DOT REPORT #11 - May, 1996 ================================================================= A compilation of rail notices published by the US Department of Transportation between May 1 - 15, 1996. Includes abandonment, operation and control notices, FRA orders and related petitions. Condensed from original. ================================================================= CONTENTS: Burlington Shortline Railroad, Inc., d/b/a Burlington Junction Railway (BJRY)--Acquisition and Operation Exemption--Henry County Industrial Development Corporation Pickens Railway Company--Acquisition and Operation Exemption--The Pickens Railroad Company Soo Line Railroad Company--Abandonment Exemption--in the Counties of Beltrami, Clearwater, and Polk Counties, MN Burlington Northern Railroad Company--Lease Exemption-- Union Pacific Railroad Company Owensville Terminal Company, Inc.--Acquisition and Operation Exemption--Poseyville & Owensville Railroad Company, Inc. Pittsburg & Shawmut Railroad, Inc.--Acquisition and Operation Exemption--Rail Lines Controlled by Arthur T. Walker Estate Corporation (The Pittsburg & Shawmut Railroad Company, Red Bank Railroad Company and Mountain Laurel Railroad Company) CSX Transportation, Inc.--Trackage Rights Exemption--East Cooper and Berkeley Railroad Company San Joaquin Valley Railroad Co.--Corporate Family Transaction Exemption--Port Railroads, Inc. Nebraska Central Railroad Company--Lease and Operation Exemption--Lines of Union Pacific Railroad Company Burlington Northern Railroad Company--Abandonment Exemption--in Crawford County, KS The Bay Line Railroad, L.L.C.--Abandonment Exemption-- in Jackson and Holmes Counties, FL Central Railroad Company of Indianapolis--Discontinuance of Service Exemption--Between Kokomo and Argos in Howard, Miami, Fulton, and Marshall Counties, IN; Norfolk and Western Railway Company-- Abandonment Exemption--Between Kokomo and Rochester in Howard, Miami, and Fulton Counties, IN ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32898] Burlington Shortline Railroad, Inc., d/b/a Burlington Junction Railway (BJRY)--Acquisition and Operation Exemption--Henry County Industrial Development Corporation Burlington Shortline Railroad, Inc., d/b/a Burlington Junction Railway, a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate a rail line owned by the Henry County Industrial Development Corporation Illinois (HCIDC). The line extends approximately 0.50 miles in length from the interchange with the Burlington Northern Railroad Company at Mt. Pleasant, Henry County, IA, to the site of an industrial park owned by the HCIDC at Mt. Pleasant, IA. The Notice of Exemption contains a discrepency in the name of the applicant. The title refers to Burlington Junction Railway as the applicant while the body of the application refers to Burlington Shortline Railroad, Inc., d/b/a Burlington Junction Railway as the applicant. We will assume the latter to be the applicant. Applicant represents that it is a noncarrier by virtue of the ICC's decision in Finance Docket No. 30522, Burlington Shortline, Inc. and Keokuk Northern Real Estate Company d/b/a/ Burlington Junction Railway--Exemption from 49 U.S.C. 10901, 11301, and 49 U.S.C. Subtitle IV. The parties intend to consummate the transaction on or about May 1, 1996. Decided: April 25, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32897] Pickens Railway Company--Acquisition and Operation Exemption--The Pickens Railroad Company Pickens Railway Company, a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire the railroad line and other assets of The Pickens Railroad Company from milepost 0.0 at Pickens to milepost 8.5 at Easley, a distance of 8.5 miles in Pickens County, SC. Consummation is scheduled to occur on or after April 23, 1996. Decided: April 25, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB-57 (Sub-No. 33X)] Soo Line Railroad Company--Abandonment Exemption--in the Counties of Beltrami, Clearwater, and Polk Counties, MN ACTION: Notice of exemption. SUMMARY: Under 49 U.S.C. 10505, the Board exempts from the requirements of 49 U.S.C. 10903-04 the abandonment by the Soo Line Railroad Company of 40.39 miles of rail line between milepost 410.70 near Gully and milepost 370.31 at Bemidji, MN, subject to: (1) standard labor protection conditions; and (2) a public use condition. DATES: The exemption will be effective June 