The Union Pacific Railroad Company
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T 1300.3 R152a 1998 c.l A REPORT SUBMITTED TO THE HONORABLE FRANK KEATING GOVERNOR OF OKLAHOMA OFFICE OF RAIL PROGRAMS ANNUAL REPORT DECEMBER, 1998 TABLE OF CONTENTS Page(s) Executive Summary Amtrak Summary 1 - 3 Identification of Rail Improvement Projects 4-5 Income from State Rail Property 6-9 State Rail Program Expenditures 10-12 I. State Funds - Acquisition 10 II. State Funds - Rehabilitations, Materials/Projects 11 III. Federal Railroad Administration Grants and 12 Matching Funds Status of State Owned Rail Properties 13-18 Status of Rail Maintenance Fund 19 Rail Program Accounting Summary 20 EXECUTIVE SUMMARY The legislature in 1978 under House Bill 1623 created the "Railroads-Revitalization Act." This bill provided for specific powers and duties for the state Department of Transportation in dealing with the multitude of rail issues facing Oklahoma. Under this bill the Department was authorized and empowered to acquire, construct, repair, operate and maintain railroad rights-of-way and trackage on feasible and economically sound routes; to participate in all matters related to rail ownership including operating, agreements, the securing of state or federal grants; and to make and enter all contracts as it may deem necessary and proper for carrying out the provisions of this act. Through an initial legislative appropriation of $22 million, the Department aggressively pursued the purchase of recently abandoned rail lines of the Chicago Rock Island and Pacific Railroad and the Missouri-Kansas-Texas Railroad companies. Since these initial rail purchases in 1981 and 1982 of approximately 475 miles of track, the Department now has doubled that mileage and has successfully leased 94 percent to Class I and Class III operators in an effort to restore service to shippers and customers while contributing to the state's economic development. The Department's primary rail interest through 1998 had been the purchase and re-development of rail freight lines. However, through the input of federal funds in March 1998, ODOT has actively pursued the re-establishment of rail passenger service. This service is anticipated to commence in the Spring 1999. The Department's Office of Rail Programs diligently fulfilled its obligations as originally set forth in the 1978 bill and continues to successfully strive for a progressive and balanced Oklahoma Transportation System. AMTRAK March 19, 1998, marked the beginning of the return of a transportation mode unseen in the state of Oklahoma since October 1979. Oklahoma's United States Senator Don Nickles along with Amtrak's President George Warrington and Oklahoma Transportation Secretary Neal McCaleb announced the spring 1999 target date for the return of rail passenger service to Oklahoma. This monumental endeavor became a real possibility after Senator Nickles secured $23 million for the Oklahoma rail passenger service, through the Tax Relief Act of 1997. Oklahoma received the first half of these funds ($11.5 million) in April 1998 with the remaining $11.5 million due in April 1999. The partnering between Amtrak and state officials began immediately with the formation of an Oklahoma/Amtrak Project Team. The first planned joint venture included officials from the Burlington Northern Santa Fe (BNSF) Railroad Company, who owns the rail line over which much of the possible route would traverse. On May 27th and 28th, the officials from the three major players operated an inspection train from Kansas City, Missouri to Ft. Worth, Texas, via Tulsa and Oklahoma City, Oklahoma. The inspection trip crossed the most recent 97.5 mile line purchased by the State of Oklahoma, which runs from Sapulpa to Oklahoma City. The trip was designed to allow Amtrak officials a first-hand view of possible routes, track conditions, and stations. Due to other revenue increases on its system, Amtrak is interested in expanding its national passenger rail network and reports the addition of Tulsa and Oklahoma City would benefit its overall operation as well as reviving rail passenger service in this area. Even with the available federal funds enlisted by Senator Nickles, the total amount of dollars required for track rehabilitation and station/depot plan modifications encompassing the entire state, initiating service would be an impossible task under the time frame allowed. In order to meet this stringent time table allotment, Oklahoma is pressing forward with a plan, "Phase 1," which would tie Oklahoma City south to the Dallas/Ft. Worth, Texas region and to Amtraks national rail passenger system. This first phase would follow the former Lone Star Route on the BNSF and would include stops at Oklahoma City, Norman, Purcell, Pauls Valley and Ardmore in Oklahoma. The balance of the line in Texas, including a stop at Gainesville, is a positive addition to reviving overall ridership, enabling a better chance of survival of this endeavor. 