STB REPORT #1 - JANUARY 1 - 15, 1998 ****************************************************************************** A compilation of decisions and notices published by the Surface Transportation Board. Includes information on track abandonments, ownership changes and trackage rights agreements. Condensed for readability. The full text is available at www.stb.dot.gov/ ****************************************************************************** SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 104X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION--IN OCONTO COUNTY, WI On January 9, 1997, a decision and notice of interim trail use or abandonment (NITU) was served, authorizing a 180-day period for Wisconsin Department of Transportation on behalf of the Wisconsin Department of Natural Resources (WisDNR) to negotiate an interim trail use/rail banking agreement with Union Pacific Railroad Company (UP) for an approximately 8.3-mile line of railroad known as the Oconto Falls Industrial Lead from milepost 54.4, near Oconto, to the end of the line at milepost 46.1, near Stiles Junction, in Oconto County, WI. The initial 180-day period was scheduled to expire on July 8, 1997, but was extended through January 4, 1998, by decision served July 3, 1997. On December 22, 1997, the WisDNR and UP filed a joint motion to extend the negotiation period until July 3, 1998, to complete an interim trail use/rail banking agreement. The parties state that an initial timely offer has been made and that negotiations are currently continuing, but that additional time is needed to finalize negotiations. It is ordered: 1. The negotiating period under the NITU is extended to July 3, 1998. Decided: December 29, 1997 Service Date: January 2, 1998 --------------------------------------------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-487 (Sub-No. 1X) PITTSBURG & SHAWMUT RAILROAD, INC.--ABANDONMENT EXEMPTION-- IN JEFFERSON COUNTY, PA By petition filed September 18, 1997, Pittsburg & Shawmut Railroad, Inc. (PSRR), seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a line of railroad known as the Brockway to Brookville Branch, extending from railroad milepost 2.0 located at or near Brockway to milepost 19.0 located at or near Brookville, a distance of 17 miles, in Jefferson County, PA. A request for issuance of a notice of interim trail use (NITU) and imposition of a public use condition was filed by the Headwaters Charitable Trust (Headwaters). We will grant the exemption, subject to public use, environmental and standard employee protective conditions. PSRR currently owns approximately 216 miles of rail lines in Pennsylvania. It purchased the line proposed for abandonment from the Pittsburg & Shawmut Railroad Company in April 1996, and has not provided service on the line since February 1997, when the Brownlee Lumber Company shipped a boxcar of hardwood lumber. In addition, PSRR states that only three carloads either originated or terminated on the line during 1995 and 1996. It does not expect any future need for service because there are currently no active shippers on the line. According to PSRR, the line, including the rail, ties, roadbed and approximately nine railroad bridges constructed in the early 1900s, is in generally fair condition. However, PSRR states that because of the absence of traffic, there is no justification for it to continue to incur the costs necessary to maintain and operate the line. Our Section of Environmental Analysis (SEA) indicated that the U.S. Department of Commerce, National Geodetic Survey (NGS), has identified 10 geodetic station markers that could be affected by the proposed abandonment. Accordingly, SEA recommends that a condition be placed on any decision granting abandonment authority requiring PSRR to notify NGS at least 90 days prior to commencement of salvage operations if the following geodetic station markers may be disturbed or destroyed by such operations: MA1037 P 92, MA1038 N 92, MA0444 L 92, MA0445 K 92, MA0446 J 92, MA0447 H 92, MA0380 A 338, MA0448 G 92, MA0450 F 92 and MA0451 E 92. Headwaters requests issuance of a NITU under the National Trails System Act, and has submitted a statement of willingness to assume financial responsibility for the right-of-way and acknowledged that the use of the right-of-way is subject to possible future reconstruction and reactivation of the right-of-way for rail service as required under 49 CFR 1152.29. By letter filed December 19, 1997, PARR states that, at this time, it is not willing to negotiate with Headwaters for interim trail use. Because 16 U.S.C. 1247(d) permits only voluntary interim trail use, the Board cannot issue a NITU in this proceeding. Accordingly, we will not do so. SEA has indicated in its EA that the right-of-way may be suitable for other public use after abandonment. Headwaters also requests imposition of a 180-day public use condition precluding PARR from disposing of trail-related structures (e.g., bridges, trestles, culverts and tunnels, but not tracks, ties and signal equipment) on the right-of-way that are suitable for trail use. Headwaters states that the corridor would make an excellent recreational trail and conversion of the property to trail use is in accordance with local and county plans. It also states that the corridor provides important wildlife habitat and green space, and its preservation as a recreational trail is consistent with that end. As an alternative to interim trail use under the Trails Act, the right-of-way may be acquired for public use under 49 U.S.C. 10905. Headwaters has met the criteria for imposing a public use condition by specifying: (1) the condition sought; (2) the public importance of the condition; (3) the period of time for which the condition would be effective; and (4) justification for the period of time requested. Accordingly, a 180-day public use condition will be imposed. We note that a public use condition is not imposed for the benefit of any one potential purchaser, but rather to provide an opportunity for any interested person to acquire a right-of-way that has been found suitable for public purposes. Therefore, PARR is not required to deal exclusively with Headwaters, but may engage in negotiations with other interested persons. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment of the above-described line, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979), and the conditions that: (1) PARR notify N.S. at least 90 days prior to commencement of salvage operations if the following geodetic station markers may be disturbed or destroyed by such operations, MA1037 P 92, MA1038 N 92, MA0444 L 92, MA0445 K 92, MA0446 J 92, MA0447 H 92, MA0380 A 338, MA0448 G 92, MA0450 F 92 and MA0451 E 92; and (2) PARR shall leave intact all of the right-of-way underlying the track, including bridges, trestles, culverts, and tunnels (but not track or track materials), for a period of 180 days from the effective date of this decision, to enable any state or local government agency or any other interested person to negotiate the acquisition of the line for public use. 2. The request for issuance of a notice of interim trail use is denied. 3. PARR must serve a copy of this decision on the former shippers on the line within 5 days after the service date of this decision and certify to the Board that it has done so. 4. Provided no OFA has been received, this exemption will be effective on February 5, 1998. 5. Pursuant to the provisions of 49 CFR 1152.29(e)(2), PARR shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by PARR's filing of a notice of consummation by January 6, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 2, 1998 Service Date: January 6, 1998 ----------------------------------------------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-487 (Sub-No. 2X) PITTSBURG & SHAWMUT RAILROAD, INC.