Grafton & Upton Railroad Takes Fight to Federal Board

Grafton & Upton Railroad Co. officials want a federal board to say that its proposed propane transloading facility is under that agency's oversight only -- not local and state regulations.

Railroad officials filed the request with the Surface Transportation Board in Washington, D.C. last week. The request is known as a declaratory order.

Railroad officials want the board to "expedite" its decision so that the facility at its Grafton rail yard at 42 Westboro Road will be running this winter.

The facility would allow propane to move from rail cars to trucks, which would deliver it to "dealers in New England," the document states.

"If propane shippers and receivers make other transportation arrangements, it is unlikely that G & U will be able to recover the business diverted by those potential customers, and in most cases G & U is likely to miss the opportunity to do business with those customers in the future," the document states.

G & U officials said in last week's filing that their firm will finance, build and operate the facility itself, and they have ended their agreements with the propane companies.

Town officials have argued that "the involvement of the Propane Companies meant that the transloading, which the town conceded was 'transportation,' would allegedly not be conducted or under the auspices of a 'rail carrier,'" the filing notes.

The state fire marshal's office and the state Department of Environmental Protection also have objected to the project, saying that local or state permits are required, the document states.

Grafton Inspector of Buildings Robert Berger issued a cease-and-desist order on Dec. 12 and directed G & U officials to get the proper town permits. Town officials also filed a complaint in state superior court that day, last week's G & U filing notes. The next day, G & U took the case to federal district court.

The federal court remanded the case back to the state court on May 17, the G & U filing notes.