A major milestone has been reached in the quest to establish a passenger rail line between Denver and northwest Colorado’s city of Craig.

Governor Jared Polis announced on Monday that an agreement has been reached between the state and Union Pacific related to the use of the state-owned 6.2-mile Moffat Tunnel. The agreement is described as a 25-year lease of the tunnel and a 25-year access agreement, which will allow Union Pacific to continue operations.

“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 Polis.

Moffat Tunnel cuts through the Continental Divide at 9,239 feet above sea level east of Winter Park. It provides a key line of connection from the Denver area to the West coast, which was important for the initial development of the Mile High City.

The agreement will ensure that passengers and goods can be moved through the tunnel by Union Pacific for years to come. The prior 99-year lease was set to expire in 2025, with Moffat Tunnel being the only active rail tunnel that travels through the Continental Divide in Colorado.

The new agreement is set to start on May 1 of next year.

A lot of work still lies ahead before any sort of cross-state rail line could come to fruition, but this agreement was described as an important step.