DOT REPORT #5 -February, 1996 =========================================================== A condensed version of Department of Transportation rail line decisions and notices published between February 1-15, 1996. =========================================================== CONTENTS: Atlantic Transportation Trust, Inc., d/b/a Jaxport Railway; Lease and Operation Exemption; Lines of Jacksonville Port Authority Russell A. Peterson; Continuance in Control Exemption; Atlantic Transportation Trust, Inc. d/b/a Jaxport Railway Burlington Northern Railroad Company--Trackage Rights Exemption-- Iowa Interstate Railroad Ltd. Wisconsin Central Ltd. and Fox Valley & Western Ltd.--Joint Relocation Project Exemption--Oshkosh, WI CSX Transportation, Inc.--Trackage Rights Exemption--Norfolk and Western Railway Company--Chicago, IL MNVA Railroad, Inc.--Discontinuance of Trackage Rights Exemption--in Ramsey and Hennepin Counties, MN Delaware-Lackawanna Railroad Company, Inc.; Discontinuance Exemption; in Luzerne and Lackawanna Counties, PA San Joaquin Valley Railroad Company; Abandonment Exemption; Kings County, CA Petition for Waiver of Compliance Atchison, Topeka, and Santa Fe Railway Company; Burlington Northern Santa Fe Railroad; Emergency Order Requiring Capability To Initiate Emergency Application of Air Brakes From the Head End and Rear of Trains Soo Line Railroad Company--Trackage Rights Exemption--CMC Heartland Partners Soo Line Railroad Company--Trackage Rights Exemption--CMC Heartland Partners Petition for Waiver of Compliance Consolidated Rail Corporation and CSX Transportation, Inc.-- Acquisition and Operation--Nicholas, Fayette and Greenbrier Railroad Company ======================================================================= DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Finance Docket No. 32851] Atlantic Transportation Trust, Inc., d/b/a Jaxport Railway; Lease and Operation Exemption; Lines of Jacksonville Port Authority Atlantic Transportation Trust, Inc., d/b/a Jaxport Railway (JXRY), a noncarrier, has filed a verified notice under 49 CFR Part 1150, Subpart D--Exempt Transactions to acquire by lease and operate approximately 10.33 miles of rail line owned by the Jacksonville Port Authority (JPA), previously known as the ``Municipal Docks Terminal Railway'' (MDT), which consists of: (a) Lead from MP MDT 0.00 to MP MDT 0.94; and (b) Tallyrand Marine Terminal trackage from MP MDT 0.94 to MP MDT 10.33, in Duval County, FL. The transaction was to have been consummated on January 12, 1996. Decided: January 26, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Finance Docket No. 32852] Russell A. Peterson; Continuance in Control Exemption; Atlantic Transportation Trust, Inc. d/b/a Jaxport Railway Russell A. Peterson, a noncarrier, has filed a verified notice under 49 CFR 1180.2(d)(2) to continue in control of Atlantic Transportation Trust, Inc. d/b/a Jaxport Railway (JXRY), upon JXRY's becoming a class III rail carrier. Russell A. Peterson also controls through stock ownership four other nonconnecting class III rail carriers: Allegheny Valley Railroad Company; Gulf Coast Rail Service, Inc. d/b/a Orange Port Terminal Railway; Southwest Pennsylvania Railroad; and the Camp Chase Industrial Railroad Corporation. The transaction is exempt from the prior approval requirements of 49 U.S.C. 11343 because Russell A. Peterson states that: (1) The railroads will not connect with each other or with any railroad in their corporate family; (2) the continuance in control is not part of a series of anticipated transactions that would connect the railroads with each other or with any railroad in their corporate family; and (3) the transaction does not involve a class I carrier. Decided: January 26, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32856] Burlington Northern Railroad Company--Trackage Rights Exemption-- Iowa Interstate Railroad Ltd. Iowa Interstate Railroad Ltd. has agreed to grant overhead trackage rights to Burlington Northern Railroad Company over 2.24 miles of rail line, (a) between milepost 177.25 and milepost 178.51 at or near Moline, IL, and (b) between milepost 180.42 and milepost 181.40 at or near Rock Island, IL. The trackage rights were to become effective on January 24, 1996. Decided: January 25, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32859] Wisconsin Central Ltd. and Fox Valley & Western Ltd.