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Railroad Newsline for Wednesday, April 11, 2007

Compiled by Larry W. Grant

In Memory of Rob Carlson, 1952 – 2006

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RAIL NEWS

INVESTIGATORS TRACK YAKAMA DERAILMENT

Photo here:

[img.yakima-herald.com]

YAKAMA, WA -- A runaway train that drifted backward for about a mile before it ran out of track, derailing four tank cars containing liquefied propane in the process, was not the result of vandalism or sabotage, officials said Monday.

Exactly what caused Sunday's accident remained unexplained, however, as railroad crews worked throughout Monday to right the propane cars. The cars plowed off a sidetrack alongside the S.S. Steiner hops warehouse on Washington Avenue in south Yakima.

No injuries were reported, and no propane leaked from the tank cars. In fact, authorities are unaware if anybody even witnessed the crash.

Traffic moved normally throughout the day, and the only disruption began in the afternoon when the Steiner warehouse was shut down as crews began to right the cars, using specialized heavy booms routed in from Wenatchee and Salem, Oregon.

The Yakima County Sheriff's Office, meanwhile, closed for the afternoon as a voluntary precaution to protect dispatching operations, Chief Civil Deputy Dave Thompson said. No other evacuations were ordered.

The sheriff's office is at 1822 S. First St., about a third of a mile from the site of the derailment.

The cars survived the wreck intact and no propane leaked, authorities said. A spokesman for the BNSF Railway Company railroad said the cause of the crash remains under investigation.

"We have not determined an official cause at this point," Gus Melonas said, speaking from his office in Seattle. "We have ruled out sabotage, however."

The derailment happened about 16:00 Sunday on a sidetrack that dead-ends alongside the Steiner warehouse.

The tank cars, each carrying roughly 33,000 gallons of liquefied propane, were at the end of a 37-car train with two locomotives at the front. The train apparently began rolling slowly backward from the Nob Hill Boulevard area to the north, on an almost imperceptible grade of less than 1 percent.

Along the way, the train edged over Mead Avenue, a major arterial. Police said they were confident the crossing guards deployed and that motorists probably had no clue the locomotives were unmanned.

The train ran out of track next to the Steiner warehouse, derailing the propane cars and causing massive damage to a short stretch of the spur. It also caused minor damage to the dock area alongside the track. The warehouse itself was not damaged.

After an initial evacuation of the immediate vicinity, local officials called off a hazardous materials mobilization after determining the propane cars were not leaking.

Initial speculation that the train was deliberately set in motion by vandals appears to be unfounded, according to local officials as well as Melonas, the BNSF spokesman.

However, Melonas declined to say what other causes could account for the accident. Local officials said it was their understanding the train was parked and the brakes failed or were improperly set.

Officials said the potential for a catastrophe was minimal given the slow speed of the derailment -- perhaps 10 mph or so -- and the sturdy, double-hulled construction of the tank cars.

A vapor cloud could have been very dangerous, however. Yakima fire Capt. Joe Riel, a hazardous materials expert at the scene Monday, said a single gallon of pressurized, liquid propane is capable of producing 270 gallons of vapor.

Propane is also highly flammable. Last month, a derailed train in Oneida, NY, touched off a huge explosion that forced evacuations within a one-mile radius of the blast, including parts of the city's downtown. - Chris Bristol, The Yakima Herald-Republic

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PALESTINE OK'S RAILROAD CONTRACT

PALESTINE, TX -- City leaders voted unanimously Monday to ratify the operating agreement between the Texas State Railroad Operating Agency and American Heritage Railway, Inc.

"This is a very good contract ... They have committed to do far more than I could've ever hope for," said Steve Presley, Palestine city councilman.

Presley chairs the Texas State Railroad Operating Agency, which finalized the operating agreement with American Heritage last week. The agreement allows American Heritage to acquire ownership of the railway after a period of eight years, provided that it meets performance goals set forth by the agency.

