Berkshire’s BNSF to Add Surcharge on Older Oil Tank Cars

[mahatmakanejeeves]

Berkshire’s BNSF to Add Surcharge on Older Oil Tank Cars

By Thomas Black, Dan Murtaugh and Mario Parker Oct 24, 2014 6:04 PM ET

BNSF Railway Co. plans to apply a $1,000 surcharge for each older crude tank car, denting profits for shale drillers in North Dakota.

The railroad owned by Warren Buffett’s Berkshire Hathaway Inc. is the first major U.S. operator using fees to encourage shippers to scrap the puncture-prone older cars. The charge, which goes into effect Jan. 1, would add about $1.50 a barrel to the cost of transporting oil on them.
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The surcharge will pertain to cars known as DOT-111s and won’t apply to cars called CPC-1232s that are built to higher standards adopted in October 2011, according to a BNSF notice. Mike Trevino, a spokesman for BNSF, confirmed the notice.
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To contact the reporters on this story: Thomas Black in Dallas at [e-mail]; Dan Murtaugh in Houston at [e-mail]; Mario Parker in Chicago at [e-mail]

To contact the editors responsible for this story: David Marino at [e-mail] Richard Stubbe, Stephen Cunningham

[Blue Owl]

1. Berkshire: "You'll tank us later!"

n/t

[mahatmakanejeeves]

2. To put it crudely. NT