Oregon Public Broadcasting

Years of fighting between an Oregon railroad and the state degraded into a lawsuit Wednesday.

As Kristian Foden-Vencil reports, the Central Oregon and Pacific Railroad is claiming damages from the Oregon Department of Transportation.

As part of the state’s efforts to improve the local rail system, it awarded a $7 million grant to the railroad two years ago.

The money was to be used to build a new rail yard north of Roseburg.

There, trains could be shortened so drivers wouldn’t hav eto wit so long for them to pass.

But when the railroad shut down a 111-mile line between Eugene and Coos Bay, the state delayed it’s payments toward the $7 million, saying the closure meant the rail yard was no longer needed.

Patrick Cooney with ODOT says a decision to completely rescind the money has now been postponed.

Patrick Cooney: "Because litigation was filed. The commission chose to defer any action on that particular item until further notice."

The state and the Port of Coos Bay had been trying to keep the frieght line between Eugene and Coos Bay open.