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
Hoping to draw Colorado interest, construction begins at $80M betting facility in Laramie County
CHEYENNE, Wyo. — Foundation work is beginning this week on Wyoming’s next horse betting and gaming house.
The $80 million Wyoming Downs facility in Laramie County, one of two the company is investing in over the next couple of years, is poised to be one of the largest facilities of its kind in the state. The company is aiming for a spring 2027 opening.
The facility will host upwards of 600 historic horse racing machines, Wyoming’s largest TV wall, multiple dining options and more across 58,000 square feet. More land was bought for future hotel development. Commuters driving between Cheyenne and the Colorado border can see clearly from Interstate 25 the expansive development.
That placement along the travel corridor is purposeful, Wyoming Downs and 307 Horse Racing President Kyle Ridgeway said.
“I think that the targeted consumer for this is from Colorado or from the Front Range,” Ridgeway said. “I anticipate we’re going to have plenty of people from Cheyenne come down here to play and enjoy the amenities, but when you look at 600,000 people within a 30-minute drive, that’s what justifies this investment and brings all that tax revenue in from another state, which is fantastic.
“We don’t get the opportunity to do that in Wyoming very often.”
There is still plenty to offer Cheyenne residents besides the facility’s amenities. Ridgeway said in a speech to attendees at the project’s groundbreaking Tuesday, June 2, that more than 150 permanent jobs will be supported by the facility on top of the dozens supported by the companies’ corporate offices and the 400-plus involved in the project’s construction.
Groathouse Construction, a Wyoming business, is the project’s general contractor. Wyoming Downs said it believes putting the project in local hands also helps keep the project uniquely Wyoming-focused.
Ridgeway added the facilities have already proven themselves to be effective tax revenue generators for the local governments. The Wyoming Gaming Commission’s 2025 report, released in late May, shows bettors wagered $2.49 billion on historic horse racing machines last year, a jump from the $2.11 billion wagered in 2024.
Wyoming Downs facilities generate roughly $25 million in taxes annually across the state, and Ridgeway estimated after the ceremony that the upcoming $80 million facility alone will generate an additional $3 million for Laramie County once the property has been in operation for a few years.
Horse betting sites have been increasingly popping up across Wyoming this decade. The Wyoming Downs location will be Cheyenne’s second large-scale horse betting facility since 2024, when the 30,000-square-foot Horse Palace at Swan Ranch opened. Ridgeway said Wyoming Downs is still offering something fresh for tourists and residents.
“This’ll have amenities that Swan Ranch doesn’t have, including the largest TV wall in Wyoming and a pretty super-cool sports viewing area with a restaurant and just a level of finish and class that I don’t think Wyoming has quite seen yet with these types of properties,” he said.
Ridgeway said he thinks resident fatigue with these facilities isn’t as strong as it appears, especially given the tourism benefits of off-track betting.
“Wyoming’s been built on mineral extraction and tourism, and what this is is a touristic facility. I’m not aware of any particular pushback about this specific facility outside of — you see random social media comments where people say, ‘Oh, another gambling facility.’ But where this is located, I think people in Cheyenne have generally been supportive of,” he said.
The Laramie County facility will be just one part of a larger project Wyoming Downs is working on over the next few years. Construction will begin in early 2027 on a similar facility in Evanston looking to draw in Utah and western Colorado crowds.
Some of the company’s current facilities, notably in Casper, Cheyenne and Rock Springs, will see millions poured into renovations as well. New smaller-scale parlors will also go up in Gillette and Green River this year, according to an information packet provided by the company.
More details will come as the construction process develops, Ridgeway said. Details about amenities, such as what the complex’s dining options will look like, remain undisclosed, though Ridgeway promised that options will be “excellent.”
“We haven’t made final selections on what the options are, but we have a number of different options on the table that we’re considering for what we want to offer for the customers,” Ridgeway said. “You have to have something that’s high quality for where this is located. If somebody’s going to drive 25 or 35, or even 45 minutes to come here, they got to be able to sit down and have a quality meal.”
For more information as it becomes available and to learn more about Wyoming Downs facilities and 307 Horse Racing‘s events and offerings, see the companies’ websites. Renderings for the upcoming Cheyenne facility commissioned by the company are available for viewing below.
Related
GILLETTE, Wyo. — Two of the Republican candidates for Wyoming governor, Megan Degenfelder and Brent Bien, went head to head in Campbell County this evening. They both highlighted differences in some areas but agreed on energy, public lands, government oversight, abortion and election security.
Degenfelder, Wyoming’s superintendent of public instruction, introduced herself as “a Wyoming ranch kid whose parents clawed their way into the middle class” and said she believes Wyoming is “worth fighting for” because she believes the Wyoming people’s lives are at stake.
Bien, a retired Marine Corps colonel and combat veteran, pointed to his military career and leadership experience.
“My whole adult life has been about leadership, about principled conservative leadership,” he said. “My objective is to restore principled conservative leadership, accountability and discipline to Cheyenne.”
Nuclear energy
Both candidates supported Wyoming’s role in energy production but opposed bringing outside nuclear waste into the state.
“I do not want Wyoming to be … the permanent repository for spent nuclear fuel. I will not allow that to happen on my watch,” Bien said.
Degenfelder said Wyoming should consider nuclear power as part of its energy future but added, “If it works for us to be able to have nuclear as part of the portfolio, then it has to be right for Wyoming and that is ensuring that we do not accept anyone else’s waste, period.”