According to the terms of the contract, American Heritage must pay an annual fee to the agency, based on either a percentage of gross operating revenue or a guaranteed payment of $100,000. American Heritage will also receive a percentage of ownership in the railroad at the end of each year, provided the total number of riders meets or exceeds a predetermined amount.

The agreement also stipulates that American Heritage designate $50,000 each year for advertising of the Texas State Railroad at its two other operations: The Durango and Silverton Narrow Gauge Railroad in Colorado and the Great Smoky Mountains Railroad in North Carolina.

The Rusk City Council is also expected to ratify the agreement at its regular meeting Thursday.

The Texas State Legislature will hear testimony Tuesday afternoon on bills that would create a Texas State Railroad Operating Authority. Creation of the authority would mean the state relinquishes its control of the tourist train, which is currently overseen by the Texas Parks and Wildlife Department. The department has said without additional funding from the state, it would shut down operation of the historic train by the end of August and turn the train into a static display.

The train currently runs between the cities of Rusk and Palestine. If the bills are approved, the operating authority would oversee and lease out operations of the railroad.

Presley, who will testify during the hearings, plans to ask the state also give $12 million to the authority to help pay for repairs to the railroad and alleviate costs related to the transition to a private operator.

If the state does not provide the $12 million, American Heritage may terminate the agreement without penalty within 90 days' notice. - Cindy Mallette, The Tyler Morning Telegraph

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HISTORIC TRAIN UP FOR DEBATE: EAST TEXAS TO PRESS PANEL FOR UP TO $12 MILLION FOR STATE RAILROAD

Map here:

[www.dallasnews.com]

Devoted fans of the Texas State Railroad who staved off closure of the money-losing train for months are expected to descend on the Capitol today (Tuesday) for a legislative showdown to determine the fate of the popular tourist attraction.

Texans are "tired of just walking away" from historic preservation fights, said Steve Presley, a Palestine City Council member who is president of the Texas State Railroad Operating Agency, an organization formed by the cities of Rusk and Palestine, where the train runs. "This is a wonderful opportunity to turn the tide and say we're interested in saving a few things from our history."

Passionate supporters want the train to continue to trundle through the East Texas woods - but they disagree strongly on how to accomplish that goal.

Some supporters, such as Mr. Presley, say the Legislature will shut down railroad operations and turn it into a "static display" at the end of the fiscal year unless a private operator is found.

So they want the Legislature to spend $12 million and turn the railroad over to the local operating agency, which would oversee operations by a private company. In a complicated agreement, the private company would eventually own the equipment, such as engines and cars, while the state would continue to own the track.

But others say that state leaders are bluffing and that the Legislature should keep the railroad and devote $7.8 million for the Texas Parks and Wildlife Department to continue operating it for the next two years.

"The static display is just a threat," said Michael Banks, a Jacksonville dentist who is president of Save Texas Parks, which helped focus attention on the railroad's funding crisis.

"We think the safest and surest way to operate it is the way it's been done the last 31 years," he said.

The railroad's origins date back to the 1890s, when track was laid to service a foundry in the Texas prison system.

In 1976, the railroad became a tourist train. It's been popular with steam train enthusiasts, school kids and East Texas tourists, drawing about 65,000 riders a year.

In recent years, the train, which requires considerable maintenance, began to drain state pockets. The railroad loses about $1 million annually and has a backlog of repairs that will cost many millions more.

Local residents, including some who benefit from the tourist attraction and others who simply have fond memories of train whistles and steam clouds, protested its closure loudly. In November, they prevailed upon state leaders to provide emergency funding to keep the train running through the end of August.

Mr. Presley and others believe a private operator overseen by locals is the best solution.

But Dr. Banks said if a private operator thinks the line has that much potential, the state should try to capitalize on it rather than getting rid of it. He also warned that a private operator may boost ticket prices, to the detriment of Texans.

