(The Center Square) – Colorado Gov. Jared Polis and Union Pacific agreed to terms for a new 25-year lease of the Moffat and binding MOU in exchange for a 25-year access agreement this week.
The agreement will increase access to Union Pacific tracks for Mountain Rail passenger service.
The two sides will execute this lease and access agreement on May 1, 2025. It will replace the previous 99-year lease on the tunnel.
Additionally, the Polis administration and Union Pacific signed a four-month Moffat Tunnel lease extension before the long-term lease takes effect on May 1.
“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,” Polis said in a press release from his office. “This is a big step forward in making Mountain Rail from Denver to Craig a reality. Passenger Rail on this corridor will relieve traffic to one of Colorado’s iconic mountain communities and provide safe, reliable, affordable transportation options for tourists and skiers as well as workers traveling along the corridor. This historic agreement is an important step to protect continuous freight operations and finally deliver on the promise of passenger rail to Coloradans, and I thank Union Pacific for its partnership.”
The Moffat Tunnel is 100 years old and 6.2 miles long. It cuts through the Continental Divide at 9,239 feet above sea level.
“Created to provide an important east-to-west connection from Denver to the West coast for commerce, the Moffat Tunnel helped Denver become a center of commerce and growth in the Rockies,” the release said. “Today in addition to its storied history, the Moffat Tunnel represents a lynchpin of the Mountain Rail Project to connect Coloradans and visitors from Denver Union Station through Rollingsville to Winter Park, Granby, Steamboat Springs, Craig, and Hayden.”
John Putnam, the governor’s Chief Negotiator for Moffat Tunnel, said the new agreement ensures that the tunnel serves its purpose for decades to come.
“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,” Putnam said in the release. “We need alternatives to I-70 and the high mountain passes, and Moffat Tunnel and Union Pacific’s line provides that whether you’re traveling with kids or freight.”
Union Pacific President Beth Whited said the deal shows what can happen when the private and public sectors work together.
“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,” Whited said in the release. “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. It’s a great example of what is possible when we work together.”
Denver & Salt Lake Railway, Union Pacific’s predecessor, constructed the tunnel as an east-to-west commercial connection from Denver to the West Coast.
“There is still more work ahead to execute this important partnership, and today marks an important step forward for Colorado’s future,” the release said.
