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IÂ don’t think you’ve received any comments yet because this blog is opaque. Please boil this down to something the average interested person can understand.I still think you’re off base for wanting to keep Brenkman in business at the expense of a good trail through a town that is seriously under-trailed. Your proposal to route the trail along and through Detweiler doesn’t keep the trail close to PEOPLE. I don’t want to have to put my bike in may car to get to a TRAIL!
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Today, Central Illinois Railway (CIRY) filed with the Surface Transportation Board (STB) to abandon the Kellar Branch line. And today, Pioneer Industrial Railway (PIRY) filed with the STB to purchase the Kellar Branch. Just as I predicted.
As you may recall from my previous post, “Congress and the STB have adopted procedures that make it possible to force the sale or subsidy of lines slated for abandonment,” “to encourage continued service.” The procedure for forcing a sale or subsidy is to file an “offer of financial assistance,” or “OFA.” Under this procedure, “any financially responsible party seeking to continue service on a line approved for abandonment (or exempted) may compel the railroad to sell or conduct subsidized operations over the line,” according to the STB website. That’s what Pioneer is trying to do.
The city, of course, doesn’t want that to happen. So, CIRY is trying to side-step Pioneer’s purchase request. This gets a little technical, so I apologize in advance. The legal maneuver is this: citing the STB’s ruling in City of Rochelle, Illinois — Adverse Discontinuance — Rochelle Railroad Company (5/27/1999), CIRY claims that Offers of Financial Assistance (the procedure for forcing sale of the line) need not be entertained because this is not an abandonment, but a discontinuance proceeding. The line was formally abandoned when the Rock Island line went belly up back in the early ’80s. If the STB buys this line of argument, then Pioneer can’t file and OFA, and the discontinuance will sail through unopposed.
However, I read this ruling, and it doesn’t say what CIRY and the city want it to say. First of all, in Rochelle, they weren’t asking to completely discontinue service and tear out the tracks. They were essentially asking the board to replace operators — i.e., replace Rochelle Railroad Company with a city contractor — just like when Peoria wanted to replace Pioneer with CIRY. What the board actually said in that case was, “offers of financial assistance will not be entertained in this proceeding, because the City is continuing to provide rail service over the line” (emphasis mine). In other words, they didn’t rule out a forced sale because it was a discontinuance proceeding, but because the city was still providing service over the line in question. Here in Peoria, that condition does not exist. The city wants to permanently discontinue service by any and all carriers.
Furthermore, it is clear from other filings that the STB accepts — even expects — Offers of Financial Assistance in discontinuance cases, not just abandonment cases as CIRY asserts. For instance, one need look no further than a case CIRY cites in their own filing: Norfolk Southern Railway Company — Discontinuance of Service — in Sumpter County, SC (8/30/2005). In that case, the board said:
Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on September 29, 2005, unless stayed pending reconsideration. Petitions to stay and formal expressions of intent to file an OFA under 49 CFS 1152.27(c)(2), must be filed by September 9, 2005.
Now, why would they provide a deadline for filing an OFA if they disallow OFAs in discontinuance proceedings? I don’t think CIRY is going to win that one. But, by fighting it, they will continue to delay the proceeding. I’m not saying that Pioneer will prevail in forcing a sale of the line, but I am saying that the CIRY and the city will probably have to go through the OFA process, which will delay the Park District’s plans again. If they haven’t already, the Park District better start filing for another extension on their grant money.
This Kellar Branch saga is kinda like watching a chess match, isn’t it?
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Pioneer Industrial Railway Co. (“PIRY”) received Central Illinois Railroad Company’s Reply to Petition to Reopen for Immediate Modification or Clarification, today. PIRY is willing to accept the assurances of CIRY that “the Municipalities will not remove that segment until CIRY’s authority over that segment has been discontinued in an effective Board decision,” and the “CIRY has informed the Municipalities that CIRY will initiate proceedings for discontinuance of its rail service over that segment.” Based upon those representations, PIRY respectfully requests that its Petition be held in abeyance, pending the State Court proceedings referenced therein (LaSalle County Illinois Circuit Court No. 05-L-146) and CIRY’s anticipated abandonment filing.
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Runaway locomotive injures rail workerPEORIA — An employee of Central Illinois Railway suffered minor injuries Saturday after he jumped from a shuttle locomotive that was out of control shortly before it crashed into three train cars, police said.
Thomas Stower, 64, of Peoria suffered abrasions but declined medical treatment, police said.
Allen Brown, the field operations manager for the railroad, told police the accident happened about 7:40 p.m. as he, Stower and two other employees were trying to move two rail cars loaded with lumber from near Caroline Street to Carver Lumber, 8700 N. University St.
The employees were using a shuttle locomotive that has less power than a regular locomotive because the regular locomotive was on a section of track that couldn’t be reached. They got as far as Vine Street and decided the track wasn’t passable because of weeds growing across the tracks.Â
They decided to back the locomotive down the track, and three of the employees went to train crossings to make sure no cars were crossing the tracks as the train was in reverse, police said.
Stower remained on the shuttle locomotive, but it started going too fast and the wheels locked up. He put on the emergency brake, but the train remained out of control. Stower jumped off the moving train after it crossed Adams Street, and it continued south, hitting three train cars that were parked on the tracks.
The accident didn’t damage the cars or the lumber but caused about $5,000 damage to the rail bed, police said.Â
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my parents live next to the keller branch on rock island. saturday i was there visiting sitting in the back yard and saw the trackmobile(with 2 crew members) heading to carver lumber with the centerbeam and one boxcar.it sounded like it was working hard just to reach park street.after about 15 to 20 minutes i heard a rummbeling noise so i went to the alley and saw the two cars heading back at a high rate of speed, when it went by at around 30 to 40 mph and only 1 crew member i knew something was wrong. when it was out of my site i was still able to hear it,within a minute i heard aloud bang.while standing in the alley discussing what just happend, i looked up the tracks and saw a man limping badly towards mh equipment.since i was parked in the alley i drove up and meet him at park st. to my surprise he wasnt hurt but handicaped so i picked him up and took him back to caroline st where it had slammed into the parked cars that were left behind.it appears the engineer bailed out near madison and abington.i never heard it blow its horn at any point during the runnaway, luckly it crossed adams and jefferson without hitting anyone or anybody getting hurt. when it hit all the equipment stayed upright but damaged and derailed, the tracks receiving the most damage.[The witness provided this additional information later:]when i saw the runnaway the 2 cars were dragging the trackmobile with them. I noticed a week ago the swither was sitting next to the old I.P. plant near industrial drive, barely visible through the bushes.
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The city’s new railroad company, Central Illinois Railway (CIRY), found out the hard way that you need more than a trackmobile to get a load of lumber up the Kellar Branch.
I heard from a source who will remain anonymous that CIRY tried pulling two cars up the Kellar Branch’s steep grade this past Saturday using only a trackmobile, but the vehicle lost traction and ended up sending the two cars backwards down the line at approximately 30 mph. Miraculously, they didn’t hit anyone when they sped across Abington, Madison, Jefferson, and Adams. None of the cars tipped over, nor did the lumber load come loose or fall off.
However, the runaway cars did hit the remaining cars that were parked close to the switch where the Kellar Branch connects to the Tazewell & Peoria line (TZPR), derailing them and mangling the track. So, it looks like poor Carver Lumber will have to wait a little longer to get their order delivered. At least until CIRY gets a real engine and can fix the tracks.
Sounds like the city hired a real winner. First, their owner gets indicted for soliciting murder, and now they don’t have the equipment to provide the service the city contracted them to perform.
Just imagine if the people who hired CIRY were in charge of hiring someone to run the water works here in Peoria . . . .
In the Journal Star’s editorial today, they continue to insinuate wrongdoing on the part of Pioneer Industrial Railcorp:
In its filing with the [Surface Transportation Board], Pioneer suggests that customers will be “irreparably harmed” if they can’t be served on the Kellar [Branch]. It neglects to mention that it quit running trains on the track last week, leaving box cars intended for its last remaining customer sitting in the rail yard.
