DENVER - On December 23, 2024, Governor Polis, his administration, and Union Pacific reached an agreement on a new 25-year lease of the Moffat and binding MOU in exchange for a 25-year access agreement, which sets the stage for increased access to UP’s tracks for Mountain Rail passenger service. This lease and access agreement will be executed on May 1, 2025, replacing the previous 99-year lease on the tunnel. Today the Polis Administration and Union Pacific also signed a four-month Moffat Tunnel lease extension prior to the long-term lease being executed 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. 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,” said Governor Polis. 

The 100-year-old, 6.2-mile-long Moffat Tunnel 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. 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. 

“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. 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,” said John Putnam, the Governor’s Chief Negotiator for Moffat Tunnel. 

“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,” said Lisa Kaufmann, Senior Strategic Advisor to the Governor. 

“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. It’s a great example of what is possible when we work together,” Union Pacific President Beth Whited said. 

The tunnel cuts through the Continental Divide at 9,239 feet above sea level. It was constructed by the Denver & Salt Lake Railway - Union Pacific’s predecessor - and created to provide an important 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.