NETEX
Northeast Texas Rural Rail District

Formation of NETEX - The Northeast Texas Rural Transportation District

In 1981, Texas approved the legislation calling for the creation of rural rail districts throughout the state. By March of 1999, 11 rural rail districts, consisting of over 50 Texas counties have been developed. Rail districts can be formed in Texas by any one or more consecutive counties.

A rural rail district:

• Is created by the commissioners court by resolution;
• Is a governmental subdivision of the state;
• Is a non-taxing authority;
• Is a tax exempt authority;
• Holds the powers of eminent domain and condemnation;
• Is operated by a board of directors appointed by the commissioners court;
• Excludes the county from liability;
• Generates revenue through economic development grants, loans, and leasing and operational agreements; and
• Has the authority to issue revenue bonds.

Following the application for abandonment of the Dallas Division of the Southern Pacific's subsidiary St. Louis Southwestern, the Cotton Belt, the four counties of Hunt, Hopkins, Franklin and Titus formed the Northeast Texas Rural Transportation District, NETEX.

On 9 Nov 1995, five years after the closure of the branch, and before Union Pacific's takeover of SP, the rail district took ownership of 31 miles of track from MP 555 just west of Greenville to MP 524 just west of Sulphur Springs, for a purchase price of $2,000,000 and an immediate investment of $225,000 for track remediation and repair. SP had reserved ownership from MP 524 to Mount Pleasant for two reasons. First there was a strong possbility that a large carload shipper would move into Sulphur Springs, and second there was the utility track between SP and KCS east of Winfield, just west of Mount Pleasant in Titus County.

On 01 October 2000, almost five years after the first purchase, NETEX bought the Union Pacific track from Milepost 524 to 489.4, at the Franklin County / Titus County line. The purchase price was $1,3 Million.