Shareholder Resolutions Score, Chalk Up Environmental Victories The following article appeared in THE WALL STREET JOURNAL, issue of April 24, 2000. By Jim Carlton Staff Reporter of The Wall Street Journal, April 24, 2000 Environmental groups are taking a new tack in their battles against corporate America: introducing shareholder resolutions that in some cases are actually winning. Last week, a coalition of the groups won two so-called management-accountability resolutions at timber concerns Weyerhaeuser Co. and Boise Cascade Corp. and are contesting a third contest they narrowly lost at Burlington Northern Santa Fe Corp. On May 18, a similar resolution from environmentalists is to be considered by shareholders of Potlatch Corp. at the timber firm's annual meeting in Little Rock, Ark. The resolutions were all introduced by groups affiliated with the Railroads and Clearcuts Campaign, an environmental organization based in Spokane, Wash., that has been chiefly focused on issues relating to the companies' activities in the Pacific Northwest. Although "This is effort to find the common interest between Wall Street and environmental shareholders." --Bart Naylor, Railroads & Clearcuts Campaign nonbinding on the boards, the activists said these resolutions give them an opportunity to press their case for stronger environmental standards directly to investors. "This is an effort to find the common interest between Wall Street and environmental shareholders," said Bart Naylor, a shareholder-rights activist from Washington, D.C., who assisted the environmentalists in the campaign. Shareholder activism has long been in use by organized labor and has begun to be embraced by the environmental movement. However, most green-sponsored resolutions have fallen to defeat, as happened a few weeks ago when BP Amoco PLC shareholders soundly defeated a Greenpeace initiative that called for the London-based petroleum giant to cease oil development in the Alaskan Arctic. At the shareholders meeting in Fort Worth, Texas, the proxy, a woman representing an Idaho water-protection group, also spoke out against the company's planned fuel depot in the northern part of that state. In the Northwest, environmentalists twice introduced resolutions calling for Weyerhaeuser to have directors elected annually rather than on staggered, three-year terms. But they had been defeated. At the company's annual meeting last Tuesday, Janine Blaeloch, director of the Western Land Exchange Project group in Seattle, again asked shareholders to adopt the change in board elections. This time, shareholders in the meeting at the company's headquarters in Federal Way, Wash., adopted the resolution by 109 million votes to 79 million dissenting votes. Management had opposed the measure, partly on grounds it would disrupt board continuity and stability. Boise Cascade and Potlatch executives have stated similar grounds for their opposing similar resolutions. Weyerhaeuser officials declined to comment except to say their board was taking the resolution under advisement. On Wednesday, another proxy shareholder spoke in favor of a resolution asking that Burlington Northern's board first consult shareholders before adopting any poison-pill provision making it more difficult for an acquisition. Management opposed the measure, in part because it could complicate the railroad company's announced plan to merge with the Canadian National Railway Co. to form a new entity called North American Railways Inc. At the shareholders meeting in Fort Worth, Texas, the proxy, a woman representing an Idaho water-protection group, also spoke out against the company's planned fuel depot in the northern part of that state. "She was using this as a platform," said Richard Russack, a Burlington Northern spokesman. The environmentalists are contesting the vote of 192 million to 143 million shares that defeated their proposal At Boise Cascade, meanwhile, environmentalists on Thursday also argued for annual elections of directors. The measure passed by a nearly two-thirds margin, and officials of the Boise, Idaho, firm said their board would consider adopting it. Reprinted by permission of THE WALL STREET JOURNAL, © 2000 Dow Jones & Company, Inc. All Rights Reserved.

Hearing on Fuel Depot Draws Opposition About 200 turn out to criticize railroad facility over aquifer Laura Shireman Staff writer The planning and zoning department has received one letter in favor of the refueling depot plan and 48 against, said Chuck Finan, an associate planner for Kootenai County. A railroad company's plan to place more than 2.2 million gallons of petroleum products over the aquifer met with overwhelming opposition from more than 200 people who turned out to a hearing on the matter Thursday night. From families with small children to senior citizens to elected officials from Spokane, people told Kootenai County hearing examiner John Stamsos to take no chances of contaminating the aquifer. "What's most important here tonight is the concept of risk," said Wade Hathhorne, a consultant hired by the opposition to the plan. His expertise lies in groundwater issues and he previously was a professor at Washington State University. Because the aquifer is the sole source of drinking water, any risk of its contamination is significant, he said. The hearing was to consider further testimony on Burlington Northern Santa Fe's application for a conditional use permit to build at least eight storage tanks holding diesel fuel, lubricating oil and water mixed with petroleum products on its land near Hauser. The tanks would be used to refuel trains. "The track records of this company have been poor." Until Stamsos asked the audience to hold applause until the end of each speaker's remarks, the majority of people at the hearing clapped almost every time a speaker made a statement against the railroad company's plan. The planning and zoning department has received one letter in favor of BNSF's plan and 48 against, said Chuck Finan, an associate planner for Kootenai County. "The track records of this company have been poor," Hathhorne said. But BNSF representatives say their plans exceed requirements to protect the aquifer and say they have only a minute incidence of fuel spills - lower, even, than in other transportation industries. The facility has been designed in accordance with all the pertinent regulations, said Melissa Papworth, who works with BNSF on environmental engineering issues. The risk of contamination is too great, said the Spokane County commissioners, the city of Hayden, the city of Spokane and the Panhandle Health District in letters their representatives read to the hearing examiner. "It's designed to not leak," she said, pointing out safeguards such as plastic under the tanks to contain any spills. Furthermore, should it actually spill, the diesel fuel would not pose a significant problem because the soil would stop its seepage into the aquifer and because diesel does not mix with water, Papworth said. There already are about 90 million gallons of petroleum products from other industries stored above the Rathdrum Prairie Aquifer, she added. But Hawthorne contended that the soil above the aquifer is very porous - which means the fuel would soak into the region's source of drinking water - and even a tiny amount of diesel fuel would contaminate it. The risk of contamination is too great, said the Spokane County commissioners, the city of Hayden, the city of Spokane and the Panhandle Health District in letters their representatives read to the hearing examiner. The city of Post Falls also urged caution in making the decision in a letter read by City Councilman Clay Larkin, who voiced personal concerns with the project. BNSF has not adequately answered the city of Hauser's concerns about vehicle traffic, said Scott Brown, city code administrator. The traffic study the railroad performed was done in winter and failed to consider intersections beyond those closest to the proposed tanks, he said. Railroad representatives said BNSF would build an underpass for traffic on Greensferry Road that would allow vehicles to move across that intersection unhindered. That would alleviate the impact the refueling station would have on traffic, said Robert Boileau, who works in engineering for BNSF. More than 35 people signed up to testify at the hearing, which continued late Thursday. The hearing examiner can continue the hearing until June 4 for more testimony, if necessary. Otherwise, he has up to three weeks to make a recommendation to the county commissioners. The Spokesman-Review, May 29, 1998. Copyright 1998, The Spokesman-Review. Used with permission of The Spokesman-Review. Spokane health official oppose depot Railroad facility should not be built above aquifer Zaz Hollander Staff writer Siding with their Idaho counterparts, Spokane health officials have opposed plans for a train refueling depot near Rathdrum. Spokane Regional Health District staffers on Thursday opposed Burlington Northern and Santa Fe Railway's bid to build a fueling station over the Spokane Valley-Rathdrum Prairie Aquifer. A carefully worded position statement disputes building the controversial facility over the aquifer "when viable options are available." But the district's board will hold off on a decision until October, less than a month before the depot comes up for public hearings in Kootenai County. The district has no legal authority over the facility, but is weighing in on aquifer protection based on its mission to protect public health. Railroad officials say they need to build the $35 million fueling facility in North Idaho to stay competitive with rival Union Pacific Railroad. "The aquifer is our greatest resource." -- Mike LaScuola, hazards adviser, Spokane Regional Health Joining with North Idaho's Panhandle Health District, Spokane health staffers say they must first protect the aquifer that is the sole source of drinking water for 400,000 people, many of them in Spokane County. "Our position is, if it doesn't have to be there it shouldn't be," Mike LaScuola, the district's hazards adviser, said after the meeting. "The aquifer is our greatest resource. If it wasn't for the aquifer, this place wouldn't exist." Spokane County Commissioner Kate McCaslin, who chairs the health board, sparred with staffers at Thursday's meeting. McCaslin said she was told that district staffers were directed to parallel Idaho's opinion on the depot. The Panhandle Health District voted 4-3 to oppose building the depot over the aquifer. She expected an independent investigation, a frustrated McCaslin said, adding that she doesn't necessarily support the depot. "To me, it taints the process," she said. "We're trying to be objective about a very, very emotional issue." Kim Thorburn, the district's health officer, said LaScuola wasn't instructed to follow Idaho but both agencies share the same mission. "We are the protectors of the people's health and the water." "We are the protectors of the people's health and the water." -- Dr. Kim Thorburn, Spokane Regional Health Another board member, Spokane City Council