Wyoming
Feds Reject Railroad Mega Merger That Threatened Wyoming Coal
Every day, long trains loaded with Wyoming coal snake across the American heartland, eventually arriving at Plant Scherer north of Macon, Georgia — the most powerful coal-fired electricity generating plant in North America.
The massive facility, owned by Georgia Power, boasts four coal-fired units totaling roughly 3,500 to 3,720 megawatts, making it the largest operating coal plant in the U.S. for many years.
Right now, BNSF Railway hauls Powder River Basin coal across the West before handing off the shipments to Norfolk Southern, which pulls the coal cars down the final stretch to Georgia. If Union Pacific and Norfolk Southern have their way, that arrangement would change dramatically — and Wyoming coal producers would be left with fewer options and potentially higher shipping costs.
That’s according to critics of the proposed UP-NS rail merger.
On Thursday, the federal Surface Transportation Board delivered a unanimous decision that put the brakes on what appears to be the largest rail merger ever proposed. The federal agency rejected the merger application filed by Union Pacific and Norfolk Southern, finding it incomplete and ordering the railroads back to the drawing board.
Decision Details
The STB found that the nearly 7,000-page merger application failed to include required information, including projected market share data and the complete merger agreement between the two railroad giants.
According to the decision, the application “does not contain future market share projections showing the combined effects of merger-related growth, diversions, and merger-influenced and other changes to market conditions that Applicants anticipate.”
The Board also noted that Union Pacific and Norfolk Southern withheld a key schedule from their merger agreement — known as Schedule 5.8 — which describes conditions that would allow Union Pacific to walk away from the deal.
A spokesperson for Union Pacific told Cowboy State Daily, “Union Pacific will provide the additional information requested by the Surface Transportation Board.”
The railroads have until Feb. 17 to inform the Board whether they plan to refile, and until June 22 to submit a revised application.
Competition Concerns
Zak Andersen, BNSF chief of staff and vice president of communications, spoke with Cowboy State Daily from the railroad’s headquarters in Fort Worth, Texas, explaining why his company has opposed the merger from the beginning.
“We applaud the STB’s decision to reject the UP-NS merger application based on the application lacking core information critical to determining the proposed merger’s impact on competition,” Andersen said. “We also appreciate the STB’s willingness to consider the views of all stakeholders as part of the regulatory review process.”
Andersen spelled out BNSF’s fundamental opposition to the deal: “We view it as anti-competitive. It’s a threat to the resilience of the supply chain, simply because it results in the unprecedented consolidation of market power in our industry.”
He pointed to the already concentrated nature of the rail industry.
“There are really only four primary companies handling 90% of the freight today in the U.S.,” Andersen said. “And so we think for any given customer, you know, a shipper on rail, that you’re essentially, today you have four options.
“If this merger goes through, you got two. And anytime you go from four to two, that’s probably not a good thing for the competitive landscape.”
Wyoming Impact
The implications for Wyoming coal producers are stark, according to Andersen. Using Plant Scherer as a prime example, he explained the current competitive dynamic that benefits Wyoming energy companies.
“Today, the plant is captive to NS, right? NS is the only railroad that directly serves it,” Andersen said. “So either UP or BNSF can move that coal to a handoff and interchange point with Norfolk Southern. And we do.”
Currently, BNSF handles the shipments to Plant Scherer, and post-merger, that would likely change.
Andersen was blunt about where he believes this merger originated: “I’ve been convinced from day one. This merger did not begin by customers asking for it. It began by Wall Street asking for it.”
He predicted that when projected growth from the merger fails to materialize, Union Pacific will turn to captive customers to pay the bills.
“We think that UP goes back to what they’ve always done, which is to rely on charging captive customers, right? So we think rates go up. So therefore, prices for consumers go up. I don’t see that as a good thing for coal.”
Regulatory Hurdles
Andersen explained that this merger is being evaluated under stringent rules adopted by the STB — rules he said have never been tested because they raised the bar so high.
“A big piece of that is how you’re going to enhance competition,” he said. “Whereas in the past, you had to show where you’re going to preserve competition. So now they have to somehow show they’re going to improve it. And I don’t understand how a railroad with that much market power is going to prove that it enhanced competition.”
Andersen also raised concerns about service disruptions that have historically followed major rail mergers.
