DOT REPORT #12 - May, 1996 ================================================================= A compilation of rail notices published by the US Department of Transportation between May 16 - 31, 1996. Includes abandonment, operation and control notices, FRA orders and related petitions. Condensed from original. ================================================================= CONTENTS: Buffalo & Pittsburgh Railroad, Inc.--Trackage Rights Exemption-- Pittsburg & Shawmut Railroad, Inc. Pittsburg & Shawmut Railroad, Inc.--Trackage Rights Exemption-- Buffalo & Pittsburgh Railroad, Inc. Northwestern Pacific Railroad Authority; Acquisition Exemption; Former Northwestern Pacific Railroad Line From Southern Pacific Transportation Company and Golden Gate Bridge, Highway and Transportation District Ormet Railroad Corporation; Acquisition and Operation Exemption; Consolidated Rail Corporation Owensville Terminal Company, Inc.; Acquisition and Operation Exemption--Poseyville & Owensville Railroad Company, Inc. CSX Transportation, Inc.; Abandonment Exemption; in Berkeley County, WV Coopersville & Marne Railway Company--Acquisition and Operation Exemption--Central Michigan Railway Company Bootheel Regional Rail Corporation and Bootheel Rail Properties, Inc.--Acquisition and Operation Exemption--Burlington Northern Santa Fe Corporation Livonia, Avon & Lakeville Railroad Corp.--Acquisition and Operation Exemption--Steuben County Industrial Development Agency Norfolk Southern Railway Company--Corporate Family Transaction Exemption--Southern Railway-Carolina Division CSX Transportation, Inc.--Abandonment Exemption--in Cincinnati, Hamilton County, OH Lexington & Ohio Railroad Co., Inc.--Acquisition and Operation Exemption--Norfolk Southern Railway Company H. Peter Claussen and Linda C. Claussen--Continuance in Control Exemption--Lexington & Ohio Railroad Co., Inc. CSX Transportation, Inc.--Acquisition--Certain Rail Lines of Indiana Hi-Rail Corporation in Henderson, KY, and Evansville, IN Angelina & Neches River Railroad Company--Purchase Exemption-- Texas South-Eastern Railroad Company Great Western Railway of Iowa, L.L.C., d/b/a Council Bluffs Railway--Abandonment Exemption--in Council Bluffs, IA Petition for Exemption or Waiver of Compliance Warren & Trumbull Railroad Co.--Trackage Rights Exemption-- Economic Development Rail II Corporation Great Western Lines, LLC--Acquisition Exemption--Burlington Northern Railroad Company Great Western Railway of Colorado, LLC--Trackage Rights Exemption--Great Western Lines, LLC Neptune Partners, Ltd.--Continuance in Control Exemption--Great Western Lines, LLC Union Pacific Railroad Company--Trackage Rights Exemption-- Chicago, Central and Pacific Railroad Company ======================================================================= DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32940] Buffalo & Pittsburgh Railroad, Inc.--Trackage Rights Exemption-- Pittsburg & Shawmut Railroad, Inc. Pittsburg & Shawmut Railroad, Inc. has agreed to grant local trackage rights to Buffalo & Pittsburgh Railroad, Inc. over approximately 1.5 miles of railroad located in Pennsylvania between milepost 1.5 near Dellwood Junction and milepost 0.00 at Brockway Yard. The trackage rights were to become effective on or after May 10, 1996. Decided: May 10, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation [STB Finance Docket No. 32939] Pittsburg & Shawmut Railroad, Inc.--Trackage Rights Exemption-- Buffalo & Pittsburgh Railroad, Inc. Buffalo & Pittsburgh Railroad, Inc. has agreed to grant overhead trackage rights to Pittsburg & Shawmut Railroad, Inc. over approximately 13 miles of railroad located in Pennsylvania between milepost 204.0 near Falls Creek Junction and milepost 191.0 at Forest. The trackage rights were to become effect on or after May 10, 1996. Decided: May 10, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32910] Northwestern Pacific Railroad Authority; Acquisition Exemption; Former Northwestern Pacific Railroad Line From Southern Pacific Transportation Company and Golden Gate Bridge, Highway and Transportation District Northwestern Pacific Railroad Authority (NWPRA), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire former Northwestern Pacific Railroad Line real estate and rail facilities/trackage from Southern Pacific Transportation Company (SP) which extends from Healdsburg, CA (NWP MP 68.2), to Lombard Station, Napa County, CA (SP MP 63.4), via Schellville (NWP MP 40.6/SP MP 72.59), a distance of 66.85 miles. NWPRA is an independent joint powers public agency created pursuant to California Government Code Section 6500 et seq. by virtue of an agreement among the County of Marin, the Golden Gate Bridge, Highway and Transportation District (GGBHTD), and the North Coast Railroad Authority (NCRA). The purpose of the acquisition is to preserve the railroad corridor for potential future mass transit use. The transaction was expected to close on or about April 30, 1996. Freight service on the line will continue to be provided by the California Northern Railroad Company (CNRR) pursuant to long-term lease arrangement with SP. NWPRA will take title subject to the CNRR lease, and CNRR will continue to provide freight service. The joint powers agreement forming the NWPRA make an express commitment that in the event the existing operator files an application to abandon or discontinue freight service over the line NWPRA is to acquire in Finance Docket No. 32910, NCRA will be entitled to obtain an easement from NWPRA permitting it to continue freight service over the line. To provide for this, NWPRA states that it will, simultaneously with the closing of this transaction, transfer a permanent and exclusive freight railroad easement to NCRA, which will become effective only upon the cessation of freight service by CNRR and the approval by the Board of both the transfer of the easement and the assumption of carrier responsibility by NCRA. In addition, CNRR currently operates over the segment between NWP MP 26.96 and NWP MP 25.57 pursuant to a freight easement which was retained by SP in a 1990 transaction involving GGBHT. At the closing of the transaction in Finance Docket No. 32910, SP's freight easement will be quitclaimed to GGBHTD, which will then grant to NWPRA the rights to operate over the easement area. According to NWPRA, NCRA will obtain an easement from NWPRA to provide freight service over the segment between NWP MP 26.96 and NWP MP 25.57, at the same time that it acquires the easement mentioned earlier, by which it would take over operations after CNRR ceases its operations. NWPRA states that the future transfer of these easements will imbue NCRA with all carrier rights and responsibilities and that NWPRA will remain a noncarrier holder of the underlying real estate. NWPRA thus states that it intends in the near future to file either a Motion to Dismiss this Notice or a Petition for a Declaratory Order requesting that it be designated as a noncarrier. Decided: May 9, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32907] Ormet Railroad Corporation; Acquisition and Operation Exemption; Consolidated Rail Corporation Ormet Railroad Corporation of Wheeling, WV (ORC), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire from Consolidated Rail Corporation's Omal Secondary Track from milepost 60.5 at Powhatten Point, to the end of the line, milepost 72.7 at Omal, a distance of 12.2 miles in Monroe County, OH. ORC will assume the common carrier obligation associated with the line, holding itself out to render common carrier service by railroad. Consolidated Rail Corporation will perform the operations on the line, solely pursuant to a private contractual arrangement, on behalf of and for the account of ORC. Consummation was to be on or after April 30, 1996. Decided: May 10, 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. This notice corrects the notice previously served and published on May 7, 1996. The prior notice erroneously stated that Owensville Terminal Company, Inc. is a subsidiary of RailAmerica, Inc. 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. (Rail America), 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 Huron is a RailAmerica subsidiary. Decided: April 29, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-55 (Sub-No. 526X)] CSX Transportation, Inc.; Abandonment Exemption; in Berkeley County, WV CSX Transportation, Inc. (CSXT) filed a notice of exemption under 49 CFR1152 Part Subpart F--Exempt Abandonments to abandon 1.29 miles of its line of railroad from milepost BBQ-1.64 to milepost BBQ-2.93 near Berkeley, in Berkeley County, WV. CSXT has certified that: (1) no local traffic has moved over the line for at least 2 years; (2) there is no overhead traffic on the line; (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 favor of complainant within the 2-year period; 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 June 16, 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: May 13, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32942] Coopersville & Marne Railway Company--Acquisition and Operation Exemption--Central Michigan Railway Company Coopersville & Marne Railway Company of Coopersville, MI (CMR), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate certain railroad lines of Central Michigan Railway Company (CMGN) from: (1) Milepost 1.16 at Marne, to milepost 8.5 at Coopersville, a distance of 7.34 miles; and (2) milepost 1.16, (old 166.44) at Marne, to milepost 159.5 at Walker, a distance of 6.94 miles, for a total distance of 14.28 miles, in Kent and Ottawa Counties, MI. Consummation of the transaction was to be on or after May 8, 1996. Decided: May 14, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32938] Bootheel Regional Rail Corporation and Bootheel Rail Properties, Inc.--Acquisition and Operation Exemption--Burlington Northern Santa Fe Corporation Bootheel Regional Rail Corporation (BRRC) and Bootheel Rail Properties, Inc. (BRPI), noncarriers, have filed a verified notice of exemption under 49 CFR 1150.31 for BRPI to acquire and BRRC to operate a 26.63-mile rail line (together with incidental and appendent branch line rights-of-way, now discontinued, and spur tracks) from the Burlington Northern Santa Fe Railroad as follows: (1) Branch Line between Hayti, MO, (milepost 212.73), and Kennett, MO, (milepost 230.00); (2) discontinued Branch Line right-of-way from Kennett, MO, (milepost 230.00), to Holcomb, MO, (milepost 233.15); (3) discontinued Branch Line right-of-way from Kennett, MO, (milepost 230.00), to Senath, MO, (milepost 233.52); (3) discontinued Piggott Stub Branch Line right-of-way, (milepost 222.19 to milepost 223.40); and (4) discontinued Branch Line from Hayti, MO, (milepost 212.90), to Caruthersville, MO, (milepost 214.38). The transaction was to be consummated on or after May 8, 1996. Decided: May 16, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32941] Livonia, Avon & Lakeville Railroad Corp.--Acquisition and Operation Exemption--Steuben County Industrial Development Agency Livonia, Avon & Lakeville Railroad Corp. (LAL), a Class III common carrier by rail, has filed a verified notice under 49 CFR 1180.2(d)(2) to acquire the exclusive right to operate over Steuben County Industrial Development Authority's rail line (Subject Line) between milepost plus-minus 8.68 at Hammondsport and milepost plus-minus 0.85 at Bath, and from that point (which is also designated as milepost plus-minus 285.10) to milepost plus-minus 311.30 at Wayland, a distance of approximately 34.03 route miles. At the time the Steuben County Industrial Development Agency (SCIDA) obtained approval from the ICC to acquire the Subject Line (1992), it did not seek the requisite authority to obtain that portion of the Subject Line between Bath and Hammondsport. LAL indicates that SCIDA will be seeking a retroactive exemption for this acquisition in the near future. Consummation of the transaction was expected to occur on May 8, 1996, or soon thereafter. LAL owns and operates a line of railroad between Rochester and Lakeville, NY. This transaction is exempt from the prior approval requirements of 49 U.S.C. 11323 because LAL states that: (1) The Subject Line does not connect with the existing rail lines of LAL; (2) the proposed transaction is not part of a series of anticipated transactions that would connect LAL's existing lines with the Subject Line; and (3) the transaction does not involve a Class I carrier. Decided: May 14, 1996. --------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32891] Norfolk Southern Railway Company--Corporate Family Transaction Exemption--Southern Railway-Carolina Division Norfolk Southern Railway Company (NSR), a Class I common carrier by railroad, and Southern Railway-Carolina Division (SRCD), a Class III common carrier railroad, have jointly filed a verified notice of exemption. The exempt transaction is a merger of SRCD with and into NSR. SRCD is a wholly owned, direct subsidiary of NSR with authorized capital stock of 77,987 shares of Common Stock, 41,762 of which are issued and outstanding and owned by NSR. NSR has leased and operated the properties of SRCD since approximately 1902. The proposed agreement and plan of merger states that any outstanding shares of SRCD's capital stock will be canceled and retired, and no consideration will be paid in respect of such shares. The transaction is expected to be consummated on or after June 1, 1996. The proposed merger will eliminate SRCD as a separate corporate entity, thereby simplifying the corporate structure of NSR and the NSR system, and eliminating costs associated with separate accounting, tax, bookkeeping and reporting functions. 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 adverse changes in service levels, significant operational changes, or a change in the competitive balance with carriers outside the corporate family. Decided: May 16, 1996. --------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-55 (Sub-No. 529X)] CSX Transportation, Inc.--Abandonment Exemption--in Cincinnati, Hamilton County, OH CSX Transportation, Inc. (CSXT) filed a notice of exemption under 49 CFR 1152 Subpart F--Exempt Abandonments to abandon approximately 1.5 miles of its line of railroad between Valuation Station 1+82.8 near Smith Street and Valuation Station 81+12 near Mill Creek, in Cincinnati, Hamilton County, OH. CSXT has certified that: (1) No local traffic has moved over the line for at least 2 years; (2) there is no overhead traffic on the line; (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 favor of complainant within the 2-year period; 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 June 21, 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: May 15, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32900] Lexington & Ohio Railroad Co., Inc.--Acquisition and Operation Exemption--Norfolk Southern Railway Company Lexington & Ohio Railroad Co., Inc. (L&O), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate approximately 14.9 miles of rail line owned by Norfolk Southern Railway Company from milepost 23.9LL in Lexington, KY, to milepost 9.0LL in Versailles, KY, in Fayette and Woodford Counties, KY. The transaction was expected to be consummated on or after May 10, 1996. This proceeding is related to STB Finance Docket No. 32901, wherein H. Peter Claussen and Linda C. Claussen have concurrently filed a verified notice to continue to control L&O, upon its becoming a Class III rail carrier. Decided: May 17, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32901] H. Peter Claussen and Linda C. Claussen--Continuance in Control Exemption--Lexington & Ohio Railroad Co., Inc. H. Peter Claussen and Linda C. Claussen, noncarrier individuals (Applicants), have filed a notice of exemption to continue in control of Lexington & Ohio Railroad Co., Inc. (L&O), upon L&O's becoming a Class III rail carrier. The transaction was expected to be consummated on or after May 10, 1996. This proceeding is related to STB Finance Docket No. 32900, wherein L&O seeks to acquire and operate certain rail lines from the Norfolk Southern Railway Company. Applicants own and control eight existing Class III common carriers by rail: Live Oak, Perry & Georgia Railroad Company, Inc., operating in Florida and Georgia; Georgia & Florida Railroad, Co., Inc., operating in Florida and Georgia; Albany Bridge Company, operating in Georgia; Gulf & Ohio Railways, Inc., operating under the trade name of Mississippi Delta Railroad in Mississippi and under the trade name of Atlantic & Gulf Railroad in Georgia; Wiregrass Central Railroad Company, Inc., operating in Alabama; H&S Railroad, Inc., operating in Alabama; Piedmont & Atlantic Railroad, Inc., operating in North Carolina; and Rocky Mount & Western Railroad Co., Inc., operating in North Carolina. Applicants state that: (i) The railroads will not connect with each other or any railroad in their corporate family; (ii) the acquisition of control is not part of a series of anticipated transactions that would connect the nine railroads with each other or any railroad in their corporate family; and (iii) the transaction does not involve a Class I carrier. Therefore, the transaction is exempt from the prior approval requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2). Decided: May 17, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32905] CSX Transportation, Inc.--Acquisition--Certain Rail Lines of Indiana Hi-Rail Corporation in Henderson, KY, and Evansville, IN ACTION: Notice of acceptance of application. SUMMARY: The Board accepts for consideration the application filed April 25, 1996, by CSX Transportation, Inc. (CSXT), and Indiana Hi-Rail Corporation (IHRC) (collectively referred to as applicants) for CSXT to acquire from IHRC approximately 8.2 miles of rail line located in Indiana and Kentucky. In accordance with 49 CFR 1180.4(b)(2)(iv), the Board finds that this is a minor transaction as described in 49 CFR 1180.2(c). CSXT seeks to acquire from IHRC and operate 8.2 miles of track, and the application is styled accordingly. However, we note that CSXT does not require separate authority to operate. When a rail carrier sought to purchase a rail line from another rail carrier in a transaction governed by former 49 U.S.C. 11343 of the Interstate Commerce Act, the ICC would approve or exempt the operation of the line, if requested, but the authority or exemption to operate was not necessary. The purchaser's status as a carrier, coupled with the acquisition of the line, constituted sufficient authority to conduct operations. Similarly, a purchase by a carrier of a line under current 49 U.S.C. 11323-25 provides the purchaser with the authority to conduct rail service over the line. DATES: This decision is effective on May 24, 1996. SUPPLEMENTARY INFORMATION: Applicants seek approval under 49 U.S.C. 11323-25 for CSXT to acquire certain rail lines of IHRC and, as part of the transaction, for IHRC to discontinue certain trackage rights over portions of CSXT track, all in Indiana and Kentucky. CSXT, a Class I rail carrier wholly owned by CSX Corporation (a noncarrier), operates approximately 19,000 miles of track in 19 states, the District of Columbia, and Ontario, Canada. IHRC, a Class III rail carrier, operates eight rail lines, comprising approximately 283 miles of track, in Indiana, Illinois, Ohio, and Kentucky. CSXT proposes to purchase from IHRC approximately 7.8 miles of branch line and 0.4 miles of siding track, for a total of 8.2 miles, as follows: (1) A 5.8-mile line segment, located in Henderson, KY, extending from CSXT milepost H- 312.63 to the end of IHRC's track, the site of the Henderson County Port Authority; (2) a 1-mile line segment, located in Henderson, extending from CSXT milepost H-312.90 to the end of IHRC's track (The application identifies three rail-served industries on this line segment, CPS, J-Ron, and Bakery Feeds.); and (3) a 1-mile line segment, located in Evansville, IN, extending from CSXT milepost OZA-285.22 to the end of IHRC's track. (The operating plan and map accompanying the application identify one rail-served industry (Modern Maid) on the Evansville line segment). IHRC will also transfer its one-half ownership interest in two unused siding tracks, No. 277 and No. 279, that are jointly owned with CSXT; they are located at CSXT milepost H-312.79, and each is approximately 0.2 mile in length. Additionally, as part of this transaction, IHRC will discontinue its trackage rights between Evansville and Henderson over CSXT's main service lane connecting Chicago, IL, and Nashville, TN. The trackage rights include a single-track bridge over the Ohio River, seemingly a point of congestion. Also, IHRC's trackage rights over a portion of CSXT track in Evansville (the ``Evansville Belt'' and the ``running track'') will be discontinued. IHRC is in bankruptcy. The U.S. Bankruptcy Court, Southern District of Indiana, Indianapolis Division, has approved the transaction subject only to our approval. In an order dated March 5, 1996, the court authorized the sale and approved the closing of the transaction in escrow, with Board approval as the basic condition to take the transaction out of escrow. Applicants maintain that the proposed transaction will not result in any substantial lessening of competition in any affected market or region. Only 8.2 miles, or 2% of IHRC's track, are involved, and, for the most part, the track is used for switching operations. Instead of lessening competition, applicants argue that the proposed transaction will serve the public interest by reducing their costs, improving the quality and competitiveness of rail service, and strengthening IHRC's ability to provide rail service on the remainder of its system. The line segments connect with CSXT's system and assertedly fit well into its network. On the other hand, IHRC can only reach the three Henderson line segments via the trackage rights over CSXT's main line. Thus, traffic originating or terminating on these line segments must be handled in interchange service, which is inherently more costly and results in delay to shippers. Moreover, the trackage rights operations place schedules at risk and otherwise threaten significant disruptions with a line characterized by applicants as ``the backbone of CSXT's Chicago to Nashville Service Lane * * * one of CSXT's heaviest trafficked lines on its system.'' Operations over this line reportedly are conducted using a highly successful corridor concept that decentralizes many aspects of operational management and instead emphasizes scheduled operations based on a preexisting plan that accounts for essential operational inputs by time and location. Overall, applicants maintain the proposed transaction will result in rail service becoming even more competitive with motor carriage in the affected area. By replacing the bankrupt IHRC with CSXT, applicants contend that the shippers served by these line segments will receive improved rail service. Also, they state that service reliability will improve for hundreds of other customers shipping via CSXT's Chicago- Nashville main line. The uncertainty engendered by IHRC's trackage rights will be eliminated, giving CSXT the greater measure of control it seeks over operations in this service-critical corridor. Additionally, applicants state that the proposed transaction will help IHRC to restructure for its future survival, and the shipping public will benefit as a result. By enabling IHRC to retire a substantial amount of debt, they contend that the transaction will reduce IHRC's monthly fixed costs and strengthen both its financial situation and its ability to serve customers on its remaining lines. Applicants state that the proposed transaction will have only a slight effect on employees. Additional work, switching cars to industries located on the line segments, will be created for CSXT employees, and only two IHRC train crewmen, the ones who operate the line segments for IHRC, will be affected. The IHRC employees have system-wide seniority, and the Trustee anticipates that they will be reassigned to other work on IHRC's system. An implementing agreement has already been negotiated with their representatives, and applicants anticipate that employees will be protected under the conditions set forth in New York Dock Ry. Decided: May 20, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32888] Angelina & Neches River Railroad Company--Purchase Exemption-- Texas South-Eastern 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 acquisition of approximately 2.9 miles of rail line in Lufkin, Angelina County, TX, by Angelina & Neches River Railroad Company, a Class III railroad. DATES: The exemption will be effective June 28, 1996. Decided: May 15, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-413 (Sub-No. 1X)] Great Western Railway of Iowa, L.L.C., d/b/a Council Bluffs Railway--Abandonment Exemption--in Council Bluffs, IA Great Western Railway of Iowa, L.L.C., d/b/a Council Bluffs Railway (CBGR) filed a notice of exemption under 49 CFR 1152 Subpart F--Exempt Abandonments to abandon approximately 1 mile of its line of railroad from milepost 409.5 on the west side of Iowa State Highway 192 (also known as the South Expressway), to milepost 410.5 near South 17th Street, including the Milwaukee Connector Track, in the City of Council Bluffs, Pottawattamie County, IA. CBGR has certified that: (1) No local traffic has moved over the line for at least 2 years; (2) any overhead traffic on the line has been 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 favor of complainant within the 2-year period; 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 June 27, 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: May 21, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Exemption or Waiver of Compliance In accordance with 49 CFR Sections 211.9 and 211.41, notice is hereby given that the Federal Railroad Administration (FRA) has received from the Northeast Illinois Railroad Corporation (Metra) a request for an extension of the time period necessary to comply with a previously granted temporary waiver of compliance with certain requirements of the Federal safety laws and regulations. The petition is described below. Northeast Illinois Railroad Corporation (Metra); Waiver Petition Docket Number LI-93-13 The Locomotive Safety Standards (49 CFR Part 229) were revised on July 8, 1993, to require each lead locomotive of trains operating over 30 miles per hour to be equipped with an event recorder by May 5, 1995. On September 3, 1993, Metra petitioned FRA for an extension of the May 5, 1995 time limit in which to apply event recorders. On February 6, 1995, FRA granted authority to extend this time limit for compliance to July 1, 1996, as requested, contingent upon Metra providing FRA with a status report of their event recorder installation schedule at quarterly intervals thereafter. Metra seeks an extension of the time period necessary to comply with the previously granted temporary waiver of compliance. Metra's projected completion dates were contingent upon the delivery of event recording devices, the rebuilding of their electric multiple unit cars by an outside company, and the construction of new non-multiple unit control cab cars to replace a group of older non-multiple unit control cab cars. Metra has been unable to maintain the projected completion dates due to a lack of manpower within Metra, internal scheduling problems at the car rebuilder, and internal scheduling problems at the car builder. Metra requests that the compliance date be extended to March 3, 1998. Issued in Washington, D.C. on May 23, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32958] Warren & Trumbull Railroad Co.--Trackage Rights Exemption-- Economic Development Rail II Corporation Economic Development Rail II Corporation (EDR-II) will agree to grant trackage rights to The Warren & Trumbull Railroad Company (WTRC) over approximately 4 miles of railroad located in Ohio between Conrail mileposts 164.52 and 160.6 in Warren Township, and a 1-mile connecting track in Holland Township. The trackage rights are to become effective on such date as the parties may agree in writing as provided in their trackage rights agreement, but not sooner than May 17, 1996 (the effective date of the exemption). Under 49 U.S.C. 10502, the Board exempted EDR-II's acquisition of the above-described line from the prior approval requirements of 49 U.S.C. 10902, in a decision served April 15, 1996. EDR-II is expected to close on the purchase from Conrail not later than May 17, 1996. This transaction will permit WTRC to move freight between points on its existing line and an interchange with Conrail near North Warren, OH, and to serve local points on the line, including the facilities of the Packard Electric Division of General Motors Corporation. Decided: May 21, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32952] Great Western Lines, LLC--Acquisition Exemption--Burlington Northern Railroad Company Great Western Lines, LLC (GWL), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire approximately 23 miles of rail line owned by Burlington Northern Railroad Company (BN) as follows: (i) between milepost 76.5 at Fort Collins, CO, and milepost 98.9 at Greeley, CO; and (ii) BN's interchange track at Loveland, CO, between the end of that track and a point 10 feet south of Tenth Street in Loveland. GWL will also acquire 1 mile of incidental overhead trackage rights over the rail lines owned by BN as follows: (i) between milepost 76.5 at Fort Collins, CO, and BN's Rex Rail Yard at Fort Collins; and (ii) all tracks in BN's Rex Rail Yard. The transaction was expected to be consummated on or after May 20, 1996. This transaction is related to STB Finance Docket No. 32953, wherein Neptune Partners Ltd. has concurrently filed a verified notice to continue in control of GWL, upon its becoming a Class III rail carrier. In addition, Great Western Railway of Colorado, LLC (GWC) has concurrently filed a trackage rights exemption in STB Finance Docket No. 32954, wherein GWC will be the operator of the rail lines being acquired by GWL and over which GWL will acquire incidental trackage rights in STB Finance Docket No. 32952. Decided: May 24, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32954] Great Western Railway of Colorado, LLC--Trackage Rights Exemption--Great Western Lines, LLC Great Western Lines, LLC (GWL), which will become a Class III carrier by virtue of its acquisition in a concurrently filed notice of exemption in STB Finance Docket No. 32952 (ICC served May 31, 1996), will agree to grant local and assign overhead trackage rights to Great Western Railway of Colorado, LLC (GWC), also a Class III rail carrier. GWL will grant GWC local trackage rights over GWL's rail lines as follows: (i) between milepost 76.5 at Fort Collins, CO, and milepost 98.9 at Greeley, CO; and (ii) GWL's interchange track at Loveland, CO. GWL will assign to GWC overhead trackage rights being acquired by GWL over Burlington Northern Railroad Company's (BN's) lines as follows: (i) Between milepost 76.5 at Fort Collins, CO, and BN's Rex Rail Yard at Fort Collins; and (ii) all tracks in BN's Rex Rail Yard. The trackage rights agreement will become effective immediately upon the consummation of the transaction in STB Finance Docket No. 32952. Decided: May 24, 1996. --------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32953] Neptune Partners, Ltd.--Continuance in Control Exemption--Great Western Lines, LLC Neptune Partners, Ltd. (Neptune), a noncarrier, has filed a notice of exemption to continue in control of Great Western Lines, LLC (GWL), upon GWL's becoming a Class III rail carrier. The transaction was expected to be consummated on or after May 20, 1996. Neptune owns and controls one existing Class III common carrier by rail: Northern Ohio & Western Railway, LLC (NOWRR), operating in Ohio. Neptune states that: (i) the railroads will not connect with each other; (ii) the continuance in control is not part of a series of anticipated transactions that would connect GWL with NOWRR; and (iii) the transaction does not involve a Class I carrier. Therefore, the transaction is exempt from the prior approval requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2). Decided: May 24, 1996. --------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32959] Union Pacific Railroad Company--Trackage Rights Exemption-- Chicago, Central and Pacific Railroad Company Chicago, Central and Pacific Railroad Company (CCP) has agreed to grant overhead trackage rights to Union Pacific Railroad Company (UP). CCP will grant UP overhead trackage rights in a north-south direction from the point of switch of the connection at CCP milepost 455.8, near Arion, to the point of switch of the connection at CCP milepost 512.2, near Council Bluffs, IA, a total distance of approximately 56.4 miles. The trackage rights are located in Crawford, Harrison, and Pottawattamie Counties, IA. On May 21, 1996, the Board concurrently received UP and CCP's request in STB Finance Docket No. 32959 (Sub-No. 1), Petition for Partial Revocation of Class Exemption and for Temporary Exemption of Trackage Rights, that the Board permit the trackage rights arrangement to extend only until August 1, 1996. That petition will be addressed by the Board in a separate decision. The transaction was scheduled to be consummated on, or as soon as possible after, the effective date of the exemption. Because the notice of exemption was filed on May 21, 1996, the transaction could be consummated no sooner than May 28, 1996. The purposes of the trackage rights are: (1) to allow UP to operate over an alternate line while UP's parallel line is undergoing repair; and (2) to allow use of the trackage rights as required to alleviate congestion on UP's parallel track. Decided: May 28, 1996. --------------------------------------------------------------------------- RELATED NEWS: Illinois Central Corporation announced that the Surface Transportation Board (STB) has issued its decision approving IC's acquisition of CCP Holdings, Inc. The STB's approval is effective June 13. IC expects to close the transaction in the latter half of June or early July. CCP's principal units are Chicago, Central & Pacific Railroad and Cedar River Railroad. Illinois Central agreed to purchase the assets for $139 million plus capitalized lease obligations. The Surface Transportation Board is expected to vote on the proposed UP/SP merger sometime in early July. Canadian Pacific Rail (CP) may be forced to pay US$1.5 million in damages to a Minnesota grain co-op because of alleged poor service. A complaint against CP Rail by Grain Land Co-op is now before the Surface Transportation Board. The co-op claims service by Soo Line Railroad Company, a CP Rail subsidiary, began to lag in August 1995, and is still not up to par. Soo Line services the "Minnesota Corn Line" in the northern part of the state. ============================================================================= Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ==============================================================================