Rep. Byron Cook, R-Corsicana, and Sen. Robert Nichols, R-Jacksonville, have introduced twin bills focusing on the private ownership option. The House bill will be debated in the Culture, Recreation & Tourism Committee this afternoon, while the Senate bill will be debated in the Natural Resource Committee.

Mr. Cook said he expects the private option to pass with little opposition.

Alicia Phillips, press secretary for Mr. Nichols, said he is aware that some people oppose privatization so "what the senator is trying to do is pursue a dual track. If state funding doesn't come through, we've got to keep the railroad running." - Diane Jennings, The Dallas Morning News

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EVANSTON RESTORING RAIL TURNTABLE

EVANSTON, WY -- A $1.5 million state grant will help fund the next phase of restoring the city's historic railroad roundhouse and rail yards.

The city has been working since the early 1980s to restore the roundhouse, one of Evanston's oldest and most historic buildings.

"We are really happy to be receiving this grant and we look forward to getting this project well on its way," City Clerk Jim Davis said. "This is really good news for the city."

A roundhouse is a building with a rotating track used to change the direction of train cars. Evanston's complex has one of the few operational railroad turntables left in the nation.

Tom Lacock, a spokesman for the Wyoming Business Council, said the State Loan and Investment Board recently approved a $1.5 million grant to help Evanston with the project. The Business Council reviews and makes recommendations on communities' applications for such grants.

Davis said the building's renovation stood to boost tourism and create jobs.

Many structures at the roundhouse and rail yard have been demolished over the years, but many others remain. They include the 28-stall, brick roundhouse with the turntable, an adjacent machine shop, a power plant and the site superintendent's office.

Davis said the state grant, along with funds from the city and private donations, means $2.3 million will be available for the latest phase of the restoration.

"What we're doing is basically restoring a fourth of the whole roundhouse," he said. "It's a little over 63,000 square feet and we're going to be working in the first section."

Plans call for windows to be replaced and masonry restored; renovations to the plumbing, heating, ventilation and air conditioning; and the refurbishing of wiring and elevators.

Davis said the renovated area will have meeting rooms for the public to use. - The Associated Press, The Billings Gazette

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RAILROAD: MOTORCYCLIST KILLED BY TRAIN IN RICHMOND WAS STUNT-RIDING

The motorcyclist who was struck and killed by an Amtrak train in Richmond, California on Sunday apparently was doing stunts with another motorcyclist, said a spokesman for Union Pacific railroad, which owns the right-of-way.

The Contra Costa County Coroner's Office identified the dead motorcyclist Monday as Ian Blanchard, 25, of San Pablo. The office would not disclose whether Campbell lived in the city of San Pablo or one of several nearby unincorporated areas that have San Pablo postal addresses.

"Sadly, there were two people riding on their dirt bikes, I believe jumping over the railroad tracks," said Joe Arbona, the UP spokesman. "Unfortunately, as a result, one of them was struck by an Amtrak train.

"We send our thoughts and prayers to the family and certainly recommend people to never play on railroad tracks or do those types of things."

The accident occurred at the end of Morton Avenue at the western edge of Richmond's Parchester Village neighborhood around 15:55 Sunday. Morton Avenue dead-ends at the Union Pacific railroad right-of way. There is no crossing at the site and no street on the other side of the tracks.
There is no fence or wall at Morton Avenue, said Richmond Police Lt. Arnold Threets.

Dirt bike enthusiasts frequent gravel strips along the Union Pacific right-of-way in Northwest Contra Costa County. The collision occurred about three miles north of the Richmond Amtrak station and a half-mile south of the parking lot of Point Pinole Regional Shoreline.

There were at least 78 passengers on Train No. 713, an Oakland-bound San Joaquin out of Bakersfield, when it hit the motorcyclist, said Amtrak spokeswoman Karina Romero. The count includes the 78 who made reservations, but other passengers may have boarded en route, Romero said. She did not know the speed of the train when it struck the motorcyclist. No one on the train was injured.

