---
kind: "section"
citation: "49 C.F.R. § 1108.2"
title: "49"
number: "1108.2"
heading: "Statement of purpose, organization, and jurisdiction."
url: "https://uscodex.org/cfr/49/1108.2"
---

# §1108.2. Statement of purpose, organization, and jurisdiction.

- (a) **The Board's intent.** The Board favors the resolution of disputes through the use of mediation and arbitration procedures, in lieu of formal Board proceedings, whenever possible. This section provides for the creation of a binding, voluntary arbitration program in which parties, including shippers and railroads, agree in advance to arbitrate certain types of disputes with a limit on potential liability of $25,000,000 in rate disputes, including any rate prescription, and $2,000,000 in other disputes unless the parties mutually agree to a lower award cap. The Board's arbitration program is open to all parties eligible to bring or defend disputes before the Board.
  - (1) Except as discussed in [paragraph (b)](#b) of this section, parties to arbitration may agree by mutual written consent to arbitrate additional matters and to a lower amount of potential liability than the monetary award cap identified in this section.
  - (2) Nothing in these rules shall be construed in a manner to prevent parties from independently seeking or utilizing private arbitration services to resolve any disputes they may have.
- (b) **Limitations to the Board's arbitration program.** These procedures shall not be available:
  - (1) To resolve disputes involving labor protective conditions;
  - (2) To obtain the grant, denial, stay or revocation of any license, authorization (e.g., construction, abandonment, purchase, trackage rights, merger, pooling), or exemption related to such matters;
  - (3) To prescribe for the future any conduct, rules, or results of general, industry-wide applicability;
  - (4) **To resolve disputes that are solely between two or more rail carriers.** Parties may only use these arbitration procedures to arbitrate matters within the statutory jurisdiction of the Board.

## Notes

### Amendments

[78 FR 29079, May 17, 2013, as amended at 81 FR 69414, Oct. 6, 2016]

### Authority

Authority: 49 U.S.C. 11708, 49 U.S.C. 1321(a), and 5 U.S.C. 571 et seq.

### Source

Source: 78 FR 29079, May 17, 2013, unless otherwise noted.

### Amendments

[78 FR 29079, May 17, 2013, as amended at 81 FR 69414, Oct. 6, 2016]