From Senator Mills’ Maine Legislative Report.

The decision by Montreal, Maine and Atlantic Railway to abandon 241 miles of track between Millinocket and Aroostook County presented the Legislature with a dilemma: commit the state to a financial risk or lose rail service for northern Penobscot County and most of Aroostook County. Losing this rail service would be harmful to 22 Maine companies who regularly use the line and damaging to Maine’s overall economy. It would also impose new burdens on Maine’s highways and the environment.

Throughout this complex challenge, Republicans stressed the importance of gaining substantial commitments from the private sector companies who are necessary parties to the transaction. During negotiations in the waning hours of the legislative session, the initial $17 million bond request was reduced to $7 million after the state received a commitment of $3 million in private funds from shippers. The remaining $7 million will come from state general funds but only if necessary conditions are met.

Republicans insisted that the risk to taxpayers be further minimized by requiring that the state’s purchase price not exceed the combined salvage value of the rail and the right of way based on an independent appraisal. If a new operator fails, we want the state to be able to recover most of its money from sale of the steel and still own a valuable and continuous right of way through the heart of Maine. The Governor agreed to insist on acquiring permanent and favorable trackage rights to guarantee open access to the line at both ends. Federal funds will likely be available to improve and repair the line in preparation for a new operator to be selected through a competitive process.