The train involved in the collision remained at the scene while the track was closed off. Romero said one track reopened about 5:45 p.m. when the Oakland- and San Jose-bound No. 743 Capitol Corridor train out of Sacramento stopped near the scene and took on the first train's passengers.

The passengers from the San Joaquin train arrived at their destinations a little over two hours late, Romero said. - Tom Lochner, The Contra Costa Times

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RAILROAD OPERATORS SLOW AFTER RUN-UP

NEW YORK, NY -- Shares of railroad operators cooled Tuesday, a day after three names hit 52-week highs on news that billionaire Warren Buffett took significant positions in three of the sector's leading companies.

On Monday Buffett's company, Berkshire Hathaway Inc., became the largest shareholder in western railroad Burlington Northern Santa Fe Corp., according to a company filing and a media report that the company confirmed. Cable-TV channel CNBC reported Buffett said Berkshire also invested in two other railroads that he declined to name.

Shares of Burlington Northern, Union Pacific Corp. and CSX Corp. shot to 52-week highs on the news. Shares traded more modestly on Tuesday, although the news still buoyed CSX after an analyst at JP Morgan Securities downgraded its stock. Thomas R. Wadewitz said it trades too expensively.

Here is how some key railroad stocks did Tuesday:

BNSF, down 9 cents at $87.99

Union Pacific, up 36 cents at $107.51

CSX, up 10 cents at $41.96

Norfolk Southern Corp., down 15 cents at $52.74

Canadian Pacific Railway Ltd., up $1.03 at $58.42 (new 52-week high of $58.78 during the session)

Canadian National Railway Co., up 15 cents at $46.62

- The Associated Press, The Houston Chronicle

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RAILROAD WORKERS NAB YOUTH

BATESVILLE, AR -- Local workers with the Missouri & Northern Arkansas Railroad say they interrupted a burglary in progress and caught a suspect at their office after returning from an early morning run Tuesday.

Crew members Ed Richardson and Matt Ryan told police they returned to the office at 133 Lawrence St. around 01:30 hours to find someone going through employee lockers.

Richardson said when he and Foster arrived at the office, Foster unlocked the door and went to his pickup truck. "I walked into the depot and a man was climbing out a window," Richardson said. "I caught the man and held him until Matt could help me. We brought him back into the depot and called 911.

Dispatchers with the Batesville 911 system said they could hear a struggle ensuing from the office and then lost contact with the caller shortly before Deputy Pat Collins arrived.

"The man got away from us, we ran after him and caught him again and held him until the police got here," Richardson said.

Collins said when he arrived he saw the front door open and the men had a suspect, later identified as a 16-year-old juvenile, on the ground about 25 yards west of the depot office.

Collins said he placed handcuffs on the youth and put him in his patrol car prior to transporting him to juvenile detention facilities.

"As we walked to my patrol unit, he asked to be released and said he promised not to do it again," Collins said. "The boy kept trying to get his cuffed hands in front of him and had to have another pair of cuffs attached to his belt behind his back."

Collins said the boy also had a black container, holding several oblong pills suspected of being hydrocodone, attached to his clothing by a chain.

Entry to the building was made by stepping onto the tongue of the trailer used as an office and then climbing through a sliding window.

Evidence was gathered and photos were taken at the crime scene, according to Collins.

The juvenile has been cited with commercial burglary, possession of a controlled substance and criminal mischief. - The Batesville Daily Guard

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DALLAS 'INLAND PORT' OPENING SET FOR APRIL 13

DALLAS, TX -- A facility being billed as North America's newest "inland port" - designed to become a key element for moving NAFTA trade goods - is slated to post its "open for business" sign this week.

Commercial properties developer The Allen Group will host a grand opening ceremony for the Dallas Logistics Hub from 10:00 to 12:00 hours Friday, April 13 at the Lancaster Municipal Airport at 730 Ferris Road in Lancaster, Texas.

