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August 3, 2015

MMA trustee seeks to abandon Hermon rail tie yard

The trustee for bankrupt Montreal, Maine and Atlantic Railway has filed a motion to abandon a 5.5-acre rail yard at Northern Maine Junction in Hermon containing ties treated with creosote, a wood preservative that officials say may pose a long-term environmental threat.

According to the Bangor Daily News, MMA’s trustee, attorney Robert Keach, wrote in his motion to the court that the railroad ties do not pose an immediate danger to human health, but that continuing to own the property may take away from the railroad’s creditors.

“The estate lacks sufficient resources to cover the considerable costs associated with maintenance or to address any potential environmental liability,” Keach wrote in the motion to abandon the property. “Further, the Hermon parcel does not produce any value for the state or its creditors.”

The most common type of creosote comes from coal tar, according to the BDN. The International Agency for Research on Cancer has found it is likely carcinogenic to humans.

The Maine Department of Environmental Protection and town officials in Hermon have expressed concern about the railroad ties.

Hermon Town Manager Roger Raymond said town officials are concerned that springtime grass fires may ignite the ties or that creosote may leach into the ground.

The railroad’s bankruptcy started after a train carrying oil crashed in 2013 on its line through Lac-Megantic, Quebec. The crash resulted in 48 deaths. Those victims and their families have been offered a settlement to split $85.7 million ($111.2 million Canadian) for damages, according to the BDN. Victims and other creditors are set to vote on the settlement package by Sept. 10.

The railroad’s assets were sold a little over a year ago to New York-based Fortress Investment Group for $15.85 million in a deal that excluded the 5.5-acre railroad tie yard.

The DEP has an Aug. 13 deadline to evaluate the abandonment request and prepare a response.

 

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