Feds demand answers over shuttered Oregon rail line

Feds demand answers over shuttered Oregon rail line Federal railroad officials are questioning the length of an emergency closure of an Oregon short-haul freight rail line, and have given owners of the Central Oregon and Pacific Railroad 30 days to prove the firm did not violate federal law by shutting down the line six months ago.
   The U.S. Surface Transportation Board have demanded that COPR parent RailAmerica explain itself over the closure, a move that could lead to the STB mandating RailAmerica abandon the line or repair and reopen it.
   COPR, which abruptly shuttered the line in September over what it claimed were safety and repair concerns regarding three tunnels along the route, had been asking the state and others to cover about $19 million of the estimated $23 million required to reopen the 120-mile freight line. Rail America also said it wants the state to pay $1.5 million a year that the firm reportedly loses each year operating the line, which mainly handles wood and steel freight between Eugene and the Port of Coos Bay.
   COPR used a provision of federal railroad law that allows for a temporary emergency stoppage of service, called an embargo, to shutter the line.
   Oregon Gov. Ted Kulongoski told COPR officials in late January the state of Oregon will not negotiate over the cost of repairing the shuttered rail line until the railroad makes the repairs and reopens the line.
   State lawmakers and business interests have questioned COPR and RailAmerica's motives in shuttering the line, pointing to a shifting version of why the line was closed.
   RailAmerica originally pointed to safety issues regarding three tunnels on the line for calling the emergency closure. The firm later revealed that it had known about the tunnel issues for more than a year before shuttering the line. The firm then said the issue was actually one of economics, with the line not generating enough business to justify the repairs.
   Federal law stipulates that rail carriers must provide service upon reasonable request. Federal law only allows for temporary suspensions in case of weather or flood damage, tunnel deterioration or traffic congestion.
   However, the STB pointed out that a rail carrier cannot stop or deny service simply because of difficulty or expense.
   The law also requires rail carriers to either reopen embargoes lines quickly or abandon them.
   The STB said RailAmerica's actions suggest that CORP's closure of the line, while perhaps reasonable, may have lasted too long.
   Despite repeated pressure from Kulongoski and other state lawmakers over the issue, this marks the first intervention by the federal government in the line closure.
   In addition to explanations of why the railroad closed the line, the STB is also demanding an explanation of why COPR and RailAmerica are seeking public money to reopen the line. Local proponents of the line have grown especially critical since RailAmerica's parent firm, Florida-based hedge fund Fortress Investment Group, agreed last month to a $24-million-bailout allowing singer Michael Jackson to keep his Dreamland Ranch property in California. Rep. Peter DeFazio, D-Ore., said at the time that if Fortress can afford to help Jackson, it could fix and reopen the Oregon rail line.
   Lawmakers, advocates and users of the line praised the STB decision. The closure, according to shippers along the route that have been forced to resort to other transportation modes, has cost former line customers an addition $3 million to $4 million this year alone. ' Keith Higginbotham