SURFACE TRANSPORTATION BOARD ISSUES PRELIMINARY DECISION IN "NEW ENGLAND TRANSRAIL" CASE

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board (Board) announced today that certain
activities contemplated by New England Transrail (NET) at its proposed
transload facility in Wilmington and Woburn, MA, would be subject to state
and local environmental and other regulation because they would not be part
of the rail transportation that is subject to the Board's exclusive
jurisdiction.  In addition, the Board announced that NET's proposed project
will not be considered for final approval until a wide range of
environmental and public interest safeguards are met.


 In today's decision, the Board concluded that the proposed transaction, if
 approved, would make NET a rail carrier, but that the part of NET's plan
 involving shredding of construction and demolition debris would extend
 beyond the scope of rail transportation and would therefore be subject to
 the full panoply of state and local regulation.  The Board also concluded
 that other proposed activities--such as loading, unloading, handling and
 storing--that are defined in federal statute as being part of
 "transportation," would fall within the Board's exclusive jurisdiction.
 But the Board emphasized that even as to those activities, its decision
 does not entirely limit the application of state and local police powers.


 The Board's decision emphasized that NET will not be allowed to enter the
 rail business until extensive environmental, safety, public health and
 other public interest considerations are fully addressed.  Specifically,
 the Board will:  1) await completion by the United States Environmental
 Protection Agency of an ongoing remedial investigation and feasibility
 study of  the site on which NET proposes to operate;  2) conduct a
 thorough environmental review pursuant to the National Environmental
 Policy Act, which will include opportunities for public input;  3) impose
 any appropriate environmental and other conditions, which could include
 specific monitoring, inspection and oversight by the Board or, for matters
 within the Board's exclusive jurisdiction, on the Board's behalf by
 federal, state and/or local agencies; and 4) make its staff and resources
 available to facilitate negotiations between NET, Massachusetts and local
 agencies to reach a mutually acceptable environmental mitigation plan.


 Commissioner Mulvey dissented from the Board's decision.


 The Board's decision issued in New England Transrail, LLC, d/b/a
 Wilmington & Woburn Terminal Railway--Construction, Acquisition and
 Operation Exemption--in Wilmington and Woburn, MA, STB Finance Docket No.
 34797(
 http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/37471?OpenDocument
 )
 , is available for viewing and downloading via the Board's Web site at
 http://www.stb.dot.gov, under "E-Library," then under "Decisions &
 Notices," beneath the date "7/10/2007."  A printed copy of the Board's
 decision also is available for a fee by contacting ASAP Document
 Solutions, 9332 Annapolis Rd., Suite 103, Lanham, MD 20706, telephone
 (202) 306-4004, or via asapdc@xxxxxxxxxxxx


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