BNSF Railway is in the process of modifying the accounting relationship we have with the Kiamichi Railroad (KRR). Currently, KRR operates as a BNSF handling carrier for domestic traffic, which allows BNSF to publish rates directly to and from their stations, while an Interline Settlement System (ISS) accounting relationship applies to cross-border traffic.
Effective August 1, all traffic terminating or originating on the KRR will align to Interline Settlement, with the exception of two-unit train contracts. Railcars moving domestically on KRR will change from "BNSF Direct" routes to interline routes showing BNSF & KRR in the linehaul route. Customers will need to issue bills of lading to KRR, if serving as the origin linehaul railroad, and pay the respective railroad freight bills per the terms of pricing (through or rule 11, and per any prepaid or collect pricing conditions).
For all traffic handled by the KRR moving to or from the DQE, the KRR will act as a BNSF haulage carrier. The interline route will show BNSF and DQE in the linehaul route.
If you have questions, please contact your BNSF representative.
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