippers then would be required to pickup the cost of all damages regardless of the railroads' responsibility in keeping the trains on the track. TFI is adamantly opposed to this provision." Guffain says The Fertilizer Institute has worked with the railroads trying to satisfy their concern over liability by proposing to purchase excess liability insurance for them, which would be available in the event of an accident involving the release of anhydrous. She says those talks are on hold until the STB makes its decision on the railroads' request for industry indemnification. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.