1 The ODOT/Amtrak Project Team is actively assisting the affected cities in plan development and with securing federal financial assistance. On July 6, 1998, the Oklahoma Transportation Commission approved enhancement funds totaling $1 million for the rehabilitation of the former Santa Fe depot in Oklahoma City. The depot was purchased in early 1998 by Oklahoma City businessman Jim Brewer. The sale contract stipulated Brewer must allow Amtrak space to accommodate rail passenger operations, should Amtrak return to Oklahoma. Considerable rehabilitation work will also be required to the other facilities situated on the BNSF properties. This work will consist of ensuring handicapped passenger access to elevated track sections, platforms and canopies, adding crew facilities, spur track and switch construction, electrical signing and lighting improvements. It is estimated that another $2 million will be required for these improvements and the City of Oklahoma City could utilize federal enhancement funds. The ODOT/Amtrak Team selected the remaining four stations because they were operating passenger stations prior to the cessation of rail passenger service in 1979. $200,000 of federal enhancement funds will be made available to each of these four cities, to make modifications to their existing depots or to construct platforms and necessary items to facilitate rail passenger service. Each city, upon completion of its improvements, and after the commencement of service, will be responsible for future maintenance and operational costs. PHASE I Preliminary Cost Five Station/Depot Modifications • $3,800,000.00 (100% Federal Funds) Track/Track Signal/At-Grade Crossing Rehab/Improvements • This information is not yet available from the BNSF. Amtrak Service Cost to Oklahoma • To be provided PHASE II and Beyond ODOT has two independent studies in progress, dealing with the rail passenger routes and associated issues north of Oklahoma City. It is ODOT's intent to connect the City of Tulsa with the Oklahoma City / Ft. Worth route, and to continue north from Tulsa to Kansas City, Missouri. To make Oklahoma's rail passenger service a long lasting and profitable one, Oklahoma must have a through route, gaining the greatest numbers of riders plus the possible option of mail service. All possible incomes should be considered to lessen the rail passenger service cost to the state, and eventually enable the new service to pay for itself. The studies are being prepared by Amtrak and a private consulting firm, Carter & Burgess. Information from the studies should be available to Oklahoma later in the 1999 calendar year. IDENTIFICATION OF RAIL IMPROVEMENT PROJECTS It is the responsibility of the Office of Rail Programs to identify possible rail related improvement projects. These projects include all types of improvements to better utilize the network of trackage under State ownership. Once the identification of the projects is completed, the final step is the prioritization of the projects. The Rail Programs staff shall make recommendations as to the prioritization of the projects, however, the final decision for project authorization rests with ODOT's executive staff. The identification of available funds for the proposed rail improvements, funding sources, estimates, and funding time constraints falls under the responsibility of the Rail Programs staff. Rail Programs has developed the following list of twenty-four proposed projects, combining these into two distinct categories. State Portion Total A INDUSTRIAL DEVELOPMENT PROJECTS 1. Reconfigure trackage at Hollister to accommodate unit train loading (WTJRR) $150,000 $300,000 2. Construct Spur to serve American Milling (Farmrail) 60,000 120,000 3. Construct Siding at Redoak (AOK) 200,000 400,000 4. Reconstruct BN/UP Interchange at Ft. Sill to facilitate switching and Remove crossing (BNSF/UP) 150,000 450,000 5. Rehabilitate first 2 miles of Midwest City Branch to serve wholesale produce warehouse (SKOL) 100,000 150,000 6. Construct new connecting track for Port of Muskogee 1,000,000 2,000,000 7. Construct new bulk loading spur for Port of Catoosa 100,000 200,000 (Part of $1,000,000 commitment) B TRACK REHABILITATION PROJECTS ON EXISTING TRACKS 1. State line to Blackwell (SKOL) 175,000 350,000 2. Elk City to Sayre (Farmrail) 100,000 200,000 3. The remaining portion of the Midwest City Branch (SKOL) 300,000 450,000 4. Class III Rehab Sapulpa to OKC ,000,000 1,250,000 (SKOL) (Amtrak) 5. Reconstruct Weston Bridge at Thomas (Farmrail) 150,000 50,000 6. SKOL / UP Crossing Diamond (SKOL) (Amtrak) 50,000 60,000 7. WTJ/BNSF Crossing Diamond (WTJ) 50,000 60,000 8. AOK/UP Crossing Diamond (AOK) 50,000 60,000 9. Rework Harter Yard to accommodate passenger route (SKOL)(Amtrak) 500,000 1,000,000 10. Reconstruct Hydro Bridge (Farmrail) 1,000,000 1,750,000 11. Riprap Deer Creek Hydro - Weatherford (Farmrail) 500,000 500,000 12. Rehab Hydro - Weatherford (Farmrail) 200,000 200,000 13. Bridge Repair Hydro - Bridgeport (AT&L) 5,000,000 5,000,000 14. Riprap Hydro - Bridgeport (AT&L) 2,000,000 2,000,000 15.