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Murray Energy Corporation Sues CSX Transportation, Inc. For Service Failures



August 1, 2017 - Murray Energy Corporation (together with certain of its subsidiary operating companies “Murray Energy”) announced today the filing of two lawsuits against CSX Transportation, Inc.   The first lawsuit was filed by Murray Energy and seeks to hold CSX accountable for its failure to provide reliable service to Murray Energy, as agreed and scheduled by Murray Energy and CSX, and to recover the resulting damages.  The second lawsuit was filed by certain subsidiary operating companies of Foresight Energy, LP, an affiliate of Murray Energy, against CSX.  These lawsuits are in addition to the previously announced proceedings before the Surface Transportation Board of the United States, which remain ongoing.  

Mr. Robert E. Murray, the Chairman, President, and Chief Executive Officer of Murray Energy stated that “Murray Energy was forced to file these lawsuits, in addition to the ongoing proceedings before the Surface Transportation Board, in order to hold CSX accountable for their gross lack of service, flagrant disregard for our agreements, and their lack of effectively doing anything to correct their failures to provide contracted service mandated by the federal government.”

Mr. Murray continued, stating “Again, for a number of years, we have repeatedly met with the leadership of CSX, at all levels, and clearly explained the severe adverse impact of their lack of rail transportation service on our operating companies.  We are forced to take all possible action to see that CSX provides agreed-to service, and ceases breaking their own charter from the federal government.  The CSX is jeopardizing Murray Energy’s existence.”

Mr. Murray continued, reiterating that “Recently, this situation has become even worse and absolutely intolerable, and must be resolved immediately.  While we hope the Surface Transportation Board will act quickly to resolve this lack of service by CSX, we filed this lawsuit as a parallel path in order to prevent further immediate damage and irreparable harm to our customers, Mines, and employees, and to collect from CSX the substantial damages that they have already caused in their needless failures to provide contracted and mandated service.”

Mr. Murray also stated that “The federal government created CSX’s monopoly on these rail lines, and we believe it is now time to reverse this decision and introduce free market competition in the railroad industry.  Clearly, the current system of regional monopolies, including the monopoly of CSX, is destroying the business of shippers and is not working for the American people.”