PORTLAND, Ore. -- Gov. Ted Kulongoski has rejected an offer from RailAmerica for the state to jointly own and operate a closed rail line, saying the deal is insufficient.

Central Oregon & Pacific Railroad closed a line last fall that runs from the Eugene to Coos Bay areas for safety reasons and needed public money to help reopen it.

The closure has hurt a number of Oregon companies that use the line to move lumber and other goods.

State leaders have repeatedly rejected requests from CORP and its parent company, Florida-based RailAmerica, for public funds, contending the company must reopen the line first.

In a letter signed Monday, the governor rejected the latest offer and said RailAmerica needs to reopen the line or seek abandonment.

"To put it succinctly, my bottom line has not changed," the governor wrote. "As I stated...the State of Oregon would be open to a discussion with all of the stakeholders on a long-term solution for the line after you have re-opened it."

He added that the company's refusal to reopen the line suggests the company has no intention of fixing or reopening the line without public money.

"I continue to maintain that fixing the tunnels and restoring the flow of goods along the line is not only the right thing to do, but your legal obligation," the governor wrote. "Your choice seems clear: either re-open the line or seek abandonment."

A company representative did not respond to a request for comment.

Kulongoski is not the only Oregon political leader involved in the conflict. Members of Oregon's Congressional delegation have repeatedly blasted the company's lack of action and failure to make a solid effort.

Sens. Ron Wyden and Gordon Smith and Rep. Peter DeFazio are expected to speak before the federal Surface Transportation Board later this week about the problems the shutdown has caused.

The federal board has questioned the railroad company's claims as well and given the company a month to explain its actions.

Federal law requires rail carriers to provide service on its lines within reasonable request. But a carrier can't simply stop service because of circumstances that make it difficult or expensive to operate.

The law requires rail companies to reopen embargoed lines in a timely fashion or abandon them. A letter from the board earlier this month says RailAmerica's actions suggest that CORP's embargo of the line, although it may have been reasonable, may have lasted too long.