--ABANDONMENT EXEMPTION--IN JEFFERSON COUNTY, PA By petition filed September 18, 1997, Pittsburg & Shawmut Railroad, Inc. (PSRR), seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a line of railroad known as the Conifer Branch, extending from milepost 0.00 (milepost 24.29 on the main line of the Shawmut Subdivision), located south of Norman, PA, to milepost 5.08, located at or near Conifer, PA, a distance of 5.08 miles, in Jefferson County, PA. Pursuant to 49 U.S.C. 10502(b), a notice was published in the Federal Register on October 8, 1997, instituting an exemption proceeding. We will grant the exemption subject to standard employee protective conditions. PSRR owns approximately 216 miles of rail line in Pennsylvania. PSRR purchased the Conifer Branch from the Pittsburg & Shawmut Railroad Company in April 1996. There are no active shippers on the line. According to PSRR, it last provided service on the line in June 1996, when a boxcar of hardwood lumber was shipped by Plunkett-Webster. PSRR avers that there are no prospects for future service. The Conifer Branch was constructed in the early 1900's. PSRR states that 2.08 miles of the track were removed more than 30 years ago. On the remaining 3 miles, the rail and ties are generally in poor condition, and the roadbed contains many washouts caused by local flooding in July 1996. PSRR asserts that, because of the absence of traffic, there is no justification for it to continue to incur the costs necessary to maintain and operate the line. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903, the abandonment by PSRR of the above-described line, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979). 2. PSRR is directed to serve a copy of this decision on Plunkett-Webster within 5 days after the service date of this decision and to certify to the Board that it has done so. 3. Provided no OFA has been received, this exemption will be effective February 5, 1998. 4. Pursuant to the provisions of 49 CFR 1152.29(e)(2), PSRR shall file notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by PSRR's filing of a notice of consummation by January 6, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: December 19, 1997 Service Date: January 6, 1998 ------------------------------------------------------------------------------------------------------------------ SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-487 (Sub-No. 4X) PITTSBURG & SHAWMUT RAILROAD, INC.--ABANDONMENT EXEMPTION--IN ARMSTRONG COUNTY, PA By petition filed on September 18, 1997, Pittsburg & Shawmut Railroad, Inc. (PSRR) seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a 3.14-mile line of railroad known as the Widnoon Branch, extending from railroad milepost 0.00 (milepost 60.42 on the mainline of the Shawmut Subdivision) near Dee, to milepost 3.14, near Widnoon, in Armstrong County, PA. Notice of the institution of an exemption proceeding was published in the Federal Register on October 8, 1997. We will grant the petition, subject to labor protective conditions. PSRR acquired the line proposed for abandonment in April 1996. PSRR has not provided any service on the line since it was purchased and states that its predecessor last provided service in the late 1980s. According to the petitioner, there have been no active shippers on the line for the past 10 years and there is no expectation of a need for service in the future. The line was constructed in the early 1900s and is in generally poor condition due to its being inactive for many years. Because of the absence of traffic to generate revenue, PSRR maintains that there is no justification for it to incur the costs necessary to maintain the line. The Pennsylvania Game Commission has expressed an interest in acquiring the portion of the right-of- way that traverses State Game Lands No. 287 in Madison Township. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment by PSRR of the above-described 3.14-mile rail line, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979). 2. Provided no OFA has been received, this exemption will be effective on February 5, 1998. 3. Pursuant to the provisions of 49 CFR 1152.29(e)(2), PSRR shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by PSRR's filing of a notice of consummation by January 6, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 2, 1998 Service Date: January 6, 1998 ---------------------------------------------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-493 (SUB-NO.6X) Track Tech, Inc. - Abandonment and Discontinuance in Lubbock County, TX In this proceeding, Track Tech, Inc.(Track Tech)has filed a petition under 49 U.S.C. 10502 seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment and discontinuance of operations of a rail line located generally between Milepost 351.15 and Milepost 357.40 all within Lubbock County, Texas, a distance of 6.25 miles. In its application, Track Tech states that the line has been out of service since 1992 when the former owner, Burlington Northern Railroad Company, embargoed the line because of unsafe track conditions. Track Tech states that it has not operated any traffic over the line since it purchased the line in November 1996. The National Geodetic Survey (NGS) has informed us that there are five historic geodetic station markers along the line that may be affected by the proposed abandonment. Track Tech has been provided with information regarding the location and description of these markers. NGS requests that it be given notification not less than 90 days in advance of any salvage activities that may disturb or destroy these markers so that plans can be made for their relocation. We will recommend the imposition of such a condition. Based on the information provided from all sources to date, we conclude that, as currently proposed, abandonment of the line will not significantly affect the quality of the human environment. Therefore, the environmental impact statement process is unnecessary. Service Date: January 6, 1998 --------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-55 (Sub-No. 539X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION-- IN HARRISON COUNTY, WV By decision and notice of interim trail use or abandonment (NITU) served on April 4, 1997, the Board imposed a 180-day period for the Harrison County Commission (HCC) to negotiate an interim trail use/rail banking agreement with CSX Transportation, Inc. (CSXT), for its 14.1-mile line of railroad between milepost 2.1 at Clarksburg and milepost 16.2 at McWhorter, in Harrison County, WV. The initial 180-day negotiating period was scheduled to expire on October 2, 1997, but was extended through November 30, 1997, by decision served September 22, 1997. On December 9, 1997, HCC filed a request for an extension of the negotiation period until February 28, 1998. HCC states that negotiations between the parties (CSXT and HCC) are still ongoing, but that they were unable to reach an agreement during the previously granted negotiation period. By letter filed December 24, 1997, CSXT states that it is willing to continue negotiations with HCC. It is ordered: 1. The negotiating period under the NITU is extended to February 28, 1998. Decided: January 2, 1998 Service Date: January 7, 1998 --------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-55 (Sub-No. 557X)] CSX Transportation, Inc.--Abandonment Exemption--in Atkinson County, GA CSX Transportation, Inc. (CSXT) has filed a notice of exemption under 49 CFR 1152 Subpart F--Exempt Abandonments to abandon approximately 0.51 miles of its line of railroad between milepost AP-617.94 and milepost AP-618.45 at the end of track, in Pearson, Atkinson County, GA. The line traverses United States Postal Service Zip Code 31642. Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on February 6, 1998, unless stayed pending reconsideration. Pursuant to the provisions of 49 CFR 1152.29(e)(2), CSXT shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by CSXT's filing of a notice of consummation by January 7, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: December 29, 1997. Service Date: January 7, 1998 ------------------------------------------------------------ SURFACE TRANSPORTATION BOARD Finance Docket No. 32760 [Decision No. 77] 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 RAILROAD COMPANY In Decision No. 44, we approved, subject to various conditions, the common control and merger of the rail carriers controlled by Union Pacific Corporation (Union Pacific Railroad Company and Missouri Pacific Railroad Company) and the rail carriers controlled by Southern Pacific Rail Corporation (Southern Pacific Transportation Company, St. Louis Southwestern Railway Company, SPCSL Corp., and The Denver and Rio Grande Western Railroad Company). The conditions we imposed included, among many others, the terms of the UP/SP-BNSF settlement agreement. With respect to the UP/SP-BNSF agreement, we concluded that the agreement was sufficient (with certain modifications) to address the competitive harms of an unconditioned UP/SP merger because the BNSF agreement will permit BNSF to replace, to a large extent, the competitive service that is lost when SP is absorbed into UP. The common control authorized in Decision No. 44 was consummated on September 11, 1996. In this decision, we address: the petition for clarification filed November 14, 1997, by BNSF with respect to that carrier's access to New Orleans, LA; and the reply filed December 4, 1997, by UP. The UP/SP-BNSF settlement agreement gave BNSF trackage rights to serve 2-to- 1 shippers in the New Orleans area. As part of the settlement agreement, BNSF also obtained an option to purchase the SP line between Iowa Junction and Avondale, LA, and related facilities. BNSF exercised this option, and purchased this line on December 11, 1996. After BNSF's purchase, UP retained trackage rights permitting it to serve all local industries on that line. In addition, the settlement agreement gave BNSF trackage rights over SP's line between Houston, TX, and UP's Westwego intermodal facility, including a connection to lines serving New Orleans terminal facilities, permitting interchange with the other rail carriers serving New Orleans. Prior to the agreement and merger, BNSF did not have access to New Orleans or the shippers located on the Iowa Junction-Avondale line. UP indicates that, in September 1996, over two months prior to selling the Avondale line, it modified its switching arrangements for the New Orleans switching district so as not to include BNSF. UP states that this action was taken to ensure that it would continue to provide reciprocal switching only for those carriers with which it previously had a switching relationship in New Orleans, which did not include BNSF. UP explains that the switching arrangements at issue reflect mutually beneficial agreements among all of the railroads serving New Orleans shippers to serve each others shippers. BNSF now asks that we require UP to restore the language of its prior switching agreement, which would enable BNSF to access applicants shippers in New Orleans pursuant to that switching agreement, which it was not able to do under the agreement before the merger. Specifically, petitioner requests that, with respect to traffic moving to or from western points, including Mexico, UP be directed to open via reciprocal switching any UP or SP shipper location in the New Orleans switching district that could have received service pre-merger from both UP and SP via direct service or reciprocal switching. BNSF argues that, although UP's New Orleans shippers could receive service from more than two carriers before the merger, BNSF's lack of access deprives these shippers of any effective competitive alternative to UP's service with respect to origins or destinations in the western United States or Mexico. BNSF contends that UP's switching amendments defeat these shippers expectations that BNSF would have access to their facilities as SP had prior to its merger with UP. UP maintains that BNSF's petition must be viewed either as an untimely, unjustified request to reopen the merger proceeding to impose a new condition, or as an attempt to place an issue before us that the parties settlement agreement commits to arbitration. UP indicates that, although more than a year has passed since it amended its switching arrangements to make clear that BNSF does not have access to UP shippers in the New Orleans area, BNSF has not presented any evidence that such shippers or the area have suffered competitive harm as a result of the merger. UP contends that BNSF has not demonstrated any merger-related justification for obtaining access to UP s shippers. BNSF's petition will be denied to the extent it seeks clarification of Decision No. 44. There we conditioned our approval of the UP/SP merger on applicants granting BNSF access to 2-to-1 shippers, by which we meant shippers who [prior to the merger had] rail service from UP and SP and no other railroad. As BNSF itself acknowledges, New Orleans-area shippers are not technically . . . 2-to-1 customers as defined in the BNSF Settlement Agreement. A shipper is only a 2-to-1 shipper [w]hen no third carrier is present . . ., which is clearly not the case here. Nevertheless, BNSF relies on the fact that, in addition to conditioning merger approval on BNSF's access to 2-to-1 shippers, we required UP to grant BNSF access to Lake Charles-area shippers and interchange rights relating to the Martin Lake plant of Texas Utilities Electric Company near Henderson, TX. BNSF argues that these other conditions show that we have granted relief to shippers where route circuity or other service impediments effectively limit their competitive opportunities, and that we should grant relief for New Orleans-area shippers for similar reasons, which allegedly would make them 2-to-1 shippers. BNSF's argument is misplaced. Although we have granted relief for shippers other than 2-to-1 shippers in appropriate circumstances, that does not make them 2-to-1 shippers. Indeed, we specifically ruled that Lake Charles-area shippers are not 2-to-1 shippers as that term is used in Decision No. 44. But moving beyond the specific issue of whether a shipper is a 2-to-1 shipper, we also find that the petition has not demonstrated that the merger has caused any competitive problem for New Orleans area shippers that requires corrective action. Thus, we will also deny BNSF's petition to the extent that it could be construed to request reopening of Decision No. 44 and imposition of a new condition on the merger. BNSF filed its petition for relief almost one year after UP amended its New Orleans switching arrangements. Yet no shipper has shown that the inability to reach BNSF through reciprocal switching has caused it competitive harm. The shippers in New Orleans that are served by UP/SP and open to reciprocal switching are open to four other railroads. These shippers do not appear to have lost any significant rail competition as a result of the merger. BNSF submitted supporting statements from nine shippers, four of which have facilities in New Orleans. But a review of these statements demonstrates that none of the nine shippers claims to have yet suffered any competitive harm as a result of the merger. No shipper indicates on this record that its rates have risen or that its service has suffered as a result of any merger-related market power exercised by UP/SP. Moreover, no shipper provides evidence of any delayed or time sensitive traffic discussed by BNSF in its petition. As mentioned by these shippers, many of the shipments at issue move to or from New Orleans by water; such shipments could be rerouted to other ports if rail rates to New Orleans do not remain competitive. UP has shown that very little of its pre-transaction New Orleans traffic moved from or to points where UP or SP provided the only efficient routings. For most of this traffic, competitive routings can still be constructed using BNSF connections with Kansas City Southern Railway Company (KCS), Illinois Central Railroad Company (IC), Norfolk Southern Railway Company, and CSX Transportation, Inc., which are all available to originate or terminate traffic of these shippers moving to or from New Orleans through direct service or reciprocal switching. There may be minor exceptions for routings to nearby Lake Charles and Houston, and the Mexican gateways, traffic that represents only about 370 total carloads a year. BNSF, however, has not demonstrated that, given the very high switching fee of $495 that existed between UP and SP before the merger, service made possible by reciprocal switching was a meaningful competitive consideration for these relatively short movements. In any event, in Decision No. 44 we imposed a coherent set of conditions that seems to be working well to date in preserving competition. One of those conditions was that we would exercise 5 years of oversight to ensure that merger-related competitive problems do not develop. At this point, we are disinclined to reopen the merger to impose an additional condition such as what is sought by BNSF in the absence of a showing of competitive harm. Although considerable time has passed since the merger was implemented, since UP modified its switching arrangements, and since BNSF exercised its purchase option, no New Orleans shipper has shown that its inability to reach BNSF