Will Maine voters pay to keep rail service?

The fate of 233 miles of rail in Maine’s Aroostook and Penobscot counties may be determined by a referendum on June 8 in which the state will seek approval to issue bonds to buy the line if the Surface Transportation Board approves the abandonment application of the Montreal, Maine & Atlantic Railway.

In view of this, the STB issued a decision Tuesday slightly altering the schedule of the mediation that is now under way between the State of Maine, which thinks continued rail service is essential, and the railroad, which says it’s a losing proposition.

In Tuesday’s decision, the board said: “On April 22, 2010, following a meeting attended that day by MMA, the state, and board mediation staff, MMA filed a motion requesting that the Board extend the procedural schedule for a period of 3 weeks so that MMA and the State could enter into confidential mediation concerning the future of the line. In a decision served on April 26, 2010, the board granted this request and made MMA’s rebuttal due on May 26.

“Mediation between MMA and the State is progressing. Theboard believes that a negotiated settlement would be in the best interests of the parties and the public in this case. The board understands that the parties may not be able to reach a final agreement concerning the sale of the lines without knowing the outcome of the June 8 referendum. Accordingly, MMA and the state are directed to submit a joint status report outlining their progress toward an agreement on the sale by June 17, 2010. If the parties have not reached an agreement or have not made substantial progress toward reaching an agreement by June 17, 2010, the board will resume its consideration of the merits of this abandonment proceeding and prepare a final Board decision.”