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Tuesday, December 07, 2010
Legislators Question BNSF Track Deal
By Colleen Heild
Copyright © 2010 Albuquerque Journal
Journal Investigative Reporter
It turns out the state Department of Transportation has already paid $5 million for nearly 200 miles of northern New Mexico train track it has no plans to use, but is resisting taking title to the rail line because of potential environmental problems.
That revelation came during a legislative hearing Monday in which DOT officials estimated the cost of routine maintenance on the stretch of train track would cost the state nearly $6 million a year — money that would have to come from the fund the state uses for road repair and maintenance.
In addition, DOT officials said Monday that the state must pay about $200,000 a year for extra liability insurance for that portion of track.
Details about the agreement to buy the unneeded track emerged as several Legislative Finance Committee members questioned how the state could have entered such a deal with BNSF Railway Co.
"It sounds to me like we made the purchase without doing the environmental survey," said Rep. Donald Bratton, R-Hobbs. "It's somewhat surprising to me we entered into a contract and put money forward and now we're looking back. I think it was reckless and irresponsible on our part."
DOT officials have said BNSF wouldn't sell the state 99 miles of train track between Belen and Santa Fe to launch the Rail Runner commuter train project unless the DOT also promised to buy the rest of the track running north to the Colorado line.
The BNSF track, under a 2005 agreement, was scheduled to be sold in phases for a total of $75 million. The unneeded track was to be sold in the final phase for $5 million in December 2008.
Rail Runner service from Belen to Bernalillo started in July 2006 and was extended to Santa Fe in 2008.
The Legislature didn't specifically earmark money for the 200-mile stretch, but it did approve the issuance of bonds for the commuter train project.
In response to Journal questions, the DOT last week was vague about whether the purchase of the nearly 200-mile section of track had actually occurred.
But DOT Secretary Gary Girón, under questioning by Rep. Larry Larrañga, R-Albuquerque, said Monday that "all of the funds, the $75 million, have been paid; however, the agreement and the terms have not been signed. We have not been able to complete our environmental clearance work to make sure there is not significant liability for the department."
Walk away?
Girón said it has been the DOT's "intent that until we can resolve those environmental issues, we should not sign."
William "Tim" Harris, DOT rail manager, said, "At this stage, we have just started to do an environmental analysis."
There are about 10 sites identified as possible environmental risks, but "we don't have permission (from BNSF) to go out on the property (to examine them)."
The environmental sites involve rail yards and other locations, but wouldn't interfere with train travel on the track.
Under the 2005 agreement, BNSF could agree to clean up environmental problems.
But Bratton said the liability involved in some cleanups can run into the hundreds of millions of dollars.
He added that if there is significant liability to the state, there could be a scenario in which the state "would leave the money on the table and walk away."
Chris Blewett, director of the Rio Metro Regional Transit Authority, which manages the Rail Runner, told legislators "the state can walk away from that line if there are environmental conditions that aren't acceptable."
Blewett said there are no plans to extend the Rail Runner service along the route.
The state Transportation Commission in August voted to recommend that the DOT set aside $2 million for capital improvements or repairs to the line once the state takes title.
The track is currently used by Amtrak for its twice-a-day Southwest Chief run, but no other rail traffic relies on the line. BNSF stopped its freight train service on the route in 2007.
DOT officials said Monday that Amtrak's contribution to the yearly $6 million maintenance costs would be about $200,000 once the state takes ownership of the track.
The tab for track maintenance would come from the already-strained state road fund, which pays for repairs to state roads and highways, among other things.
'Quite a pickle'
Giron said he has told Gov.-elect Susana Martinez's transition team that the road fund balance leaves the DOT in a "compromised position" in fulfilling its obligation to make repairs to roads around the state.
Fiscal year 2010 revenues to the fund, which are derived from taxes on gasoline and other transportation fees, are about $30 million below fiscal year 2007.
Future federal funding, which the DOT also relies on, is currently in limbo in Congress.
State Rep. Jimmie Hall, R-Albuquerque, lamented about the DOT's financial problems during the hearing.
"It's quite a pickle," Hall said, "and you're going to pass on that pickle (to the next administration)."
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