And the Journal Star neglects to mention that the reason Pioneer left is because of this letter from the City of Peoria’s attorney Thomas McFarland:
Read it for yourself. It’s dated August 15 and says, “This is to advise correspondingly that Pioneer Industrial Railway Co. (PIRY) should cease rail operations and vacate the Kellar Branch at Peoria-Peoria Heights, IL, no later than 11:59 p.m., Sunday, August 21, 2005.” (emphasis mine)
On August 18, the Journal Star reported under the headline “Railroad pulls out early“:
After fighting for more than a year to keep providing rail service on the Kellar Branch, Pioneer Railcorp abandoned the line and one of its customers without aiding in the transition to a new provider, as promised.
Public Works Director Steve Van Winkle said Wednesday that Pioneer Railcorp chairman Guy Brenkman had told the city’s attorney in the STB case that his company would assist for as long as 30 days in the transition period to the new short-line operator.
Instead, Pioneer Railcorp immediately stopped providing any service, leaving Carver Lumber without access to the track and forcing Granville-based Central Illinois Railway to expedite its takeover.
“(Pioneer Railcorp) did no days transition,” Van Winkle said.
So, Van Winkle is upset that Pioneer didn’t provide 30 days service in transition, yet the city gave Pioneer only six days to vacate the tracks. So who really left Carver Lumber in the lurch? Answer: the city.
Other questions:
(1) Is communication between city departments so bad that the left hand doesn’t know what the right is doing? Or is the city deliberately trying to vilify Pioneer?
(2) Did the Journal Star not read the STB filing on which they reported? Did they not notice the letter from McFarland? Or are they deliberately ignoring it and continuing to publish false information about Pioneer in an effort to discredit them?
Some interesting developments in the Pioneer Industrial Railway v. City of Peoria department today. You may recall that, over the weekend, Pioneer (PIRY) filed a petition with the Surface Transportation Board (STB) to reopen the adverse discontinuance case. Today, the STB published the documentation that goes with that petition, and it’s very interesting!
It looks like Pioneer has secured another attorney and is taking further legal action. The last STB ruling found (among other things) that the City of Peoria is the landlord, so to speak, and Pioneer is the tenant, and that any disputes between owner and tenant are not for the STB to decide, but whatever court has jurisdiction over such matters. So, Pioneer is filing suit against DOT Rail and the City of Peoria in circuit court. Pioneer maintains that the agreement between the city and Pioneer (as successor to Peoria & Pekin Union Railway) did not specify an expiration date, and thus the original agreement is still in effect. If that’s true, then Pioneer can continue operating on the line as long as they’re providing adequate service to shippers. PIRY wants the STB to clarify that the city cannot remove any track on the Kellar Branch unless (a) this court case is decided in favor of the city and (b) CIRY receives authority from the STB to discontinue service on the line. In order for the STB to make such a clarification, it would technically need to “reopen” the case/decision. Thus the petition to reopen/reconsider.
Sound confusing? Legal maneuvers usually are. I think Pioneer makes a good case, though. Their position is that, if the court case is decided in Pioneer’s favor, but the city has already ripped up the rail line, they will have done irreparable damage to Pioneer’s ability to reestablish shipping. Thus, the line should stay in place until the court case is decided. They threw in the second condition because the city keeps talking as if they can rip out the track once the spur is completed without going back to the STB for discontinuance approval. Pioneer wants to remind the city that they can’t legally do that.
The upshot is that this dispute could take months or years to wind its way through the courts, and if the city has to keep the tracks in place until it’s finally resolved, the park district may lose its funding for converting the Kellar Branch into an extension of the Rock Island Trail. So, it will be interesting to see how the STB responds (if it responds at all).
Oh, one other interesting thing — you know how the Journal Star castigated Pioneer for supposedly pulling out early when they had promised to help with the transition? PIRY’s STB filing includes a letter from city attorney Thomas McFarland that ordered PIRY to vacate the tracks by 11:59 p.m. August 21. So Pioneer was just following orders. I wonder if the Journal Star will report that news. Not!