Lawsuit over proposed fossil fuel railway in Utah moves forward

The plaintiff says funding earmarked for the project was meant for communities ‘to alleviate the boom and bust cycle of energy production.’

 

The Uinta Basin lies in the northeast corner of Utah and has seen oil and gas development since 1925. The proposed railway could take one of three potential routes – the favored of which would run through 390 acres of state lands and 401 acres of roadless U.S. Forest Service lands.

This story was originally published by the Guardian as part of their two-year series, This Land is Your Land, examining the threats facing America’s public lands, with support from the Society of Environmental Journalists, and is republished by permission. 

In July 2019, a proposed railway intended to shuttle fossil fuels across a mountainous corner of eastern Utah received a $28 million grant from a local, state-run community fund. The financing allowed the group behind the railway – the Seven County Infrastructure Coalition – to kick off a federally mandated environmental impact survey, that would need to be completed before construction could begin.

There was just one problem: the grant came from a pot of money set aside to help Utahns recover from the state’s legacy of oil drilling, not help the industry expand deeper into the state.

Established in 1982, the Utah Permanent Community Impact Fund “was supposed to alleviate the boom and bust cycle of energy production,” said Wendy Park, a lawyer with the Center for Biological Diversity.

Park believes that the $28 million grant violates the spirit of the fund, which has provided money for a range of municipal projects like new sewer systems, medical facilities, road improvement and new public buildings.

The Center for Biological Diversity, along with the Utah-based environmental group Living Rivers, is suing to stop the municipal agency from funding the $1.5 billion railroad. The suit asks a fundamental question: Is the development of yet more fossil fuel infrastructure the best way to help rural communities thrive?

Two weeks ago, a judge ruled that this unique case had standing and would proceed. If successful, the suit could send a message to state agencies to more carefully consider the projects they fund and the impact they’ll have.

Under the Trump administration, the oil and gas industry has enjoyed an increasingly cozy relationship with the federal agencies that oversee the nation’s public lands. The proposed Uinta Basin railway could take one of three potential routes – the favored of which would plow through 390 acres of state lands and 401 acres of roadless U.S. Forest Service lands.

The Utah Permanent Community Impact Fund collects royalties collected from mineral leasing. Although the fund’s mandate is rather broad, the intention was to return some of the profits back to the community.

Sometimes this has meant helping cities experiencing an influx of workers expand their infrastructure to support these new residents, but it could also mean repairing roads damaged by a sudden increase in use by oil tankers.

The outcome of the Living Rivers lawsuit is unlikely to delay or stop construction, as it only challenges the source of the funding.

The Seven County Infrastructure Coalition, which describes itself as a “public implementation and ownership entity,” has demonstrated its interest in aiding the oil and gas industry. It currently has twelve other projects in the works, about half which are directly related to fossil fuel production.

The coalition argues the Uinta Basin railway will bring jobs, raise municipal revenues, increase roadway safety and diversify the economy.

But the COVID-19 pandemic has also underlined the need for better healthcare infrastructure Utah’s rural communities, something residents and activists say the community fund would be better off financing today.

“It’s important that the local governments get this money,” and not fossil fuel corporations, says Park, “especially in the context of the coronavirus pandemic, when many are struggling.”

“It’s important that the local governments get this money, especially in the context of the coronavirus pandemic, when many are struggling.”

Residents who live in regions the railway will run through oppose the construction as well.

Darrell Fordham of the Argyle Valley is concerned about potential erosion and mudslides from construction, as well as wildfires ignited by trains’ sparks. Where he lives, there is no alert system for residents, and roads are tight. “Many people could easily be trapped in wildfire,” he says.

Fordham suggested the fund could be used instead to “do municipal utility projects [or] build community centers and smaller health clinics.” He says most of the nearby healthcare facilities only have a handful of ICU beds, which has been a problem as COVID-19 cases increase in Utah.

This isn’t the first time the Utah Permanent Community Impact Fund has come under scrutiny for how funds were disbursed. Earlier this year, a state audit found much of the money in the fund has gone to building fossil-fuel exclusive infrastructure, like highways that only benefit energy companies and a proposed (but scuttled) investment in a coal terminal in Oakland, California, that would export coal across the Pacific and theoretically raise coal prices in Utah.

The audit labeled the proposed Uinta Basin railway as an example of how the funds could be misappropriated, noting there was no way to ensure it “adequately alleviate mineral extraction impact.” The audit also found that the Utah permanent community impact fund was too opaque; it didn’t do enough to do public outreach about the availability of the funds.

Finally, the audit found that the fund’s $5 million cap on grants had routinely been ignored, as well as a stipulation that every grant must be matched equally by grantees. In the case of the $28 million granted to the SCIC – a group that has no fiscal income from taxes and can’t apply for loans – the group put up no money, says Park from Center for Biological Diversity.

Proponents of the railway argue that the project will benefit the community by taking tanker trucks off the roads, increasing local government incomes and bringing jobs to the area. A railway connection might boost the price of the oil produced in the Uinta Basin; and, according to Kathleen Clarke, the head of Utah’s public lands policy office, would feed into a trust fund established for schools.

And yet it’s unclear whether investing in fossil fuel production in the Uinta Basin can really pay off: John Weisheit, the co-founder of Living Rivers, says there isn’t enough oil in the basin to make the investment worth it. The oil will likely be gone within ten years, if oil is extracted at 2019 rates, according to a study commissioned by the SCIC.