member Roberta Greene, asked what other options the railroad has. Either BNSF puts the depot at Rathdrum, where zoning and topography favor the facility, or it builds two depots outside the Spokane-Sandpoint rail corridor, said Kevin Barker, Spokane-based community projects manager for BNSF. "We're disappointed that staff seems to believe there are viable alternatives," Barker said after the meeting. "We've looked at a number of other sites. This is the only one that meets all the criteria." BNSF, and its predecessor, Burlington Northern, now own six petroleum-contaminated sites in Spokane, according to the Washington Department of Ecology's Toxics Cleanup Program. Sites include Hillyard, North Market Street and Parkwater. A Parkwater report was attached to the health district's position paper. By 1992, diesel contamination oozed 30 feet below the ground at the facility between Trent and Sprague avenues, according to the report. Though the pollution isn't a hazard, it also isn't cleaned up yet, it says. At the Rathdrum facility, the railroad plans to protect the aquifer from spills with a high-tech combination of concrete and underground liners. Opponents say the facility won't stay high-tech for long. "They say it's a state-of-the-art facility," said Richard Shutts, with depot opposition group Friends of the Aquifer. "It might not have a problem for five or 10 years, but as facilities age, there's a higher potential." The Spokesman-Review, September 17, 1999. Copyright 1999, The Spokesman-Review. Used with permission of The Spokesman-Review. Depot foes challenge BN studies Professor says railroad exaggerates economic boon Zaz Hollander Staff writer A University of Montana professor says a refueling depot would not be the economic boon to the region that is claimed by the Burlington Northern and Santa Fe Railway. Another study by a Portland engineer calls the railroad's diesel spill predictions into question. Both studies, requested by depot opposition group Friends of the Aquifer, were presented to Kootenai County hearing examiner Jean DeBarbieris this week. The railroad seeks approval to build a fuel facility and 500,000-gallon storage area at its Hauser yard, over the aquifer that supplies more than 400,000 Eastern Washington and North Idaho residents with drinking water. Officials from BNSF point to many economic benefits of building the depot at Hauser. Those benefits are based on an Eastern Washington University economic report done on behalf of the railroad. But Tom Power, economics department chairman at UM, says that a fueling depot anywhere in the region would provide the same benefits. The railroad's economic study also exaggerates associated jobs and economic benefits, according to Power's review. Tom Power, economics department chairman at UM, says that a fueling depot anywhere in the region would provide the same benefits. The railroad's economic study also exaggerates associated jobs and economic benefits, according to Power's review. Many of the 50 jobs would be transfers from Seattle and other BNSF facilities, he says, a claim disputed by railroad officials. Released last June, the EWU economic analysis states that the Hauser facility would provide 131 local jobs and $5.2 million annual income over time. It also estimates a $43.9 million net benefit to society by relieving congestion at the BNSF's crowded Seattle tunnel. The railroad will pay EWU $10,000 for the study, according to David Eagle, a finance professor and co-author. Eagle concedes that Power is right: Another site between Spokane and Sandpoint would bring the same economic benefits to the region. But another site would come with additional costs to BNSF such as land purchases, he added. Power said he was asked by Friends of the Aquifer to look at the railroad's economic impact study. He said he has no interest in the depot and was not paid for his work. Another critique requested by the opposition group disputes the railroad's prediction that any diesel spill would be no threat to the aquifer. The railroad's spill scenarios show even a catastrophic diesel spill would not reach the aquifer, but the state recently questioned that finding. "In reality, if we have a spill out there the plume could be greater or less," said DEQ regional remediation manager John Sutherland. "The chances of it actually coming out exactly where this prediction says are slim." And Wade Hathhorn, a senior engineer with Economic & Engineering Services Inc. in Portland, said it's impossible to guarantee diesel would never reach the aquifer. Or that it would. "That's the problem with hydrogeology, there's so much uncertainty," Hathhorn said. "If you don't put that as part of your caveats up front you're doing a great disservice. There are no absolutes here." The Spokesman-Review, November 17, 1999. Copyright 1999, The Spokesman-Review. Used with permission of The Spokesman-Review. For text of Dr. Power's economic review of BNSF's fuel depot, go to http://www.FriendsoftheAquifer.org/articles/critical-review.html Tank cars derailed near BNSF's proposed fuel depot. One of the world's unique aquifers flows just below the surface. Kristy Johnson / Friends of the Aquifer Examiner advises against depot Report suggests untenable conditions for railroad By Thomas Clouse, Staff writer COEUR d'ALENE--A hearing examiner not only rejected Burlington Northern and Santa Fe Railway's plan for a refueling depot near Hauser, Idaho, but she also suggested conditions for approval that would be virtually impossible for the railroad to meet. Jean DeBarbieris' 19-page report was released Monday by Kootenai County officials. In it, the hearing examiner outlines why she thinks the proposed refueling depot fails to meet the county's health, safety and quality-of-life standards. The depot, which would be over the Spokane Valley-Rathdrum Prairie aquifer, would store 500,000 gallons of diesel, a supply that would be maintained by having millions of gallons shipped in by rail in each year. "What is not in the public interest ... is the location of the facility over the aquifer," DeBarbieris wrote in her report. "What is known for certain is that 400,000 people depend on the aquifer for drinking and that human life cannot be sustained without water." By law, DeBarbieris had to include a list of conditions the railroad would have to meet to get approval. Those include moving the fuel tank far off the aquifer, finding an alternate source of drinking water for 400,000 people and converting the trains to biodegradable fuel. "What is not in the public interest ... is the location of the facility over the aquifer. What is known for certain is that 400,000 people depend on the aquifer for drinking and that human life cannot be sustained without water." -- Jean DeBarbieris Hearing Examiner Railroad officials argued that DeBarbieris' decision overlooks "unchallenged science" that drinking water will remain safe. "The hearing examiner's recommendation reflects a belief that no development should occur over the aquifer if it can't guarantee that water quality would be enhanced," said Kelly Duryea, the railroad's Washington division superintendent. "Such a standard would preclude almost every human activity in Kootenai County." Hundreds of residents packed three days of public hearings on the depot in November. Of those who attended, about 250 were opposed; 118 were in favor and three were neutral. Clay Larkin, a member of Friends of the Aquifer, which opposed the depot, praised DeBarbieris' decision. "It's really a pat on the back and a tribute to a grass-roots movement that believed in what was right for everybody," said Larkin, who also sits on the Post Falls City Council. "It's a great Christmas present, even though it's late." The Kootenai County commission has the final say, regardless of DeBarbieris' report. It will meet Jan. 12 at 10 a.m. to either approve the depot, call for more hearings, or go along with the recommendation to deny the railroad's request. That meeting will be open to the public but commissioners will not allow residents to comment. "This is a tremendous decision," Commissioner Ron Rankin said. "It's one of the biggest decisions we current commissioners have or ever will make. And by far, it's the most controversial." Rankin said the commissioners will not talk about the railroad's request or the hearing examiner report. "I would say the commissioners seldom go against the hearing examiner." -- Ron Rankin Kootenai County Commisioner "All of us have our opinions on certain parts of it. We are not discussing it until we have all the facts before us," Rankin said. "But I want to real bad." Railroad officials said, in a press release, that the commissioners should consider the "uncontroverted science, and approve the application." Kootenai County planners do not keep a record of how often the commission goes against the hearing examiner's recommendation. "I don't think it's that many," Rankin said. "In the three years I've been here, it's been about 20 percent of the time. I would say the commissioners seldom go against the hearing examiner." A different hearing examiner last June denied a previous depot proposal. The railroad then pulled the project and came back with smaller fuel tanks and more environmental controls. Robert Krebs, Burlington Northern and Santa Fe Railway chairman and CEO, gave his assurance in the release that the railroad would be safe and responsible. "The 'citizenry' . . . spoke clearly during the public hearing process. They said any risk is too great when it concerns the sole source of drinking water for 400,000 people." -- Jean DeBarbieris "I pledge that the highest levels of this company are committed to safe environmental practices and will not tolerate any action that could imperil the safety of the region's drinking water," Krebs said. DeBarbieris wrote at length about safety in her report, which responded to 24 different goals in the Kootenai County Comprehensive Plan that are required to get a conditional use permit. Eliminating human error that could cause a spill at the proposed site is not possible, she wrote. "Common sense must dictate that there is a significant risk of a spill contaminating the aquifer." In the railroad statement, Bob Potter, president of Jobs Plus, said the decision sends the wrong message to companies that want to do business in the county. "Companies meet all the rules and regulations, as BNSF does, should be permitted to do business in Kootenai, Potter said. DeBarbieris weighed the economic gains the depot would bring, but said the possibility of an accident "poses a greater threat to the economic prosperity of the area than it would otherwise benefit from the facility." One of the county' s comprehensive plan goals is to protect water quality. On this goal, DeBarbieris spent the most time and effort. "There does not seem to exist a definitive rule as to what constitutes an acceptable level of risk to public health," she wrote. "Rather, it is the responsibility of local decision-makers to determine that level of risk based on the values of the citizenry. "The 'citizenry' . . . spoke clearly during the public hearing process. They said any risk is too great when it concerns the sole source of drinking water for 400,000 people." HEARING EXAMINER Proposed conditions These are the conditions that Hearing Examiner Jean DeBarbieris suggested Burlington Northern and Santa Fe Railway officials need to meet to get approval of a permit for a train refueling depot. 