Letter To Anne K. Quinlan, Acting Secretary, Surface Transportation Board
Letter
After learning that Canadian National (CN) appealed a Surface Transportation Board (STB) decision in order to avoid paying their fair share of mitigation efforts in Illinois communities, U.S. Senator Dick Durbin (D-IL) today sent a letter to the STB urging them to vigorously defend their decision and take specific steps to ensure that CN cannot abandon their responsibility to Illinois communities. Specifically, Durbin asked that the STB require CN to keep the money slated for mitigation efforts in a trust account and ensure that CN does not evade its responsibility to pay for mitigation because of time deadlines.
"CN's efforts to undermine the Board's authority and reject their Board-mandated responsibilities could significantly delay communities moving forward with projects that can reduce the effects of increased rail traffic," said Durbin wrote. "This court challenge of the STB ruling affects not only Lynwood and Aurora, but raises the question about the future of other commitments and agreements CN has made. I encourage you to use your full oversight rights and responsibilities to ensure that CN meets their requirements and I look forward to working with you to ensure that happens."
Yesterday, CN appealed a decision by the STB requiring the company to pay seventy-eight and a half percent of the cost of specific mitigation efforts in Lynwood, Illinois and sixty-seven percent of specific mitigation efforts in Aurora, Illinois. The Board's final decision allowed that if a construction contract for the mitigation efforts is not in place by 2015, CN will be automatically released from their mandated financial responsibility related to the projects in Lynwood and Aurora.
According to Durbin, obligating funds for CN share of the cost to a trust account indefinitely will give communities the confidence they need to know that matching funds are available when they raise funds for these critical projects. Additionally he noted that removing the construction contract deadline would eliminate the incentive for CN to run out the clock on meeting their environmental responsibilities to the communities along the EJ&E.
Text of the letter appears below:
February 25, 2009
Anne K. Quinlan
Acting Secretary
Surface Transportation Board
395 E Street, SW
Washington, D.C. 20423-0001
RE: Canadian National Railway Company and Grand Trunk Corporation ControlEJ&E West Company (STB Finance Docket No. 35087)
Dear Ms. Quinlan:
I am writing regarding Canadian National's recent filing with the STB outlining CN's plans to challenge STB's Final Mitigation Conditions (FMC) in the United States Court of Appeals for the District of Columbia. This action shows yet again, that despite their promises, Canadian National never had the best interests of Illinois communities in mind. I hope the Board will vigorously defend this misguided challenge to the STB's authority.
CN is particularly critical of the Board's FMC requiring CN to fund two grade separations in Lynwood (at 78.5 percent CN cost) and Aurora (at 67 percent CN cost). Grade separations along the EJ&E line are the most effective way to mitigate traffic and safety issues.
CN believes these STB mitigation requirements were "unwarranted and unlawful" and that STB has "no authority to impose this environmental condition over the objection of [CN]." These serious challenges to STB's authority and ability to properly protect communities from the effects of rail transactions raise questions about the authority of the Board and its ability to properly regulate the railroad industry. CN's arguments in their filing, if found true, would bolster the argument for stronger regulation of our nation's railroads, an issue that is currently being debated in Congress.
CN's efforts to undermine the Board's authority and reject their Board-mandated responsibilities could significantly delay communities moving forward with projects that can reduce the effects of increased rail traffic. Given these circumstances, I respectfully request you review your final decision and require CN to obligate indefinitely its share of the costs for all of their environmental mitigation responsibilities, especially the two crossings in Lynwood and Aurora. This action will give communities the confidence they need to know that matching funds are available when they raise funds for these critical projects.
The Board's final decision also required that a construction contract be in place by 2015 for work on these two grade separations. Under the Board's decision, if a contract is not signed by that time, CN will be automatically released from their mandated financial responsibility related to the two grade-separation projects. Since it is clearly CN's intention to run out the clock on meeting their environmental responsibilities to the communities along the EJ&E, I request you extend or remove this and any other deadlines STB imposed on CN in the final decision.
In an open letter to residents of communities affected by the EJ&E purchase dated February 2, 2009, CN CEO Hunter Harrison wrote:
Knowing that much work lies ahead, we pledge to all communities along the EJ&E line that CN will share information, listen to your concerns and collaborate with your officials to identify and implement creative solutions to lessen the impact on individual affected communities. We make this commitment because doing the right thing is who we are.
CN's latest action has broken that pledge. Their recent filing and court action puts the bottom line ahead of the affected communities. This court challenge of the STB ruling affects not only Lynwood and Aurora, but raises the question about the future of other commitments and agreements CN has made. I encourage you to use your full oversight rights and responsibilities to ensure that CN meets their requirements and I look forward to working with you to ensure that happens.
Sincerely,
Richard J. Durbin
U.S. Senator
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