(The following story by Erik Potter appeared on the Post-Tribune website on May 21.)
GARY, Ind. — Indiana lawmakers have waded deeper into the debate surrounding Canadian National’s proposed purchase of the EJ&E Railroad.
Last week, CN requested that the Surface Transportation Board, the federal agency that approves railroad purchases, set a Dec. 1 deadline for reaching a decision on the purchase.
On Tuesday, Sens. Richard Lugar and Evan Bayh, along with Rep. Pete Visclosky, sent a letter to the STB outlining opposition to the proposed deadline.
The Dec. 1 deadline would require the STB to complete a draft environmental impact statement, a report that outlines the environmental and community impacts the purchase would have, by July 15. That is about 1-2 months ahead of when the agency expected to complete the report.
Lugar said the environmental report should be completed in “a thoughtful manner, without deadlines that could hinder or curtail the process.”
The senator’s letter criticized CN for asking for a decision by Dec. 1 so it could complete the transaction by the end of the year, when their purchase agreement with U.S. Steel, which owns the EJ&E, expires.
The letter stated that the monetary impact on a railroad is not a valid factor for the STB to consider when granting a deadline request.
CN spokeswoman Karen Phillips said the company’s request is reasonable.
“They’ve already undertaken a very thorough (environmental review) process,” Phillips said. “We aren’t talking about undertaking this from scratch here. We believe that the various concerns that are out there can be very well addressed.”
On Monday, Democratic presidential candidate Sen. Barack Obama made public his opposition to CN’s purchase of the EJ&E, saying it would harm outlying communities that will see increased train traffic that would otherwise go through Chicago.
“We’re sorry he opposes the transaction,” Phillips said. “We still believe that this transaction is very good news for rail generally, not to mention the residents in the Chicago area that stand to benefit.”