The "Hub," according The Allen Group's news release for the event, is the largest new logistics park under development in North America, with 6,000 acres master-planned for the development of 60 million square feet of distribution, manufacturing, office and retail uses. The Hub also has the potential to be the first logistics park with two intermodal facilities serviced by the two largest freight carriers in the United States. Union Pacific Railroad currently operates a 360,000 lift per year intermodal terminal adjacent to the Hub, with BNSF Railway Company evaluating a potential site on the western side of the project, The Allen Group reported.

The Hub's intermodal, rail and highway access ( including four major highway connectors: I-20, I-45, I-35 Loop 9/Trans-Texas Corridor) are meant to position southern Dallas County as the premier trade hub in the Southwest, and will serve as the gateway for the distribution of goods to the major population centers throughout the Central and Eastern regions of the U.S.

Slated to become one of the biggest economic engines for North Texas, the Dallas Logistics Hub, at full build-out, will create approximately 31,000 direct and 32,000 indirect jobs and increase the tax base for the communities of Dallas, Lancaster, Wilmer and Hutchins by $2.4 billion, say project backers.

The Allen Group will also announce construction plans on initial vertical developments at the Dallas Hub during the event. More information on the Dallas Logistics Hub and the event is available on the Web at [www.dallashub.com]. - The Trucker

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TWINS BALLPARK CLEARS HURDLE IN HENNEPIN COUNTY; NEGOTIATIONS OVER MOVING BNSF TRACKS ONGOING

Artist's rendering here:

[minnesota.publicradio.org]

MINNEAPOLIS, MN -- Construction on the new Twins ballpark could begin in early May after the Hennepin County board voted Tuesday to take the land where the stadium will be built through eminent domain.

Under the process approved on a 4-2 vote, the site's purchase price will be worked out later.

Negotiations over the price had stalled the project, putting the new ballpark's planned 2010 opening date in danger.

The design for the stadium will be unveiled Thursday, said Twins spokesman Kevin Smith. The team still expects to play in the stadium in 2010.

"That is not up in the air. We're still on schedule to do that," he said.

He said early work clearing the site could begin within a few weeks, and that pile driving for the stadium could begin by mid- to late summer.

Even after Tuesday's vote, the county will still have to work with the BNSF Railway Company to move nearby tracks. Smith said negotiations over that issue were continuing on Tuesday.

Landowners have claimed the 8-acre site was worth more than the $13.35 million the county has said it is willing to pay. To settle on a price, a three-person court panel is expected to hear arguments next month and issue a decision in June, said developer Rich Pogin of Landowners II, the group that owns the site.

Either side can appeal the panel's decision, and a price would then be decided after a jury trial, he said.

Pogin said the agreement with the county over how to hand over the land is a major step forward, but the process isn't over yet.

"Anything this complex things can tip over for a whole variety of reasons," he said. "I would say from a Twins fan's standpoint, it's a significant step, but there's more to be done."

Hennepin County taxpayers are paying an estimated three quarters of the cost of the new $522 million stadium. The money is coming from an additional 0.15 percent sales tax, or 3 cents on a $20 purchase. - The Associated Press, Minnesota Public Radio

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RAILROAD PARK SEASON RUNS THROUGH OCTOBER

MEDFORD, OR -- Easter Sunday, April 8, marked the opening day of the 2007 season at the City of Medford Railroad Park.

Visitors to the Railroad Park can enjoy riding the live steam trains, viewing scale model railroad layouts, sending and receiving telegrams, and perusing historical railroad equipment.

The Railroad Park is open to the public on the second and fourth Sundays of the month, April through October, from 11:00 until 15:00 hours.

This year, dates of operation are April 8 and 22; May 13 and 27; June 10 and 24; July 8 and 22; August 12 and 26; September 9 and 23; and October 14 and 28.

Admission is free.