5, 1996, unless stayed or a formal statement of intent to file an offer of financial assistance (OFA) is filed. Decided: April 16, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32857] Burlington Northern Railroad Company--Lease Exemption-- Union Pacific Railroad Company ACTION: Notice of exemption. SUMMARY: The Board exempts under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 11323-25 the lease by Burlington Northern Railroad Company of Union Pacific Railroad Company's 1.0-mile line of railroad from milepost 32.0 to milepost 33.0, at Valmont, CO, subject to standard employee protective conditions. DATES: This exemption is effective on June 6, 1996. Decided: April 23, 1996. --------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32899] Owensville Terminal Company, Inc.--Acquisition and Operation Exemption--Poseyville & Owensville Railroad Company, Inc. Owensville Terminal Company, Inc. (OTC), a noncarrier, filed a notice of exemption to acquire from Poseyville & Owensville Railroad Company, Inc. (P&O), and operate approximately 11.2 miles of rail branch line in Gibson and Posey Counties, IN, between milepost 271.0 in Poseyville and milepost 282.2 in Owensville. The transaction was to be consummated on or after April 19, 1996. P&O owns the line and operates it as a branch line, using equipment and labor supplied under contract by Garden Spot & Ohio Railroad (GS&O). The line connects with GS&O at Poseyville. P&O was placed into receivership by the Gibson County Superior Court, Gibson County, IN. On March 19, 1993, the court appointed Robert W. Musgrave (Musgrave) receiver for P&O. Pursuant to a March 26, 1996 court order, Musgrave agreed to sell the line (real estate, leases and licenses, track, ties, and other track materials) to RailAmerica, Inc. (RailAmerica), a Delaware corporation. RailAmerica, in turn, will assign its rights and interests in the line to OTC, and Huron and Eastern Railway Company, Inc. (Huron), will supply the labor and equipment, as needed, for OTC to operate the line. OTC and Huron are Michigan corporations and RailAmerica subsidiaries. Decided: April 29, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32903] Pittsburg & Shawmut Railroad, Inc.--Acquisition and Operation Exemption--Rail Lines Controlled by Arthur T. Walker Estate Corporation (The Pittsburg & Shawmut Railroad Company, Red Bank Railroad Company and Mountain Laurel Railroad Company) Pittsburg & Shawmut Railroad, Inc. (P&S), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate all of the lines of railroad controlled by Arthur T. Walker Estate Corporation (ATWEC), viz., the lines owned by The Pittsburg & Shawmut Railroad Company (Shawmut), Mountain Laurel Railroad Company (Mountain Laurel), and Red Bank Railroad Company (Red Bank). All of the lines to be acquired and operated by P&S are in the State of Pennsylvania and are from: (1) Shawmut, being 96.747 miles of line (a) between Brockway Yard, Brockway (milepost 0.0) and Freeport (milepost 88.027), a distance of 88.027 miles, (b) between milepost 0.98 of the main line at Snyder Township (a/k/a milepost 0.0) and the connection with B&P (milepost 0.37), a distance of .37 miles, (c) between Brookville Yard (milepost 20.89) and the connection with Mountain Laurel (milepost 0.30), a distance of .30 miles, (d) between milepost 24.29 of the main line at Knox Township (a/k/a milepost 0.0) to the end of track (milepost 3.65), a distance of 3.65 miles, (e) between milepost 60.42 of the main line at Madison (a/k/a milepost 0.0) and the end of track (milepost 3.12), a distance of 3.12 miles, and (f) between Milepost 69.86 of the main line in East Franklin (a/k/a milepost 0.0) and the connection with B&P (milepost 1.28), a distance of 1.28 miles; (2) Mountain Laurel, being 127.7 miles of line (a) between Lawsonham (milepost 6.0) and Driftwood (milepost 110.0) a distance of 104 miles, and (b) between Rose (Brookville) (milepost 0.0) and Piney (milepost 23.7), a distance of 23.7 miles; and (3) Red Bank's 12.5 miles of leased line, being (a) between Lawsonham (milepost 0.0) and Sligo (milepost 10.5), a distance of 10.5 miles, and (b) between the end of track (milepost 4.0) and Lawsonham (milepost 6.0), a distance of 2.0 miles, for a total mileage of 236.947. P&S maintains, and we agree, that this transaction falls under 49 U.S.C. 10901. Because P&S, a noncarrier, is