through reciprocal switching has caused competitive harm. If a reciprocal switching arrangement would be beneficial to its operations, BNSF should negotiate with UP/SP and seek to obtain one in exchange for granting UP considerations, such as access to other BNSF shippers. We see no reason to interfere with that process under these circumstances. We will continue, however, to monitor this situation and others as part of our oversight program. It is ordered: 1. The BN/SF-83 petition is denied. Decided: January 2, 1998 Service Date: January 7, 1998 ---------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33501 DOUGLAS M. HEAD, KENT P. SHOEMAKER AND CHARLES H. CLAY CONTINUANCE IN CONTROL EXEMPTION RUTLAND LINE, INC. On October 24, 1997, Douglas M. Head, Kent P. Shoemaker and Charles H. Clay (Petitioners) filed a petition for exemption from the prior approval requirements of 49 U.S.C. 11323-25 for their continuance in control of Rutland Line, Inc. (RLI). RLI was scheduled to become a Class III rail carrier upon consummation of its acquisition transaction that was the subject of the notice of exemption in Rutland Line, Inc. Acquisition and Operation Exemption The Burlington Northern and Santa Fe Railway Company, STB Finance Docket No. 33500 (STB served Nov. 21, 1997, and published the same day). Petitioners state that all of the outstanding stock of RLI will be placed in an irrevocable voting trust pending our consideration of this petition for exemption. We will grant the exemption. Petitioners are noncarrier individuals who currently control through stock ownership three other Class III common carriers by rail: Twin Cities & Western Railroad Company (TCW); Red River Valley & Western Railroad Company (RRVW), and Minnesota River Bridge Company (MRBC). TCW, RRVW, and MRBC are hereinafter collectively referred to as Affiliates. TCW owns and operates approximately 143.87 miles of rail line between Hopkins, MN, and Appleton, MN. TCW also has trackage rights as follows: from milepost 578.93 at Appleton, MN, to milepost 612.74, near Milbank, SD; from BN milepost 13.27 at Lyndale Junction, MN, to BN milepost 9.54 (east leg of Wye) and BN milepost 10.05 (West leg of Wye), at Minneapolis Junction, Minneapolis, MN; from milepost 11.6, the former Shoreham Yard switch in Minneapolis, MN, to milepost 429.7 in St. Paul, MN; and from milepost 16.2, at St. Louis Park, MN, to milepost 13.7 in Minneapolis, MN. RRVW owns and operates approximately 647.3 route miles of rail line principally in the State of North Dakota. RRVW also has trackage rights as follows: from milepost 6.04, at Wahpeton Junction, ND, to milepost 8.00 near Brushvale, MN; and from milepost 27.40, at Lucca, ND, to milepost 42.90, at Sheldon, ND. MRBC owns approximately 1.11 miles of track, including a railroad bridge over the Minnesota River, from milepost 26.00, near the city of Bloomington, in Hennepin County, MN, to milepost 27.11, near the city of Savage, in Scott County, MN. Concurrent with the filing of this petition for exemption, RLI filed a notice of exemption under 49 CFR 1150 Subpart D--Exempt Transactions to acquire approximately 23 miles of rail line from The Burlington Northern and Santa Fe Railway Company (BNSF) from milepost 42.67, at Geneseo Junction, ND, to milepost 65.60, at the North Dakota/South Dakota border (subject line). RLI will enter into an agency agreement with RRVW whereby RRVW will perform operations in RLI's name and for RLI's account on the subject line. However, RLI will retain the obligation to provide common carrier service on the subject line. RLI is acquiring BNSF s interest in certain spur trackage and real estate at Hankinson and Lidgerwood, ND. In addition, RLI is obtaining incidental operating rights to operate overhead rail freight services on BNSF s lines (1) from milepost 212.32, at Breckenridge, MN, to milepost 195.6, at Aberdeen Line Junction, MN, and (2) from milepost 0.00, at Aberdeen Line Junction, to milepost 0.60, at BN Junction, MN. Further, BNSF will also assign to RLI: (1) its operating rights under a July 5, 1955 agreement, extending from BNSF milepost 0.60, at BN Junction, to CPRS milepost 205.6, at Hankinson; and (2) its operating rights under a September 18, 1959 agreement, extending from CPRS milepost 205.6, at Hankinson, to BNSF milepost 42.67, at Geneseo Junction. The CPRS milepost designation reflects the fact that some of the operations will be over joint BNSF/Soo Line Railroad Company track. CPRS is a reference to the Soo Line Railroad Company as an entity within the Canadian Pacific Rail System. Because the line to be acquired by RLI connects via incidental trackage rights on CPRS and BNSF with RRVW at Breckenridge, MN, Petitioners control of RLI would not qualify under the class exemption at 49 CFR 1180.2 (d)(2). Therefore, Petitioners must seek prior approval from the Board pursuant to 49 U.S.C. 11323(a)(5) or exemption from the statutory prior approval requirements pursuant to 49 U.S.C. 10502. Section 11323(a)(5) requires approval or authorization by the Board of an acquisition of control of a rail carrier by a person that is not a rail carrier but that controls any number of rail carriers. Petitioners request that the Board exempt their control of RLI from the prior approval requirements of section 11323 so that they may dissolve the voting trust and obtain control of RLI, in addition to their existing control of TCW, RRVW, and MRBC. Regulation of these transactions is not necessary to carry out the transportation policy of 49 U.S.C. 10101. By allowing the Board to consider the acquisition of control of RLI by Petitioners under expedited procedures, an exemption would minimize the need for regulatory control and provide for the expeditious handling and resolution of all proceedings by relieving the Petitioners from the expense and delay that would be incurred if a formal control application under section 11323 were filed. RLI's operation of the subject line creates an opportunity to continue and improve service and will thereby ensure the development and continuation of a sound rail transportation system. Petitioners control of RLI will enable efficient operation over the subject line by facilitating the integration of certain operating functions. By permitting individuals experienced in railroad management to control rail carriers, an exemption will encourage efficient management of railroads. Petitioners state that RLI will be operated by experienced, highly qualified professionals. Petitioners further state that RLI and RRVW, as the provider of service on the subject line, will operate in accordance with rules similar to those standard in the industry, and both will be subject to the safety requirements imposed on carriers by the Federal Railroad Administration, the Environmental Protection Agency, and other federal and state agencies. Thus, exemption by the Board of the control transaction will encourage safe and suitable working conditions in the railroad industry and the operation of transportation facilities and equipment without detriment to the public health and safety. Other aspects of the rail transportation policy are not affected adversely. Regulatory scrutiny of the proposed common control is not necessary to protect shippers from an abuse of market power. Control of RLI by Petitioners will simply add a separately incorporated Class III common carrier, which owns and operates over approximately 23 miles of rail line, and operates via incidental operating rights over another 60 miles of trackage, to a group of Class III common carriers already under the Petitioners control. Petitioners maintain that there are no shippers currently located on the line being acquired by RLI. Petitioners point out that each of the Affiliates is a corporate entity separate from RLI, and that any business dealings between RLI and the Affiliates will be the result of arms-length negotiations between the parties. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 11323-25 the continuance in control of Rutland Line, Inc. by Douglas M. Head, Kent P. Shoemaker and Charles H. Clay. 2. Notice will be published in the Federal Register on January 7, 1998. Decided: December 11, 1997 Service Date: January 7, 1998 -------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION AND NOTICE OF INTERIM TRAIL USE OR ABANDONMENT STB Docket No. AB-55 (Sub-No. 555X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION--IN ALACHUA COUNTY, FL CSX Transportation, Inc. (CSXT) filed a notice of exemption under 49 CFR 1152 Subpart F--Exempt Abandonments to abandon approximately 1.41 miles of its line of railroad between milepost AR-716.89 and milepost AR-715.48, in High Springs, Alachua County, FL. Notice of the exemption was served and published in the Federal Register on November 24, 1997. The exemption became effective on December 24, 1997. The Board's Section of Environmental Analysis (SEA) has issued an environmental assessment (EA) in this proceeding, served December 1, 1997. In the EA, SEA indicates that the right-of-way may be suitable for other public use following abandonment. By facsimile received on January 2, 1998, the City of High Springs (City) filed a request for the issuance of a notice of interim trail use (NITU), under the National Trails System Act, 16 U.S.C. 1247(d) (Trails Act), and for a public use condition under 49 U.S.C. 10905, in order to negotiate with CSXT for acquisition of the right-of-way for use as a trail. The City requests that CSXT be prohibited from disposing of the corridor, other than the tracks, ties, and signal equipment, except for public use on reasonable terms, and that CSXT be barred from removing or destroying any trail-related structures, such as bridges, trestles, culverts and tunnels, for a 180-day period from the effective date of abandonment exemption. The City states that it needs the full 180-day period allowed because it has not had the opportunity to assemble or to review title information. The City submitted a statement of willingness to assume financial responsibility for interim trail use and rail banking in compliance with 49 CFR 1152.29, and acknowledged that the use of the right-of-way for trail purposes is subject to future reactivation for rail service. By reply filed December 9, 1997, CSXT indicated its willingness to negotiate with the City for interim trail use. The City's request complies with the requirements of 49 CFR 1152.29 and CSXT is willing to negotiate. Therefore, a NITU will be issued. The parties may negotiate an agreement during the 180-day period prescribed below. If the parties reach a mutually acceptable final agreement, no further Board action is necessary. If no agreement is reached within 180 days, CSXT may fully abandon the line. Use of the right-of-way for trail purposes is subject to restoration for railroad purposes. As an alternative to interim trail use under the Trails Act, the right-of-way may be acquired for public use as a trail under 49 U.S.C. 10905. Under section 10905, the Board may prohibit the disposal of rail properties that are proposed to be abandoned and are appropriate for public purposes for a period of not more than 180 days after the effective date of the decision approving or exempting the abandonment. To justify a public use condition, a party must set forth: (i) the condition sought; (ii) the public importance of the condition; (iii) the period of time for which the condition would be effective; and (iv) justification for the imposition of the period of time requested. The City has satisfied these requirements and, therefore, a 180-day public use condition will be imposed commencing with the effective date of the exemption. When the need for interim trail use/rail banking and public use is shown, it is the Board's policy to impose both conditions concurrently, subject to the execution of a trail use agreement. If a trail use agreement is reached on a portion of the right-of way, CSXT must keep the remaining right-of-way intact for the remainder of the 180-day period to permit public use negotiations. Also, a public use condition is not imposed for the benefit of any one potential purchaser, but rather to provide an opportunity for any interested person to acquire the right-of- way that has been found suitable for public purposes, including trail use. Therefore, with respect to the public use condition, CSXT is not required to deal exclusively with the City, but may engage in negotiations with other interested persons. It is ordered: 1. This proceeding is reopened. 2. Upon reconsideration, the notice of exemption served and published in the Federal Register on November 24, 1997, exempting the abandonment of the line described above is modified to the extent necessary to implement interim trail use/rail banking as set forth below, subject to the condition that CSXT keep intact the right-of-way underlying the track, including bridges, trestles, culverts and tunnels (but not track or track materials), for a period of 180 days from the December 24, 1997 effective date (until June 22, 1998), to enable any state or local government agency, or other interested person to negotiate the acquisition of the line for public use. If an interim trail use/rail banking agreement is executed before the expiration of the 180-day period specified above, the public use condition will expire to the extent the trail use/rail banking agreement covers the same line. 3. If an interim trail use/rail banking agreement is reached, it must require the trail user to assume, for the term of the agreement, full responsibility for management of, for any legal liability arising out of the transfer or use of (unless the user is immune from liability, in which case it need only indemnify the railroad against any potential liability), and for the payment of any and all taxes that may be levied or assessed against the right-of-way. 4. Interim trail use/rail banking is subject to the future restoration of rail service and to the user's continuing to meet the financial obligations for the right-of-way. 5. If interim trail use is implemented, and subsequently the user intends to terminate trail use, it must send the Board a copy of this decision and notice and request that it be vacated on a specified date. 6. If an agreement for interim trail use/rail banking is reached by June 22, 1998, interim trail use may be implemented. If no agreement is reached by that time, CSXT may fully abandon the line. Decided: January 5, 1998 Service Date: January 8, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 112X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN LANCASTER COUNTY, NE By decision and notice of interim trail use or abandonment served September 24, 1997, Union Pacific Railroad Company (UP) was granted an exemption under 49 U.S.C. 10502 from the prior approval requirement of 49 U.S.C. 10903 to abandon a 1.88-mile segment of its Lincoln Branch between milepost 494.76, near 10th Street, and milepost 492.99, near 33rd Street, in Lincoln, NE, subject to conditions. (The Board's decision imposed a public use condition under 49 U.S.C. 10905 and a trail use condition under 16 U.S.C. 1247(d) for a portion of the segment between 18th Street (milepost 494.166) and 33rd Street (milepost 492.88). On October 14, 1997, the National Association of Reversionary Property Owners (NARPO) filed a petition to reopen the September 24, 1997 decision to vacate the trail use condition. NARPO's petition will be considered in a subsequent decision.) Before the decision authorizing abandonment became effective, Lincoln Lumber Company (LLC) timely filed an offer of financial assistance (OFA) under 49 U.S.C. 10904 and 49 CFR 1152.27(c) to purchase that portion of the line located between 19th Street and 24th Street. By decision served October 8, 1997, LLC was found financially responsible, and the effective date of the decision authorizing abandonment was postponed for the segment located between 19th Street and 24th Street to permit the OFA process to proceed. Subsequently, LLC filed a request that the Board establish the conditions and the amount of compensation for the sale of the line. Thereafter, in a decision served December 3, 1997, the Board set the purchase price for the line at $300,947, and established terms for transfer of the line. On December 23, 1997, LLC filed a petition to reopen the December 3, 1997 decision on the ground of material error. On January 6, 1998, UP filed a request seeking an extension of time to file its reply to LLC's petition to reopen the December 3, 1997 decision. The due date for UP's reply is January 12, 1998. Because of the intervening holidays and resulting vacations, UP states that its representatives need an additional week to review and respond to LLC's petition. UP represents that counsel for LLC has no objection to this