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Recent Progress
The 2004 Legislature appropriated funds to purchase the CW Branch of the PCC Railroad that is owned by Watco Companies, Inc. In September 2005, the owner withdrew the property from the sale, claiming that the scrap value of the railroad had increased substantially.
The 2006 Legislature modified the authorization to purchase CW Branch by combining the previously allocated acquisition funds with the allocations for projects identified to rehabilitate the entire PCC Railroad, a project known as the PCC Cheney -- Coulee City -- Pullman Upgrades. It also authorized the forgiveness of a rehabilitation loan previously provided to Watco in exchange for good and valuable consideration. The total funds available for the purchase and rehabilitation are $28.117 million, starting from the 2003-2005 biennium and spread over five biennia. The legislature also directed OFM to enter into negotiations with Watco or take other action to acquire the branch, and to obtain the operating rights on the other branches and renegotiate the existing operating lease. Negotiations are expected to begin in April 2006.
It is unknown whether a voluntary agreement can be reached with Watco, or whether formal, adversarial proceedings will be needed before the Surface Transportation Board. Until the matters are resolved or an interim agreement reached, the purchae and projects will be held in abeyance.
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