The Surface Transportation Board on Friday, Sept. 19, 2014, ruled in favor of a short line railroad seeking to build a propane storage facility in North Grafton, Mass., against the objections of local residents.
Grafton, Mass.-based Grafton & Upton Railroad (G&U), in a statement, noted the STB said, in part, "...that state and local permitting and pre-clearance requirements, including zoning requirements, are pre-empted with regard to the construction and operation of the facility."
"After two years, hundreds of thousands of dollars in legal fees, and the associated loss of business, this long awaited decision vindicates all of the railroad's arguments that an LPG transloading facility is in fact rail transportation as defined by federal regulations," said G&U owner Jon Delli Priscoli.
The short line on July 24, 2013 filed a petition "seeking a declaratory order to clarify that a liquefied petroleum gas (propane) transload facility it plans to construct and operate on a five-acre parcel adjacent to its existing rail yard in Grafton, Mass., constitutes transportation by rail carrier and, therefore, is shielded from most state and local laws (including zoning laws) by 49 U.S.C. § 10501(b)," STB noted.
"This action will not significantly affect either the quality of the human environment or the conservation of energy resources," STB said in its decision.
Town leaders and other groups contended that the railroad was ignoring local and state zoning laws and improperly applying federal pre-exemption. They also argued that the short line could not finance the project, which the STB in its ruling, Docket No. FD_35752_0, also dismissed.
"I would hope that the town will now stop trying to obstruct the railroad's business and cooperate with us to develop a safe facility to distribute this increasingly needed commodity to customers throughout the region," Priscoli added.