1. Preparation of a contract between BNSF and affected counties, including but not limited to Spokane and Kootenai and including but not limited to the following items: A. Creation of a Burlington Northern Environmental Stewardship Area in which specific responsibilities, liabilities, etc., would be established; B. Execution of a bond sufficient to cover the cost of remediation, held by a third party; C. Agreement to provide an alternate water source for any and all affected parties in the event of contamination of the aquifer. 2. Submission of a computation of statistical probability of accidental release that incorporates the number of tank cars traveling to and from the facility and the degree of human error currently on record. 3. Submission of a Plan for the facility that moves the fuel tank farm to a location that is not over the aquifer or the recharge area. 4. Conversion of trains to the use of a biodegradable fuel. 5. Written approval of the Panhandle Health District. The Spokesman-Review, January 4, 2000. Copyright 2000, The Spokesman-Review. Used with permission of The Spokesman-Review. For text of the Hearing Examiner's decision, go to http://www.FriendsoftheAquifer.org/hearings/findings.html Depot above aquifer approved Kootenai county commissioners attach conditions to rail project Zaz Hollander, Staff writer In the face of widespread opposition, Kootenai County commissioners OK'd permits Monday for a railroad refueling station above the region's source of drinking water. In a 2-1 vote, commissioners approved permits for the 500,000-gallon diesel locomotive refueling depot Burlington Northern and Santa Fe Railway wants to build near Rathdrum, Idaho. Commissioners tacked 33 conditions onto the railroad's permit, including a $5 million cleanup bond in case of a diesel spill. "I don't trust them. Look at their history." -- resident of Twin Lakes, ID and Union Pacific employee The depot location - over the aquifer that supplies 400,000 people in the region with their only source of drinking water - has created a regional controversy that began in 1997. A hushed, standing-room-only crowd packed the county hearing room Monday morning as each commissioner took a turn explaining his position. Commissioners Dick Panabaker and Dick Compton said they couldn't turn down the railroad's request. But Commissioner Ron Rankin passionately opposed it, due to continued pollution at other Burlington Northern sites and alleged worker safety problems. "It comes down to credibility," Rankin said later. "In my opinion, a substantial part of BN's testimony was not credible." Panabaker and Compton, however, said they considered only the facts: The railroad owns the land - 380 acres on the Rathdrum Prairie - and the depot complies with the industrial zoning and the county's comprehensive plan. "Nothing is 100 percent, we know that," said Panabaker, the commission chairman. "That's why these conditions have been put on there." "In my opinion, a substantial part of BN's testimony was not credible." -- Ron Rankin, commissioner, Kootenai County Compton said the county could lose the right to apply any conditions to depot operations if it rejected the railroad's application and BNSF turned to the federal Surface Transportation Board for relief. "If something is going to be imposed on you, you should at least try to control the game," he said. But Rankin said the public was being misled by the railroad's assertions that BNSF's pollution problems are in the past, at yards such as Mandan, N.D. and Livingston, Mont. The railroad continues to have trouble satisfying Washington state regulators at its Pasco yard, he said. More than 4,000 anti-depot comments and 5,000 petition signatures flooded into Kootenai County in the last year. Disappointed opponents, Friends of the Aquifer, said the decision ignored recommendations against the depot from two separate hearing examiners, the Panhandle Health District and the Washington Department of Ecology. The group is $3,000 in debt and is trying to raise money for future legal appeals, members said. "We need 10,000 people to send us a dollar each, yesterday," said Spokane's Richard Rush. Railroad officials celebrated Monday's decision. "This facility sets a new standard for fuel storage over the aquifer and will fully protect the area's drinking water," BNSF president Matt Rose said in a statement. But railroad promises didn't sway many of the folks eating lunch at Granny's Pantry in Rathdrum on Monday. Though the homey restaurant in the heart of town usually has a reputation for pro-railroad sentiment, few diners voiced support for the depot. Customers at several tables said the commission's decision was a slap in the face to obvious public opposition. "I don't trust them," said a Twin Lakes man who works for Union Pacific and did not give his name. "Look at their history." At a nearby table, Twin Lakes logger Dick Graf voiced similar concerns. "Seems to me they could put that depot somewhere else where it's not over the aquifer," Graf said. "There's always room for disaster. It would devastate Spokane." Post falls resident Robert Hunt and his lunch companions said they support the facility. Hunt said he also thought the controversy and public scrutiny ensured more caution from the railroad. "I really don't think there's anything to worry about as long as BN is careful fueling their trains," he said. Along with the cleanup bond, the BNSF agreed to meet all conditions imposed by the commissioners, including: Providing alternate drinking water for anyone whose water is contaminated by the depot. Funding a full-time Idaho Division of Environmental Quality staffer to monitor the depot at all times, including three ground water monitoring wells, one above the depot and two below. Public tours on an ongoing basis. More than $1.2 million in highway improvements, mainly spent on a new underpass at Greensferry Road. The railroad also has pledged to buy a new, $200,000 fire engine for the Rathdrum Fire Department. The Fort Worth, Texas-based railway first floated the project in the offices of then-Gov. Phil Batt in 1997. Next, the depot was officially proposed to the county in 1998, as a nearly 2 million gallon facility. After a hearing examiner rejected the depot that year, the company regrouped and hired a public relations firm. Last year, the railroad returned with plans for a smaller depot with more environmental protections: two, 250,000-gallon diesel tanks over a concrete pad and two underground liners. Hearing examiner Jean DeBarbieris recommended against the depot earlier this year. The Spokesman-Review, March 7, 2000. Copyright 2000, The Spokesman-Review. Used with permission of The Spokesman-Review.

- 4 - BNSF's Track Record

Two trains derail, spilling diesel on Rathdrum prairie Crews work into night cleaning up 29 scattered rail cars, 3,000 gallons of fuel Angie Gaddy and Zaz Hollander, Staff writers Staff writer Thomas Clouse contributed to this report. Lynn Bodine stood at the end of his asphalt driveway and surveyed the mangled heap before him. Two westbound trains derailed and became entangled in a Tuesday morning crash that left the Rathdrum Prairie strewn with 29 rail cars and gallons of diesel fuel just yards from Bodine's yellow farmhouse. "You could actually feel the house shake a bit," the 59-year-old Hauser resident said. "My biggest concern is what is in those cars and what could be going into the ground, knowing what happened last time." More than a decade ago, Bodine and his family had to move from his white clapboard farmhouse to a new home after a tanker truck spilled diesel fuel into the ground near State Highway 53 and McGuire Road. The chemical gases released from the spill fogged the family out of their home and forced them to live a few houses away. On Tuesday, two Burlington Northern and Santa Fe Railway tankers spilled an estimated 3,000 gallons of crude diesel fuel at the same intersection. Two Burlington Northern and Santa Fe Railway tankers spilled an estimated 3,000 gallons of crude diesel fuel. The spill was just a half mile from where the railroad plans to start building a new diesel refueling depot this year. Diesel fuel shipments will increase once the depot is built. Its construction is opposed by thousands of residents in Kootenai and Spokane counties. "This is a perfect example of why we don't want the fuel depot up there," Bodine said. No one was hurt in Tuesday's spectacular train crash. Roads were closed for several hours while BNSF and Kootenai County hazardous materials crews scrambled to make sure the spill didn't warrant an evacuation. The crash occurred shortly before 9:40 a.m., just west of the McGuire Road rail crossing. The trains were heading west to Pasco on parallel double tracks. "My biggest concern is what is in those cars and what could be going into the ground, knowing what happened last time." -- Lynn Bodine, homeowner near BNSF's proposed fuel depot A train run by Montana Rail Link was traveling 45 mph on the northern track, said Mark Kotter, BNSF vice president of operations. A car on that train derailed just east of the McGuire Road crossing. Once it hit the crossing, it struck a BNSF train carrying grain, lumber and diesel fuel on the south track, he said. It's unclear what caused the car to derail. BNSF and federal transportation officials are investigating. BNSF officials say the spill poses no threat to the Spokane Valley-Rathdrum Prairie Aquifer that supplies 400,000 residents with drinking water. Kotter said the frozen ground and thickness of the fuel kept it from seeping into the aquifer. "It's good for us," Kotter said. "It's easy for us to clean up." BNSF trains were routed to a Union Pacific line south of the crash. Officials said they planned to work late into the night Tuesday. They expected the line to open today . Amelia and James Dunphy watched the wreck unfold in stunned surprise as their car idled at the McGuire Road crossing. They were driving to their home overlooking the Rathdrum Prairie from morning Mass in Post Falls. Damaged tracks. BNSF's proposed fuel depot would be located almost exactly where two trains derailed on February 27, 2001, spilling crude diesel fuel on the Rathdrum Prairie. Kristy Johnson / Friends of the Aquifer A westbound train "going as fast as it could" passed by, Amelia Dunphy recalled later. Another, much slower train approached the crossing. Listening to the car radio as they waited, the Dunphys realized something was wrong. A cloud of brown dust rose into the air. "The next thing we knew, all this stuff's flying up in the air. Then we saw cars going up, you know, like a jackknife," Amelia Dunphy recalled. "I made a U-turn. My husband said, 