stevo from saint louis, mo on 3/13/2014 9:33:21 AM:
Hank, there used to be a paper available for free over the net that was authored by Michael Smith that discussed the compensation and legal case that was settled for easements "acquired" for the Katy Trail. Like you said, and contrary to belief by some, there was a court settlement that awarded claims to private property owners holding the old railroad easements in the late 90's I believe. The basic ruling was that railbanking these easements represented a "taking of land" and these property owners should be compensated for it.
Next issue is who owns the land now. I believe some land is part of the public Right-of-way owned and maintained mostly by DNR. Other parcels used by the Katy still have easements in place. If the Katy trail is abandoned, this land will go back to the private property holding the easement. In addition, if a railroad comes along and wishes to use the land that is railbanked, then it is likely that this will result in another "taking of land" and they would have to compensate the private property owners holding the easements.
This is all from memory as I could not find the original document that I read years ago so the details could be off somewhat.