request. UP's request for an extension of time will be granted. It is ordered: 1. UP's extension request is granted. Decided: January 9, 1998 Service Date: Late Release January 9, 1998 ----------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION AND NOTICE OF INTERIM TRAIL USE OR ABANDONMENT STB Docket No. AB-103 (Sub-No. 11X) THE KANSAS CITY SOUTHERN RAILWAY COMPANY--ABANDONMENT EXEMPTION--IN HEMPSTEAD, LAFAYETTE AND COLUMBIA COUNTIES, AR The Kansas City Southern Railway Company (KCS) filed a notice of exemption under 49 CFR 1152 Subpart F--Exempt Abandonments to abandon a 42.78-mile line of railroad between milepost 4.00 at or near Hope, and milepost 46.78 at the Arkansas-Louisiana State Line, in Hempstead, Lafayette and Columbia Counties, AR. Notice of the exemption was served and published in the Federal Register on June 4, 1997. On July 3, 1997, a decision and notice of interim trail use or abandonment (NITU) was served that reopened the proceeding to implement interim trail use/rail banking for the entire line under 49 CFR 1152.29 and the National Trails System Act, 16 U.S.C. 1247(d), and provided for a 180-day period for KCS to negotiate an agreement with the National Salvage & Service Corp. (NS&S). The negotiation period under the NITU expired on December 31, 1997. By petition filed on December 24, 1997, the Director of Parks, Recreation and Tourism for the City of Hope, AR (HPRT), a new negotiation party, filed a request for a NITU for the entire line. HPRT submitted a statement indicating its willingness to assume full financial responsibility for management of, for any legal liability arising out of the transfer or use of the right-of-way (unless user is immune from liability, in which case it need only indemnify the railroad against any potential liability), and for payment of taxes for, the right-of-way, as required at 49 CFR 1152.29, and acknowledged that use of the right-of-way for trail purposes is subject to future reactivation for rail service. Also on December 24, 1997, KCS indicated its willingness to negotiate with HPRT for trail use/rail banking of the line. Trail use requests are accepted as long as the Board retains jurisdiction over the involved railroad right-of-way and the carrier is willing to enter into negotiations. Inasmuch as KCS has not consummated the abandonment and is willing to negotiate with HPRT for trail use over the right- of-way, a NITU will be issued, with the trail use negotiation period running for 180 days from the service date of this decision, or until July 8, 1998. If no agreement is reached within that time period, KCS may fully abandon the line. Use of the right of-way for trail purposes is subject to restoration for railroad purposes. It is ordered: 1. This proceeding is reopened. 2. Upon reconsideration, the notice of exemption published in the Federal Register on June 4, 1997, exempting the abandonment of the line described above is modified to the extent necessary to implement interim trail use/rail banking as set forth below until July 8, 1998. 3. If an interim trail use/rail banking agreement is reached, it must require the trail user to assume, for the term of the agreement, full responsibility for management of, for any legal liability arising out of the transfer or use of (unless the user is immune from liability, in which case it need only indemnify the railroad against any potential liability), and for the payment of any and all taxes that may be levied or assessed against, the right-of-way. 4. Interim trail use/rail banking is subject to the future restoration of rail service and to the user's continuing to meet the financial obligations for the right-of-way. 5. If interim trail use is implemented, and subsequently the user intends to terminate trail use, it must send the Board a copy of this decision and notice and request that it be vacated on a specified date. 6. If any agreement for interim trail use/rail banking is reached by July 8, 1998, interim trail use may be implemented. If no agreement is reached by that time, KCS may fully abandon the line. Decided: January 6, 1998 Service Date: January 9, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION Docket No. AB-167 (Sub-No. 1132X) CONSOLIDATED RAIL CORPORATION--ABANDONMENT EXEMPTION-- BETWEEN BURGETTSTOWN, WASHINGTON COUNTY, PA, AND COLLIERS, BROOKE COUNTY, WV On March 7, 1994, a decision and notice of interim trail use or abandonment (NITU) was served, which established a 180-day period for National Pike Trail Council (NPTC) to negotiate an interim trail use/rail banking agreement with Consolidated Rail Corporation (Conrail) for its 9-mile line from milepost 26.7+ near Burgettstown, PA, to milepost 35.7+ near Colliers, WV. At the request of NPTC, and with Conrail's consent, the negotiation period was subsequently extended by decisions served August 3, 1994, February 10, 1995, July 21, 1995, December 28, 1995, August 20, 1996, January 8, 1997, and July 10, 1997. The negotiation period under the latest extension is scheduled to expire on January 10, 1998. On December 31, 1997, NPTC, with Conrail's agreement, filed a request to extend the negotiation period for an additional 180 days. NPTC states that the parties need the additional time to continue negotiations, to build political support, to coordinate participation of the West Virginia Rail Authority and others, and to further assemble and review title information and evaluate structures on the corridor. It is ordered: 1. NPTC's request to extend the negotiation period under the NITU for an additional 180 days is granted. 2. The negotiation period under the NITU is extended to July 9, 1998. Decided: January 7, 1998 Service Date: January 9, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-493 (SUB-NO.3X) TRACK TECH, INC. ABANDONMENT AND DISCONTINUANCE BETWEEN HAMAR AND WARWICK, NORTH DAKOTA IN EDDY COUNTY, NORTH DAKOTA PETITION FOR EXEMPTION In this proceeding, Track Tech, Inc. has filed a petition under 49 U.S.C. 10502 seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of its railroad line located between milepost 98.00 near Hamar, North Dakota and milepost 103.92 near Warwick, North Dakota, a distance of 5.92 miles all within Eddy County, North Dakota. The right-of-way is generally less than 100 feet wide. It is located entirely within Eddy County, North Dakota, which has a population of approximately 2,951. The line was sold by the Burlington Northern Railroad Company to Track Tech, Inc. on or about November 27, 1996. Track Tech, Inc. has operated no trains over the line since it acquired the line. There are no shippers located on the line. No local or overhead traffic has moved over the line for at least three years. Abandonment of the line would permit avoidance of the expense of maintaining the rail line and some of the property may be made available and used for other public purposes. The North Dakota Department of Health states that the environmental impacts from the proposed construction will be minor and can be controlled by proper construction methods. In order to avoid any adverse impacts, the North Dakota Department of Health recommends that care be taken during construction activity near any water of the state to minimize adverse effects on state waters and has listed several requirements for minimizing or preventing any environmental degradation to a waterway as a result of construction activities at a site. Therefore, we recommend that a condition be imposed requiring the railroad to consult with the North Dakota Department of Health, Environmental Health Section prior to salvaging the right-of-way. Service Date: January 9, 1998 ------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33530] RailTex, Inc., Indiana & Ohio Rail Corp., Cincinnati Terminal Railway Company, Indiana and Ohio Railroad, Inc., Indiana & Ohio Railway Company, and Indiana & Ohio Central Railroad, Inc. Corporate Family Transaction Exemption RailTex, Inc. (RailTex), Indiana & Ohio Rail Corp. (I&O), Cincinnati Terminal Railway Company (CTER), Indiana and Ohio Railroad, Inc. (INOH), Indiana & Ohio Railway Company (IORY), and Indiana & Ohio Central Railroad, Inc. (IOCR) have jointly filed a verified notice of exemption. CTER and INOH will be merged into IORY. After consummation of the transaction, I&O will directly control two Class III railroads: the IORY and the IOCR. The transaction was to be consummated on or after December 