20 May 2008
Rochester Coalition and Mayo Clinic Challenge Railroad's Contention that Hazmat Rail Shipments Pose no Risk
Rochester Minnesota USA - On behalf of the Rochester
Coalition, Mayo Clinic today presented federal regulators with new evidence that suggests
Rochester will become a high-speed rail corridor for coal and hazardous
material shipments soon after the Canadian Pacific Railway's acquisition of
the Dakota, Minnesota & Eastern Railroad (DM&E) is approved. The evidence
contradicts previous assertions made by the DM&E and Canadian Pacific used to
justify their position that the U.S. Surface Transportation Board (STB) should
deny mitigation for Rochester and Mayo Clinic.
Evidence in the public record now suggests that a substantial number of
carloads of ethanol will move through Rochester on their way to Chicago after
the Canadian Pacific gains control of the DM&E. Recent sworn testimony offered
by DM&E executives in a separate legal matter also suggests that the DM&E, now
owned by the Canadian Pacific but not directly under its control, is actively
moving forward with a plan to expand into Wyoming's Powder River Basin (PRB),
but the Canadian Pacific claims no such decision has been reached.
The STB has accepted the Canadian Pacific's claims that there would be no
significant increase of hazardous material shipments through Rochester as a
result of the DM&E sale, so safety mitigation improvements were unnecessary.
The STB also previously agreed to a Canadian Pacific request not to require
specific mitigation protections for Rochester until or unless the railroad
decides to proceed with the PRB expansion. Both contentions appear to be
inconsistent with facts now available.
New Hazmat Evidence
In its filed rebuttal papers, the Mayo Clinic stated that "Evidence
classified as "highly confidential" in the Canadian Pacific's 18 Apr 2008 filing
to the STB makes it clear that its prior representations are not consistent
with its current non-public, sealed representations regarding the nature and
extent of the transportation of hazardous materials through Rochester."
The Canadian Pacific previously represented that all of the anticipated
growth in ethanol traffic will either move west (to interchange with
Burlington Northern Santa Fe) or via Iowa, Chicago & Eastern's lines to the
Chicago gateway. The record now states that once the Canadian Pacific,
according to its officials, "are confident that track conditions are adequate
to ensure safe movement" of ethanol and other hazardous materials over the
"DM&E track from Owatonna through Rochester, Minnesota," they will use that
routing for the substantial increase in the projected number of carloads of
ethanol. The specific data is under a protective order and cannot be disclosed
here.
"The STB's decision not to do an environmental review or require
mitigation for Rochester was based on the contention there would be no
increased risk resulting from the DM&E sale," added Richard Streeter, legal
counsel for the Mayo Clinic. "Clearly the Canadian Pacific's latest submission
provides different facts. There will be an increase in the amount of hazardous
materials traveling through Rochester, which must be properly mitigated to
ensure the community's safety and the safety of Mayo Clinic's patients and
staff."
DM&E Sworn Testimony: Full Speed Ahead on PRB
DM&E executives stated under oath in eminent domain cases brought by the
DM&E that the Canadian Pacific has decided to pursue the PRB project and is
actively participating in the project's development with the goal of beginning
construction in early 2009. The executives stated that the DM&E currently is
spending $3.5 to $4 million a month to advance the PRB expansion, including
paying for eminent domain lawsuits aimed at local landowners who are refusing
to give their land to the DM&E.
"It's hard to believe that a company like the DM&E, with just $250
million in annual revenues, could spend up to approximately $48 million of
that revenue on a single project that hasn't been approved," added Streeter.
The DM&E and Canadian Pacific are successfully having it both ways -
advancing the PRB project by seizing farmers' lands, without having to be
accountable for the project's impacts or to those who will be affected."
The STB currently is reviewing the Canadian Pacific's acquisition of the
DM&E, which historically has had among the worst safety records in the
railroad industry and presently operates on substandard tracks. If approved,
the acquisition will cause a dramatic increase in traffic, including hazardous
materials shipments on DM&E tracks, and may, according to the agreement
between the railroads, result in sending more than 34 high-speed,
coal-unit-trains through Rochester and within a few 100 yards of Mayo Clinic
every day.
As a condition of the Canadian Pacific's acquisition, Mayo Clinic has
requested the STB require specific mitigation for Rochester, including:
- Consultation on how best to minimize project-related impacts to Mayo
Clinic, including limited transportation of hazardous materials
through Rochester;
- Negotiate voluntary contractual limitations on the total number of
through-traffic trains moving through Rochester with Mayo Clinic and
the city of Rochester;
- Regulatory/contractual speed limits on local hazardous materials
traffic;
- Multiple grade separations for specific in-city road crossings.
These grade separated crossings should be designed and located to
facilitate the movement of emergency vehicles to and from medical
facilities providing emergency services in Rochester, including
Saint Marys Hospital and Rochester Methodist Hospital, which are
both Mayo Clinic hospitals;
- Increased inspection and installation of wayside detectors, such as
hot box/loose wheel detectors, to the west and east of Rochester to
provide timely warning of potential problems prior to entering
Rochester city limits;
- Pre-notification for Rochester emergency services of hazmat cargo;
- Whistle-free crossings for non-grade separated road crossings.
Background
For nearly a decade, the DM&E has pursued a major rail expansion though
parts of southern Minnesota and South Dakota in order to haul large amounts of
coal from Wyoming's Powder River Basin to distribution points in the East.
Unable to secure private financing for the project, DM&E sought the largest
federal loan to a private company in American history - a $2.3 billion loan
from U.S. taxpayers to finance a major rail expansion project through the
Midwest. On 26 Feb 2007, the Federal Railroad Administration (FRA) denied
the DM&E's $2.3 billion loan application citing that the loan would have posed
an unacceptably high risk to federal taxpayers.
In early September 2007, the Canadian Pacific announced its acquisition
of the DM&E.
The Rochester Coalition is committed to protecting the people of
Rochester and the patients and staff at Mayo Clinic as well as other affected
communities. The Rochester Coalition represents the city of Rochester, Olmsted
County, the Rochester Area Chamber of Commerce, and Mayo Clinic.
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