A popular attraction in Southern Oregon, the City of Medford Railroad Park is a unique collaboration between Medford's Parks and Recreation Dept. and five volunteer-based, railroad-related organizations. - The Siskiyou Daily News

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OFF TRACK: RAILROAD THEFT STOPS AT PRISON

ALBION, NY -- Stealing railroad track put a Batavia, New York man on a line to state prison.

Brian K. Ace, 40, of State Street, was sentenced Monday in Orleans County Court to 16 months to four years in state prison for second-degree grand larceny and second-degree criminal possession of stolen property.

"He was stealing rail while working for Pocono Mohawk Construction Transportation," Orleans County District Attorney Joseph Cardone said.

According to Cardone, the victim of the thefts that took place over several months in 2005 is Fall River Railroad, to which Ace has been ordered to pay $60,522 in restitution in the next two years for the railroad track he stole.

Ace's attorney, Frederick Rarick, agreed to the compensation but said it was a "large amount" and the possibility of his client paying restitution in the allotted timeframe would be difficult to accomplish if he was sentenced to state prison.

"Mr. Ace, throughout this whole process, has not taken responsibility," Cardone said.

Ace made accusations against friends and family members while he was on trial claiming that they were lying and placed blame on everyone but himself, Cardone said.

"During the trial, his nephew testified that what Brian was saying just wasn't true," he said.

According to Punch, Ace had three prior arrests, two of which were thefts. A pre-sentence investigation showed a recommendation for probation for his most recent crime.

"It doesn't sound like they even understood what happened," Punch said about the recommendation. "It sounds like they listened to his side of the story."

According to Punch, Ace's story was a "bunch of baloney" and his testimony during the trial was "bizarre."

"Nobody ordered you to steal," Punch said. "This clearly wasn't an impulsive act."

Ace stole the railroad materials with a co-worker, Paul C. Wapniewski, who is currently serving a state prison sentence for the crime after pleading guilty to fourth-degree grand larceny in October. - Miranda Vagg, The Medina Journal-Register

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TRANSIT NEWS

WEST SIDE ONBOARD FOR RISKY COMMUTER RAIL RIDE

PORTLAND, OR -- Greta Sciupac says she regrets her recent move to Beaverton, Oregon while she's stuck in traffic on her way to work at Xerox in Wilsonville. With no way to avoid the exasperatingly long commute on Oregon 217 and Interstate 5, she is surrounded for nearly an hour by thousands of drivers who honk, pointlessly.

Sciupac is holding her breath for the day she can hitch a ride on the Washington County Commuter Rail, which will zip thousands of commuters from Beaverton to Wilsonville in 27 minutes, with stops at Washington Square, Tigard and Tualatin. The rail, which will run every 30 minutes during morning and evening weekday rush hours, is slated to open September 2008.

As one of the nation's first suburb-to-suburb commuter rails, its success relies on residents in Portland's westside suburbs transforming from gas-guzzling drivers to transit-savvy riders.

The 14.7-mile rail line has the elements of success, said state Rep. Jerry Krummel, R-Wilsonville, one of the rail's earliest supporters. It links popular job centers in an area stymied by jammed highways that will only worsen as Washington County's population -- at 500,000 -- is expected to increase to 900,000 by 2030.

"People will take commuter rail when it's just as convenient" as using their cars, Krummel said. "They might realize it takes just as long to get to work, but they can be reading or looking out the window instead of wanting to pull out their hair."

With a $117.4 million price tag, the stakes are high. If commuter rail doesn't work in Portland's suburbs, Krummel said, it's not going to work elsewhere.

About 1,500 commuters are projected to ride the rail each day in the first year, expected to increase to 4,000 by 2020, according to TriMet, the lead planning agency. But with more than 110,000 vehicles a day passing Oregon 217 and I-5, that translates to a small, possibly unnoticeable, reduction in traffic.

As the rail gears up for a grand opening in 17 months, it's hit some eleventh-hour snags.

