“SNCR has no objection to proceeding with the pending abandonment on a voluntary basis,” says the Oct. 18 filing by the state Attorney General’s office, on behalf of the state Department of Environmental Conservation. Iowa Pacific General Counsel David Michaud co-signed the letter.
The state has also filed a request to issue a certificate of interim trail use for the northern portion. The Oct. 18 letter says that SNCR is amenable to negotiating an agreement on trail use.
The track runs north from North Creek to Tahawus, where an abandoned titanium mine contains tailings that may be able to be sold. There have been negotiations to sell the tracks, or have them be part of an operating agreement that would include passenger service from Saratoga Springs to North Creek. So far the negotiations have not been successful.
Ed Ellis as the S&NC railroad own two items north of North Creek to Tahawus: (1) He owns the real estate plus the ties and the rail valued at about $1,000,000 (2) He also owns the common-carrier operating right to haul freight valued at $-X. The total of the two may hinder the value of the sale as who knows what Ed Ellis want for #2. The STB controls the value #-2 as they can take it away and then Ed Ellis only can bargain over the value of #1. If STB approves this it will increase the chances of a new operator buying the railroad up to Tahawus and hauling the tailing or even the new good iron ore that they want to mine below the tailing pile.
It the lines sells to a new operation, the new operator can also go the Surface Transportation Board and get a new issuing of Common-Carrier rights at only the expense of filing. This is what Ed Ellis did before he purchased the property. The STB should not have legal authority to steal the physicals ties and rails, and who pay for their disposal of that private property and where do you put it?.
This application to STB is to speed up the sale to a new operator for continued rail service as Ed Ellis could drag it out for years over the value of #1 and #2 combined.
It would be a good way to head off outsiders wanting to force a line closure for their trail ideas. Though it is a bit more complicated then just a fence.
SNCR should’ve build the trail themselves along the right of way a long time ago, without state involvement…as a matter of fact, a lot of “tourist” operations should start considering building trails next to their lines, the only additional requirement is a fence.
Glad I rode it when I did.