“After every major rail merger, there have been pretty serious service repercussions,” he said. “After the UP-Southern Pacific merger in the late ’90s, I mean, they had a full on meltdown, where the STB had to intervene.”
“With a network industry like ours, when one railroad starts to have trouble, it spreads pretty quickly to the others,” Andersen explained. “Because if all of a sudden we’re not getting the connections from one of the other ones, then we’re late.
“It just starts to metastasize. And so we worry about that quite a bit too.”
Economist’s View
Rob Godby, a natural resource economist at the University of Wyoming, has been watching the merger proceedings with interest. He told Cowboy State Daily that the STB’s decision reflects the complexity of evaluating such a massive transaction.
“As I understand it from reading reports from industry newsletters, the issue is as outlined, there was not a complete analysis of how this would affect regional rail-shipping market concentration in the future,” Godby said. “This is a complex merger, so it is likely to take quite a while to administrate and for a decision to be rendered.”
Godby noted that rival railroads and shippers have filed concerns about the merger’s potential effects.
“Other rail companies who fear a much larger and more consolidated competitor, and shipping rates or access to alternative shippers as well as effects to service,” he said.
The economist also flagged a potential domino effect.
“There is also a general concern in the industry that this could cause other rail companies to consolidate, having unintended effects on markets with respect to service and/or rates,” he said.
As for direct impacts on Wyoming mineral shipments, Godby offered a more measured assessment.
“I don’t expect any effects from the merger,” he said. “UP and BNSF operate jointly in a partnership to serve the PRB and as far as I can tell this would not affect the partnership between UP, or the newly consolidated entity if approved, and BNSF to operate access into the PRB.”
Godby suggested that any disruption to Wyoming operations could itself doom the merger.
“In fact, if it were to affect access, that would be another reason for the STB to potentially disapprove or request changes in the proposed merger, so I suspect the merger planners are working hard to avoid any disruption to Wyoming, especially coal shipments from the PRB, given the Trump administration’s elevated concern for maintaining coal production and use,” he said.
Merger Arguments
Union Pacific and Norfolk Southern have argued their merger would create America’s first transcontinental railroad, transforming the nation’s supply chain.
Union Pacific CEO Jim Vena said at a recent shippers meeting: “This is a transformational merger that will inject more competition into the railroad industry and force them to enhance their service, reduce their price, or do both.”
The companies contend that single-line transcontinental rail service will provide stronger competition with long-haul trucking.
According to a study cited by Union Pacific, interline merchandise traffic moving 1,000 to 1,500 miles costs on average 35% more than comparable single-line service.
The merger application included what Union Pacific described as a record-setting 2,000 letters of support from customers, public officials, industry associations and unions.
For now, Wyoming coal producers and the customers they serve — including that massive power plant in Georgia — will continue to have options when it comes to moving their product across the country.
Andersen, reflecting on what the merger battle means for the broader industry, returned to his central concern about consolidation.
“We’ve seen this before with both BNSF and UP, when we’ve struggled with service, what the impact is on the mines in Wyoming,” he said. “And so we worry about that quite a bit too.”
David Madison can be reached at david@cowboystatedaily.com.
Wyoming
Wyoming Gov. Mark Gordon won’t seek a third term. He won’t rule out running for other offices, either
(WYOFILE) – Wyoming Gov. Mark Gordon will not seek a third term, his office announced Thursday. However, the two-term Republican governor has not ruled out running for another office.
“He’s still kind of exploring his options,” Amy Edmonds, Gordon’s spokesperson, told WyoFile.
As candidates across Wyoming have announced bids for various statewide offices in recent months, Gordon has been tight-lipped about his own plans, leading to speculation that he would put the state’s gubernatorial term limits to the test.
In two opinions about a decade apart, the Wyoming Supreme Court ruled that term limits on legislators as well as on most top elected positions in the state were unconstitutional. While the high court has not addressed the qualifications for governor, it’s been widely suggested that a court challenge would be successful. Such was the discussion in 2010, when Democratic Gov. Dave Freudenthal ultimately chose not to seek a third term.
