Opinion ID: 180842
Heading Depth: 2
Heading Rank: 3

Heading: The Fourth Agreement Amendment (1995)

Text: After the initial round of litigation, PSO and BNSF entered into an amendment to the agreement. [1] The parties agreed, as of October 1, 1995, the Effective Rate for Single Line Direct Service via [BNSF] . . . is $12.01 per net ton. R. Doc. 6 at 153. The amount of $12.01 was reached by applying the board-prescribed adjustment procedures to the board-prescribed rate of $11.77. The parties also amended the rate adjustment procedure in § 4.2 so the Effective Rates would move upward or downward by the board-prescribed rate adjustment procedure. Id. at 154. During the negotiations of this amendment, PSO suggested the parties remove the rate floor provision in § 4.2 because the arbitration board had set new Effective Rates below $14.00 per ton. BNSF disagreed and insisted the provision remain in the agreement. In the end, the parties kept the provision in the agreement but agreed to disagree as to its meaning and effect.