HOUSE CONCURRENT RESOLUTION 42
(By Mr. Speaker, Mr. Kiss)
Urging the West Virginia congressional delegation to ascertain
all pertinent facts relating to the economic disadvantages
that could be inflicted on the coal shippers in north
central West Virginia by the proposed acquisition of Conrail
by CSX Corporation and the subsequent division of Conrail
between CSX and Norfolk Southern.
Whereas, The merger of rail lines by CSX and Norfolk Southern
may be desirable in a general sense; and
Whereas, The well-being of the West Virginia economy,
especially the coal industry, has historically been dependent on
a cost-effective rail system to transport coal reserves to
markets throughout the world; and
Whereas, The West Virginia coal industry finds itself in a
highly competitive global marketplace where the cost of rail
delivery can be the deciding factor in winning and losing a coal
supply contract; and
Whereas, Those coal shippers in north central West Virginia
that ship on the old B&O rail line, directly employing over 2,000
people and directly creating a total of 12,000 jobs, have annual
sales of $300 million and pay $12 million in coal severance
taxes; and
Whereas, It is anticipated that the rail line division between CSX and Norfolk Southern will clearly favor some
Pittsburgh sSeam coal producers in southwestern Pennsylvania by
providing joint access by both CSX and Norfolk Southern, thus
granting those shippers full, unfettered, low cost, direct access
to customers of the north central West Virginia producers; and
WhereasWhereas, The north central West Virginia producers on the
CSX/B&O line will be relegated to CSX - Norfolk Southern "two
line" hauls that are more costly and time consuming; and
WhereasWhereas, This rail line division must be structured to
provide a level playing field so the north central West Virginia
coal fields can compete fairly with producers in western
Pennsylvania; and
WhereasWhereas, This rail line division must be structured to
provide a level playing field in the north central West Virginia
coal fields as is contemplated in southwestern Pennsylvania;
therefore, be it
Resolved by the Legislature:
That the House urges Senator Robert C. Byrd, Senator Jay
Rockefeller, Congressman Nick Rahall, Congressman Alan Mollohan
and Congressman Bob Wise to contact the U.S. Department of
Transportation, the Surface Transportation Board and other
appropriate federal regulatory agencies to ascertain the effect
the proposed merger will have on the coal producers in north
central West Virginia, and to do all in their power to ensure
that a level playing field is available to all coal producers;
and, be it
Further Resolved, That the Clerk of the House is hereby directed to forward a copy of this resolution to Senator Robert
C. Byrd, Senator Jay Rockefeller, Congressman Nick Rahall,
Congressman Alan Mollohan, Congressman Bob Wise, the Secretary of
the U. S. Department of Transportation and the members of the
Surface Transportation Board.