'Let's get out of here.'" "This is exactly what we were concerned about." --Kristy Johnson, Kootenai Environmental Alliance and Friends of the Aquifer The wreck was precisely what aquifer protection groups had warned about prior to Kootenai County commissioners' decision to allow the company's 500,000-gallon refueling depot on the Rathdrum Prairie. "This is exactly what we were concerned about," said Kristy Johnson, a member of the Kootenai Environmental Alliance and Friends of the Aquifer, who was at the scene to document the wreck. "We weren't fighting their efforts to contain (the fuel) below the depot. It was the constant coming and going." When the depot opens in 2003, at least 6 million gallons of diesel are expected to travel rail lines to the facility every month. Opponents of the depot worry that trains could wreck or spill fuel as they pull in and out of the depot. BNSF officials said the oil that spilled had no relation to filling train engines, which is the purpose of the depot. The gooey crude diesel was going to a refinery for further processing, Kotter said. When the depot opens in 2003, at least 6 million gallons of diesel are expected to travel rail lines to the facility every month. Opponents of the depot worry that trains could wreck or spill fuel as they pull in and out of the depot. Outvoted 2-1 on the depot issue in March, Kootenai County Commissioner Ron Rankin had a note of sarcasm in his voice when he said, "Now we get to see how fast diesel soaks in." A water main supplying drinking water to the East Greenacres Irrigation District was located only a few yards from the spill. The line was not hit by fuel and didn't appear contaminated, officials said.   After the train wreck, cleaning up. The aquifer flows just below the land surface, and is highly vulnerable to contamination. Kristy Johnson / Friends of the Aquifer That line sends water from the aquifer to a holding tank on the hills above Hauser Lake, said Gary Runkle, chief of field operations. About 1,000 households in Rathdrum and Post Falls are served by the district, he said. "We won't know (if the households were affected) until everything is said and done," Runkle said. The Spokesman-Review, February 28, 2001. Copyright 2001, The Spokesman-Review. Used with permission of The Spokesman-Review. Depot foes point to BN track record 8 of 14 Montana stations polluted ground water Ken Olsen, Staff writer More than half of Burlington Northern Santa Fe Railroad's refueling depots in Montana have contaminated ground water and surface water. In some cases, railroad workers simply over-filled locomotives. In others, tank and pipeline leaks have sent 100,000 gallons of diesel floating down an old stream bed. Many of those sites are outdated - built in the 1950s to the 1970s when people paid a lot less attention to the environment, railroad officials argue. Those sites don't resemble the state-of-the-art locomotive refueling plant proposed near Rathdrum. It will have double-walled pipes, double-walled tanks and extensive concrete containment dikes to stop any spills from spreading. "People thought the Titanic was state-of-the-art." But people living near the Rathdrum site disagree. They have pulled together an opposition group and are circulating petitions to try to derail the depot. "You have to look at what Montana is going through," said Sy Thompson, who has spent several weeks researching the railroad's history. Burlington Northern's track record demonstrates that "if we have a problem up here, it will be a catastrophe. ... 300,000 people in Spokane will be drinking diesel water, too." The Spokane-Rathdrum Prairie aquifer is the primary source of drinking water for Kootenai and Spokane counties. "People thought the Titanic was state-of-the-art," Thompson added. Burlington Northern has 14 active and inactive refueling stations across Montana. Eight have polluted ground water with diesel, according to the Montana Department of Environmental Quality. "You can never completely clean up an aquifer." The worst appears to be in Livingston, where estimates of contamination in the aquifer range from 100,000 to 500,000 gallons of diesel, said Doug Martin of the Montana DEQ. The culprit is Burlington's Livingston refueling and locomotive repair shop, which was sold in the mid-1980s to Montana Rail Link and Livingston Rebuild Center. Burlington Northern is paying for cleanup, still under way. "You can never completely clean up an aquifer," cautions Clare Lemke, a longtime Livingston resident who tracks the pollution. "The question is how clean can you get it and what level of damage is left as a result." Burlington Northern also is pumping water and diesel out of Missoula's aquifer and will add additional pumps this summer to try to extract more of the fuel. That diesel came from the railroad's Missoula refueling operation. A Missoula monitoring well has 2-feet of diesel on top of the water. Since diesel accumulates in wells, that could mean only one one-hundredth of an inch of diesel spread across the aquifer. But "any (diesel) in that aquifer is too much," Martin said. Montana Rail Link now operates Burlington refueling depots in Missoula, and two other towns. Burlington has agreed to pay the decontamination bill in all cases. Blaming problems on old technology, meanwhile, sounds like the sort of excuse the railroad will trot out in 10 or 20 years if the Rathdrum depot springs a leak. Most of the fuel spills date back more than a decade and, while they hit ground water, most don't affect drinking water, Martin said. About 10 years ago, the railroad started looking at the refueling depots, cleaning them up and installing better equipment. The company has not been fined because it has been so cooperative, Martin said. Overall, "the amount of spills have decreased," he added. "You do have spills, but they are not a day-to-day occurrence." Burlington emphasizes the differences between the old days and newer, cleaner, more-environmentally friendly facilities. "Yes, we have identified sites in Montana from many years back where there was spillage into the ground," said Gus Melonas, Burlington's spokesman. "These facilities are nothing like the technology available today. "We have begun cleanup on these." The company is planning only the best technology for the Rathdrum plant, Melonas said. That includes leak alarms, heavy-duty underground liners and catch spills. The Rathdrum plant would include two 918,000-gallon diesel tanks, with room for a third 918,000 gallon tank. There also would be a large waste oil tank, a methanol tank and other hazardous material tanks. Even the best technology is not fail-safe, cautions Martin of Montana DEQ. Compared with what was built in the '60s, '70s, and '80s "these systems are great improvements," he said. "They are not 100 percent fail-safe. You are still going to have leaks - it's inherent to the industry and the business." That sort of caution, and the railroad's history, worry Wayne Bailey, a Rathdrum-area resident and member of the Friends of the Spokane Valley Rathdrum Aquifer. "Their track record is not good and I want to be convinced that they are not just telling us they are getting better but showing us," Bailey said. Blaming problems on old technology, meanwhile, sounds like the sort of excuse the railroad will trot out in 10 or 20 years if the Rathdrum depot springs a leak, he said. The Spokesman-Review, May 12, 1998. Copyright 1998, The Spokesman-Review. Used with permission of The Spokesman-Review. North Dakota waits for spill to be cleaned up BNSF actions in other states raise concern over depot Heather Lalley and Ken Olsen, Staff writers Fifteen years and more than a million dollars later, diesel fuel still floats under Mandan, the railway hub of North Dakota. Nobody knows quite how the train fuel got there. But many in the town of about 15,000 point to poor fueling practices. Operators simply left pump hoses in locomotives, letting fuel flow onto the ground. Over several decades, as much as 2.5 million gallons accumulated under downtown Mandan. Burlington Northern and Santa Fe Railway Co. has never admitted fault in the Mandan spill, but it has agreed to clean it up. "We've acted responsibly," company spokesman Gus Melonas said. "The state-of-the art facility we have introduced for Hauser has absolutely nothing to do with (Mandan). Fueling practices of yesterday certainly aren't tolerated in today's modern environment." "A system is only as good as the operators." -- David Glatt, North Dakota division of water quality Trains continue to gas up in Mandan's depots. In 1979, BNSF installed pans along the tracks to collect spilled fuel. But a North Dakota health official said he continues to see contamination near those collection pans. David Glatt, of the state's division of water quality, said he hopes the fuel was there before the trays were put in, but he's not sure. "A system is only as good as the operators," Glatt said. Rectifying a spill is nearly impossible. "They seem to have pretty good intentions but they're real stumped," Mandan City Commissioner Dave Ulmer said of BNSF. "They obviously haven't found any decent recovery method, which is a bit disconcerting. This spill is so substantial." The massive spill in Mandan was discovered in 1984, when workers digging the foundation for the county's new Law Enforcement Center encountered greasy soil and pools of diesel. Since then, BNSF has installed several pump-and-treat wells downtown. About 500,000 gallons of diesel have been recovered. "If I was the community of Spokane, I'd be quite worried, especially if it's your drinking water." -- Dave Ulmer, city commisioner for Mandan But that much or more remains in a several-block radius downtown, some of it sitting five or six feet deep atop Mandan's aquifer. Unlike the situation in North Idaho or Eastern Washington, Mandan residents rely on the Missouri River for their drinking water, not the aquifer. "They got good recovery initially and then it just tapered off," Glatt said. "It's easy to get the easy stuff and then it's tougher and tougher to get out." In May, BNSF brought out the big gun - a high-powered vacuum truck designed to suction fuel more efficiently from the wells. The truck overheated, and little fuel was recovered. So BNSF workers have tinkered with the vacuum and are trying it again, Melonas said. Meanwhile, two dozen current and former employees of the Law Enforcement Center are planning to sue Morton County, BNSF and others, their attorney, Bill Delmore, said. The employees claim that breathing diesel fumes in the building has brought on a host of ailments, including, asthma, fibromyalgia, multiple joint disease, headaches, and chemical hypersensitivities, according to one doctor's report. "I was working in a toxic waste dump," said Michelle Schulz, who worked as a dispatcher for 2-1/2 years before going on medical leave in May 1998. "It's a nightmare." Mandan residents say those who depend on the Spokane-Rathdrum Aquifer should be wary of BNSF's proposal. "If I was the community of Spokane, I'd be quite worried, especially if it's your drinking water," Ulmer said. "I would hold them to some sort of guarantee." Mandan Police Chief Dennis Rohr, who has worked in the Law Enforcement Center since it opened and has suffered no health effects, said he'd also be nervous about a refueling depot over the sole-source aquifer. "Diesel was really cheap and they let it run over," Rohr said. "Nobody paid no big deal. Burlington Northern didn't have accountability control. If that's the way Burlington Northern still does business, I'd be damn concerned, too." Melonas, though, said BNSF practices have changed dramatically since the 1940s when Mandan's two fueling depots were built. "Back in the old days, there were no automatic shutoffs, no collection pans, no recovery plans," he said. "Back in the old days, many times fuel could overflow right out of a tank. Now there's automatic shutoff valves, training of employees, numerous levels of protection." The Spokesman-Review, July 4, 1999. Copyright 1999, The Spokesman-Review. Used with permission of The Spokesman-Review. Whitefish Lake, Montana. A BN train derailed, dumping diesel into Whitefish Lake. ["Tanker cars foul lake" Missoulian August 1, 1989.]   Smoldering wreckage of BN and Union Pacific trains that collided near Kelso, Washington, adjacent to I-5. Railroad employees were killed. 24,000 Gallons of diesel were spilled and ignited, resulting in a fireball. [The Oregonian, November 12, 1993] Kurt Wilson photo / Missoulian Ecology disputes BN claim Agency says problems continue with handling of contamination Zaz Hollander, Staff writer The Burlington Northern and Santa Fe Railway calls pollution at regional railroad yards a thing of the past. Washington state regulators, however, say the railroad continues to have trouble handling contamination. Washington Department of Ecology officials say inspections in 1999 at BNSF yards in Pasco and at Spokane's Parkwater site revealed problems in the way the railroad deals with potentially dangerous waste - and with public officials. Burlington Northern is seeking permission from Kootenai County to build a 500,000-gallon diesel refueling facility near Rathdrum, Idaho, over the Spokane Valley-Rathdrum Prairie aquifer. Diesel and other pollutants foul ground water beneath numerous current and former railroad yards - 10 in Montana alone, state officials there say. But the railroad steadfastly has maintained that any pollution problems at its rail yards originated decades ago before modern environmental protective measures. In some cases, the railroad inherited contamination when it purchased the sites, BNSF officials say. "Certainly in the last 15 years, we have put a great deal of emphasis into protecting the environment," said company President Matt Rose, testifying Wednesday night at a Kootenai County public hearing. The company promises state-of-the-art spill containment and other controls at the proposed North Idaho depot. BNSF officials also have said the depot won't be like any other facility in the country, so comparisons with older sites such as Parkwater and Pasco are irrelevant. State officials, however, said the railroad's message of new attitudes about pollution doesn't jibe with what investigators have seen recently. "This 'new company' stopped our inspectors last March from doing their inspection," said Tony Grover, the agency's regional manager in Spokane. "BN has been in this business a long time. They know they can't do that." Ecology Department staffers were conducting a routine, two-day inspection at BNSF's Pasco refueling yard last March when a rail boss stopped them halfway through. Following a confrontation, the inspectors were kicked off the site by terminal superintendent Jim Hommerding, according to Lynn Maser, a dangerous-waste investigator with DOE. "This 'new company' stopped our inspectors last March from doing their inspection." --Tony Grover, Washington Department of Ecology The inspectors got some coffee, called their supervisor, and were allowed to return after several hours, Maser said. They found several violations during the inspection, reports show. It's rare a company turns inspectors away, Maser said. "We were surprised," he said. BNSF described the situation as a misunderstanding. Jennifer Anderson, the company's Seattle-based environmental manager, said she expected to meet the DOE group in the morning, but she was gone when they arrived in the afternoon. Hommerding was not aware of the inspection and simply wanted to clear it with his supervisor, Anderson said. "To me, it's not a big issue," she said. "We always have an open door policy when dealing with public agencies." Workers at Pasco also buried unknown, potentially hazardous materials in pits on the property, according to reports from the Washington Department of Ecology. BNSF workers told inspectors they buried sand, dry fertilizer and other material that leaked from passing trains, according to the Ecology Department. Railroad officials this week said they were unaware of the pits. "We don't dispose of material on company property," Anderson said. Ecology Department staffers were conducting a routine, two-day inspection at BNSF's Pasco refueling yard last March when a rail boss stopped them halfway through. Following a confrontation, the inspectors were kicked off the site. But Maser said railroad workers showed him one of the pits, which measured approximately 50 yards long and 10 yards wide. Ecology officials are still waiting for the railroad to tell them what the pits contain. Maser said there's no indication they pose a health threat, but inspectors wanted to be sure. Also at Pasco, a contractor refueling refrigerated rail cars spilled unknown amounts of diesel off a protected containment area, inspectors found. The spills never were reported, the agency said, instructing the railroad to begin reporting such incidents. The contractor was fired last month, railroad officials said Thursday. The truck-to-train fueling used for refrigerated cars at Pasco would never be used at Hauser, said BNSF's community projects manager, Kevin Barker. "The difference is night and day," Barker said. "There won't be any refrigerated cars, there won't be any direct-to-locomotive fueling." At Parkwater, a maintenance and switching facility, the company recently was told it failed to comply with several state requirements involving dangerous waste, including: Failing to give workers access to communications devices - such as radios - while they handle hazardous waste. The railroad says its workers have cellular phones, radio, and a nearby telephone. Insufficient training for handling dangerous waste. BNSF representatives simply didn't know where training records were kept during inspection, Barker said. No contingency plan available in the case of emergency. Officials say such a plan is available. Letters describing the Pasco inspection and a Jan. 24 letter describing the Parkwater inspection were filed by Ecology officials with the Spokane City Council. The council voted Monday night to oppose the depot.The Kootenai County commissioners are expected to decide whether to approve a conditional use permit for the depot early next month. The Spokesman-Review, February 18, 2000. Copyright 2000, The Spokesman-Review. Used with permission of The Spokesman-Review. BNSF to begin cleanup of oil, chemical seepage Railway company proposes wall to stop flow to Skykomish River Associated Press SKYKOMISH, Wash. Cleanup is set to begin in Skykomish this month to stop the flow of oil beneath the town. Recent testing by Burlington Northern and Santa Fe Railway shows the groundwater and soil are contaminated with many chemicals, including lead, arsenic, PCBs and diesel and bunker oil. Almost 160,000 gallons of bunker fuel and lighter diesel oil have seeped into a 15-foot-deep aquifer passing under houses, gardens, drain fields and the Skykomish school. The contamination is moving toward the Skykomish River. "When the water level gets a lot lower in the summer, the railroad puts out oil booms to skim the oil," said Michael Moore, founder of the Skykomish Environmental Coalition and a Skykomish resident. The river feeds into the Snohomish River and is home to the Puget Sound chinook salmon and bull trout. Both species are protected under the Endangered Species Act. BNSF unveiled a plan at a public hearing in May to build a 600-foot-long underground wall to stop the flow before it reaches the river. Recent testing by Burlington Northern and Santa Fe Railway shows the groundwater and soil are contaminated with many chemicals, including lead, arsenic, PCBs and diesel and bunker oil. Construction on the wall is set to begin later this month, pending Department of Ecology approval. "We're working as hard as we can to get contractors lined up," said Bruce Shepherd, manager of environmental remediation for BNSF. "It's our goal to complete the project before school starts in the fall." Great Northern Railroad, which later merged with Burlington Northern, operated a fueling and maintenance facility in Skykomish from the late 1890s to 1970. During that time it maintained trains operating between Wenatchee and Skykomish. The oil seepage was first discovered in 1912, when black gobs of oil were seen along the riverbank, Moore said. Shepherd said attempts in the 1960s to clean the site died, but with better technology and help from Moore's group, the cleanup can resume. Almost 160,000 gallons of bunker fuel and lighter diesel oil have seeped into a 15-foot-deep aquifer passing under houses, gardens, drain fields and the Skykomish school. The contamination is moving toward the Skykomish River. Cleanup will cost millions of dollars, said Curt Hart, spokesman for the Department of Ecology. He said BNSF has assumed liability and the cost of the cleanup and studies. The railroad has installed 50 monitoring wells in the seepage area and has posted petroleum discharge warning signs on the riverbank. It's also conducting soil, air and water sampling in the area. The second phase of the plan, which should begin 12 months after completion of the wall, includes installing oil extraction equipment and recovery wells. Department of Ecology site manager Louise Bardy said it's important the cleanup is done right. "It's a delicate balance to make sure the plans proposed don't create new problems," Bardy said. The Spokesman-Review, July 6, 2001. Copyright 2001, The Spokesman-Review. Used with permission of The Spokesman-Review Lack of maintenance, inspection cited for rise in train derailments Railroad Administration says number of inspectors has declined By Jonathan D. Salant, Associated Press WASHINGTON - The number of train derailments - like the recent Amtrak accident in Iowa that killed one person and injured 96 others - have increased by nearly 20 percent over the past four years. Both the Federal Railroad Administration and the Department of Transportation's inspector general have found poorly maintained track and inadequate inspections by the railroads could be partly to blame. The number of railroad industry inspectors has been reduced and the federal and state governments have only 550 people to make sure that the industry is adequately checking 230,000 miles of track. The number of railroad industry inspectors has been reduced and the federal and state governments have only 550 people to make sure that the industry is adequately checking 230,000 miles of track. FRA's associate administrator for safety, George Gavalla, said the agency has focused its efforts on heavily used tracks and rail yards, and all tracks that carry passengers and hazardous materials. On those tracks, accidents are down, he said. Many of the derailments occur in yards when crews assemble train cars. "We concentrate on where we think the risk is," Gavalla said. Overall, FRA statistics show that the number of derailments on all tracks and rail yards rose by 18 percent between 1997 and 2000, from 1,741 to 2,059. "Like any big business, railroads will try to cut corners," said Steven Moss, a partner in the California consulting firm of M. Cubed, which studies transportation safety. "They allow their track and other stock to depreciate and get run down and don't make their proper safety investments until they are forced to do so." The rise in derailments will be addressed today at a House railroads subcommittee hearing. "Like any big business, railroads will try to cut corners. They allow their track and other stock to depreciate and get run down and don't make their proper safety investments until they are forced to do so." "When those kinds of numbers are up, rail passengers and the general public could be at risk," said the subcommittee chairman, Rep. Jack Quinn, R-N.Y. Railroad industry officials reject any thought that they are skimping on safety. During the same four-year period, deaths from train accidents dropped 41 percent, from 17 to 10. "The rail system is extremely safe," said Tom White, a spokesman for the Association of American Railroads, the trade group for the large railroads. "There aren't any widespread track defects. There certainly is no indication of any safety problem out there. "Accidents don't do anything good for us. We have every incentive in the world to operate as safely as possible." While states inspect highways and bridges, the railroad industry inspects its own tracks. Overseeing the railroads' work are just 400 federal and 150 FRA-trained state inspectors. Earlier this month, Amtrak's California Zephyr, en route from Chicago to Emeryville, Calif., with 257 passengers and crew aboard, went off the track in Iowa shortly before midnight. The derailment occurred in the area where a rail defect had been detected and patched, according to the National Transportation Safety Board. In December, more than 20 cars of an eastbound Norfolk Southern freight left the tracks, snarling rail traffic and forcing Amtrak to find alternate transportation for 1,000 passengers traveling between Chicago and New York. Local officials blamed the accident on a broken rail. "The vast majority of track defects detected during the audit could have been detected and repaired with better track inspection and track maintenance practices." -- Federal Railroad Administration audit "If the railroads are doing well at their own inspections, then you don't really need a lot of inspections by the federal government," Moss said. "But none of those things seem to be the case right now." Gavalla said deaths and injuries along heavily used tracks are down since the FRA in 1998 began focusing on those routes. Between 1998 and 2000, there was one death and 45 injuries from accidents blamed on track problems, as compared to four deaths and 116 injuries during the previous three years. The FRA began auditing one major railroad, CSX, after a series of derailments. The agency found that the company reduced the number of inspectors and increased the amount of track the remaining employees had to cover. The FRA found that some CSX inspection reports "did not reflect the conditions" found by the agency's employees. "The vast majority of track defects detected during the audit could have been detected and repaired with better track inspection and track maintenance practices," the FRA audit said. The FRA has come under fire as well. In January, the Department of Transportation inspector general, who is examining FRA's safety program, noted "shortfalls in ... enforcement of identified safety deficiencies, such as widespread track defects." Acting Federal Railroad Administrator Mark Lindsey said the safety program was still a work in progress. "Like all programs of this nature, it continues to be refined as strengths and weaknesses are identified," he said. The Spokesman-Review, March 29, 2001. Copyright 2001, The Spokesman-Review. Used with permission of The Spokesman-Review. Priggee's Cartoon Views

- 5 - Behind Closed Doors

Good neighbors don't keep secrets, says official Ken Olsen, Staff writer Burlington Northern & Santa Fe Railway held two closed-door meetings with public officials Monday and then swore them to secrecy about what had transpired. It's at least the fourth time the railroad has held private meetings with public officials since proposing a refueling depot near Rathdrum over the Spokane-Rathdrum Prairie aquifer. That includes a 1997 closed session with then-Gov. Phil Batt and his staff and later meetings with Kootenai County and state officials. The private meetings are prompting Post Falls city Councilman Clay Larkin to ask his city attorney to investigate the possibility that Monday's sessions violated Idaho's Open Meetings Law. "Is this their good neighbor policy?" Larkin asked, referring to a promise the railroad made repeatedly when it first proposed the refueling depot two years ago. "I'm being excluded. I cannot assess the risk to my community." And while Larkin was prohibited from attending the meeting, other Post Falls-area officials - Fire Chief Dan Ryan and Highway District Supervisor Herb Heisel - were among the 10 officials invited. "I can't believe this is happening in the United States of America," added Larkin, who has worked with the Friends of Spokane-Rathdrum Prairie Aquifer, which opposes the refueling depot. "I'm deflated." Railroad officials insist they had the right to prohibit Larkin, the public and the press from listening to Monday's briefing. That two-hour afternoon session focused on agencies that will regulate the railroad refueling operation as well as any concerns those agencies might raise. "This is not a public meeting," said community projects manager Kevin P. Barker, who was blocking the front entrance to the railroad's Main Street store-front office. "We're providing a courtesy briefing for some elected officials and for some other leaders in the community, giving them the courtesy to see some of the information first-hand." Other state and county officials had a similar closed-door meeting Monday morning, railroad officials confirmed. "I can't believe this is happening in the United States of America." -- Clay Larkin, city councilman, Post Falls, Idaho The press would get a full briefing at 4 p.m., Barker added prior to the 2 p.m. meeting. But he and other railroad officials left immediately after the session, taking some of the materials they showed to public officials with them. The press conference never took place. Public officials at Monday afternoon's session also included Scott Wayman, an attorney for Kootenai County; Ken Lustig of Panhandle Health District; Kootenai County Senior Planner Rand Wichman; Gary Gaffney and John Sutherland of the Idaho Division of Environmental Quality; Rathdrum Fire Chief Wayne Nowacki; Bob Lloyd of the city of Rathdrum; and John Perfect of the Idaho Department of Transportation. BNSF's Barker also said that reporters would have the opportunity to interview public officials who attended the meeting afterward. But when those officials left, they said they had been instructed by BNSF not to answer any questions. "They asked us, as a matter of courtesy, to let them do their orchestration," said Lustig of Panhandle Health. "I think we're going to let them do that." Other officials similarly refused to discuss what they'd been told. Some BNSF officials say they will hold a public meeting at 6 p.m. today at the Rathdrum Senior Center. The Spokesman-Review, June 29, 1999. Copyright 1999, The Spokesman-Review. Used with permission of The Spokesman-Review. Railroad hires PR firm to address aquifer concerns But opponents say not even Gallatin Group can save BN's refueling depot Ken Olsen Staff writer A premier Northwest public relations firm will help the Burlington Northern Santa Fe Railroad address concerns over its proposed locomotive refueling depot. The railroad said Monday it has hired the Gallatin Group, whose staff includes former Idaho Gov. Cecil Andrus and former Kaiser Aluminum government relations staffer Chris Carlson. Gallatin will "help us better assess concerns of the community as this group has demonstrated in the past a good understanding of environmental issues," said Gus Melonas, railroad spokesman. The railroad applied for permits from Kootenai County to build the refueling facility but withdrew its application in June after months of vigorous public opposition. Burlington Northern says it plans to reapply for permits to locate its 2 million-gallon diesel tank farm and refueling plant near Rathdrum, Idaho. Hiring the Gallatin Group was a savvy move, some of the people watching the project say. "It shows that Burlington Northern means business," said Larry Belmont, former director of the Panhandle Health District, which ran North Idaho's aquifer protection program. "That's one of the very best public relations firms around." Belmont, now a Democratic candidate for the Idaho House of Representatives, opposes the refueling plant. "The location for those kinds of tanks is not worth the risk," he said. "The drinking water is more valuable than Burlington Northern." The Spokane-Rathdrum Prairie aquifer is the source of drinking water for more than 300,000 people in Spokane and Coeur d'Alene. The Gallatin Group has been called upon to deal with contentious environmental issues before. Most recently the Jacklin Seed Co. hired the Gallatin Group to help it counter a Washington State University study that found public health and environmental costs of burning grass fields far outweigh the economic benefits of farming grass seed. But opponents of Burlington Northern's refueling depot say the Gallatin Group can't change the public's opinion about the project. "Hiring a public relations firm to bolster Burlington Northern's image isn't going to do the job," said Cindy Radavich of Friends of the Aquifer. "Because the issue isn't Burlington Northern, it's the aquifer. "A public relations firm can't change their past and can't change what they want to put over the aquifer." Spokane City Councilwoman Cherie Rodgers, who has rallied opposition to the project from the Washington side of the state line, is equally dismissive. "Not even a miracle would save (Burlington Northern) or make them look good in this light," Rodgers said. The Spokesman-Review, July 14, 1998. Copyright 