acquiring all rail assets of three separate carriers, it could be argued that the transaction is subject to 49 U.S.C. 11323(a)(4). However, although Shawmut, Mountain Laurel and Red Bank are now separate, substantial corporate entities, together they comprise the single rail system of ATWEC. P&S will acquire and commence operation of the three rail lines simultaneously, and operate them as a single carrier. As a practical matter, the only effect of processing this transaction under section 10901, as opposed to section 11323, is that the class exemption at 49 CFR 1150.31 is available for section 10901 transactions involving the creation of a Class III carrier. Because this transaction only involves Class III carriers, it is immaterial, for purposes of employee protective arrangements, whether the transaction falls under section 10901 or section 11323. Red Bank operates, with Shannon Transport, Inc. (Shannon), its rail lines under a lease and operating agreement authorized in Finance Docket No. 31705, Shannon Transport, Inc., and Red Bank Railroad Company--Acquisition and Operation Exemption--Consolidated Rail Corporation. Shannon has indicated that it will provide its written consent to the assignment of that agreement to P&S at the closing of the transaction prior to the commencement of operations by P&S. The ICC approved Mountain Laurel's acquisition of its lines in Finance Docket No. 31974, Mountain Laurel Railroad Company--Acquisition and Operation Exemption--Consolidated Rail Corporation. By petition filed December 28, 1993, the Brotherhood of Maintenance of Way Employees seeks to revoke the exemption. This matter is pending before the Board, and, as a result, P&S's acquisition of Mountain Laurel is subject to final Board action in Finance Docket No. 31974. Consummation was expected to be on or about April 25, 1996. This proceeding is related to Genesee & Wyoming Inc.--Continuance in Control Exemption--Pittsburg & Shawmut Railroad, Inc., STB Finance Docket No. 32904, wherein Genesee & Wyoming, Inc. has concurrently filed a petition for exemption to continue in control of P&S together with the other railroads in its system after P&S becomes a Class III rail carrier. Decided: May 1, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32931] CSX Transportation, Inc.--Trackage Rights Exemption--East Cooper and Berkeley Railroad Company CSX Transportation, Inc. (CSXT) has filed a verified notice under 49 CFR 1180.2(d)(7) to acquire overhead trackage rights from East Cooper and Berkeley Railroad (ECBR) between milepost 0.00 at State Junction, SC, to milepost 14.8 thence over newly constructed trackage for a distance of approximately 2.2 miles to the property line of Nucor Corporation (Nucor), for a total distance of approximately 17 miles in Berkeley County, SC. The trackage rights became effective on May 2, 1996. The notice states that the CSXT's use of the ECBR track will enable CSXT to provide direct linehaul service to Nucor and any satellite industries that might be constructed adjacent to the Nucor mill. This direct access will enable CSXT to offer intermodal competition for shipments to and from the Nucor mill and any satellite industries. Decided: May 3, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32906] San Joaquin Valley Railroad Co.--Corporate Family Transaction Exemption--Port Railroads, Inc. San Joaquin Valley Railroad Co. (SJVR) and Port Railroads, Inc. (PRI), common carriers by railroad, have jointly filed a verified notice of exemption whereby SJVR will acquire by assignment of lease all of the railroad properties which PRI acquired by lease from Southern Pacific. SJVR and PRI are Class III railroads which are wholly owned subsidiary corporations of Kyle Railways, Inc. SJVR and PRI state at p. 1 of their Assignment of Lease Agreement that ``such assignment requires the consent of Southern Pacific.'' The transaction was expected to be consummated on April 24, 1996. The unification of SJVR and PRI's railroad operations will permit the consolidation of their separately maintained books and records, the elimination of duplicating administrative costs and the achievement otherwise of greater efficiencies and economies in the rendition of the railroads' transportation services. This is a transaction within a corporate family of the type specifically exempted from prior review and approval under 