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The Surface Transportation Board on Thursday afternoon placed a major hurdle into the efforts to revive the tracks on the Tennessee Pass Line, which have been dormant since 1997.

The federal agency rejected a proposal for streamlined approval that was submitted last Dec. 31, in which the newly formed Colorado, Midland & Pacific Railway sought an exemption to the requirement for an in-depth environmental review of the plan.  The tracks, owned by Union Pacific, entail a 163-mile stretch from Cañon City, through Chaffee County and over Tennessee Pass to Eagle. Rio Grande & Pacific, which operates several smaller railroads, is the parent company for Colorado, Midland & Pacific.

In the five-page decision, the Transportation Board said, “…the proposed lease and operation transaction is not appropriate for consideration under the Board’s streamlined class exemption procedures… streamlined class exemption procedures are reserved for transactions involving routine, uncomplicated, and non-controversial matters.”

The Tennessee Pass matter has been anything but non-controversial. Local citizens, environmental and business organizations, as well as government groups, filed protests to the Transportation Board regarding the lack of environmental considerations in the proposal.

In addition, they commented en masse on a draft environmental impact statement concerning the proposed Uinta Basin Railway in northeast Utah, to be operated by Rio Grande Pacific, which if approved will connect the abundant oil shale reserves in that region to the larger rail network. Many critics of the Tennessee Pass plan have tied the Uinta Basin proposal to the possibility of hauling oil on Tennessee Pass en route to Gulf Coast refineries.

It appears the critics got the Board’s attention. “Numerous comments opposing the proposed lease and operation transaction have been filed… expressing various environmental and other concerns about resuming rail service on the Line,” Thursday’s decision read. “Many parties opposing the transaction have called for closer scrutiny or an environmental review of the proposed transaction and for additional information about CMPR’s future operational plans. One comment has been filed in support of the transaction.”

While Colorado, Midland & Pacific has contended its Tennessee Pass operations would be limited, the Transportation Board said the applicant “provided no information about the number of trains it expects to operate on the Line. Under the Board’s environmental rules, requests for new operational authority on a rail line typically are excluded from National Environmental Policy Act (NEPA) review unless they trigger certain thresholds (generally an increase of three or eight trains per day depending on whether the area is in attainment under the Clean Air Act).

Colorado, Midland & Pacific has maintained that it has no plans to transport oil over the pass, and filed a motion March 15 to amend its application, asking the Transportation Board to “restrict the proposed lease of the Line against the transportation of crude oil, coal, and hazardous commodities.”  In a letter to the public in conjunction with the March 15 motion, Rio Grande Pacific CEO Richard Bertel reiterated Colorado, Midland & Pacific’s stated plans to work with communities along the Tennessee Pass Line to see what might be a good fit for the rails, including passenger service.

But in Thursday’s decision, the Transportation Board also denied Colorado, Midland & Pacific’s request for the amendment. “CMPR’s motion to amend does not resolve the controversy (which goes beyond transporting specific commodities over the Line), and its request that the Board restrict the proposed lease to authorize only certain types of rail service appears to be at odds with Board precedent and in any event would not be suitable for resolution under the class exemption,” the decision read.

“This is big. They don’t normally set aside those requests,” Chaffee County Commissioner Keith Baker said about the news. “A decision like this, to require it, is precedent-setting.” Baker sits as chair for the San Luis Valley Transportation Planning Region, is an advisor for Chaffee County Transportation Advisory Board, and is also working with the regional government coalition formed out of Eagle County to respond to the Tennessee Pass plan.

Thursday’s decision doesn’t mean Colorado, Midland & Pacific can’t operate trains on Tennessee Pass. But it does mean that a deeper review will be required by the railway or any other group proposing to run trains on the line.

“Whether this STB decision ends CMPR’s proposal to restore the Tennessee Pass Line (TPL) to service remains to be seen, but what seems clear is whatever the ultimate decision, it will receive the warranted environmental study – and that was our intent – not to kill the entire idea, but to ensure whoever reactivates the TPL does so in a manner that minimizes risk of resource damage,” Baker continued. “Having a group of counties – Eagle, Lake, and Chaffee, along with some of their municipalities – self-organize around a single issue so quickly and meet with success is highly gratifying.”

“I’m happy that the Surface Transportation Board saw it our way,” Baker said. “Something this impactful wants a high level of environmental scrutiny.”