The STB currently is reviewing the Canadian Pacific''s bid to take over DM&E, which has among the worst safety records in the railroad industry and presently operates on substandard tracks. If approved, the acquisition will cause a dramatic increase in traffic, including hazardous materials shipments on DM&E tracks, and may, according to the agreement between the railroads, result in sending more than 43 high-speed, coal-unit-trains through Rochester and within a few 100 feet of Mayo Clinic every day.
Flaws in the current proposed safety plan include:
-- Fails to require a timetable for rehabilitating faulty tracks.
-- Neglects to make track improvements a condition for allowing increased
hazardous materials shipments.
-- Ignores conflicting statements from DM&E about the amounts of ethanol,
anhydrous ammonia and other hazardous materials expected to be
transported through Rochester.
-- Fails to prioritize track maintenance or require specific emergency
plans for responding to derailments in densely populated areas such as
Rochester, which represents 40 percent of the total population located
along the DM&E rail line.
-- Overlooks the need for a specific emergency plan that in the event of
a hazardous material derailment accounts for Mayo Clinic''s 1,000 daily
inpatients, 200 ICU beds, 200 daily surgeries and 30,000 doctors,
nurses and staff.
-- Fails to address the involvement of DM&E management in the operation
of the merged railroad, providing no assurances for when or if DM&E
will be required to meet Canadian Pacific''s minimum safety standards.
"It needs to be abundantly clear that the DM&E will be a safer railroad as a result of this merger," said Glenn Forbes, M.D., CEO of Mayo Clinic in Rochester, Minn.
An incident involving a release of hazardous materials such as anhydrous ammonia near Mayo Clinic in Rochester would put at risk many thousands of people, including patients in critical health situations and the more than 30,000 physicians and staff who would not leave their sides.
"Accidents happen, even to safe railroads," added Forbes. "We can''t leave the safety of our patients and staff to chance, which is why we remain adamant that everything within reason be done to ensure their safety."
As currently proposed, the Canadian Pacific says it will provide approximately $128 million in capital safety improvements to DM&E over the next three years, in addition to DM&E''s prior commitments of approximately $172 million. However, these funds fall well short of DM&E''s previously stated needs, which were estimated at $875 million 10 years ago.
DM&E president Kevin Schieffer recently was asked while under oath during a deposition to confirm his compensation as a comparison to the amount the Canadian Pacific is contributing to safety improvements. He did not answer. Mr. Schieffer''s personal compensation has been a topic of widespread speculation since the Canadian Pacific announced it was acquiring the DM&E for $1.48 billion and it was reported the deal included financial incentives tied to completing DM&E''s controversial Powder River Basin (PRB) expansion.
"Given the DM&E''s deplorable safety record, it is appropriate to compare the money going into the pockets of DM&E''s executives and shareholders from the sale of DM&E, including incentives tied to the proposed PRB expansion, with the amount being put toward safety improvements," said Steve Ryan, legal counsel for Mayo Clinic. "The public has a right to know about what is motivating DM&E''s rush to advance the PRB expansion and if there is a disproportionate investment being made in personal gains over public safety."
Proposed Mitigation
The STB has previously ruled that it will require mitigation only if the Canadian Pacific decides to proceed with DM&E''s controversial PRB expansion. Mayo Clinic maintains that any increase in hazardous material shipments through Rochester without adequate mitigation -- regardless of the PRB expansion -- poses an unacceptable risk to the community and the patients and staff of Mayo Clinic.
As a condition of the Canadian Pacific''s acquisition, Mayo Clinic today requested the STB require specific mitigation for Rochester, including:
-- Regulatory/contractual speed limits on local hazardous materials traffic. -- Pre-notification for Rochester emergency services of hazmat cargo. -- Whistle-free crossings for non-grade separated road crossings. -- Increased inspection and installation of wayside detectors, such as hot box/loose wheel detectors, to the west and east of Rochester to provide timely warning of potential problems prior to entering Rochester city limits. -- Fencing for bike paths and pedestrian crossings and sound barriers. -- Consultation on how best to minimize project-related impacts to Mayo Clinic, including limited transportation of hazardous materials through Rochester. -- Multiple grade separations for specific in-city road crossings. These grade separated crossings should be designed and located to facilitate the movement of emergency vehicles to and from medical facilities providing emergency services in Rochester, including Saint Marys Hospital and Rochester Methodist Hospital, which are both Mayo Clinic hospitals. -- Negotiate voluntary contractual limitations on the total number of through-traffic trains moving through Rochester with Mayo Clinic and the City of Rochester.
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