By Kathy McCarty
Staff Writer
Rail discussions continue between the state and Montreal, Maine & Atlantic, as officials try to reach an agreement best suited for all involved — with the most recent discussions involving the proposed sale of the tracks to the state and the state’s Offer of Financial Assistance.
Aroostook Republican photo/Natalie Bazinet
“There are two parallel tracks (no pun intended),” said Denis Berube, director of Planning and Transportation Services, Northern Maine Development Commission.
Berube said first of all, MDOT and the railroad are still negotiating privately.
“Hopefully toward a deal that would see the sale of the tracks to the state of Maine. Although the confidential amount has not been disclosed, they have agreed on a sale price,” he said.
Aside from that, Berube said “all other items” have been settled to the exception of access rights to the three transfer points (St. Leonard, New Brunswick, Brownville Junction and Northern Maine Junction).
Secondly, Berube said, the state has made an Offer of Financial Assistance (OFA).
“The terms (among others) specify that the state requires trackage rights from the Safety Transportation Board (STB), and intends to call in $5 million in loan money to the MM&A as procedural to the offer. The offer is for $18.1 million, which contrasts with the railroad’s estimated value of $26 million,” said Berube.
“Keep in mind that the timing for this offer is off because the deadline from the original official timeline, which has been extended, was never modified. Typically, the OFA comes after the STB’s decision on a case, but in this case, the OFA and negotiating process are concurrent,” continued Berube.
Also atypical in this process, according to Berube, is the request from the STB for more clarification on what is requested by the state and shippers (involved parties) in terms of trackage rights.
“A deadline extension for submission of these clarifications was sought by MM&A and the state, which was granted last Friday (July 23). The deadline for these parties to submit their info/clarifications to the STB is now Tuesday, Aug. 3. This would push the final decision on this case by the STB into late August,” said Berube, noting an official date has not yet been set.
Berube added the STB accepted the state’s OFA late last Friday afternoon and that it would determine whether to grant the requested conditions should it rule to grant the abandonment.
“Strictly as a matter of opinion — which I’ve strived to exclude in my updates — a negotiated settlement in this thing would be preferable to an imposed decision by the STB,” said Berube.
Federal officials, on behalf of the state, continue to press for a solution that will keep products moving in and out of Aroostook County via rail.
On July 7, the STB heard from individuals, businesses and organizations representing a wide range of interests throughout northern Maine, including comments from Congressman Mike Michaud, a member of the House Transportation and Infrastructure Committee.
“I urged the STB to come to Presque Isle because I thought it was important that they find out firsthand just how devastating this abandonment would be to the region’s economy.”
Michaud said he had an opportunity to testify in person and made sure to send the same message as everyone else, “We need to find a way to save these tracks.”
Since the hearing, the state has filed an OFA with the STB.
“The OFA outlines what MDOT is prepared to pay to purchase the line, as well as what MDOT believes is a fair compromise regarding trackage rights on the line,” Michaud said.
Michaud said now the STB will use the testimony that it received during the hearing, as well as documents that have been filed with the STB since the abandonment was filed to make two decisions.
“First, the STB will determine whether or not the MM&A will be allowed to abandon the line. If the abandonment is granted, the STB will review the OFA that was submitted by the state and will either determine that the MM&A should sell the track to the state under those terms, suggest new terms or work with both parties to develop new terms,” he said.
Michaud said before that decision is filed, MDOT and MM&A can still negotiate a sale to the state.
“Since October of 2009, I have worked hard to bring this issue to the attention of the House Transportation and Infrastructure Committee, the STB and the Federal Railroad Administration,” said Michaud. “Just last week, as President Obama touched down in Maine for a vacation on Mount Desert Island, I used the opportunity to make the case that this line must be saved.”
Michaud said it’s been great to work with a wide range of stakeholders to make this process open and accessible to the people of Maine.
“Throughout this process, I have urged all parties to do what is in the best interest of the communities that will be impacted by this proposed abandonment,” said Michaud.