18, 1997. The transaction will simplify RailTex's corporate structure and eliminate costs associated with separate accounting, tax, bookkeeping and reporting functions. RailTex is a noncarrier which directly controls 17 Class III railroads operating in 21 states, as well as 3 rail carriers that operate in Canada. RailTex also directly controls I&O, a noncarrier, which controls CTER, INOH, IORY, and IOCR, 4 Class III railroads that have been operated as a single system. Decided: December 31, 1997. Service Date: January 9, 1998 ------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33531] Dallas Area Rapid Transit--Acquisition and Operation Exemption-- Line of Union Pacific Railroad Company Dallas Area Rapid Transit (DART), a political subdivision of the State of Texas, has filed a verified notice of exemption under 49 CFR 1150.41 to acquire approximately 1.5 miles of rail line owned by Union Pacific Railroad Company (UP) from approximately milepost 749.75 to approximately milepost 748.25 in the vicinity of Garland, TX. The transaction was expected to be consummated on or soon after December 18, 1997, the effective date of the exemption. Applicant states that it will grant trackage rights to UP (or UP's designee) on the subject line and that freight railroad operations on the subject line will be conducted by UP (or UP's designee) pursuant to the trackage rights. UP (or UP's designee) will seek the Board's approval for the trackage rights in a separate filing. Decided: January 2, 1998. Service Date: January 9, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT DOCKET NO. AB-55 (Sub. No. 557X) CSX Transportation, Inc.- Notice of Exemption Abandonment in Atkinson County, Georgia In the above entitled proceeding, CSX Transportation, Inc. (CSXT) has filed a notice of exemption under 49 CFR 1152.50 seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of CSXT's line of railroad between Milepost AP-617.94 and Milepost AP-618.45 at the end of the track, a distance of approximately 0.51 miles in Pearson, Atkinson County, Georgia. In its application, CSXT indicates that the line to be abandoned lies within the city limits of Pearson and may be suitable for alternative public uses. Formerly used to ship forest products, the line has not been used in over two years and CSXT states that it is no longer needed to serve any shippers. In a letter to CSXT dated December 10, 1997, the Georgia State Historic Preservation Officer stated that in his opinion the segment of rail line proposed for abandonment should be considered eligible for listing in the National Register of Historic Places and that the abandonment may result in an adverse effect. Therefore, we recommend that CSXT consult with the Georgia State Historic Preservation Officer to aid the Surface Transportation Board in meeting its responsibilities under the National Historic Preservation Act. The purpose of the consultation is to (1) determine whether the rail line segment is potentially eligible for inclusion in the National Register of Historic Places, and (2) determine ways to avoid or reduce any adverse impacts associated with abandonment if the line is eligible for inclusion. Pending resolution of this issue, CSXT shall retain its interest in and take no steps to alter the historic integrity of the line segment until completion of the Section 106 process of the National Historic Preservation Act. Service Date: January 12, 1998 ------------------------------------------------------ SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-493 (Sub-No. 1X) TRACK TECH, INC.--ABANDONMENT EXEMPTION-- IN WHITESIDE COUNTY, IL By petition filed on September 24, 1997, Track Tech, Inc. (Track Tech) seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903, to abandon a line of railroad located generally between Denrock, IL (milepost 25.15) and Lyndon, IL (milepost 28.35), a distance of 3.20 miles in Whiteside County, IL. We will grant the exemption, subject to an environmental condition and standard employee protective conditions. The line proposed for abandonment was formerly owned by Burlington Northern Railroad Company (BN) and was acquired by petitioner on or about November 27, 1996. According to Track Tech, BN had ceased operating the line in the first quarter of 1996 and the line has been out of service since that time. Petitioner has never operated trains over the line. Petitioner states that there is only one shipper on the line, Whiteside Farm Service (Whiteside), located at Lyndon. Whiteside, according to Track Tech, has used the line only sporadically in recent years, having received no rail traffic in 1994, two cars of fertilizer in 1995, and four cars of fertilizer in the first quarter of 1996. There is no overhead traffic on the line because it ends at Lyndon. Track Tech asserts that there is no possibility that operations over this line could be viable for local service needs because only a small amount of traffic, if any, could reasonably be expected on the line in the future. Petitioner states that alternative transportation service is available through area trucking companies and other rail carriers, including BN's east-west main line which traverses Denrock, Union Pacific Railroad Company's east-west main line approximately 7 miles north of Lyndon, and Iowa Interstate Railroad's east-west main line approximately 23 miles south of Lyndon. In addition, petitioner avers that there are numerous barge carriers operating on the Mississippi River servicing the Clinton, IA and Fulton, IL areas approximately 10 miles east of Lyndon. SEA served an environmental assessment (EA) on November 24, 1997, in which it noted that The Natural Resources Conservation Service (NRCS) has determined that 10 of the 11 soil types along the section of track between mileposts 25.15 and 28.35 are considered prime farm land. NRCS has also identified two small wetland areas located along the right-of-way. Accordingly, SEA recommends a condition that, before conducting salvage activities on this line, Track Tech shall consult with NRCS in Morrison, IL, to ensure that prime farmlands and wetland areas previously identified are not damaged. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment of the above-described line, subject to: (1) the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979), and (2) the condition that, before conducting salvage activities, Track Tech shall consult with NRCS to ensure that prime farmlands and wetland areas previously identified are not damaged. 2. Track Tech must serve a copy of this decision on Whiteside within 5 days after the service date of this decision and certify to the Board that it has done so. 3. Provided no OFA has been received, this exemption will be effective on February 11, 1998. 4. Pursuant to the provisions of 49 CFR 1152.29(e)(2), Track Tech shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by Track Tech's filing of a notice of consummation by January 12, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 7, 1998 Service Date: January 12, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-493 (Sub-No. 2X) TRACK TECH, INC.--ABANDONMENT EXEMPTION-- IN FRANKLIN AND WEBSTER COUNTIES, NE By petition filed on September 24, 1997, Track Tech, Inc. (Track Tech) seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a line of railroad located generally between Bladen, NE (milepost 96.30) and Hildreth, NE (milepost 119.34), a distance of 23.04 miles in Franklin and Webster Counties, NE. We will grant the exemption, subject to an historic preservation condition and standard employee protective conditions. The line proposed for abandonment was formerly owned by Burlington Northern Railroad Company (BN). According to petitioner, BN had only limited operations on the line which has been out of service since the end of the second quarter of 1996. Petitioner states that it acquired the line on or about November 27, 1996, but has never operated trains over it. Petitioner avers that there are six shippers on the line who have used the line only sporadically since 1994. Continental Grain at Campbell, NE, shipped 51 shipments of grain in 1994, 10 in 1995, and none in 1996; Koch Agri Services at Upland, NE, received 12 carloads of fertilizer in 1994, 5 in 1995, and none in 1996; Four Seasons Farm Supply, Trico Farm Service, US Midwest, and Farmers Coop Grain and Supply, all at Hildreth, NE, had no outbound shipments of grain