--Joint Relocation Project Exemption--Oshkosh, WI On January 17, 1996, Wisconsin Central Ltd. (WCL) and Fox Valley & Western Ltd. (FVW) jointly filed a notice of exemption under 49 CFR 1180.2(d)(5) to enter into a project to relocate lines of railroad in Oshkosh, WI. Both WCL and FVW are Class II railroads commonly controlled by Wisconsin Central Transportation Company. The proposed transaction is to be consummated on or after January 27, 1996. WCL and FVW own and operate parallel lines of railroad through Oshkosh, WI. The joint relocation will reroute operations from, and allow removal of, several miles of duplicative rail line. WCL's current rail line runs through Oshkosh from milepost 168.8 near East Fisk Avenue to milepost 176.6 near Harrison Road in north Oshkosh. Under the terms of joint project, WCL and FVW agree to the following: (1) Crossovers will occur at each end of the segment of the track to be relocated, connecting WCL's rail line to FVW's rail line at FVW milepost 190.00 near East Fish Avenue and at FVW milepost 197.05 near Harrison Road; (2) WCL will acquire trackage rights from FVW between FVW milepost 190.00 and FVW 197.05, a distance of 7.05 miles; and (3) WCL will acquire trackage rights from FVW between FVW milepost 181.6 and 190.00, a distance of 8.4 miles, which will allow WCL to access the relocated track at two connection points. WCL will acquire trackage rights from FVW totaling approximately 15.45 miles. In addition, two small track segments will remain to allow WCL to serve shippers from the relocated line. One segment runs from approximately WCL milepost 169.36 (FVW milepost 190.52) to WCL milepost 172.05. The other runs from approximately WCL milepost 175.80 to WCL milepost 176.32 (FVW milepost 196.85). The notice states that the joint relocation project will simplify rail operations within Oshkosh and will accommodate the efforts of the City of Oshkosh to reduce interference with vehicular traffic. It also states that no shippers are located on the rail line that will be removed as part of this joint project. The Board will exercise jurisdiction over the abandonment or construction components of a relocation project, and require separate approval or exemption, only where the removal of track affects service to shippers or the construction of new track involves expansion into new territory. Line relocation projects may embrace trackage rights transactions such as the one involved here. Under these standards, the incidental abandonment, construction, and trackage rights components require no separate approval or exemption when the relocation project, as here, will not disrupt service to shippers and thus qualifies for the class exemption at 49 CFR 1180.2(d)(5). Decided: January 29, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32860] CSX Transportation, Inc.--Trackage Rights Exemption--Norfolk and Western Railway Company--Chicago, IL CSX Transportation, Inc. (CSXT) has filed a verified notice under 49 CFR 1180.2(d)(7) to acquire overhead trackage rights from Norfolk and Western Railway Company (NW) over approximately 8,100 feet between the trackage connection of NW and the Belt Railway Company of Chicago (BRC) at the 80th Street Interlocking and the trackage connection of NW and BRC at the Belt Junction Interlocking, in Chicago, IL. The trackage rights are scheduled to become effective on February 8, 1996. The notice states that the CSXT's use of the NW track will allow CSXT to provide double stack service, thereby increasing intermodal competition by providing more efficient service. Decided: January 30, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION [STB Docket No. AB-466X] MNVA Railroad, Inc.--Discontinuance of Trackage Rights Exemption--in Ramsey and Hennepin Counties, MN MNVA Railroad, Inc. (MNVA), has filed a verified notice under 49 CFR 1152 Subpart F--Exempt Abandonments and Discontinuances to discontinue its trackage rights over 12 miles of rail line owned by Soo Line Railroad Company and known as the Depression Trackage, between milepost 416.23;plus-minus; at or near Merriam Park in St. Paul, and milepost 428.00;plus-minus; at or near France Avenue in Minneapolis, in Ramsey and Hennepin Counties, MN. MNVA certifies that: (1) no local traffic has moved over the line for at least 2 years; (2) any overhead traffic on the line can be rerouted; (3) no formal complaint filed by a user of rail service on the line (or by a State or local government entity acting on behalf of such user) regarding cessation of service over the line either is pending with the Board or with any U.S. District Court or has been decided in complainant's favor within the last 2 years; and (4) the requirements at 49 CFR 1105.7 (environmental reports), 49 CFR 1105.8 (historic reports), 49 CFR 1105.11 (transmittal letter), 49 CFR 1105.12 (newspaper publication) and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met. Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on March 7, 1996, unless stayed pending reconsideration. Environmental, historic preservation, public use, or trail use/rail banking conditions will be imposed, where appropriate, in a subsequent decision. Decided: January 31, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB-432X] Delaware-Lackawanna Railroad Company, Inc.; Discontinuance Exemption; in Luzerne and Lackawanna Counties, PA ACTION: Notice of exemption. SUMMARY: The discontinuance of trackage rights over certain lines in Luzerne and Lackawanna Counties, PA, by Delaware-Lackawanna Railroad Company, Inc., is exempted from the prior approval requirements of 49 U.S.C. 10903-04, subject to standard employee protective conditions. The lines are as follows: (1) The Dunmore Secondary Track, between milepost 6.5, at Avoca, and milepost 8.6, at Rocky Glen, a distance of 2.1 miles; (2) the Avoca Industrial Track, between milepost 1.8, at No. 7 Junction, and milepost 6.5 at Avoca, a distance of 4.7 miles, including the connection with the track of Consolidated Rail Corporation between ``LB'' Junction and the switch of the Dunmore Secondary Track, a distance of 0.123 miles, and the Langcliff Connecting Track, between milepost 0.0, at Duryea, and the connection with Delaware & Hudson Railway Company (D&H) in the middle of York Avenue, at milepost 0.867, a distance of 0.867 miles; (3) the West Pittston Running Track, between milepost 0.0, at West Pittston, and milepost 3.0, at Harding, a distance of 3.0 miles, and between milepost 186.4, at West Pittston, and milepost 194.4, in Kingston, a distance of 0.2 miles; (4) the Suscon Running Track, between milepost 154.5, at Suscon, and milepost 156.6, at Suscon, a distance of 2.1 miles; (5) the Wilkes-Barre Secondary, between milepost 169.2, at Ashley, and milepost 185.5, at Pittston, a distance of 16.3 miles; (6) the Nanticoke Industrial Track, between milepost 0.0, at Ashley, and milepost 2.6, at Central Scrap, a distance of 2.6 miles; (7) the Harry E. Breaker Spur, between milepost 0.1, at Maltby Junction, and milepost 0.5, a distance of 0.4 miles; (8) the APC line, between milepost 0.0 and milepost 0.6 in Wilkes-Barre, a distance of 0.6 miles; (9) the Brownsville Industrial Track, between milepost 0.0, at Hillside, and milepost 1.0, at Brownsville, a distance of 1.0 miles; (10) the Wilkes- Barre Industrial Track, between milepost 59.9, at Ferry Street, and milepost 62.9, at Wilkes-Barre, a distance of 3.0 miles; (11) the Pettibone Branch, between milepost 0.0 and milepost 0.759, at Dorranceton, a distance of 0.759 miles; (12) the Kingston Industrial Track, between milepost 142.7, at Pittston Junction, and Railroad Station 8594+58, a distance of 8.1 miles; (13) the D&H Wilkes-Barre Connector, from milepost A-208.08, Hudson Yard to Conyngham Avenue, City of Wilkes-Barre, a distance of about 2.5 miles; (14) the Hanover Industrial Track, between milepost 0.0, at Ashley, and milepost 0.5, at Hanover Industrial Park, a distance of 0.5 miles; and (15) the Suscon Industrial Track, between milepost 154.5, at Suscon, and milepost 158.7 at Hillside, a distance of 4.2 miles. DATES: This exemption will be effective on March 8, 1996 unless stayed and provided no formal expression of intent to file an offer of financial assistance has been received. Decided: January 23, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION [Docket No. AB-398 (Sub-No. 2X)] San Joaquin Valley Railroad Company; Abandonment Exemption; Kings County, CA ACTION: Notice of exemption. SUMMARY: The abandonment by San Joaquin Valley Railroad Company of 8.25 miles of rail line extending between milepost 263.44 at Rossi and the end of the line at milepost 271.69 at Stratford, in Kings County, CA, is exempted from the prior approval requirements of 49 U.S.C. 10903-04, subject to environmental and standard employee protective conditions. DATES: Provided no formal expression of intent to file an offer of financial assistance has been received, this exemption will be effective on March 8, 1996. Decided: January 11, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION [FRA Docket No. RST-95-2] Petition for Waiver of Compliance In accordance with Title 49 CFR 211.9 and 211.41, notice is hereby given that the Federal Railroad Administration (FRA) received from the National Railroad Passenger Corporation (Amtrak), on behalf of the San Diego Northern Railway (SDNX), a request for a waiver of compliance with certain requirements of Title 49 CFR Part 213: TRACK SAFETY STANDARDS. The purpose of the petition is to secure approval from the FRA for the operation of passenger trains at curve negotiating speed producing up to four inches of cant deficiency (superelevation underbalance). Currently, Section 213.57(b) limits cant deficiency to not more than three inches. Amtrak is the designated operator of Coaster Commuter Service and Amtrak trains on the SDNX route that extends from a location near Oceanside to San Diego, CA. Issued in Washington, DC, on February 1, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Railroad Administration [FRA Emergency Order No. 18, Notice No. 1] Atchison, Topeka, and Santa Fe Railway Company; Burlington Northern Santa Fe Railroad; Emergency Order Requiring Capability To Initiate Emergency Application of Air Brakes From the Head End and Rear of Trains The Federal Railroad Administration (FRA) of the United States Department of Transportation (DOT) has determined that public safety compels issuance of this Emergency Order requiring that all westward trains operated