By Erik Potter, Post-Tribune staff writer
Opponents of the proposed purchase of the Elgin, Joliet & Eastern Railway by Canadian National Railway celebrated Monday when the federal Surface Transportation Board issued a letter to six members of the U.S. House of Representatives stating that the board's decision on the deal would not be announced until next year -- after the purchase agreement for the railroad had expired, which would likely kill the deal.
"At this time, we anticipate that the Board will issue a Final Environmental Impact Statement sometime in the next few weeks. This will push a final decision in the matter to sometime early in 2009," stated the letter, which was dated Friday and faxed to Rep. Pete Visclosky's Washington office shortly after noon on Monday.
"At this time, we anticipate that the Board will issue a Final Environmental Impact Statement sometime in the next few weeks. This will push a final decision in the matter to sometime early in 2009," stated the letter, which was dated Friday and faxed to Rep. Pete Visclosky's Washington office shortly after noon on Monday.
The letter was sent to Visclosky and five other representatives from northern Illinois in response to a joint letter they sent the transportation board on Nov. 17, in which they objected to yet another letter that the U.S. Department of Transportation sent the Surface Transportation Board asking for a decision to be hastened in CN's case.
The letter was sent to Visclosky and five other representatives from northern Illinois in response to a joint letter they sent the transportation board on Nov. 17, in which they objected to yet another letter that the U.S. Department of Transportation sent the Surface Transportation Board asking for a decision to be hastened in CN's case.
The issue of when the transportation board makes its decision in the case is crucial because the $300 million purchase agreement CN negotiated with U.S. Steel, which owns the EJ&E, expires at the end of this year. So unless board approval comes in 2008, it will do CN no good, as U.S. Steel has so far been unwilling to extend the purchase agreement into 2009.
As has been the company's practice, U.S. Steel spokesman D. John Armstrong declined to comment on whether the company would be willing to extend the agreement now, especially in light of the struggling steel market, forwarding any questions to CN.
However, any hope that the sale would die was tempered somewhat when the transportation board issued a follow-up e-mail to the six congressional offices later Monday afternoon.
"Please know that it was simply an acknowledgement letter, and that any official timeframes for the proceedings should follow Decision 13," the e-mail stated.
Decision 13 was issued in July, and it stated that a Final Environmental Impact Statement would be completed by December or January and that a board decision on the purchase would follow soon after.
"There were no uncertain terms in that (first) letter," said Jacob Ritvo, spokesman for Visclosky. "Their word choice was clear, and words have meaning."
The news, however tentative, is welcome to the Northwest Indiana communities that would have seen a tripling in train traffic under the proposed purchase.
"If it doesn't go through, and the train traffic doesn't increase, I'd feel we accomplished what we're after, which is not to burden our town and the surrounding towns," said Tom Schmitt, councilman in Schererville. "So if that gets stopped, it'd be OK."
Canadian National, while not commenting on the letter directly, issued a statement saying that it remains confident that the transportation board will issue a decision, "within a time frame that will allow this transaction to close and its benefits to be realized."