49 CFR 1180.2(d)(3). The parties state that the transaction will not result in significant changes in railroad operations. In addition, while the parties do not specifically say it, the transaction would apparently not result in a change in the competitive balance with carriers outside the corporate family. Decided: May 3, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32879] Nebraska Central Railroad Company--Lease and Operation Exemption--Lines of Union Pacific Railroad Company ACTION: Notice of Exemption. SUMMARY: The Board, under 49 U.S.C. 10502, exempts from the prior approval requirements of 49 U.S.C. 10902 the lease and operation by Nebraska Central Railroad Company of three branch lines of Union Pacific Railroad Company consisting of: (1) a line of railroad extending from milepost 83.3 to milepost 80.0 (approximately 3.3 miles); (2) a line of railroad extending from milepost 46.1 to milepost 43.44 (approximately 2.7 miles); and (3) the Norfolk Branch extending from milepost 0.0 to milepost 46.1 (approximately 1.5 miles), in Norfolk, NE. The mileposts here describe locations on separate branch lines. Thus, the mileage between these two points is actually about 1.5 miles, and not 46.1 miles. DATES: This exemption is effective on May 10, 1996. Decided: April 22, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB-6 (Sub-No. 367X)] Burlington Northern Railroad Company--Abandonment Exemption--in Crawford County, KS ACTION: Notice of exemption. SUMMARY: The Board exempts from the prior approval requirements of 49 U.S.C. 10903-04 the abandonment by Burlington Northern Railroad Company of its line of railroad from milepost 134.20 to milepost 135.18 and milepost 136.70 to milepost 139.10, a total distance of 3.38 miles in Pittsburg, Crawford County, KS, subject to standard labor protective and environmental conditions. Interim trail use and a public use condition are imposed for the line segment from milepost 136.70 to milepost 139.10. DATES: Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on June 13, 1996. Decided: May 1, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB-454X] The Bay Line Railroad, L.L.C.--Abandonment Exemption-- in Jackson and Holmes Counties, FL ACTION: Notice of Exemption. SUMMARY: The abandonment by The Bay Line Railroad, L.L.C. of its Graceville Branch, consisting of 9.19 miles of rail line between milepost 61.3, near Campbellton, and milepost 70.49, at Graceville, in Jackson and Holmes Counties, FL, is exempted from the prior approval requirements of 49 U.S.C. 10903-04, subject to standard employee protective conditions. DATES: Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on June 13, 1996. Decided: April 29, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB-289 (Sub-No. 3X), AB-290 (Sub-No. 168X)] Central Railroad Company of Indianapolis--Discontinuance of Service Exemption--Between Kokomo and Argos in Howard, Miami, Fulton, and Marshall Counties, IN; Norfolk and Western Railway Company-- Abandonment Exemption--Between Kokomo and Rochester in Howard, Miami, and Fulton Counties, IN ACTION: Notice of exemption and interim trail use. SUMMARY: The Board exempts from the prior approval requirements of 49 U.S.C. 10903-04: (a) Norfolk and Western Railway Company's (N&W) abandonment of its line between milepost I-57.2 at or near Kokomo, IN, and milepost I-74.2, at Peru, IN; (b) N&W's discontinuance of service over the segment of the line between milepost I-74.2, at Peru, and milepost I-95.6, at or near Rochester, IN, and abandonment of this line segment, provided that the abandonment of this segment may not be consummated until Indiana Hi-Rail Corporation's discontinuance of its trackage rights over this segment has been authorized; and (c) Central Railroad Company of Indianapolis's discontinuance of service over 51.4 miles of rail line between milepost I-57.2, at or near Kokomo, and milepost I-108.6 at or near Argos, IN, in Howard, Miami, Fulton, and Marshall Counties, IN, subject to standard employee protective, environmental, trail use, and public use conditions. DATES: Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on June 13, 1996. Decided: April 26, 1996. ============================================================================= Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ==============================================================================