by the Atchison, Topeka, and Santa Fe Railway Company (ATSF) on the Cajon Subdivision, between Barstow milepost 745.9 and Baseline milepost 79.9, have the capability to initiate an emergency application of the air brakes from both the head and rear of the train. ATSF recently merged with the Burlington Northern Railroad to form Burlington Northern Santa Fe. To the extent this new entity's activities have an effect on the train operations in question, it is covered by this order. ATSF's line of railroad between Barstow and Los Angeles, California, consists of double main track which passes through the San Bernardino Mountains via ``Cajon Pass.'' The route for westward moving trains involves a steady climb from Barstow to Summit, California, a distance of approximately 55 miles. At Summit, the line begins a descent westward with a more than 3 percent grade on one track and a more than 2 percent grade on the other track. The descent for eastward trains is not nearly as severe. Trains in this area operate by authority of a centralized traffic control system managed by ATSF train dispatchers. The Union Pacific Railroad (UP) also operates its trains through this same corridor via a trackage rights agreement with ATSF. The Southern Pacific Railroad operates trains through Cajon Pass, but on a right-of-way separate from that of ATSF. On December 14, 1994, a westbound Santa Fe intermodal freight train operating between Barstow and San Bernardino, California collided with the rear end of a UP unit coal train resulting in the serious injury of two crew members and total estimated damages in excess of $4 million. Investigation of the accident revealed that an apparent blockage or restriction of the trainline (i.e., the connected system of metal pipes and flexible air hoses that runs end-to-end through the train) inhibited the normal brake pipe air flow resulting in incomplete train braking. After investigation of this incident, the National Transportation Safety Board (NTSB) concluded that, had the train been equipped with a two-way end-of-train device (EOT), the collision could have been avoided because the engineer could have initiated an emergency brake application from the rear of the train. A two-way EOT provides the engineer with information on the status of brake pressure at the rear of the train and permits the locomotive crew to initiate, via telemetry, an emergency brake application from the rear of the train forward. This permits the application of effective braking force even if there is blockage somewhere on the trainline. On December 15, 1995, based on the conclusions reached above, the NTSB recommended that FRA separate the two-way end-of-train device provisions of its 1994 proposed rule on power brakes from the rest of the proposal, and immediately conclude the end-of-train device rulemaking so as to require the devices on all cabooseless trains. FRA had independently decided to take separate action on the EOT provisions, and has so informed NTSB. NTSB also recommended to all major railroads that, pending completion of FRA's final rule, those railroads implement the use of two-way EOTs on all cabooseless trains by March 31, 1996. Subsequent to the December 1994 accident, Santa Fe worked with the railroad safety staff of the California Public Utilities Commission (PUC) to voluntarily implement various changes in its operations, which included a plan to commence equipping trains with two-way end-of-train devices. Measures implemented by Santa Fe following the accident included changes in its rules of operations to provide for use of manned helper locomotives on certain westward moving trains; issuing instructions to maximize the use of the track with a lesser grade; issuing instructions to avoid stopping trains on a descending grade and avoid allowing following trains in the next block to the rear of westward moving trains; and appointing an operating officer to focus exclusively on train operations through Cajon Pass. On February 1, 1996, westward ATSF freight train HBALT-131 derailed on a descending 3 percent grade at milepost 60.7, approximately 4 miles west of Summit and 20 miles east of San Bernardino. The derailment occurred when the train entered a more than 7 degree curve at a speed estimated to be in excess of 50 mph (maximum operating speed at that location is 25 mph). The incident resulted in fatal injuries to the conductor and brakeman, serious injury to the engineer, and the derailment of 45 of 49 cars and all four locomotives. The train consisted of hazardous material cars that subsequently caught fire. Area residents were evacuated and highways were closed, including Interstate 15. The NTSB is heading the investigation. FRA is providing expert assistance in the investigation. Although investigation of this accident is currently in progress, it appears as though it could have been avoided had the train been equipped with a means for the train crew to have effected