(The following appeared at www.kfbb.com on February 19, 2010. To see a video report, click here: http://www.kfbb.com/news/local/84748002.html.)
GREAT FALLS, Mont. — The railroad carried in a wave of settlers to Central Montana wheat country, with small farming communities like Denton popping up almost as quickly as the tracks were built.
“It’s always been important to have this local railroad,” said grain producer Scott Seilstad. “It was important back when they were hauling their grain in a wagon.”
Scott Seilstad’s father began farming land just outside of Denton in the 1940’s, with miles of what is now known as the Central Montana Rail running through his property.
“As a small producer, I don’t have a big semi, so really my only option is to take grain into Denton with a smaller truck, and then they ship it out on the rail,” said Seilstad.
Denton almost lost it’s rail service when the Milwaukee railroad went bankrupt in 1980. The state of Montana and Burlington Northern came to a contract payment agreement in 1984 to keep the 80-plus miles of track running between Geraldine and Moccassin, where it then connects to the BNSF line.
“People were ecstatic…Once the tracks are torn out, you’re never gonna see it back again,” said Seilstad.
But in November, BNSF stopped the per-carload payments on the Central Montana Rail, and began offering cheaper prices to farmers who deliver goods directly to Burlington Northern line. Later that month, the state of Montana filed a lawsuit against BNSF in state district court in Lewistown.
Local Producers have had to make the tough business choice between choosing the rails, or receiving a shipping discount by trucking their grain to Moccasin or Moore. In 2009, the Central Montana Rail saw a shipping decrease of almost 50%.
“Small, rural communities I think are struggling to keep the businesses that they have,” said Carla Allen, General Manager of the Central Montana Rail.” All the businesses have competition from bigger businesses in the cities, and we struggle to keep our businesses, to keep our families here, to keep our schools going, and so if one business goes, it affects everyone.”
Allen has been working for the Central Montana Rail for 25 years. Even though her father retired from BN, she never thought she would work in rail service. The non-profit rail line now has 8 full-time employees, and 6 train engines from the 1950s.
“We’ve certainly made considerable improvements . We do all of our own maintenance …and the condition of the track has certainly improved,” said Allen.
But improvements may not be enough to compete with a company that owns more than 90% of the track in Montana.
When Newschannel 5 contacted BNSF, they had “no comment” on the issue or pending lawsuit.
But when questioned in a December New York Times article, BNSF Vice President Kevin Kaufman was quoted as saying that Montana farmers are “competing with the rest of the world…It’s our job as a transportation provider to provide a cost-effective, efficient system so that they can do that.”
Attorney General Steve Bullock believes the Central Montana Rail is needed to keep competitive shipping costs for Montana producers.
“This is a case essentially about a contract. An agreement was reached in 1984 between BN and the state to make sure that the line stays open, and BN has breached that contract,” said Bullock. “They’re not making the payments to keep that line open, so we had to bring suit.”
Now three months past filing, Bullock still expects the lawsuit to be heard.
“I am hopeful and optimistic that ultimately the case will proceed forward…I think they are important interests to be vindicated,” said Bullock.
And back in Denton, Scott Seilstad is confident producers won’t easily give up on their local rail line.
“We’ve always been fighters here, so I think people are gonna really fight to keep this railroad,” said Seilstad.