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MarkWest Unit Completes Purchase of Y&S Railroad
EAST LIVERPOOL, Ohio – Sale of the assets of Youngstown & Southern Railroad, the short line that runs from Youngstown to Darlington, Pa., to Mule Sidetracks LLC is complete, the Columbiana County Port Authority announced Thursday.
Mule Sidetracks, an affiliate of MarkWest Energy Partners LP, Denver, paid the port authority $3 million, the CEO of the port authority, Tracy Drake, said. The port authority retains the mineral rights to the underlying real estate.
In the assets Mule Sidetracks assumes are all ties, ballast, rails and rights of way of the 36.8-mile railroad. Mule Sidetracks will continue rail service of the line “pursuant to an operating lease with the Youngstown & Southeastern Railroad, operated by Powell Felix,” the press release said.
In a prepared statement, Drake said, “The port authority acquired the railroad over 10 years ago to preserve it as a transportation asset that would help facilitate economic development in the region. We now transfer it to MarkWest with the knowledge that they have the financial strength to ensure its continued viability and in the hope that they’ll locate a processing plant along the line in Columbiana County.”
MarkWest has been active in midstream development supporting oil and natural gas exploration in the Marcellus shale play in Pennsylvania and the Utica shale in Ohio.
BACKGROUND:
MarkWest Subsidiary to Buy Youngstown & Southern Rail
CCPA OKs $16,000 to Survey 1.5 Miles of Y&S Track
Copyright 2013, The Business Journal, Youngstown, Ohio.
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