an emergency brake application from the rear of the train. Although the train was equipped with a two-way EOT device, it appears that it was not ``armed,'' i.e., that it was not activated in such a way that it could have been used to effect an emergency application from the rear of the train. At this early juncture, it appears that a contributory cause of this incident may have been a blocked brake pipe. Based on its investigatory efforts, FRA has reason to believe that ATSF's procedures for ensuring the safe passage of trains through Cajon Pass are presently inadequate to protect public and employee safety. Although FRA believes the accidents described above are reason enough to warrant that conclusion, FRA is also concerned about other indications that ATSF has not been taking appropriate actions to prevent such accidents. FRA has reason to believe that ATSF has not consistently followed its own protocols for operations through Cajon Pass designed to prevent such accidents and is not consistently taking proper preventive actions at Barstow, such as ensuring, during pre- departure inspections, that EOTs have been properly activated to permit brake application from the rear of the train. This additional evidence of inadequate practices on the part of ATSF underscores the need for immediate action to prevent a recurrence. FRA concludes that ATSF's current operation of freight trains on the Cajon Subdivision, between Barstow milepost 745.9 and Baseline milepost 79.9, poses an imminent and unacceptable threat to public safety. I find that the unsafe conditions discussed above create an emergency situation involving a hazard of death or injury to persons. Accordingly, pursuant to the authority of 49 U.S.C. 20104, delegated to me by the Secretary of Transportation (49 CFR Sec. 1.49), it is hereby ordered that, on all of ATSF's westward freight trains operating through Cajon Pass: (1) ATSF must ensure that it is possible for the train crew to effect an emergency brake application from the rear of the train by at least one of the following methods: (A) Use of a two-way end-of-train device that has been tested, is functioning, and is armed (activated) to permit a brake application from the rear. When this method is used. ATSF must determine, after all other required brake inspections and before the train departs Barstow, that the EOT is functioning in two-way operation by testing the device's ability to effectuate an emergency application; and The person making this determination must document in writing (the railroad may prescribe a form for this purpose) that the device is functioning in two-way operation and its battery is fully charged. That person must sign the form and ensure that it is kept in the cab of the locomotive with the daily inspection form; OR (B) Use of an occupied helper locomotive at the end of the train. If this method is used: The helper locomotive engineer will initiate and maintain two-way voice radio communication with the engineer on the head end of the train; this contact shall be verified just prior to passing Summit. If there is a loss of communication prior to passing Summit, the helper locomotive engineer and the head-end engineer will act immediately to stop the train until voice communication is resumed. If there is a loss of communication once the descent has begun beyond Summit, the helper locomotive engineer and the head-end engineer will act to stop the train if the train has reached a predetermined rate of speed that indicates the need for emergency braking. The dynamic brakes must be tested, cut in, and known to be functioning by both the helper engineer and the head end engineer; The brake pipe of the helper locomotive must be connected and cut in to the train line and tested to ensure operation; and Trains will be stopped when helpers are cut in or cut off from trains being assisted; OR (C) Use of an occupied caboose at the end of the train with a tested, functioning brake valve capable of initiating an emergency brake application from the caboose. If this method is used: The train service employee in the caboose and the engineer on the head end of the train will establish and maintain two-way voice radio communication and respond appropriately to the loss of such communication in the same manner as prescribed for helper locomotives, above; OR (D) Use of a radio-controlled locomotive in the rear third of the train under continuous control of the engineer in the head end by means of telemetry, but only if such radio-controlled locomotive is capable of initiating an emergency application on command from the lead locomotive. (2) Once such a train has received the required brake test at Barstow, ATSF must test the emergency braking capacity of the train by initiating an emergency application of the brakes and determining that the emergency application propagates throughout the train. Where no EOT device is used, this determination must be made by visual observation that the brakes have set on the rear car. Where an EOT device is used, this determination is made by seeing that the brake pipe pressure drops rapidly to zero. (3) ATSF shall immediately report to the Emergency Response Center (1-800-424-0201) any incidents involving loss of braking control over the affected territory. This order shall take effect at 12:01 a.m (PST) on February 8, 1996, and apply to all westward trains leaving Barstow on or after that time. Issued in Washington, D.C. on February 6, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Finance Docket No. 32846] Soo Line Railroad Company--Trackage Rights Exemption--CMC Heartland Partners CMC Heartland Partners (CMC) has agreed to grant local and overhead trackage rights to Soo Line Railroad Company (Soo) over approximately 2.10 miles of its rail line between milepost 96.76 near Richards Street and milepost 97.07 at the Western edge of North Booth Street (near East Locust Street), including the trackage known as the Snake Line, in Milwaukee County, WI. Under the trackage rights agreement, Soo will obtain the right to continue operations over CMC's track in Milwaukee, WI. The trackage rights were scheduled to become effective on January 4, 1996. The line segment is one of the lines of railroad owned and operated by the Chicago, Milwaukee, St. Paul & Pacific Railroad Company (Milwaukee Road). CMC subsequently became the corporate successor of the reorganized debtor, although an ongoing dispute existed between CMC and Soo as to the amount of compensation owed by Soo for use or possible purchase of the line. On July 20, 1995, the United States District Court for the Northern District of Illinois, Eastern Division ordered Soo and CMC to enter into a contractual relationship to resolve the dispute and established the values which are reflected in the trackage rights agreement dated November 20, 1995. Decided: February 6, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION [Finance Docket No. 32847] Soo Line Railroad Company--Trackage Rights Exemption--CMC Heartland Partners CMC Heartland Partners (CMC) has agreed to grant local and overhead trackage rights to Soo Line Railroad Company (Soo) over approximately 1.04 miles of its rail line between milepost 3.50, near Diversey Parkway, and milepost 2.57, near Clybourn Avenue, in Cook County, IL. Under the trackage rights agreement, Soo will obtain the right to continue to operate its trains over CMC's track in Chicago, IL. The trackage rights were scheduled to become effective on January 4, 1996, the effective date of the exemption. CMC is the corporate successor of the reorganized debtor railroad, Chicago, Milwaukee, St. Paul and Pacific Railroad Company (the Milwaukee). By the Asset Purchase Agreement of April 6, 1984, Soo acquired from CMC most of the operating property and core assets of the Milwaukee; but CMC retained this line segment. At the time, abandonment proceedings initiated by the Trustee were pending in the United States District Court for the Northern District of Illinois, Eastern Division (Court). Soo continued to operate the line under a service order in 1986, although an ongoing dispute existed between CMC and Soo as to the compensation owed Soo for use or possible purchase of the line. On July 20, 1995, the Court ordered Soo and CMC to enter into a contractual relationship to resolve the dispute and established the values for compensation and billing. Decided: February 6, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Waiver of Compliance In accordance with Title 49 CFR 211.9 and 211.41, notice is hereby given that the Federal Railroad Administration (FRA) has received from CSX Transportation (CSXT), Burlington Northern Santa Fe and New York Air Brake Corporation (NYAB) requests for a waiver of compliance with a requirement of Federal rail safety standards. CSX Transportation (CSXT) Burlington Northern Santa Fe (BNSF) and New York Air Brake Corporation (NYAB) Waiver Petition Docket Number H-95-3 The CSXT, BNSF and NYAB individually seek waivers of compliance with certain provisions of the Locomotive Safety Regulations (Title 49 CFR Part 229). CSXT, BNSF and NYAB are each requesting a temporary waiver of compliance with Sec. 229.29, for all of their locomotives equipped with the New York Air Break Company/Knorr Brake Corporation Computer Controlled Brake (CCB). This includes all locomotives currently built or on order plus any that may be ordered for delivery up to month 48 of the test period. The National Railroad Passenger Corporation (Amtrak) has also petitioned the FRA for a similar waiver. Section 229.29 stipulates that all brake valves must be cleaned, tested and inspected every 736 calendar days. On January 29, 1985, FRA published a notice granting approval for the 26-L type air brake equipment to be cleaned, inspected and tested every 1104 calendar days The petition requests that the CCB brake valves be maintained on a 5-year test interval. Issued in Washington, DC, on February 7, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32845] Consolidated Rail Corporation and CSX Transportation, Inc.