advertisement

---

Yesterday, Canadian Pacific Railway announced an arbitrator chose the railroad's final offer on a rate to move coal from one of Elk Valley Coal Corp.'s southeastern British Columbia mines to the Port of Vancouver. Applying only to coal moved by CPR from the mine, the arbitrated rate is effective until Oct. 5, 2005.

The railroad still plans to pursue pending legal proceedings against Elk Valley Coal and continue challenging the validity of the final offer arbitration proceeding, CPR officials said in a prepared statement.

Railroad officials asked the Canadian Transportation Agency (CTA) to deny Elk Valley Coal access to final offer arbitration because a confidential transportation contract exists between the parties. If CTA rules in CPR's favor — a decision is expected by early February — the final offer arbitration rate would be nullified and the confidential contract would be confirmed.

In July, CPR filed a claim against Elk Valley Coal in a federal Alberta court alleging the shipper failed to pay the full amount of freight charges
pursuant to a contract covering all five of Elk Valley Coal's southeastern B.C. mines. CPR officials believe the claim won't be resolved until late 2005 or early 2006.