“The economic viability of the railway is doubtful,” said Park, “which is probably why private investors have never developed this railway on their own and public subsidies are required.”

“The economic viability of the railway is doubtful.”

Opponents of the railway argue it has environmental impacts as well. It will disturb sensitive sage grouse mating grounds, and destroy 10,000 acres of big game habitat for elk, mule deer, moose, bighorn sheep and pronghorn.

The use of public money for the development of a potentially unprofitable railway is particularly bad at a time when states and municipalities are struggling because of the economic downturn.

In the case of the Uinta Basin railway, Park said, the funding appears to do the opposite of its intended purpose: taking proceeds from drilling and returning it to the industry, rather than using it to help communities. “They pretty much give the money back to the fossil fuel companies.”

Robin Kaiser-Schatzlein is a freelance journalist who grew up in Minnesota and lives in New York City. Email High Country News at [email protected] or submit a letter to the editor.

High Country News Classifieds
  • OPERATIONS DIRECTOR
    We are a Santa Fe-based nonprofit that builds resilience on arid working lands. We foster ecological, economic, and social health through education, innovation, and collaboration....
  • COMMUNITY ORGANIZER
    Come work alongside everyday Montanans to project our clean air, water, and build thriving communities! Competitive salary, health insurance, pension, generous vacation time and sabbatical....
  • CAMPAIGN MANAGER
    Oregon Natural Desert Association (ONDA), a nonprofit conservation organization dedicated to protecting, defending and restoring Oregon's high desert, seeks a Campaign Manager to works as...
  • HECHO DEPUTY DIRECTOR
    Hispanics Enjoying Camping, Hunting, and the Outdoors (HECHO) was created in 2013 to help fulfill our duty to conserve and protect our public lands for...
  • REGIONAL REPRESENTATIVE, COLUMBIA CASCADES
    The Regional Representative serves as PCTA's primary staff on the ground along the trail working closely with staff, volunteers, and nonprofit and agency partners. This...
  • FINANCE AND OPERATIONS DIRECTOR
    The Montana Land Reliance (MLR) seeks a full-time Finance and Operations Director to manage the internal functions of MLR and its nonprofit affiliates. Key areas...
  • DIRECTOR OF CONSERVATION
    The Nature Conservancy is recruiting for a Director of Conservation. Provides strategic leadership and support for all of the Conservancy's conservation work in Arizona. The...
  • EXECUTIVE DIRECTOR
    The Amargosa Conservancy (AC), a conservation nonprofit dedicated to standing up for water and biodiversity in the Death Valley region, seeks an executive director to...
  • BIG BASIN SENIOR PROJECT PLANNER - CLIMATE ADAPTATION & RESILIENCE
    Parks California Big Basin Senior Project Planner - Climate Adaptation & Resilience ORGANIZATION BACKGROUND Parks California is a new organization working to ensure that our...
  • CUSTOMER SERVICE ASSISTANT - (PART-TIME)
    High Country News, an award-winning media organization covering the communities and environment of the Western United States, seeks a part-time Customer Service Assistant, based at...
  • SCIENCE PROJECT MANAGER
    About Long Live the Kings (LLTK) Our mission is to restore wild salmon and steelhead and support sustainable fishing in the Pacific Northwest. Since 1986,...
  • HUMAN RESOURCES GENERALIST
    Honor the Earth is an affirmative action/equal opportunity employer and does not discriminate based on identity. Indigenous people, people of color, Two-Spirit or LGBTQA+ people,...
  • DEVELOPMENT DIRECTOR
    Colorado Trout Unlimited seeks an individual with successful development experience, strong interpersonal skills, and a deep commitment to coldwater conservation to serve as the organization's...
  • NEW BOOK BY AWARD-WINNING WILDLIFE BIOLOGIST, BRUCE SMITH
    In a perilous place at the roof of the world, an orphaned mountain goat is rescued from certain death by a mysterious raven.This middle-grade novel,...
  • DESCHUTES LAND TRUST VOLUNTEER PROGRAM MANAGER
    The Deschutes Land Trust is seeking an experienced Volunteer Program Manager to join its dedicated team! Deschutes Land Trust conserves and cares for the lands...
  • PROGRAM DIRECTOR
    Now hiring a full-time, remote Program Director for the Society for Wilderness Stewardship! Come help us promote excellence in the professional practice of wilderness stewardship,...
  • WYOMING COMMUNITY PARTNERSHIPS COORDINATOR
    The Theodore Roosevelt Conservation Partnership is seeking Coordinator to implement public education and advocacy campaigns in the Cowboy State to unite and amplify hunter, angler,...
  • ASSISTANT TOWN ATTORNEY
    Town of Jackson, Wyoming, $66,700 - $88,000 DOQ, full benefits. Law Degree Required. Rental housing options available. For a complete job description and to apply,...
  • MOUNTAIN LOTS FOR SALE
    Multiple lots in gated community only 5 miles from Great Sand Dunes National Park. Seasonal flowing streams. Year round road maintenance.
  • RURAL ACREAGE OUTSIDE SILVER CITY, NM
    Country living just minutes from town! 20 acres with great views makes a perfect spot for your custom home. Nice oaks and juniper. Cassie Carver,...