Roughly, a typical tank car used for crude oil transportation can hold between 20,000 to 70,000 barrels of oil, with some cars capable of carrying up to 100,000 barrels.
Roughly, a unit train carrying 50 barrel cars of crude and assuming a value of $80 per barrel, transportation charge is roughly 12.50 (although it varies). The total gross return, being transported each freight would be:
50 cars x 75,000 barrels x $12 per barrel x 6 day = 270 mil $
So the fine is the cost of doing business, for 40 billion dollar rail. Day after day, year after year for over a decade. Granted, this is part of what keeps gas prices down. North Dakota's shale, tracked into the west coast.
Good for the tribe, but I really wish the fine was higher as a real deterrent.
From the article it sounds like they made zero net profit on years of business there after the fine, which should be a sufficient deterrent assuming they reliably prosecute every violation.
it sounds like they made zero net profit on years of business there after the fine,
The fine was levied June 6, 2024. Per the court record in the article.
But let's talk about the profits.
As a “conscious wrongdoer,” BNSF “will be stripped of the net profits obtained from its unauthorized interference with another’s property,” Lasnik <the judge> ordered.
the Tribe has the initial "burden of producing evidence permitting at least a reasonable approximation of the amount of the wrongful gain"
I find it unlikely that they will return the majority of the profits to the Tribe, beyond the fine.
Comments
Roughly, a typical tank car used for crude oil transportation can hold between 20,000 to 70,000 barrels of oil, with some cars capable of carrying up to 100,000 barrels.
Roughly, a unit train carrying 50 barrel cars of crude and assuming a value of $80 per barrel, transportation charge is roughly 12.50 (although it varies). The total gross return, being transported each freight would be:
50 cars x 75,000 barrels x $12 per barrel x 6 day = 270 mil $
So the fine is the cost of doing business, for 40 billion dollar rail. Day after day, year after year for over a decade. Granted, this is part of what keeps gas prices down. North Dakota's shale, tracked into the west coast.
Good for the tribe, but I really wish the fine was higher as a real deterrent.
From the article it sounds like they made zero net profit on years of business there after the fine, which should be a sufficient deterrent assuming they reliably prosecute every violation.
The fine was levied June 6, 2024. Per the court record in the article.
But let's talk about the profits.
I find it unlikely that they will return the majority of the profits to the Tribe, beyond the fine.