Colorado: Polis Administration and Union Pacific Reach Agreement on New 25-Year Moffat Tunnel Lease Renewal with 25-year Passenger Rail Agreement, Setting Stage for Mountain Rail

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DENVER ~ Denver - In a major development for the state of Colorado, Governor Jared Polis and his administration have reached an agreement with Union Pacific for a new 25-year lease of the Moffat Tunnel. This agreement also includes a 25-year access agreement, which will pave the way for increased access to Union Pacific's tracks for Mountain Rail passenger service. The lease and access agreement are set to be executed on May 1, 2025, replacing the previous 99-year lease on the tunnel.

The Polis Administration and Union Pacific also signed a four-month extension of the Moffat Tunnel lease prior to the long-term lease being executed on May 1. This extension will ensure that operations continue smoothly until the new lease is in effect.

Governor Polis expressed his excitement about this milestone in negotiations between the state and Union Pacific. He stated, "Today marks a major milestone in negotiations between the State of Colorado and Union Pacific for a new modern 25-year lease of the Moffat Tunnel and a 25-year access agreement. This is a big step forward in making Mountain Rail from Denver to Craig a reality."

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The governor also highlighted the benefits that this agreement will bring to Colorado's iconic mountain communities. He said that passenger rail on this corridor will relieve traffic and provide safe, reliable, and affordable transportation options for tourists, skiers, and workers traveling along the corridor.

The Moffat Tunnel, which is over 100 years old and spans 6.2 miles through the Continental Divide at an elevation of 9,239 feet above sea level, has played a crucial role in connecting Denver to the West Coast for commerce. It has been instrumental in making Denver a center of commerce and growth in the Rockies.

John Putnam, Governor Polis' Chief Negotiator for Moffat Tunnel, emphasized the importance of this agreement in ensuring that the tunnel continues to serve its purpose in moving passengers and goods into the future. He stated, "Colorado built the Moffat Tunnel almost 100 years ago to connect people and freight on the West Slope and Front Range. Through this Agreement, we are making sure the Moffat Tunnel moves passengers and goods into the future."

Lisa Kaufmann, Senior Strategic Advisor to the Governor, also expressed her pride in being a part of this effort. She said, "The Moffat Tunnel put Denver at the center of commerce for the Rocky Mountain West 100 years ago, it's foundational to how Colorado developed and it has proven to be just as important to our future and The Polis administration's vision for a sustainable future. It's an honor to help with this effort."

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Union Pacific President Beth Whited also shared her excitement about this renewed partnership with the state of Colorado. She stated, "The historic Moffat Tunnel has been part of the joint Union Pacific and Colorado rail network for nearly 100 years, connecting local, regional and national customers in Colorado to each other and the world. We're excited about the opportunity this renewed lease gives us to continue to serve our customers, while strengthening our partnership with the State of Colorado."

The Moffat Tunnel has been a crucial link in Union Pacific's rail network since its construction by Denver & Salt Lake Railway - Union Pacific's predecessor. It was created to provide an important east-to-west commercial connection from Denver to the West Coast.

While there is still more work ahead to finalize this partnership between Colorado and Union Pacific, today marks an important step forward for Colorado's future. The new lease agreement will not only ensure continuous freight operations but also fulfill the promise of passenger rail for Coloradans.

Filed Under: Government, State

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