By Justin Franz
MISSOULA, Mont. — Montana Rail Link has filed a petition with the U.S. Surface Transportation Board asking the federal regulator to greenlight a plan to terminate its lease with BNSF Railway thus allowing the Class I to resume regular operations through Montana.
Earlier this year, MRL announced that it was terminating the long-term lease of its main line across Montana and Idaho and that BNSF would soon resume operations. MRL’s parent company, Washington Corp., leased the former Northern Pacific from Huntley, Mont., to Sandpoint, Idaho, in 1987 for 60 years. But earlier this year, MRL and BNSF mutually decided to end that agreement after just 35 years. Since the announcement in January, MRL and BNSF have been working with labor leaders to forge implementation agreements with the regional road’s union employees. BNSF has vowed to hire all MRL employees.
On November 18, MRL filed a petition for exemption with the STB, which was then published online Monday morning. In the petition, MRL has asked for an exemption from the regular STB review process for the discontinuance of common carrier service. Attorneys for the regional railroad argue that no employees or customers will be negatively impacted by MRL’s discontinuation of service because BNSF will maintain service. Attorneys also note that “95%” of freight traffic on MRL originates from BNSF, which determines most of the rates for customers.
“BNSF resuming operations and maintenance along this corridor will have minimal impact to MRL’s rail-served customers,” attorneys write.
MRL is specifically seeking to terminate its lease on 656.47 miles of “non-contiguous main line” in Montana and Idaho, as well as trackage rights on 96.04 miles on BNSF in Montana, Idaho and Washington (mostly “The Funnel” between Sandpoint, Idaho, and Spokane, Washington).
MRL will retain ownership of a number of branch lines in Montana, which were purchased outright in 1987. That includes branches to Polson, Darby, Phillipsburg, Harrison, and Whitehall, some of which haven’t had train service in years. According to the petition, MRL will lease those lines to BNSF.
Railroad officials have said they expect BNSF to resume operations sometime in 2023. The petition filed with the STB did not give a specific date, simply stating, “MRL proposes to consummate the discontinuance on or after the effective date of any Board decision granting this Petition, subject to coordination with BNSF to ensure a smooth transition of service.” That means MRL’s final day of operations will be determined in part by the STB. If the federal regulator does greenlight the petition for exemption, the MRL era could come to a swift close in the coming months.