1998, The Spokesman-Review. Used with permission of The Spokesman-Review. JAMES J. HILL AND THE LOOTING OF SPOKANE Great Northern Railway and Its Watermelon Patch -- The Citizens of Spokane and Their Sturdy Fight for Justice -- How the Railroads Have Fought to Prevent the Loosening of Their Grip on Spokane's Throat (Article by Charles E. Russell in the June Hampton's Magazine) The Inland Empire's fight for just freight rates and a review of the case as it was brought before the Interstate Commerce Commission is told by Charles Edward Russell in Hampton's Magazine for June. Mr. Russell says in part: Now and then, at rare intervals, an American community, oppressed in the manner of the Inland Empire, wearies of the oppression and ventures upon revolt. The day arrived when the Inland Empire, the region of which Spokane, Wash. is the crossroads and supply depot, found that it had suffered enough; therefore of its wrongs it made complaint to the Interstate Commerce Commission. Now, this grand old body has existed for 23 years, most of the time in a coma. Great Northern "melon" distributor, JAMES J. HILL. The founder of the Great Northern railway and who still holds the reins of management. In former days it roused but seldom, making at long intervals a noise like one awake, and then relapsing into sweet repose. Why the I.C.C. Woke Up. One of its seasons of dangerous activity was when it heard the case of the Inland Empire. The reason it woke up then was because the case developed such extraordinary features and was the occasion of such an amazing revelation, beyond all precedent in railroad history, that even a government commission under a law designed to produce atrophy was obliged to give heed thereto. The cause of the Inland Empire against the railroads that had so long throttled and despoiled it was undertaken by the revolting citizens of Spokane. "Before the Interstate Commerce Commission, the city of Spokane, Spokane Chamber of Commerce, Spokane Jobbers' association and the county of Spokane versus the Northern Pacific Railway company, Great Northern Railway company, the Union Pacific Railroad company, Oregon Railroad & Navigation company, Spokane Falls & Northern Railway company." So the case was termed. Oppressed Spokane for Years. The railroads had for years oppressed the Spokane region by making the freight rate from the east to Spokane equal to the rate from the east to the Pacific coast (340 miles farther) plus the rate back from the Pacific coast to Spokane. This the wearied citizens said was unjust and unfair. The cause of the Inland Empire against the railroads that had so long throttled and despoiled it was undertaken by the revolting citizens of Spokane. It its final form that has special interest for us, the case came to a first hearing in June, 1906. Naturally, the defendant railroads combined, and having at issue the vital question whether they can at all times in their won domain make such rates as they see fit to make, they were represented by able, learned, skilful, adroit, experienced corporation lawyers. You know what that means. Of the counsel for the revolting serfs of the Inland Empire, H. M. Stephens, J. M. Geraghty, A. M. Winston, R. M. Barhart of Spokane and Brooks Adams of Boston. The Phantom Ship. When the hearings came on the railroads defended their rates to Spokane on two chief grounds. First, there was the phantom ship seen at long intervals off Cape Horn. That is to say, they pleaded water competition. Sometimes a man could ship something by water from New York to San Francisco. Therefore they had a right to gouge what they pleased out of Spokane. Second, they said that the value and capitalization of the railroads were such that if rates to the Spokane region were reduced the railroads would not be able to earn a just and reasonable profit; such a profit as the courts had decided a railroad was entitled to make. Dear Old Cape Horn Hooker. The pleas struck squarely into Mr. Adams' convictions. I suppose it must have seemed to him basic and vital to the whole vast national transportation problem. Anyway, he advised that the dear old Cape Horn hooker be allowed to beat and bang her stormy way and the issue be joined chiefly on this great point of value and capitalization. As applied to this particular case the issue meant whether the railroads could afford to loosen their grasp on Spokane's throat; but the total question involved was almost infinitely greater than that. Facts as to the existing rate discriminations and the effect thereof were amply testified to. The railroads submitted much testimony as to value and capital, protesting that on any reduction of its rates to Spokane it would be unable to earn "a just and reasonable income" on its value and capital. Capital of Great Northern. What was its capital at that time? According to the company's statement, $250,120,989.39. And what was the value of the property? [The Interstate Commerce Commission] has existed for 23 years, most of the time in a coma. An expert summoned by the railroad put the value at $415,000,000. On this the annual income, after the necessary deductions for depreciation, left for profit no more than a pitiable 3 65-100 per cent. Could the Commission have the heart to reduce the revenue of an enterprise that was making only 3 65-100ths per cent? Think of the widows and orphans! Stir Spokane to Laughter. Then terminals, stations, gifts of public lands, right of way and other possessions were put in at startling figures, including, if you will believe me, the right of way and other donations bestowed by the people of Spokane. That their presents, secured and given with such a pathetic outburst of public feeling, should now be used as a club against them must have struck many Spokane citizens into cynical laughter. Chief Nerve in Problem. Frederick O. Downes, a Boston attorney for the plaintiff, put his finger directly upon the chief nerve in the railroad problem. For the first time he revealed the real nature of the railroad business as conducted in our broad, happy land. Terminals, stations, gifts of public lands, right of way and other possessions were put in at startling figures, including the right of way and other donations bestowed by the people of Spokane. That their presents, secured and given with such a pathetic outburst of public feeling, should now be used as a club against them must have struck many Spokane citizens into cynical laughter. You have always believed that business to be the carrying of freight and passengers. To the real purpose of a modern railroad freight and passenger traffic is but a necessary blind. The real business is to issue, manipulate and possess railroad securities. Great Year for Mr. Hill. Having put its road through to the Coast, the Great Northern in 1895 (hard-times year) earned a 5 percent dividend on all its stock, paid the "rental" of 6 percent on the original $15,000,000 of watered stock in the St. Paul, Minneapolis & Manitoba, $540,000 interest on $10,000,000 of watered stock exchanged for securities taken over from the St. Paul, Minneapolis & Manitoba company, and had a surplus. Tribute was good in the Inland Empire that year. It was the year when the people of Spokane, having waited vainly for the low rates and consequent prosperity promised by Mr. Hill, were thinking wearily of the $70,000 and the right of way that they had bestowed upon him. Could Not Keep Promises. It was also the year in which the plea was first made that Mr. Hill could not afford to keep his promises to the people of Spokane. Suppose we take a look at that. What was the share of Mr. Hill's railroad in that annual loot from the Spokane country? Total, about $800,000: three roads; share of Mr. Hill's road, $226,000 a year. Good. And what interest did Mr. Hill and his associates draw that year merely from the various watermelons they had cut? One million nine hundred and forty thousand dollars. Deduct the Spokane Loot. Therefore, if they had deducted the Spokane loot from the watermelon interest, there would still have remained that year $1,674,000 of watermelon interest. Mr. Hill's share of this fund was something like $300,000 a year. With proper economy a man can live on $300,000 a year, especially if he have other great sources of income. No, you may say, if you like, that Mr. Hill did not care to keep his promises to Spokane or had forgotten them; it is rather difficult to say that he could not afford to keep them. The Spokesman-Review, May 30, 1909. Copyright 1909, The Spokesman-Review. Used with permission of The Spokesman-Review. Map of 1864 Northern Pacific Land Grant       Spokane: Northern Pacific Railroad's first train over the grade separation tracks within the city. BNSF is the successor to Northern Pacific. BNSF's immense power and privilege results from Congress's 1864 land grant that created the Northern Pacific. "To promote the public interest and welfare" is the "object of this act" signed by Abraham Lincoln. Map from Railroads and Clearcuts, 1995. Teakle Collection. Courtesy Spokane Public Library

- 6 - Reforming BNSF

BNSF to face green backlash Environmentalists to try to increase accountability Becky Kramer Staff writer Green investors will show up at Burlington Northern and Santa Fe Railway's annual meeting in Texas today, attempting to influence corporate policy through a shareholder resolution. The railroad giant angered environmentalists with its project to build a refueling depot over the Spokane Valley/Rathdrum Prairie aquifer near Hauser, Idaho. Environmental groups say they want more accountability from corporate officials and board members. Their vehicle: a resolution making it harder for BNSF to enact a "poison pill." "Poison pills" trigger events that make companies less attractive to hostile takeovers. For instance, company officials could issue preferred stock, which would raise the cost of a takeover. But poison pills also insulate companies from shareholders' influence by protecting the status quo, said Bart Naylor, a consultant to the Spokane-based Lands Council. This is the second year the Lands Council and other environmental groups have tried to pass the resolution. Last year, BNSF shareholders defeated it. The resolution, which is advisory only, asks BNSF to put any "poison pill" provisions before the vote of the shareholders. The issue doesn't have a direct link to BNSF's decision to build a refueling depot over the aquifer, which serves as a drinking water source for 400,000 people in Spokane and Kootenai counties. However, "it speaks to management's credibility," Naylor said. The Lands Council and other environmental groups involved in the effort hope to catch the attention of institutional investors, who own most of the shares in large companies. "This is an effort to find common ground between people who champion the environment and people who live and work on Wall Street. A green America and a profitable America don't have to be separate worlds." Bart Naylor Railroads & Clearcuts Campaign "This is an effort to find common ground between people who champion the environment and