-- Acquisition and Operation--Nicholas, Fayette and Greenbrier Railroad Company ACTION: Notice of acceptance of application. SUMMARY: The Board accepts for consideration the application filed January 16, 1996, by Consolidated Rail Corporation (Conrail) and CSX Transportation, Inc. (CSXT) to acquire from the Nicholas, Fayette and Greenbrier Railroad Company (NF&G) and operate approximately 143 miles of rail line located in West Virginia. The Board finds that this is a transaction subject to 49 U.S.C. 11325(d). DATES: This decision is effective on February 15, 1996. SUPPLEMENTARY INFORMATION: By application filed January 16, 1996, Conrail, CSXT, and NF&G (collectively, Applicants) seek approval under 49 U.S.C. 11323-25, for Conrail and CSXT to acquire and operate NF&G's rail lines in West Virginia. Conrail and CSXT are Class I railroads. NF&G, which has approximately 143 miles of trackage, is jointly owned by Conrail and CSXT. Conrail and CSXT operate NF&G's lines as successors in interest under a lease dated June 25, 1929. Conrail and CSXT propose to terminate the lease and to dissolve NF&G and distribute its rail assets between them. Conrail will acquire NF&G's 8-mile line west of Peters Junction to Swiss Junction (Swiss segment). CSXT will acquire the remainder of NF&G's line east of Peters Junction to Meadow Creek, and branch lines between Rainelle Junction and Raders Run, Rupert Junction and Clearco, and G&E Junction and Brush Junction. Applicants state that the joint management of the NF&G lines does not benefit them or the public. They state that the current lease arrangement establishes a burdensome management structure that requires joint approval by Conrail and CSXT of important decisions, such as whether to invest capital funds in track maintenance projects. CSXT has allegedly deferred substantial maintenance on the NF&G lines it operates because Conrail is reluctant to invest in those lines. Terminating the lease would assertedly allow Conrail and CSXT to decide these matters independently. They further maintain that Conrail and CSXT would also eliminate expenses incurred to administer the joint ownership arrangement. They state that they expect to experience substantial operating and administrative efficiencies as a result of the transaction. Applicants maintain that the transaction will serve the public interest by preserving the quality of service that each carrier currently provides to its shippers and receivers. Each carrier represents that it will continue to operate its lines essentially the same as it does today, with only slight changes in traffic levels. According to the application, Conrail might lose some coal traffic and revenues for shipments that originate on NF&G lines acquired by CSXT, while CSXT would gain this traffic and revenue. Conrail and CSXT have made arrangements for Conrail to be able to honor its sole remaining transportation contract to haul coal originating on the old NF&G. Until the contract expires, CSXT will haul the coal to a Conrail interchange in Columbus, OH, and the coal will be delivered from there. Applicants maintain that the proposal would have little effect on competition in any affected market or region. They assert that Conrail and CSXT do not compete in the same market, and that there is no market demand for CSXT to haul coal over the Swiss segment, or for Conrail to haul coal over the remaining NF&G lines CSXT will acquire. Moreover, CSXT indicates that there is no market demand for it to haul coal from mines on Conrail's Peters Creek Branch, connecting to that portion of the NF&G lines that Conrail will acquire. Applicants anticipate that the transaction will have only a slight effect on employees. They indicate that CSXT employees currently perform all operations on NF&G trackage, including maintenance and train dispatching. After Conrail acquires the Swiss segment, it will assume maintenance functions on that line and thus CSXT maintenance of way employees would lose that work to Conrail employees. The transaction will also preclude Conrail from operating over NF&G trackage acquired by CSXT, but Conrail does not currently operate over that trackage. Under 49 CFR 1180, we must determine whether a proposed transaction is major, significant, or minor. The proposed transaction, which involves two Class I carriers seeking to acquire the assets of their jointly-owned short line railroad, has no regional or national significance and will clearly not have any anticompetitive effects. Accordingly, we find the proposal to be a minor transaction under 49 CFR 1180.2(c), as now defined under 49 U.S.C. 11325(a). Because the application substantially complies with the applicable regulations governing minor transactions, we are accepting it for consideration. Decided: February 8, 1996.