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[wyobuford]

Rogue, being from Wyoming originally and a 'railfan,' let me make a few comments.

1) I do not follow coal stocks specifically, but no doubt along with everything else, they have been hammered and there are likely some great bargins to be found.

2) Some of this info in the article really seems quite old in that BNSF and UP have been hauling coal via the triple track main from south of Gillette, Wyo, to Orin Junction (between Douglas and Wheatland, Wyo) for at least the past six years...often times exceding 100 trains/day over the line. While rail capacity is a problem.....the BIG problem lies in: Coal Dust!!!!

Coal dust has been the blame of at least one major derailment and multiple line slow/shut-downs over the past 2-3 years. The coal dust blows off the trains as they travel and depoits on the railroad ties and track roadbed....this is not in itself a problem, but when coupled with spring rain, the dust turns into some sort of sludge that compromises the intregrity of the roadbed of the railroad, and this is what caused the derailments.

As far as I know, coal dust remains a problem without a solution, so the BNSF and UP railroads continue to rebuild the Powder River Basin line which in turn has caused the slow-downs in coal deliveries to various power plants throughout a lot of the United States.

3) "And the first major rail expansion in the United States in about a century is in the works. The South Dakota-based Dakota, Minnesota & Eastern Railroad is seeking $2.5 billion in federal loans to extend and rebuild rail lines so it can haul Wyoming coal to the Midwest and Great Lakes regions. Its loan application is pending before the Federal Railroad Administration"

The DME Railroad has been attempting to access the Powder River Basin for at least the past 10 years, if not longer. I have not kept up on their progress, but I do at last check (probably 2 years ago) they were securing the majority of their property and right-away rights needed, however many environmentalists and some land-owners will still fighting it. To really make this venture work however, the DME railroad needs to rebuild (I believe) their entire railline across South Dakota (many hundreds of miles) in order to accomodate the long, heavy coal trains.


This all being said, I do feel it would be worthwhile to have a list of coals stocks to refer to, but perhaps the bigger issue will be the resolution of the railroad coal dust problem.

Buford T.