people who live and work on Wall Street," Naylor said. "A green America and a profitable America don't have to be separate worlds." BNSF officials maintain that the design of the fueling depot will protect the aquifer from fuel spills. The company is urging shareholders to defeat the resolution. "A requirement that we seek shareholder approval ... could seriously weaken the board's negotiating position in a hostile situation and leave it less able to protect shareholder interests," BNSF said in its proxy statement. On Tuesday, Weyerhaeuser shareholders defeated another resolution backed by the Lands Council. The advisory measure required the timber company's 12-member board of directors to stand for election every year. While Naylor said annual elections would make the board more accountable, Weyerhaeuser officials said they feared loss of continuity and creation of a "single issue" board, said Bruce Amundson, company spokesman in Federal Way, Wash. The measure died on a vote of 91 million shares to 71 million shares. Weyerhaeuser's board considered the merits of the resolution after it passed by a 60 percent margin last year, Amundson said. But with the staggered, three-year terms currently in place, the majority of the board can already be replaced in two years, Amundson said. The Spokesman-Review, April 18, 2001. Copyright 2001, The Spokesman-Review. Used with permission of The Spokesman-Review. BNSF OKs 'poison pill' proposal From staff reports Shareholders of Burlington Northern and Santa Fe Railway Co. passed a resolution at the company's annual meeting Wednesday that was sponsored by environmentalists. The resolution, which passed by a 60 percent margin, is advisory only. It asks BNSF to seek shareholder approval before enacting "poison pills." "Poison pills" trigger events that make companies less attractive to hostile takeovers. For instance, company officials could issue preferred stock to raise the cost of an acquisition. But poison pills also tend to protect the status quo at companies, by insulating management from change, environmentalists say. If BNSF's board doesn't act on the resolution, "they do so at their own peril," said Dr. John Osborn of the Lands Council. "It raises interesting questions about the accountability of the system, which is exactly what we were trying to get at." The Spokane-based Lands Council was part of a coalition of groups that supported the resolution. The council hoped to call attention to BNSF's construction of a refueling depot over the Spokane Valley/Rathdrum Prairie Aquifer near Hauser. "It raises interesting questions about the accountability of the system, which is exactly what we were trying to get at." The board, which had urged defeat of the proposal, did not have an immediate comment. The Spokesman-Review, April 19, 2001. Copyright 2001, The Spokesman-Review. Used with permission of The Spokesman-Review. Diesel tank car, derailed. BNSF's proposed fuel depot would be located almost exactly where two trains derailed on February 27, 2001, spilling crude diesel fuel on the Rathdrum Prairie. Kristy Johnson / Friends of the Aquifer AQUIFER & BNSF RESOURCES FOR YOU: (1) FRIENDS OF THE AQUIFER http:// www.FriendsoftheAquifer.org/ This web site is a community resource for our Aquifer, thanks to Richard Rush. Links to other aquifer sites are provided, including Spokane County's educational page at: http://www.groundwaterinfo.com/  (2) AQUIFER ATLAS To get a copy of the Spokane Valley-Rathdrum Prairie Aquifer Atlas, go to: Spokane County Public Works Building 1026 W. Broadway 4th floor, Utilities receptionist ask for the Aquifer Atlas The Atlas is free to the public (paid for with EPA funding). There is a limited supply. One per person. Teachers who would like a classroom set may contact: Reanette Boese, rboese@spokanecounty.org Water Quality Management Program, (509)477-7678 Spokane County also has a limited number of Groundwater CDs. These contain general aquifer information geared to older grade school and junior high students, the Aquifer Atlas (PDF), and some local technical documents (PDF). The groundwater CDs are also available for free on the 4th floor of the Public Works Building.   (3) PUBLIC AGENCIES Your questions for public agencies responsible for the Spokane Valley-Rathdrum Prairie Aquifer can be directed to: In Washington State: Stan Miller, Spokane County Public Works, 1026 W Broadway, Spokane, WA 99260, 509 477-7259, smiller@spokanecounty.org In Idaho State: Ken Lustig, Panhandle Health District, 2195 Ironwood Court, Coeur d'Alene, Idaho 83814, 208.667-9513, klustig@phd1.state.id.us The watershed lead for the Middle Spokane-Little Spokane Watershed Planning Unit is Doug Allen, who can be reached at doua461@ecy.wa.gov   (4) Citizen Groups Friends of the Aquifer Idaho: Kristy Johnson (kristyr@earthlink.net 208.777-1588) Washington: Richard Rush (rsr@qwest.net)  Idaho Conservation League (208.345-6933, Box 844 Boise, ID 83701), Chris Meyer, (cmeyer@parkwoodproperties.com) Kootenai Environmental Alliance (Box 1598 Coeur d'Alene, ID 83816), Buell Hollister (kealliance@icehouse.net) League of Women Voters (509.326-8026, 315 W. Mission, Spokane 99201) Sierra Club (509-456-8802, 10 N. Post St., Suite 447 Spokane, WA 99201), Hal Rowe (hrkrcg@juno.com) The Lands Council (509.838-4912, S. 517 Division, Spokane, 99202) Charis Keller old-growth@home.com, Jane Cunningham julianjane@icehouse.net   (5) RAILROADS & CLEARCUTS http://www.landgrant.org/ Maps of the Northern Pacific railroad land grant are available through the RR&CC web site. Railroads & Clearcuts: the book (by Derrick Jensen, George Draffan, with John Osborn) is available for $15. Please contact either the RR&CC Campaign or The Lands Council. http://www.geocities.com/josbornmd/ This website has a brief overview of the Northern Pacific railroad land grant, including relevancy to contemporary environmental issues Railroads & Clearcuts News is a periodic newsletter with background information, analysis, and news about the land grants and related topics. Past issues of RR&CC News include: # 1. An Introduction to the Railroad Land Grants # 2. Land Exchanges Threaten Public Lands http://www.westlx.org/archives/rrccnewsfin.html # 3. Raw Logs and Chips: Exporting Forests and Jobs http://www.landgrant.org/news-3.html # 4. Plum Creek Timber: An Empire Carved from the Public Domain # 5. Railroad Land Grants and the Rise of Corporate Power The Lands Council's journal, Transitions, includes numerous issues devoted to the railroad land grants, with hundreds of historical and current news articles, photos, cartoons, and maps. An invaluable collection. Part 1. Train Wrecks, Abandoned Communities, & Clearcuts Part 2. President Calvin Coolidge Battles the Northern Pacific Part 3. Liquidating Abe Lincoln's Railroad Forests Part 4. Exporting Lincoln Logs to Japan Part 5. Political Leadership? Part 6. Robber Barons' Poltitical Stranglehold Part 7. "Of Grants and Greed" Part 8. Forest Disaster Part 9. Land Swap Swindles - "Looters of the Public Domain" http://www.landscouncil.org/transitions/sept98.htm Part 10. Taking Back Our Land: A History http://www.landscouncil.org/trans1298/dec98.htm Bart Naylor's Change Corporate America For 33 Cents: A Self-Help Guide to Shareholder Activismin the April 2000 issue of Transitions. http://www.landscouncil.org/transitions/tr0001/ The full Transitions index is available at: http://www.landscouncil.org/transitions/trans.htm Spokesman-Review, May 6, 1909 SPOKANE'S WATER PUREST IN WORLD Tests Shows Average of Only Seven or Eight Germs to Centimeter MONTHLY TESTS ARE MADE City Bacteriologist Frank Rose Reports Results - No Colon Bacilli Found Showing the Spokane water supply purer than the average of American cities, Frank Rose, city bacteriologist, has made a report of tests from the city well made monthly since last October. The tests are simply counts of the number of bacteria found in a cubic centimeter of water. The average count shows only seven or eight germs in that amount of water. The test was made from water taken from the drinking fountain at Howard street and Riverside avenue or from water from a faucet in the Rookery building. Speaking of his tests, Dr. Rose said. "It can be said that there is no city in the world that has a better water supply than Spokane. Water which shows 100 germs in a cubic centimeter is considered comparatively pure and drinkable. I made from four to eight counts monthly since last October, and the counts in any one month was 17 bacteria, while the tests last month showed 15 bacteria in eight tests, less than two each. "It can be said that there is no city in the world that has a better water supply than Spokane." "In April, 1908, I made tests of the river water from which Spokane got its drinking supply at that time. I took water from the place where the Coeur d'Alene sewer emptied into it and another sample from a place about 500 feet below the outlet of the sewer. In both cases the number of bacteria was so great as to be practically uncountable. "In contrast to this is the practical purity of the water since last October. Special care was taken to make tests for colon bacilli, which show the presence of sewage, and in no case was there a single trace." Copyright 1909, The Spokesman-Review. Used with permission of The Spokesman-Review.   Railroads & Clearcuts Campaign P.O. Box 9743 Spokane, WA 99209-9743 http://www.landgrant.org/ It's YOUR drinking water! What you can do: (1) Contact your elected representatives, and insist on vigorous efforts to protect our drinking water. (2) Write to the STB. (3) Encourage your civic organizations to get involved in the future of the region's most important resource: the Spokane Valley-Rathdrum Prairie Aquifer. Contact the STB. Remind these people that Congress established the STB to ensure railroads operate without detriment to public health and safety. Ask the STB to do its job: do an Environmental Impact Statement for BNSF's proposed fuel depot. Send your letter to: Ms. Linda Morgan, Chair; Surface Transportation Board, 1925 K. Str. NW Washington, D.C. 20423-0001 "SPOKANE'S WATER PUREST IN WORLD" Spokesman-Review, May 6, 1909 BNSF Wreck & Spill Above Spokane Aquifer 2001 Crude diesel fuel flowing from train wreckage. The aquifer flows just below the land surface, and is highly vulnerable to contamination. 400,000 people in Washington and Idaho depend on this aquifer for their drinking water. Kristy Johnson / Friends of the Aquifer Contact your elected officials: If you live in Washington, write a quick note thanking Senator Murray and Senator Cantwell for advocating Spokane's concerns at the Surface Transportation Board. Senator Murray: U.S. Senate, Washington, D.C. 20510-4704, senator_murray@murray.senate.gov Senator Cantwell: U.S. Senate, Washington, D.C. 20510-4705, Maria_cantwell@cantwell.senate.gov Tell Gov. Gary Locke to vigorously advocate Spokane's interests in protecting our drinking water and our community's future. The Governor's effort should include pressing the STB for action. [The Honorable Gov. Gary Locke, Box 40002 Olympia, WA 98504-0002]