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STB Approves CN Purchase of EJ&E
Dec. 24 - SURFACE TRANSPORTATION BOARD APPROVES CANADIAN NATIONAL RAILWAY'S ACQUISITION OF ELGIN, JOLIET & EASTERN RAILWAYThe Surface Transportation Board today unanimously approved the Canadian National Railway Company and Grand Trunk Corporation application to acquire control of the Elgin, Joliet & Eastern Railway Company (EJ&E), subject to a number of Board-imposed conditions.
In announcing the decision, Board Chairman Charles D. Nottingham stated:
"Approval of this important railroad merger, with the conditions we have imposed, marks a significant step forward in our nation's efforts to alleviate rail and highway congestion. I am pleased that the Board agreed, in a bipartisan and unanimous manner, after an unprecedented public involvement process, to grant the relief that this merger will provide to the many Chicago neighborhoods that have been disproportionately burdened for many decades with severe rail traffic-related roadway congestion."
In reaching its decision, the Board considered both the transportation-related aspects of the transaction and the potential environmental impacts. In considering the transportation aspects, the Board found that the transaction will not result in a substantial lessening of competition, the creation of a monopoly, or a restraint of trade in freight surface transportation in any region of the United States. The Board also found that any minor anticompetitive effects that may result will be outweighed by the overall transportation benefits of the transaction.
In considering the environmental aspects of the transaction, the Board found that, although the transaction will result in environmental benefits to those living in and near Chicago, it will have adverse environmental impacts on communities along the EJ&E rail line. The Board undertook an extensive evaluation of the environmental aspects of the applicants' proposal, hosting 22 public meetings over an 8-month period in the Chicago area. A Draft Environment Impact Statement (DEIS) was issued and widely circulated in that region, and the Board received more than 9,500 public comments in response to the DEIS. The Board issued a Final Environmental Impact Statement on December 5, 2008.
After carefully considering the results of the environmental analysis and the comments raised—both pro and con—the Board imposed substantial environmental mitigation to minimize potential adverse environmental impacts of the transaction. The mitigation includes:
--Two highway-rail grade separation projects (and requires applicants to bear 67 percent of the cost of one and 78.5 percent of the cost of the other);
--Cameras to monitor highway-rail crossings to assist in the timely response of emergency providers;
--School and pedestrian safety measures;
--Noise reduction measures; and
--A 5-year environmental reporting requirement mandating applicants to file quarterly reports on the implementation of the Board-imposed environmental mitigation.
In addition, the Board imposed a 5-year, formal oversight period, with applicants required to submit monthly operational reports to the Board. Finally, the Board's decision also requires applicants to comply with mandatory labor protection, with their extensive voluntary environmental mitigation, and with the negotiated agreements that they have entered into with Amtrak and communities in Illinois and Indiana containing tailored mitigation that applicants have agreed to provide.
Chairman Nottingham added:
"I commend the approximately 10,000 citizens who submitted comments to the Board, and I thank the Board's dedicated environmental and legal staff, for ensuring that this decision was made in an informed, balanced and expeditious manner."
The Board issued its decision approving, with conditions, the applicants' acquisition of EJ&E today, December 24, 2008, in Canadian National Ry. and Grand Trunk Corp.—Control—EJ&E West Co., STB Finance Docket No. 35087. That decision will be published in the Federal Register and is available for viewing and downloading on the Board's Web site at http://www.stb.dot.gov, under "E-LIBRARY" on the home page, then under "Decisions & Notices," beneath the date "12/24/08."
Read Press Release
Frankfort Approves CN Agreement
Dec. 16, 2008
After multiple discussions, public meetings and resident input, the Frankfort Village Board approved an agreement with the Canadian National (CN) Railroad at the Village board meeting on December 15, 2008. The agreement provides funding for many of the items previously submitted by the Village to the CN.
These mitigation items include:
· Quiet zones – supported by and funded by CN
· Constant warning circuitry – supported by and funded by CN
· Correction of the Wolf Road bike path area
· Fencing at Main Park and Heritage Knolls Park
· Funds for sound walls, berms, and/or vegetation (on CN property) to be used at the
discretion of the Village within a 5 year timeframe
· Emergency response training
· Emergency protocol – provided by CN
· Funding for an emergency response vehicle
· Train blockage protocol
“After listening to our residents, legal advisers, and the comments of the Surface Transportation Board members, we believe a negotiated settlement is in the best interests of our residents”, commented Frankfort’s Mayor Jim Holland.
