DERAILING THE PLAN?
State sues to force removal of rail cars from Adirondack track
MINERVA, N.Y. » The state is planning legal to force the removal of unused rail cars from a section of track that runs through the Adirondack Forest Preserve.
Chicago-based Iowa-Pacific Holdings operates scenic tourist trains from Saratoga Springs to North Creek under a lease agreement with Warren County and the town of Corinth. Separately, in late 2011, the firm purchased 30 miles of track farther north, from North Creek to Tahawus, with hopes of hauling and finding a construction market for waste rock from an old mine.
However, such efforts haven’t materialized, so this fall Iowa-Pacific began storing unused rail cars owned by other railroads, which pay for the service. Most cars belong to subsidiaries of billionaire Warren Buffett’s conglomerate, Berkshire Hathaway Inc.
Iowa-Pacific President Ed Ellis says the revenue generated is needed for ongoing track maintenance his company is responsible for, all the way from the Spa City to Tahawus, a distance of about 90 miles. Such expenses exceed $750,000, Ellis has said.
But environmental groups say Iowa-Pacific is creating a “linear junk yard” and have called on state officials to intervene for several weeks. About 75 rail cars have been moved in to date, primarily from the Midwest, and Ellis says there is room for about 3,000.
On Tuesday, Gov. Andrew Cuomo said the state will take legal action if Iowa-Pacific doesn’t remove the cars and stop bringing in more. The state has filed a formal complaint, seeking action by the federal Surface Transportation Board, which has jurisdiction over the nation’s railroads.
“The Adirondack Park is home to some of the world’s
most pristine forest lands, which powers its tourism economy, and we will not stand by and allow it to be used as a commercial dumping ground,” Cuomo said. “New York is prepared to exhaust all legal options to end this practice once and for all, and to help ensure the natural resources of the North Country are protected from blight and from harm.”
Cuomo also called on Buffett to remove the cars if Iowa-Pacific doesn’t.
State Department of Environmental Conservation Commissioner Basil Seggos said, “We urge the Surface Transportation Board to act quickly and allow New York to put a stop to this ill-conceived plan to mothball unused railcars in the middle of an American treasure.”
In 2012, Iowa-Pacific obtained Surface Transportation Board approval to reopen the line from North Creek to Tahawus, which had been unused for many years. U.S. Sen. Charles Schumer, D-N.Y., was among those who applauded the action for its economic development potential.
Ellis did not respond to a call seeking comment.
However, he previously has said the federal board’s approval preempts state legal positions.
Environmental groups disagree, arguing that rail car storage does not conform to the line’s intended purpose, moving freight. It was built during World War II to haul a special mineral, called ilmenite, which was used to make armor for defense purposes.
“Our attorneys have advised us that this is the right venue for the complaint and that the state has firm legal footing to ask that the railroad be declared abandoned,” said William C. Janeway, Adirondack Council executive director.