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Canada orders CN to repay excess grain revenue (Reuters circulated the following on December 31, 2009.) WINNIPEG, Manitoba — Canada ruled on Thursday that Canadian National Railway (CNR.TO) earned too much money from hauling grain in the 2008-09 crop year and ordered it to pay more than C$700,000 ($667,000). The country's other major railway, Canadian Pacific Railway (CP.TO) did not exceed the government's grain revenue cap, the Canadian Transportation Agency said. CN's grain revenue of C$479,788,412 was C$683,269, or 0.1 percent, above its revenue cap, according to the agency. CP's grain revenue of C$484,806,288 came in below its cap. CN now has 30 days to pay the amount of excess revenue plus a 5 percent penalty, the agency said. The government requires such payments to go to the Western Grains Research Foundation. CN is reviewing the Transportation Agency's calculations, said company spokesman Kevin Franchuk. A year ago, the agency also found CN had exceeded its grain revenue cap for the 2007-08 year, a decision CN appealed. That appeal is still before the courts, Franchuk said. Canada's 2008-09 crops were large and the government boosted the railways' combined revenue cap by C$208 million. The Canadian government implemented the grain revenue cap in the 1990s after it eliminated a subsidy for grain movement by rail called the Crow Rate. The cap applies to revenue the railways earn by moving grain from the Western Canadian crop belt to ports. CN shares on the Toronto Stock Exchange were trading up 0.5 percent late on Thursday afternoon. CP stock in Toronto was down 0.6 percent. Monday, January 04, 2010 © 1997-2010 Brotherhood of Locomotive Engineers and Trainmen

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