"The Village of Frankfort is dedicated to the continued efforts of mitigation above and beyond the contributions of CN. Through continued planning and focus we will work to mitigate the impact that the CN acquisition poses to Frankfort residents. The CN contribution is but a starting point to our new efforts to plan and execute a more comprehensive mitigation effort."
Village to Make Decision on Terms with CN Railroad
December 5, 2008 - Village of Frankfort Press ReleaseAs a response to resident encouragement during the December 1, 2008 Committee of the Whole meeting, the Frankfort Village Board will consider a negotiated agreement with the CN at the Village Board meeting scheduled for Monday, December 15, 2008 at 7:00 PM at Heritage Hall (14 S. Hickory Street).
An agreement is expected to be presented for consideration, with an ultimate decision by the Village Board, at the December 15 meeting.
Village Meeting to Discuss Canadian National Options
The Village of Frankfort has scheduled a committee of the whole meeting on Monday, December 1 at 7:45 PM at Heritage Hall (14 S. Hickory).
The purpose of the meeting, which is open to the public, is to follow up on the November 18 Surface Transportation Board (STB) hearing. The status and options related to the Canadian National (CN) sale will also be discussed.
"It is the intent of the Village Board to once again hear from our residents regarding this important issue as the process nears conclusion. We invite everyone to attend the meeting on December 1”, commented Frankfort’s Mayor Jim Holland.
Watch STB Discussion of Environmental Impact Study
Tuesday November 18 - WebcastThe Surface Transportation Board met on Tuesday, November 18, 2008, to receive a briefing from and discuss with the Section of Environmental Analysis (SEA) staff the Environmental Impact Statement (EIS) being prepared in STB Finance Docket No. 35087.
Federal Court Rules Against CN
November 11 - Chicago TribuneA federal court has said "no" to CN's demand that the U.S. Surface Transportation Board issue its decision by Dec. 1.
Rep. Oberstar Obama Transportation Secretary?
November 14 - Daily Herald...The day's big rumor was that U.S. Rep. James Oberstar, a Minnesota Democrat and U.S. House Transportation and Infrastructure Committee chairman, was a contender for transportation secretary.
Where We Stand
October 1, 2008 - The Surface Transportation Board is reviewing comments about the Draft Environmental Impact Study. The Board stated that they intend to issue the final EIS between December 1 and January 31.The Board stated that they will issue their decision to approve, disapprove or approve the acquisition with conditions after the final EIS is published. The STB may publish their final decision at the same time the final EIS is published or up to thirty days later.
Village of Frankfort's Comments on Draft EIS
Sep. 30, 2008 - Read the STB filing on behalf of the Village of Frankfort.
Frankfort Files Motion to Intervene in Mandamus Proceeding brought by CN
Sep 29, 2008 - CN has appealed to the United States Court of Appeals to force the Surface Transportation Board to speed up their process. On behalf of its citizens, Frankfort is asking the court to hear our arguments why the court should not rule in CN's favor.Read Motion
HR 6707 Passed, But Defeated Under Procedural Rules
Sep 29, 2008 - “Although it received a clear majority of votes in support, H. R. 6707 was defeated under the procedural rules that it was being considered. The bipartisan bill received votes from 206 democrats and 37 republicans, and it has broad support from the Illinois delegation. Unfortunately, under suspension of the rules, a bill must receive a two-thirds vote. Despite heavy lobbying against the bill by railroad companies that want to continue to merge with or take over other rail companies—regardless of the adverse effects on local communities and public safety—H.R. 6707 received a majority vote. This is a critical issue for the public and the environment, and we will look for other legislative vehicles to address this issue.”Chairman of the Transportation Committee
House Transportation Committee Passes HR 6707, TRACS bill
Sep 24 - Bloomberg.com Canadian National Rail Purchase May Face HurdleRead the Draft EIS
Learn more about the Environmental Impact Study at this informative and easy-to-navigate site:
Website: http://www.stbfinancedocket35087.com/html/home.html
