Rare Agreement with Oklahoma Department of Transportation preserved rail line 30 years ago
Spring, Texas, October 08, 2012 – Union Pacific Railroad acquired complete ownership of a rail line in Oklahoma decades after state officials saved what continues to be a link of commerce through the Sooner State.
The agreement was originally drafted 30 years ago when Chicago, Rock Island and Pacific Railroad Company filed for bankruptcy, potentially eliminating a critical rail connection that linked Texas and Kansas through Oklahoma. The State of Oklahoma purchased 351 miles of track that run through Enid, El Reno, Oklahoma City, Chickasha, Duncan and Lawton. The railroad tracks were operated by Oklahoma-Kansas-Texas Railroad Company through a 30-year-lease purchase agreement signed November 1, 1982. Union Pacific acquired the tracks after several mergers and finished paying $35 million plus accrued interest for the rail line last year.
"This type of agreement was unique, but we felt it was critical that we preserve the rail corridors and work towards getting them back in the hands of private industry," said Oklahoma Secretary of Transportation Gary Ridley. "The railroad tracks that were saved 30 years ago are a valuable part of the transportation network and are bustling with activity today."
Union Pacific maintains the rail line and operates trains carrying mixed goods through the area. The north – south line is a route favored by oil and gas companies operating in the Anadarko Basin. Trains deliver frac sand and pipe used in the hydraulic fracturing process.
Ridley and Tony Love, Union Pacific assistant vice president - Real Estate, signed the documents that transfer the rail line to Union Pacific during the Oklahoma Department of Transportation Commission meeting today. Love presented Ridley with a Union Pacific Railroad Partnership Coin, which commemorates the company's 150th anniversary.
"This coin is representative of so many partnerships Union Pacific has built over our 150-year history and we thank the Oklahoma Department of Transportation for being a part of our history through the foresight you had in recognizing the value that rail transportation brings to the state," said Love. "Your investment has paid off for rail shippers in western Oklahoma and throughout the country."
Union Pacific invested more than $214 million in Oklahoma transportation infrastructure from 2007 to 2011. The company operates 1,173 miles of track in Oklahoma, which serve as a vital link between the Midwest and the Gulf Coast. Grain bound for export moves through the state, as well as coal bound for southern power plants. Union Pacific also ships Oklahoma wheat, cement and aggregates out of the state.
About Union Pacific
It was 150 years ago that Abraham Lincoln signed the Pacific Railway Act of July 1, 1862, creating the original Union Pacific. One of America's iconic companies, today Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America's infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways.