DOT REPORT #23 - November, 1996 =========================================================== A compilation of rail notices published by the US Department of Transportation between November 1 - 15, 1996. Includes abandonment, operation and control notices, FRA orders and related petitions. Condensed from original. =========================================================== CONTENTS: Petition for Waiver of Compliance Cant Deficient Passenger Train Operation The Atchison, Topeka and Santa Fe Railway Company--Trackage Rights Exemption--Southern Pacific Transportation Company Falls Road Railroad Co., Inc.--Acquisition and Operation Exemption--Consolidated Rail Corporation David Monte Verde, Michael Thomas, Charles Riedmiller, Jeffrey Baxter and John Herbrand, and Genesee Valley Transportation Co. Inc.-- Continuance in Control Exemption--Falls Road Railroad Co., Inc. Kansas City Southern Railway Company--Construction and Operation Exemption--Geismar Industrial Area Near Gonzales and Sorrento, Louisiana Norfolk and Western Railway Company--Abandonment Exemption--in McDowell County, WV Dallas, Garland and Northeastern Railroad--Trackage Rights Exemption--The Kansas City Southern Railway Company Southern Pacific Transportation Company--Trackage Rights Exemption--Union Pacific Railroad Company Union Pacific Railroad Company--Trackage Rights Exemption-- Southern Pacific Transportation Company Morris Leasing Co., Ltd. and Michigan Southern Railroad, Inc.-- Acquisition and Operation Exemption--Lines of Consolidated Rail Corporation Adrian & Blissfield Rail Road Company, Inc.--Lease and Operation Exemption--Norfolk and Western Railway Company CSX Corporation and CSX Transportation, Inc.; Control and Merger; Conrail Inc. and Consolidated Rail Corporation CSX Corporation and CSX Transportation, Inc.--Control and Merger--Conrail Inc. and Consolidated Rail Corporation ================================================= DEPARTMENT OF TRANSPORTATION Federal Railroad Administration [FRA Docket No. RST-96-2] Petition for Waiver of Compliance Cant Deficient Passenger Train Operation In accordance with Title 49 Code of Federal Regulations (CFR) Sections 211.9 and 211.41, notice is hereby given that the Federal Railroad Administration (FRA) received from the National Railroad Passenger Corporation (Amtrak) a request for waiver of compliance with certain requirements of 49 CFR Part 213: TRACK SAFETY STANDARDS. The purpose of Amtrak's petition is to secure approval from FRA to operate equipment know as RoadRailers in passenger trains that are now permitted to operate at four inches of cant deficiency. After Amtrak takes delivery, the RoadRailers will be used primarily in trains for time-sensitive first and second class mail. For several years, Amtrak has operated passenger trains with a variety of equipment at four inches of cant deficiency (underbalance) on tracks either owned by Amtrak or other railroads such as Union Pacific, Burlington Northern, and Southern Pacific. This has allowed Amtrak to increase average train speeds and reduce the number of late arrivals. Without approval for the operation of RoadRailers at four inches of cant deficiency, Amtrak would have to revert to slower curving speeds on passenger trains that have RoadRailers in their consists. Currently, Section 213.57(b) permits a maximum of three inches to be used as the underbalance term (cant deficiency) in the formulation of curve/speed tables by track maintenance engineers defining train speeds for curved track superelevations for any route between two points. The waivers granted Amtrak and the other railroads permit the substitution of four inches in the Vmax formula in Section 213.57. Issued in Washington, D.C. on October 23, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32760 (Sub-No. 20)] The Atchison, Topeka and Santa Fe Railway Company--Trackage Rights Exemption--Southern Pacific Transportation Company Southern Pacific Transportation Company (SPT) will assign overhead trackage rights to The Atchison, Topeka and Santa Fe Railway Company over a total of approximately 3,683 feet of track owned by Kansas City Southern Railway (KCS) from KCS milepost 766.70 to SPT milepost 30.50 near Beaumont, TX. The transaction is expected to be consummated on or about December 16, 1996. SPT has overhead trackage rights on this trackage pursuant to its 1979 Agreement with KCS, which was approved by the Interstate Commerce Commission (ICC) in 1980. SPT states that the instant verified notice of exemption corrects the description of the total footage and SPT milepost number stated in that ICC decision. These trackage rights are related to conditions imposed as part of the recently approved merger in Finance Docket No. 32760 (STB served Aug. 12, 1996) (Decision No. 44). Decided: October 28, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33160] Falls Road Railroad Co., Inc.--Acquisition and Operation Exemption--Consolidated Rail Corporation Falls Road Railroad Co., Inc. (FRRR), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate the line of railroad now owned and operated by Consolidated Rail Corporation (Conrail) known as the Falls Road Secondary Track, extending from milepost 58.29 plus-minus at Lockport, to milepost 16.6 plus-minus at Brockport, in Niagara, Orleans, and Monroe Counties, NY, a total of 41.69 route miles. In addition, FRRR will acquire operating easements only between mileposts 16.60 plus-minus and 16.92 plus-minus (owned by, or to be conveyed by Conrail to, Monroe County) and between mileposts 45.01plus-minus and 45.53 plus-minus (owned by, or to be conveyed by Conrail to, the adjoining landowner). Operations were expected to commence on or after October 24, 1996. This transaction is related to STB Finance Docket No. 33161, David Monte Verde, Michael Thomas, Charles Riedmiller, Jeffrey Baxter and John Herbrand and Genesee Valley Transportation Co. Inc.--Continuance in Control Exemption--Falls Road Railroad Co., Inc., wherein the named individuals and Genesee Valley Transportation Co., Inc., have concurrently filed a verified notice to continue in control of FRRR, upon its becoming a Class III rail carrier. Decided: October 25, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33161] David Monte Verde, Michael Thomas, Charles Riedmiller, Jeffrey Baxter and John Herbrand, and Genesee Valley Transportation Co. Inc.-- Continuance in Control Exemption--Falls Road Railroad Co., Inc. David Monte Verde, Michael Thomas, Charles Riedmiller, Jeffrey Baxter and John Herbrand (Individual Applicants), and Genesee Valley Transportation Co. Inc. (GVT), a noncarrier holding company, have filed a notice of exemption to continue in control of the Falls Road Railroad Co., Inc. (FRRR), upon FRRR's becoming a Class III railroad. The Individual Applicants collectively own 100% of the outstanding shares of GVT that in turn controls a number of Class III carriers. At commencement of operations by FRRR, the entire outstanding capital stock of FRRR will be owned by GVT. Individual Applicants will continue in indirect control of FRRR. The transaction was expected to be consummated upon FRRR's commencement of operations on or after October 24, 1996. This transaction is related to STB Finance Docket No. 33160, wherein FRRR seeks to acquire and operate certain rail lines from Consolidated Rail Corporation. GVT controls 5 existing Class III railroad subsidiaries: Depew, Lancaster & Western Railroad Co., Inc., operating between Lancaster and Depew, NY; Lowville & Beaver River Railroad Co., operating between Lowville and Croghan, NY; Mohawk Adirondack & Northern Railroad Corp., operating (a) between Carthage and Lowville, (b) between Carthage and Newton Falls, and (c) between Utica and Lyons Falls, NY; Genesee & Mohawk Valley Railroad Co., operating (a) a portion of the Utica Yard, (b) a portion of the Rome Industrial trackage in Oneida County, NY, and (c) a portion of the Batavia-Lehigh and Lower Town Industrial trackage in Genesee County, NY; and Delaware-Lackawanna Railroad Co., Inc., operating (a) between Fell Township and Moosic (Scranton), (b) tracks within Scranton, and (c) between Scranton and Mt. Pocono, PA. GVT owns a controlling interest of the stock of Lowville & Beaver River Railroad and 100% of the stock of the other carriers under its control. GVT states that: (i) The rail lines to be operated by FRRR do not connect with any railroad in the corporate family; (ii) the transaction is not part of a series of anticipated transactions that would connect FRRR with any railroads in the 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: October 25, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Finance Docket No. 32530] Kansas City Southern Railway Company--Construction and Operation Exemption--Geismar Industrial Area Near Gonzales and Sorrento, Louisiana ACTION: Notice of Final Scope of study for environmental impact statement (EIS). SUMMARY: On April 8, 1996, the Board's Section of Environmental Analysis (SEA) issued a final scope of study and requested written comments. SEA received five comments, has reviewed them, and is re- issuing the final scope of study with a few modifications to clarify certain elements of the scope. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-290 (Sub-No. 180X)] Norfolk and Western Railway Company--Abandonment Exemption--in McDowell County, WV Norfolk and Western Railway Company (NW) has filed a notice of exemption under 49 CFR Part 1152 Subpart F--Exempt Abandonments to abandon a 2.5-mile line of its railroad from milepost T-16.0 at Pageton and milepost T-18.5 at Anawalt, in McDowell County, WV. NW has certified 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 Surface Transportation Board (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 December 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: November 1, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33131] Dallas, Garland and Northeastern Railroad--Trackage Rights Exemption--The Kansas City Southern Railway Company The Kansas City Southern Railway Company (KCS) has agreed to grant local trackage rights to the Dallas, Garland and Northeastern Railroad (DGNO) over tracks in Dallas, TX, from milepost 210.5 (STA 3521 + 45), in Garland, TX, to milepost 220.28 (STA 3006 + 89), in Tennison, TX, and from the point of switch at KCS's connection with the Browder yard at milepost 5 + 2677.87 (STA 423 + 35.2) to milepost 8+4886 (STA 290 + 77.87) on the trackage commonly known as the Hale Cememt Spur. The transaction was scheduled to be consummated on October 10, 1996. The trackage rights will improve the efficiency of operations in the West Dallas area and increase the satisfaction of shippers located on the Hale Cement Spur. Decided: November 5, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33245] Southern Pacific Transportation Company--Trackage Rights Exemption--Union Pacific Railroad Company Union Pacific Railroad Company (UP) has agreed to grant overhead trackage rights to Southern Pacific Transportation Company (SP) over three rail segments that total approximately 85.6 miles of contiguous rail lines located in Oakland and in the vicinity of Oakland, CA, as follows: (1) The Canyon Subdivision between Magnolia Tower (MP 5.80) and Niles Junction (MP 30.90); (2) the Canyon Subdivision between Stockton (MP 91.50) and Haggin Yard (Sacramento) (MP 139.80); and (3) the San Jose Subdivision between Niles Junction (MP 0.00) and Milpitas (MP 12.20). The transaction was expected to be consummated on November 4, 1996, or as soon as possible after November 2, 1996, the effective date of the exemption. Decided: November 4, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33244] Union Pacific Railroad Company--Trackage Rights Exemption-- Southern Pacific Transportation Company Southern Pacific Transportation Company (SP) has agreed to grant overhead trackage rights to Union Pacific Railroad Company (UP) over six rail segments that total approximately 108 miles of contiguous rail lines located in Oakland and in the vicinity of Oakland, CA, as follows: (1) the Coast Line between Oakland (MP 3.9) and Newark (MP 30.6); (2) the Hayward Line between Elmhurst (MP 13.4) and Niles (MP 29.2); (3) the Milpitas Line between Niles (MP 29.2 and Milpitas (MP 40.7); (4) the Tracy Line between Newark (MP 37.2) and Niles Junction (MP 43.0); (5) the Fresno Line between Stockton (MP 90.9) and Elvas (MP 136.2); and (6) the Sacramento Line between Sacramento (MP 88.9) and Elvas (MP 91.8). The transaction was expected to be consummated on November 4, 1996, or as soon as possible after November 2, 1996, the effective date of the exemption. Decided: November 4, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33265] Morris Leasing Co., Ltd. and Michigan Southern Railroad, Inc.-- Acquisition and Operation Exemption--Lines of Consolidated Rail Corporation Morris Leasing Co., Ltd. (Morris Leasing) and Michigan Southern Railroad, Inc. (Michigan Southern), Class III rail carriers, have filed a notice of exemption under 49 CFR 1150.41 to acquire and operate 10.9 miles of rail lines of Consolidated Rail Corporation: (1) between milepost No. 119.0 and milepost No. 120.1, at or near Kendallville, Noble County, IN, (a portion of the GR&I Industrial Track); and (2) between milepost No. 0.0 and milepost No. 9.8, at or near Elkhart, Elkhart and St. Joseph Counties, IN, (a portion of the E&W Secondary Track). Michigan Southern will be the operator of the lines. The transaction was expected to be consummated on November 1, 1996. Decided: November 5, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33224] Adrian & Blissfield Rail Road Company, Inc.--Lease and Operation Exemption--Norfolk and Western Railway Company Adrian & Blissfield Rail Road Company, Inc. (ADBF), a Class III shortline carrier, has filed a notice of exemption under 49 CFR 1150.41 to lease and operate approximately 2.1 route miles in Lenawee County, MI, from Norfolk and Western Railway Company (NW) between milepost 44.2, at Page, and milepost 46.3, at Adrian (the Tecumseh Branch Line). ADBF's lease is an interim arrangement which will remain in effect until such time as ADBF acquires the Tecumseh Branch Line from NW. Prior to acquisition, ADBF must obtain the necessary approval or exemption to acquire the Tecumseh Branch Line. The earliest the transaction could be consummated was October 25, 1996, the effective date of the exemption (7 days after the exemption was filed). Decided: November 5, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33220] CSX Corporation and CSX Transportation, Inc.; Control and Merger; Conrail Inc. and Consolidated Rail Corporation ACTION: Decision No. 2; Notice of prefiling notification. SUMMARY: Pursuant to 49 CFR 1180.4(b), CSX Corporation (CSXC), CSX Transportation, Inc. (CSXT), Conrail Inc. (CRI), and Consolidated Rail Corporation (CRC) have notified the Surface Transportation Board (Board) of their intent to file an application seeking authority under 49 U.S.C. 11323-25 for: (1) The acquisition of control of CRI by Green Acquisition Corp. (Acquisition), a wholly owned subsidiary of CSXC; (2) the merger of CRI into Acquisition; and (3) the resulting common control of CSXT and CRI by CSXC. The Board finds this to be a major transaction as defined in 49 CFR part 1180. CSXC and CSXT are referred to collectively as CSX. CRI and CRC are referred to collectively as Conrail. CSX and Conrail are referred to collectively as Applicants. DATES: Applicants intend to file their application on or before March 1, 1997. SUPPLEMENTARY INFORMATION: In the notice of intent filed October 18, 1996, applicants state that under an Agreement and Plan of Merger dated October 14, 1996, CSXC, Acquisition, and CRI have agreed that Acquisition will acquire all of the common stock of CRI. Acquisition plans first to acquire, in one or more tender offers, up to 40% of the stock of CRI for cash and place that stock in a voting trust pending review of the merger by the Board. Upon the satisfaction of certain conditions, including approval of the merger by the Board, CRI would be merged into Acquisition. The operations of the CSXT and CRC railroads would then be consolidated. Applicants filed a copy of the proposed voting trust agreement on October 23, 1996, as amended on November 1, 1996, to be entered into by and between CSXC, Acquisition, and an institutional trustee. Applicants state that they believe that Acquisition's planned purchase of CRI's voting stock will not give CSXC and its affiliates the power to exercise control of CRI and its affiliates. Applicants, however, requested that Board staff issue an informal, non-binding opinion stating whether the voting trust agreement and the arrangements described therein would effectively insulate CSXC and its affiliates from any violation of Subtitle IV of Title 49 of the United States Code and Board policy against unauthorized acquisition of control of CRI's carrier subsidiaries. An informal opinion letter was issued on November 1, 1996. Applicants state that they will use the year 1995 for purposes of their impact analyses to be filed in the application, and that they anticipate filing their application on or before March 1, 1997. The Board finds that this is a major transaction, as defined at 49 CFR 1180.2(a), as it is a control and merger transaction involving two or more Class I railroads. The application must conform to the regulations set forth at 49 CFR part 1180 and must contain all information required therein for major transactions, except as modified by any advance waiver. The carriers are also required to submit maps with overlays that show the existing routes of both carriers and their competitors. By petition also filed October 18, 1996 (CSX/CR-2), applicants requested a protective order to protect confidential, highly confidential, and proprietary information, including contract terms, shipper-specific traffic data, and other traffic data to be submitted in connection with the control application. By decision served October 25, 1996 (Decision No. 1), applicants' petition for a protective order was granted. Also on October 18, 1996, applicants filed a petition to establish a procedural schedule (CSX/CR-3), and to request a waiver under 49 CFR 1152.24(e)(5) to permit modifications of the procedures and timetables prescribed in 49 CFR 1152.25(d) (6) and (7) so that the filing of any opposition evidence, comments, rebuttal and briefing in any merger- related abandonments filed with the primary application would be due in accordance with the procedural schedule subsequently adopted in this proposed merger proceeding. We will address these matters in a separate decision. Applicants indicate that they intend to file shortly a petition for waiver or clarification of Railroad Consolidation Procedures, and related relief. Applicants also request that, in keeping with recent merger proceedings, the Board initially turn all discovery matters (excluding the procedural schedule) over to an Administrative Law Judge (ALJ) to be designated, and direct that parties wishing to engage in discovery consult with the ALJ. The process of assigning an ALJ to this proceeding is underway, and we will leave all discovery matters, including the adoption of any guidelines governing discovery initially, to the discretion of the ALJ. A decision naming the ALJ will be issued as soon as possible. Decided: November 8, 1996. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33220] CSX Corporation and CSX Transportation, Inc.--Control and Merger--Conrail Inc. and Consolidated Rail Corporation ACTION: Decision No. 3; notice of proposed procedural schedule. SUMMARY: The Board invites comments from interested persons on a proposed procedural schedule. SUPPLEMENTARY INFORMATION: In Decision No. 2, served and published in the Federal Register on November 15, 1996, the Board issued a notice to the public that, pursuant to 49 CFR 1180.4(b), CSX Corporation (CSXC), CSX Transportation, Inc. (CSXT), Conrail Inc. (CRI), and Consolidated Rail Corporation (CRC) had filed on October 18, 1996, a notice of their intent to file an application seeking authority under 49 U.S.C. 11323-25 for: (1) the acquisition of control of CRI by Green Acquisition Corp. (Acquisition), a wholly owned subsidiary of CSXC; (2) the merger of CRI into Acquisition; and (3) the resulting common control of CSXT and CRI and CSXC. The Board found this to be a major transaction as defined in 49 CFR part 1180. Applicants intend to file their application on or before March 1, 1997. CSXC and CSXT are referred to collectively as CSX. CRI and CRC are referred to collectively as Conrail. CSX and Conrail are referred to collectively as ``applicants.'' Applicants also filed on October 18, 1996, a petition to establish a procedural schedule (CSX/CR-3). Applicants' proposed procedural schedule is as follows: Applicants' Proposed Procedural Schedule F Primary application and related applications filed. F+30 Board notice of acceptance of primary application and related applications published in the Federal Register. F+45 Notification of intent to participate in proceeding due. F+60 Description of anticipated inconsistent and responsive applications due; petitions for waiver or clarification due with respect to such applications. F+120 Inconsistent and responsive applications due. All comments, protests, requests for conditions, and any other opposition evidence and argument due. Comments by U.S. Department of Justice (DOJ) and U.S. Department of Transportation (DOT) due. F+135 Notice of acceptance (if required) of inconsistent and responsive applications published in the Federal Register. F+150 Response to inconsistent and responsive applications due. Response to comments, protests, requested conditions, and other opposition due. Rebuttal in support of primary application and related applications due. F+165 Rebuttal in support of inconsistent and responsive applications due. F+185 Briefs due, all parties (not to exceed 50 pages). F+215 Oral argument (at Board's discretion). F+217 Voting conference. F+255 Date of service of final decision. Under applicants' proposal, immediately upon each evidentiary filing, the filing party shall place all documents relevant to the filing (other than documents that are privileged or otherwise protected from discovery) in a depository open to all parties, and shall make its witnesses available for discovery depositions. Access to documents subject to the protective order shall be appropriately restricted. Parties seeking discovery depositions may proceed by agreement. Relevant excerpts of transcripts will be received in lieu of cross- examination, unless cross-examination is needed to resolve material issues of disputed fact. Discovery on responsive and inconsistent applications will begin immediately upon their filing. The Administrative Law Judge assigned to this proceeding will have the authority initially to resolve any discovery disputes. The proposed schedule is substantially similar to that adopted in Union Pacific Corporation, Union Pacific Railroad Company and Missouri Pacific Railroad Company--Control and Merger--Southern Pacific Rail Corporation, Southern Pacific Transportation Company, St. Louis Southwestern Railway Company, SPCSL Corp., and The Denver and Rio Grande Western Railway Company (UP/SP), Finance Docket No. 32760. Applicants' proposal is the first major consolidation transaction presented to the Board under the ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat. 803 (ICCTA), enacted December 29, 1995, and effective January 1, 1996. The Board is seeking comments from the public on applicants' proposed procedural schedule, as modified by us below to adhere more closely to the provisions of ICCTA. In ICCTA, Congress provided pursuant to 49 U.S.C. 11325(b): (b) If the application involves the merger or control of two or more Class I railroads, as defined by the Board, the following conditions apply: (1) Written comments about an application may be filed with the Board within 45 days after notice of the application is published F + 75 days under subsection (a) of this section. Copies of such comments shall be served on the Attorney General and the Secretary of Transportation, who may decide to intervene as a party to the proceeding. That decision must be made by the 15th day after the date of receipt of the written comments, and if the decision is to intervene, preliminary comments about the application must be sent to the Board by the end of the 15th day after the date of receipt of the written comments F + 90 days. (2) The Board shall require that applications inconsistent with an application, notice of which was published under subsection (a) of this section, and applications for inclusion in the transaction, be filed with it by the 90th day after publication of notice F + 120 days under that subsection. (3) The Board must conclude evidentiary proceedings by the end of 1 year after the date of publication of notice under subsection (a) of this section. The Board must issue a final decision by the 90th day after the date on which it concludes the evidentiary proceedings. Specifically, we propose to modify applicants' proposed schedule to require parties intending to file comments, protests, requests for conditions, and any other opposition evidence and argument to file their submissions 75 days from the date the application is filed [F + 75] as provided for under 49 U.S.C. 11325(b)(1), with comments from the U.S. Department of Justice (DOJ) and the U.S. Department of Transportation (DOT) due 90 days from the date the application is filed [F + 90 days] as provided for under 49 U.S.C. 11325(b)(1). If these due dates were to be established for comments in this proceeding, responses to comments, protests, requested conditions, and other opposition, and also rebuttal in support of the primary application and related applications would be due 30 days after the due date (i.e., on F + 105 for responses to commenters and parties other than DOJ and DOT; and on day F + 120 for responses to DOJ and DOT). We propose to keep inconsistent and responsive applications due 120 days from the date the application is filed [F + 120 days] as provided for under 49 U.S.C. 11325(b)(2). Because there has not been a major merger in the East since the early 1980s, given our merger experience, we believe it would be prudent for us to factor in some additional time to accommodate possible unique issues that may arise. We propose extending applicants' proposed procedural schedule by 45 days allocated as follows: (1) Adding 5 days to applicants' proposed period of time for parties to prepare their briefs, so that briefs would be due on F + 190 days; (2) adding 15 days to applicants' proposed period of time for parties to prepare for oral argument, so that oral argument would occur on F + 235 days; (3) adding 3 days to applicants' proposed 2-day interval between the oral argument and the voting conference, so that a voting conference would occur on F + 240 days; and (4) adding 22 days to applicants' proposed period of time after the voting conference for the service of the Board's final decision on F + 300 days. In addition, we propose requiring applicants to file an environmental report, including all supporting documents, no later than 30 days prior to the filing of the primary application While applicants need not file their actual operating plan due at the time of the filing of their application, the supporting documents must be completely consistent with their operating plan and contain sufficient information to allow immediate initiation of the environmental review process. Proposed Procedural Schedule as Modified by the Board F-30 Environmental report, including all supporting documents due. F Primary application and related applications filed. F+30 Board notice of acceptance of primary application and related applications published in the Federal Register. F+45 Notification of intent to participate in proceeding due. F+60 Description of anticipated inconsistent and responsive applications due; petitions for waiver or clarification due with respect to such applications. F+75 All comments, protests, requests for conditions, and any other opposition evidence and argument due. F+90 Comments by U.S. Department of Justice (DOJ) and U.S. Department of Transportation (DOT) due. F+105 Responses to comments, protests, requested conditions, and other opposition due. Rebuttal in support of primary application and related applications due in response to filings on day F+75. F+120 Inconsistent and responsive applications due. Rebuttal in support of primary application and related applications due in response to filings of DOJ and DOT on day F+90. F+135 Notice of acceptance (if required) of inconsistent and responsive applications published in the Federal Register. F+150 Response to inconsistent and responsive applications due. F+165 Rebuttal in support of inconsistent and responsive applications due. F+190 Briefs due, all parties (not to exceed 50 pages). F+235 Oral argument (close of record). F+240 Voting conference. F+300 Date of service of final decision. Applicants are proposing that any applications for authority for, or for exemption of, merger-related abandonments, and any supporting verified statements, be filed with the primary application, and be treated as related applications, with any opposition evidence, comments, rebuttal and briefing on those applications to be submitted in accordance with the same schedule as the primary application. We agree that we should process any merger-related abandonment applications in accordance with the overall merger procedural schedule, rather than applying the procedures found at 49 U.S.C. 10903, which is similar to the process we used in the UP/SP proceeding. Therefore, we will grant applicants' request for waiver under 49 CFR 1152.24(e)(5) to permit modifications of the procedures and timetables prescribed in 49 CFR 1152.25(d) (6) and (7) to be consistent with the procedural schedule subsequently adopted in this proposed merger proceeding. Applicants indicate that they intend to file shortly a petition for waiver or clarification of Railroad Consolidation Procedures, and related relief. As in UP/SP, applicants should also seek an exemption under 49 U.S.C. 10502 from any statutory procedural requirements at 49 U.S.C. 10903 necessary to allow the Board to process the merger-related abandonment applications under the procedural schedule ultimately adopted. Decided: November 13, 1996. -------------------------------------------------------------------------- RELATED NEWS: Genesee & Wyoming Inc. announced that it has reached an agreement in principle to acquire all of the common stock of Rail Link, Inc. GWI has filed with the Surface Transportation Board for approval to assume control of three short line railroads owned by Rail Link in Virginia, North Carolina, and Florida. Rail Link is a wholly owned subsidiary of Brenco, Incorporated, which was acquired by Varlen Corporation of Naperville, Illinois in August, 1996. Varlen, a designer and manufacturer of products for transportation industries, is selling Rail Link in order to concentrate on its core businesses. The transaction is expected to close in the next two weeks. ============================================================ Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ============================================================