Public lands
The candidates also opposed privatization of public lands.
“No one loves public lands more than I do,” Degenfelder said. “You start selling that to the highest bidder, Wyoming loses who we are.”
Bien said he is “absolutely opposed” to federal lands being sold to private interests.
“If they do decide to dispose of it, then we as the state of Wyoming should get first-right refusal at no cost,” he said.
Attorney general and judicial appointments
When asked what each would be looking for in an attorney general and judicial appointment, both candidates called for conservative leadership.
Bien said he would seek an attorney general from outside state government.
“I want a clean set of eyes to look at what everything’s been that’s been going on,” he said. “I want someone who will put people first and it will put Wyoming first.”
Degenfelder said she wants stronger advocacy from state agencies.
“I want a bulldog in not just the attorney general’s office, but in all state agencies,” she said. “I want an attorney general that is so aligned to my mission and vision and what I believe that there’s an amicus brief on my desk the next morning after an action takes place.”
Immigration
Both candidates supported stronger immigration enforcement.
Bien explained he wanted to cooperate with ICE “to the fullest extent possible” and to make sure immigrants who are not in the United States legally would be sent out of the state.
Degenfelder said illegal immigration is already affecting communities in Wyoming.
“If you’re here legally, you got nothing to worry about. If you aren’t, it’s time to go home,” she said.
Energy development and green energy
Energy policy generated some of the sharpest comments of the night.
Degenfelder argued renewable energy projects should compete without government support.
“I’m also an economist and so I’ll tell you the way that you kill these green energy, you make them play on the same playing field,” she said. “No more tax subsidies, no more handouts, ensuring the regulatory environment is just as equal.”
Bien took a firmer stance against renewable development.
“Folks, there’s no place in Wyoming for this green energy,” he said. “I want these things bonded up front and where we’re not paying for these like we did all the gas wells. The answer for me is absolutely, unequivocally no.”
Economic development
Degenfelder argued government should focus on infrastructure such as water and sewer systems rather than directing economic development.
“Government does not create jobs. Private business does,” she said.
Bien echoed that sentiment.
“The only business that government has in business is simply to get out of the way. It’s to cut taxes. It’s to deregulate,” he said. “Right now, we’re turning into state capitalism where we have our own state government picking winners and losers.”
Government audits
Both candidates supported increased auditing of state government.
“This state has not done a full-blown budgetary audit since 1989,” Bien said. “Whoever’s belly-aching loudest is going to get audited first.”
Degenfelder agreed.
“We should be auditing every single state agency, every single budget line all the time,” she said. “Government is a beast, and you need someone in there who can tame it and who knows how to do it.”
Abortion
Abortion was another topic where both candidates expressed strong opposition.
“Life starts at conception and there are no exceptions,” Degenfelder said. “We are now one of the most openly abortion states in the country because of that ruling by the Supreme Court. We’re working against the devil here.”
Bien also opposed abortion.
“Folks, for me, there are no exceptions. Life does begin at conception,” he said.
Election integrity
Bien advocated for hand-counting ballots.
“I am very much a proponent of hand tabulation being the primary method of counting all cast paper ballots and I will push that way,” he said.
Degenfelder called for paper ballots statewide.
“Every single ballot should be a paper ballot,” she said, adding that she supports “banning dropboxes.”
Republican platform
Both candidates pledged support for the Wyoming Republican Party platform.
“80% is a no-brainer, and we need to require that out of our elected officials,” Degenfelder said.
Bien said he expects to be held to “100%” of the platform.
“The party’s been co-opted. You have to have an ‘R’ behind your name to win in this state,” he said.
Candidate priorities
During a segment where candidates selected their own discussion topics, Degenfelder highlighted school choice, career and technical education, removing pornography from school libraries and protecting Wyoming’s water rights.
Bien focused on education and agriculture, criticizing student proficiency rates and proposing policies aimed at strengthening Wyoming’s agricultural industry, including declaring agriculture critical infrastructure and reducing regulations on small butcheries.
Technology and education
Although technology and its place within education was not discussed during the debate, County 17 asked both Degenfelder and Bien their thoughts regarding student technology in schools.
Bien said technology is being used too much in classrooms and is making it harder for students to think on their own.
“What it’s doing is it’s dumbing down our kids,” Bien said. “Our kids aren’t learning how to critically think anymore. They go straight to one of the AI things and it generates an answer for them.”
Degenfelder said she backed a bill to ban cellphones during instruction time.
“I supported a bill that came through the legislature a couple of years ago that actually would ban cell use during instructional time, and I stand by that,” Degenfelder said. “I think that it’s appropriate to take cellphones out of classrooms, and what we find is that kids thrive.”
Closing statements
In closing remarks, Bien emphasized his experience as an outsider candidate.
“I am the only outsider in this race, but I am the only one who’s got an inordinate amount of leadership experience,” he said. “Folks, you deserve a government that you can trust.”
Degenfelder pointed to her endorsements from President Donald Trump and U.S. Rep. Harriet Hageman.
“I get asked a lot, ‘How did you get the Trump endorsement?’” Degenfelder said. “The answer is really simple. I earned it.”
Alongside other candidates, Bien and Degenfelder will be competing for support in Wyoming’s Republican gubernatorial primary Aug. 18.
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