Railway Track & Structures - September 2008 - (Page 8)

I N D U S T R Y T O D AY the serious rail congestion issues plaguing Chicago are being addressed by sound transportation initiatives such as the acquisition by CN of the EJ&E. “At the same time, we are well aware of the concerns raised by communities along the EJ&E line about the environmental impacts of increased train traffic,” he said. “We are asking the STB to set a schedule providing for a decision on the merits which, if favorable to CN, would allow us to close on this transaction before the end of this year, but would not cause any adverse environmental impacts before the Board completes its environmental review and develops a full record on which to base the environmental mitigation that it may impose on the transaction.” CN is entitled to and requires this relief because the STB declined CN’s request for a fixed timetable that would conclude its regulatory and environmental review by the end of the year and, despite CN’s continuing best efforts, a substantial risk remains that EJ&E, which is an indirect subsidiary of United States Steel Corporation, would terminate the proposed transaction if it is not closed before year-end. U. S. Steel has declined CN’s request for a modification of the Stock Purchase Agreement or other action that would ensure that the transaction could still be closed if approved after December 31, 2008. That decision has highlighted the risk that the transaction would be terminated before it was reviewed by the STB. As a result, CN is seeking relief to allow this important transaction to close prior to the end of 2008. “CN is prepared to take the positive step of closing this transaction before year-end in a way that provides the STB with additional time to complete its environmental review by early 2009,” Harrison said. “We are hopeful that the final EIS will conform to the view that this transaction is clearly beneficial to the environment of the broader Chicago region and that the legitimate impacts on affected communities are not novel and can all be reasonably mitigated in accordance with sound STB precedents and the long-established public policy framework governing railroad transactions throughout the United States. “The chief concerns raised by opponents of this transaction are the impacts of train traffic that will be diverted from CN lines in Chicago onto the EJ&E,” Harrison said. “Our proposal would ensure that the STB has sufficient time to review those matters fully before it authorizes any diversion of traffic. The action we are requesting would not interfere in any way with SEA’s environmental review process and we are seeking to protect the interests of all parties.” CN’s petition notes that if the Board does not act by September 15, 2008, CN will be prepared to petition the U.S. Court of Appeals for the District of Columbia Circuit immediately thereafter to compel the STB to issue a final decision that would permit CN to close the transaction by December 31, 2008. By requesting an STB decision by September 15 solely on the question of whether the STB will agree to issue a final decision on the transportation merits by October 15, 2008, CN hopes to avoid the need for judicial intervention. 8 Railway Track & Structures September 2008 www.rtands.com http://www.rtands.com

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Railway Track & Structures - September 2008 Contents On Track Industry Today Supplier News AREMA News NRC News TTCI R&D Larry Etherton Rounds Out Successful Term as President of AREMA Remote Bridges Present Challenges New Mexico Rail Runner Express Making Tracks for Santa Fe Products and Literature People Calendar Sales Representatives Advertisers Index Website Directory Professional Directory Classified Advertising Chicago Perspective

Railway Track & Structures - September 2008

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