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Today, Canadian Pacific Railway announced it received notice from Elk Valley Coal Corp. that the shipper has submitted its rate case to the Canadian Transportation Agency for final offer arbitration.

Elk Valley is disputing rates charged by CPR to move coal from a mine in Sparwood, British Columbia, to the Port of Vancouver.

Last month, CPR filed a claim against Elk Valley seeking $14.2 million in freight-rail charges pursuant to a coal transportation contract expiring March 31, 2007. CPR officials claim the shipper hasn't paid all charges for moving coal, and that the railroad's rates are governed by the existing transportation contract and aren't eligible for final offer arbitration.

"CPR's claim is in respect of the defendant's failure to pay the full amount of rail freight charges, which are applicable pursuant to the transportation contract," officials said in a prepared statement.

Owned by Fording Canadian Coal Trust and Teck Cominco Ltd., Elk Valley is a leading metallurgical coal exporter.