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April 27, 2015

McGovern joins Grafton bid to halt rail line's propane hub

The Grafton and Upton Railroad line begins in North Grafton, where its propane transloading facility is nearly complete.

More than two years after Grafton selectmen sued to prevent the Grafton and Upton Railroad from delivering and installing four 80,000-gallon propane tanks at a planned North Grafton transloading facility, the dispute continues.

The propane transloading center at the northern end of the line is nearly complete after the federal Surface Transportation Board, which has jurisdiction over railroad service issues, ruled in favor of Grafton & Upton's plans in September.

But fearing that the propane facility could pose a safety threat to the surrounding North Grafton neighborhood and nearby North Grafton Elementary School, the town appealed that decision in the First Circuit Court of Appeals in Boston.

The town and the railroad are now awaiting a hearing date. Meanwhile, U.S. Rep. James McGovern filed a brief earlier this month in support of the town's appeal.

It will be an uphill battle, he said, as the Surface Transportation Board is rarely, if ever, overruled. But in an April 16 interview, McGovern said he got involved because, while federal laws dating back to the late 1800s say railroad operations preempt local zoning laws, town officials and residents should have a say. McGovern said it would be the largest propane transloading center in the state and would create significant traffic from large trucks coming and going.

After reviewing the site of the propane transloading center, McGovern said he can understand residents' concerns because it's sited so close to homes and the school, which is attended by students from kindergarten through second grade. He attended a meeting in January in which residents posed questions to the State Fire Marshal's office about the safety of the site. McGovern said officials couldn't answer all of them.

So McGovern wondered, “Given the world we live in, what if someone did something terrible, or what if there was an accident?”

Seeking to build on rail line's success

On the other side of the dispute is Jon Delli Priscoli, who has transformed the Grafton and Upton Railroad from a nearly inactive line in 2009 to a bustling route that fills the gap for major rail operator CSX between Grafton and Milford.

When he took over the Grafton and Upton, Delli Priscoli said he faced a lot of deferred maintenance, and the railroad was delivering products for just two accounts. By investing “multimillions” into the track infrastructure and purchasing land along the track to build transloading stations in Upton, Hopedale and Grafton, Delli Priscoli has increased rail activity by adding customers in Upton and Hopedale. He's also planning to upgrade track on the line's last leg, from Hopedale to Milford.

In the old days, railroads delivered goods directly to businesses located along the lines. Today, Delli Priscoli explained, running a railroad is largely a logistics business. In Upton, the company delivers a variety of liquids for industrial users, as well as wood pellets for heating. In Hopedale, Grafton and Upton delivers sheetrock, drywall, soil and forest products. Once these products arrive, they're loaded onto trucks and brought to customers.

One product for which there's large demand today, according to Priscoli, is propane. More companies with large fuel needs are choosing it because it's viewed as a cleaner and cheaper fuel, Delli Priscoli said, and that's why he has built the North Grafton facility, which has a 320,000-gallon capacity.

“Demand is very, very strong for this service so we are building a state-of-the-art facility that is being built to the highest standards,” Delli Priscoli said.

Situated on 10 acres of land, the propane transloading center is not a storage facility, according to Delli Priscoli, but its four tanks hold enough propane to keep pace with the demand from trucks that arrive to load up the fuel and deliver it to end users. He noted that the Propane Gas Association of New England has submitted an amicus brief supporting the railroad's plans to open the facility.

Regarding safety concerns from residents and town officials, which have been aired at numerous public meetings, Delli Priscoli said propane and other potentially hazardous materials are being loaded and transported at numerous locations across the state.

“The fact is, all facilities are near something,” Delli Priscoli said.

He noted that his office is just 25 yards from the fuel tanks at the North Grafton transloading center. To ensure it's safe, Delli Priscoli said he hired an expert with the National Fire Protection Association who authored safety regulations for liquefied petroleum storage and use, and believes the facility meets or exceeds national safety standards. In addition, the tanks must be reviewed by the fire marshal's office before they can be used, to ensure that operations comply with state regulations.

Town administrator not satisfied

But Town Administrator Timothy McInerney isn't satisfied. He said he believes the Grafton and Upton Railroad is taking advantage of its federal preemption rights over local zoning laws.

The North Grafton facility is located in a residential area that isn't zoned for that type of use, McInerney said. And in addition to residents' safety, McInerney said he's worried about potential groundwater contamination since the facility is located within the town's water supply protection overlay district. Local zoning laws prohibit storage of any hazardous materials in quantities that exceed typical household use in that area of town. The railroad, however, has hired a hydrologist who contends the facility is not within the town's aquifer and doesn't pose a threat.

While Delli Priscoli contends that Grafton and Upton has been transparent in presenting the project to town officials, McInerney disagreed. He said he wants the Surface Transportation Board to require the company to perform more due diligence on the potential safety and environmental impacts of the project.

Meanwhile, the railroad faces another challenge from a small group of Upton residents who have taken issue with the railroad's wood pellet delivery operations in town. A few weeks after the North Grafton decision in the fall, the Surface Transportation Board ruled in the railroad's favor in the Upton case, denying residents' claim that Grafton and Upton is conducting manufacturing activities at the site by packaging wood pellets for shipping.

The residents appealed that decision in the First Circuit court as well, and want to link it to the Grafton case. The railroad contends the two matters are unrelated.

Asked about Grafton's chances of succeeding in its appeal, McInerney said it's anyone's guess.

“I think we put together a good case; we have good arguments,” he said.

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