There’s also been speculation that Gordon may run for Congress, which he’s done in the past. In 2008, Gordon ran for the U.S. House of Representatives. He was ultimately defeated by Cynthia Lummis in the primary election. If Gordon seeks the seat in 2026, he’ll join a crowded field that has already attracted at least 10 Republicans. It’s possible he could also be eyeing a run for Wyoming’s soon-to-be open U.S. Senate seat — a choice that would pit him against Rep. Harriet Hageman, whom he defeated in the governor’s race in 2018.
Wyoming’s candidate filing period opens for two weeks at the end of May.
As for the rest of Gordon’s final term in the governor’s office, his “focus remains on essential pillars like supporting core industries, growing Wyoming’s economy, strengthening local communities and families, and safeguarding Wyoming’s vital natural resources,” according to the Thursday press release.
Starting in June, Gordon will set out on a series of community visits to “engage directly with citizens,” the release states, and is particularly interested in having discussions about “protecting our resilient property tax base that funds local services like education, fire protection, police services and others, as well as honoring local control, investing in our future through smart saving and continued stewardship of our wildlife, land, and water.”
The governor also pointed to the Aug. 18 primary election.
“You don’t have to be Governor to make a difference in Wyoming,” Gordon wrote. “Participating in elections is something all of us can do to make a real difference, and these conversations are important to have to ensure everyone makes informed decisions about the future of Wyoming.”
Whether Gordon will run for office is one lingering question — to what degree he will support other candidates is another.
In 2024, Gordon personally spent more than $160,000 on statehouse races, backing non-Wyoming Freedom Caucus Republicans who generally aligned with his positions on energy, economic diversification, mental health services and education.
While many of those races did not go Gordon’s way — the Freedom Caucus won control of the House — the governor is coming off a legislative budget session where lawmakers largely approved his proposed budget.
More specifically, the Legislature’s final budget came in about $53 million shy of the governor’s $11 billion recommendations after significant cuts were floated by the Freedom Caucus lawmakers ahead of the session. Many of those notable cuts — including to the University of Wyoming and the Wyoming Business Council — were ultimately rejected.
While Gordon applauded the final budget, he also said in March he was “saddened by some of the reductions,” including the Legislature’s decision to nix SUN Bucks, the summer food program that fills the gap for kids when there are no school lunches. Wednesday, however, the governor signed an executive order that will start delivering food benefits to Wyoming families as early as June.
Details for Gordon’s upcoming community visits will be posted to the governor’s website, according to the press release.
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Wyoming
(LETTERS) Wyoming Supreme Court judges, congressional responsibility, pregnancy and US involvement in the Middle East
Oil City News publishes letters, cartoons and opinions as a public service. The content does not necessarily reflect the opinions of Oil City News or its employees. Letters to the editor can be submitted by following the link at our opinion section.
Wyoming Supreme Court judge process better than federal’s
Dear Casper,
This letter is in response to Mr. Ross Schriftman’s letter to the editor from April 11. His opinion appears to be that the Wyoming process of selecting Wyoming Supreme Court justices is somehow flawed. Justices are selected through a merit-based assisted appointment process. When a vacancy occurs, a seven-member Judicial Nominating Commission recommends three candidates to the governor, who appoints one.
Appointed justices serve at least one year before standing in a nonpartisan retention election for an eight-year term.
The commission consists of the chief justice as chair/tie-breaker, three attorneys selected by the Wyoming State Bar and three non-attorneys appointed by the governor. The governor must select one of the three nominees provided by the commission to fill the vacancy.
After serving at least one year, justices stand for retention in the next general election. Voters cast a “yes” or “no” vote. If retained, the justice serves an eight-year term.
Candidates must be U.S. citizens, Wyoming residents for at least three years, licensed to practice law, and have at least nine years of legal experience. Justices must retire at age 70.
U.S. Supreme Court are appointed for life!
I would offer that the Wyoming process is superior to that of the U.S. Constitution. Voters are involved the process, which we are not at the federal level.
Wyoming justices can be impeached and removed from office by the state House of Representatives and Senate.
Michael Bond
Casper
Wyoming delegation must answer for President Trump’s Iran policy
Dear Casper,
Sent this to each of our Wyoming congressional delegates. I lived in Montana for years. These are the questions the Daily Montanan asked of their elected congressional representatives.
I ask the same questions of our Wyoming delegation. Montana got no answers. I doubt that we will either.
- President Donald Trump has continued to threaten to hit targets that would affect or kill civilians in Iran. Do you support his stated objectives and deadlines?
- Are you concerned that some of these targets could be construed as attacking civilians and therefore become war crimes?
- Do you have any concerns about wiping out an entire civilization, as Trump has threatened?
- If these are only rhetorical threats, what does that do to our stature in the world when we make threats, but don’t follow through with them?
- Polls have continued to show more than a majority of Americans do not support the efforts against Iran. Why do you support the effort?
- If you do not support the effort in Iran, at what point would you support Congressional intervention or oversight on the issue?
- Have you been briefed and do you believe that there are clear objectives in this war with Iran, and how can you communicate those with your constituents?
- The U.S. has repeatedly criticized Vladimir Putin and Russia for its invasion and treatment of the Ukrainian people and it sovereignty. How does that differ from America’s “excursion” into Iran?
- What is your message for Montanans who are seeing gas prices and the cost of living generally increase?
- Last week, President Trump said that America doesn’t have enough money for healthcare and childcare; further, those things must be left to the individual states in order to fund the military? Do you agree?
- President Trump continues to boost military budgets and request additional funding for the war in Iran. Do you support these?
Tami Munari
Laramie
Pregnancy is personal, not political
Dear Casper,
The recent Wyoming Supreme Court ruling, which affirmed abortion is health care, has caused some who disagree with the ruling to attack Wyoming’s judicial system.
In an opinion letter, candidate Ross Schriftman facetiously writes, “…our God-given First Amendment right of free speech does not apply when criticizing our fellow citizen judges.”
This is the first flaw in his logic because the Constitution was not written by God, therefore the right of freedom of speech was thought up and written by men. God is not the author nor guarantor of personal freedoms — our Constitution and judicial system are.
The second flaw in his argument references a letter signed by 111 professionally-trained, experienced, and well-respected Wyoming judges and attorneys explaining how the courts arrive at their rulings. It is illogical to claim we are all “citizen judges” because even though citizens have a constitutionally-guaranteed right to an opinion, it does not make every citizen a legal expert. The judges’ and attorneys’ excellent letter speaks for itself.
Mr. Schriftman claims the Supreme Court, “… create(d) an absurd definition of health care to include the intentional murder of pre-born human persons; something they did to justify overriding the equal protection clause… .” This logic is flawed because it is based on a conflation of an obsession with “pre-born human persons” and equal protection under the law.
There is significant disagreement on the issue of fetal personhood and who gets to determine it: the doctors? the lawyers? the pregnant woman? the anti-choice crowd?
Many understand and appreciate it has taken women almost 200 years to gain and keep Equal Protection Under the Law, and the disagreement over who is legally, materially, and morally responsible for a fertilized human egg has always been part this historical struggle. But it was the Roe v. Wade Supreme Court decision that finally established a constitutional right, for women and men, to private health care decisions and, since pregnancy is a health condition, that included abortion.
Even though it wasn’t explicit, Roe also effectively affirmed that bestowing of “personhood” is a private determination to be made by the pregnant woman and her God. But, sadly, here we are again, dealing with folks who mistakenly believe they have a right to interfere in someone else’s pregnancy.
The Rev. L Kee
Casper
Why does the U.S. keep troops in oil producing countries?
Dear Casper,
There are two facts that don’t ever seem to be considered by our government that cost us dearly.
Osama Bin Laden said the stationing of U.S. troops in the Middle East was the reason Al Qaeda attacked us on 9/11. Does the U.S. believe that the oil producing countries in the Middle East will only sell us oil if we force them to by stationing troops there? I’m not aware of any other countries that believe that.
The other fact is, the U.S. is the only country to ever use a nuclear weapon offensively. There are several countries that have nuclear weapons, including North Korea. The reason countries have been reluctant to use nuclear weapons is MAD, mutually assured destruction. Consequently, is it reasonable to expect Iran, should they develop a nuclear weapon, to attack the U.S., knowing that our superiority in nuclear capability would assure the complete destruction of their country? It clearly would be suicidal for them to do so.
But, just to be cautious, rather than destroying the entire country to deter Iran from acquiring a nuclear weapon, wouldn’t it make more sense to destroy their nuclear infrastructure?
Bill Douglass
Casper
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