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POLICY & ADVOCACY ASSOCIATES
1800 Diagonal Road, Suite 600
Alexandria, VA 22314
Phone: (703) 684-4417
Fax: (703) 683-7335
Karen Borlaug Phillips
President
March 28, 2000
The Honorable Karen Tramontono
Assistant to the President & Counsel to
the Chief of Staff
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
Dear Karen:
Thank you very much for taking the time to meet with Jeff Ward, Sante
Esposito, and me earlier this month to discuss the status of the proposed
consolidation of the Canadian National Railway Company (CN) with the Burlington
Northern Santa Fe (BNSF).
As an update, the Surface Transportation Board (STB) conducted four days of
hearings on March 7-10 in its STB Ex Parte No. 582 proceeding on rail merger
issues; I have enclosed a copy of CN's testimony presented to the STB. On March
17, the STB issued a decision imposing a 15-month moratorium on its consideration
of any mergers of Class I railroads and announcing that the Board will soon
commence a 15-month rulemaking proceeding on rail merger rules. This precludes
CN and BNSF from filing our consolidation application at the STB; under the
statutory rail merger review process, we would have been authorized to file this
application as early as March 20, absent the moratorium. I have enclosed for your
information a copy of the STB's decision.
CN and BNSF have filed at the STB petitions for a stay of the STB's decision
precluding consideration of our proposed consolidation; copies of these petitions are
enclosed. We also have informed the U.S. Court of Appeals for the District of
Columbia of Circuit that we plan to appeal the STB's decision; I expect that we will
make our formal filings to the court later this week.
In addition, the Subcommittee on Surface Transportation and Merchant
Marine of the Senate Committee on Commerce, Science, and Transportation
Relations
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