Tualatin's plans call for the station to be constructed in the middle of an already thriving downtown with clogged intersections. Haggen Food & Pharmacy representatives have rallied more than 1,200 customers against the station's proposed location, saying it will lose business as more cars stack up at the store's main entrance to get to the station.

But TriMet officials maintain that traffic will not be severely affected when the trains are up and running with plans to coordinate green traffic signals with train departures, said Mary Fetsch, TriMet spokeswoman.

Construction at Tualatin's station will be delayed since a city hearing to inspect the station's plans was pushed back almost three months, said Fetsch. And if Haggen or other property owners appeal the city's decision -- or if the city imposes additional requirements -- construction could be moved back even further.

But Tualatin and other cities linking the rail also have seen a chance to transform old buildings and empty land near the proposed stations into bustling centers where people can live, shop and work.

For Wilsonville, the home of big companies such as Xerox, Sysco and Mentor Graphics, the rail will connect commuters to its vital job centers. The city's bus system, SMART, promises to deliver every rail commuter to work within 15 minutes, said Steve Dickey, the city's transit director. In addition, SMART will connect the rail with Villebois, a development a mile away, that will eventually have 2,500 homes and 7,000 residents.

With the prospect of the commuter rail stopping at the heart of downtown Tigard on Main Street, a group of residents in 2004 pushed to spruce up what they call "Tigard's front door."

Commuter rail will spur redevelopment in downtown, said Mayor Craig Dirksen, helping to transform the sleepy downtown into what he calls "the Pearl District on a suburban scale," a place thriving with condos and rowhouses, more stores, restaurants and offices. - My-Thuan Tran, The Portland Oregonian

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RTA PAYS LESS FOR TERRORISM INSURANCE POLICY

CHICAGO, IL -- In what could be a sign of the insurance industry's attitude toward the potential for a terrorist attack here in Chicago, the Regional Transportation Authority is completing the purchase of a new terrorism insurance policy for 35 percent less than it paid just 18 months ago.

"Basically, over the past few years, because there hasn't been a terrorist event in the United States, there's been more entrance into the market to sell terrorism insurance,"said Kevin Greer, senior vice president with Arthur J. Gallagher & Co., which brokered the deal for the RTA. "The competition and more insurance, we were able to negotiate more favorable pricing."

The RTA board approved the purchase last week despite the "orange alert" status that has remained in effect since last August, and the coming expiration of a federal law that has made such insurance generally available.

The RTA would still have to pay a $15 million deductible under the policy, which takes effect May 8, but would then be covered for the next $35 million in losses for each event.

By contrast, the World Trade Center bombing of 2001 insurers paid $1.5 billion toward the cost of rebuilding damaged transit facilities in the wake of the September 11, 2001, attacks.

But the cost of the policy, which cost $1.1 million a year in November 2005, has been reduced in the latest round of bidding to $688,888.

An RTA spokesperson said both were purchased through syndicates working with Lloyd's of London.

The RTA purchased its 2005 policy in the wake of bombings on the London Underground system in July 2005 and the Madrid commuter rail system in March 2004.

Greer said the market could change drastically if an attack occurred on U.S. soil, but said the current price is locked in through May 2008.

The CTA and Metra have spent substantial sums to install security cameras on their rail systems, and train stations, and aboard buses and trains since the 2001 attacks.

Despite a plot uncovered last year in Miami, and recent comments by a captured al Quaida lieutenant, in which it was said that the Sears Tower was a potential target, city officials have said repeatedly that there has never been a credible terrorist threat made against Chicago.

It's still unknown whether the RTA will be able to purchase another policy when this one expires no matter what the terrorism threat. This Dec. 31 is the expiration date for the federal law that created a system of shared public/private compensation for losses due to acts of terrorism.

Congress is debating the issue. The law, enacted in 2002, was already extended for two years in 2005. - Bob Roberts, WBBM-NewsRadio780, Chicago, IL

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THE END