in 1994, 1995, and 1996. They received 18 carloads of fertilizer in 1994, 20 in 1995, and 10 in 1996. There is no overhead traffic on the line as it ends at Hildreth. Petitioner avers that the line is not economically viable based on its present average of 45 cars per year (less than 2 carloads per mile per year). It adds that only a minimal amount of traffic, if any, could reasonably be expected to be generated in the future. Petitioner states that alternative transportation service is available through other area rail carriers, including BN's east-west main line (Hastings Subdivision) 17 miles north of Hildreth; BN's north-south rail line (Lester Subdivision) which traverses the area at Bladen, NE, and Union Pacific Railroad Company's east-west main line, approximately 25 miles north of Hildreth. In addition, petitioner states that there are numerous trucking companies that haul grain and fertilizer in the area of the line. SEA served an environmental assessment (EA) on November 24, 1997, in which it noted that the Nebraska Historical Society has not completed its review of potentially historic sites and structures that may be affected by the abandonment. Therefore, SEA recommends that an historic preservation condition be imposed on the abandonment as recommended by the Nebraska Historical Society ntil completion of the section 106 process of the National Historic Preservation Act. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment of the above-described line, subject to: (1) the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979); and (2) the condition that Track Tech shall retain its interest in and take no steps to alter the historic integrity of all sites and structures on the line until completion of the section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f. 2. Track Tech must serve a copy of this decision on the line's 6 shippers within 5 days after the service date of this decision and certify to the Board that it has done so. 3. Provided no OFA has been received, this exemption will be effective on February 11, 1998. 4. Pursuant to the provisions of 49 CFR 1152.29(e)(2), Track Tech shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by Track Tech's filing of a notice of consummation by January 12, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 7, 1998 Service Date: January 12, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-493 (SUB-NO.4X) TRACK TECH, INC. ABANDONMENT AND DISCONTINUANCE BETWEEN MINOT AND TATMAN, NORTH DAKOTA IN WARD COUNTY, NORTH DAKOTA PETITION FOR EXEMPTION In this proceeding, Track Tech, Inc. has filed a petition under 49 U.S.C. 10502 seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of its railroad line located between milepost 4.00 near Minot, North Dakota and milepost 16.70 near Tatman, North Dakota, a distance of 12.70 miles all within Ward County, North Dakota. The right-of-way is generally less than 100 feet wide. It is located entirely within Ward County, North Dakota, which has a population of approximately 57,921. The line was sold by the Burlington Northern Railroad Company to Track Tech, Inc. on or about November 27, 1996. An embargo was placed by BN on the Line due to track conditions and lack of rail customers in 1993. Track Tech, Inc. has operated no trains over the line since it acquired the line. There are no shippers located on the line. No local or overhead traffic has moved over the line for at least three years. Abandonment of the line would permit avoidance of the expense of maintaining the rail line and some of the property may be made available and used for other public purposes. The North Dakota Department of Health states that the environmental impacts from the proposed construction will be minor and can be controlled by proper construction methods. In order to avoid any adverse impacts, the North Dakota Department of Health recommends that care be taken during construction activity near any water of the state to minimize adverse effects on state waters and has listed several requirements for minimizing or preventing any environmental degradation to a waterway as a result of construction activities at a site. Therefore, we recommend that a condition be imposed requiring the railroad to consult with the North Dakota Department of Health, Environmental Health Section prior to salvaging the right-of-way. Service Date: January 12, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-493 (Sub-No. 5X) TRACK TECH, INC.--ABANDONMENT EXEMPTION-- IN POTTER COUNTY, TX By petition filed on September 24, 1997, Track Tech, Inc. (Track Tech) seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a line of railroad located generally between Amarillo (milepost 761.80) and Bushland (milepost 775.70), a distance of 13.90 miles in Potter County, TX. We will grant the exemption subject to an environmental condition and standard employee protective conditions. Petitioner has operated no trains on the line since its acquisition from Burlington Northern Railroad Company (BN). According to petitioner, BN had only limited operations over the line before it was embargoed in April 1996 because of significant safety defects, which would require approximately $500,000 of upgrading and repairs. Petitioner reports that there were four rail users on the line in 1994--Bushland Grain, Aerion Industries, Fumico, Inc., and Southwestern Portland Cement Company--and that, since then, all four have either relocated or closed. According to Track Tech, in the first half of 1996, only one carload was shipped and nine were received on the line. Because of the high cost of repairs, the lack of traffic, and the prospect that little traffic will be generated in the future, petitioner maintains that it is not economically feasible to continue operation of the line, and that there is alternative transportation available through other rail carriers and trucking companies in the area. SEA served an environmental assessment (EA) on November 21, 1997, recommending an environmental condition requested by the National Geodetic Survey (NGS) concerning eight historic geodetic station markers. No comments were received by the December 19, 1996 due date. We will impose the condition. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment of the above- described line, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979), and subject to the condition that Track Tech will notify NGS not less than 90 days in advance of any salvage activities that may disturb or destroy the eight historic geodetic station markers that NGS has identified along the line so that plans can be made for their relocation. 2. Track Tech must serve a copy of this decision on all known shippers on the line within 5 days after the service date of this decision and certify to the Board that it has done so. 3. Provided no OFA has been received, this exemption will be effective on February 11, 1998. 4. Pursuant to the provisions of 49 CFR 1152.29(e)(2), Track Tech shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by Track Tech's filing of a notice of consummation by January 12, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 7, 1998 Service Date: January 12, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-32 (Sub-No. 83) BOSTON AND MAINE CORPORATION--ABANDONMENT--IN HARTFORD AND NEW HAVEN COUNTIES, CT STB Docket No. AB-355 (Sub-No. 23) SPRINGFIELD TERMINAL RAILWAY COMPANY--DISCONTINUANCE OF SERVICE-- IN HARTFORD AND NEW HAVEN COUNTIES, CT On December 29, 1997, the Boston and Maine Corporation (B&M) and Springfield Terminal Railway Company (ST) filed an application under 49 U.S.C. 10903 for permission for B&M to abandon and ST to discontinue service on a line of railroad known as the Canal Branch extending from milepost 14.50 in Cheshire, CT, to milepost 24.00 in Southington, CT, a distance of 9.50 miles, in Hartford and New Haven Counties, CT. On January 8, 1998, Dalton Enterprises, Inc. (Dalton), which intends to protest the proposed abandonment and discontinuance, filed a request for an oral hearing. Requests for oral hearing must set out in full the reasons why the matter cannot be resolved through submission of written statements. In addition, under the Board's abandonment rules, if the Board decides to hold an oral hearing, it must be for the primary purpose of cross examination of witnesses filing verified statements in the proceeding. Dalton did not state any reasons for its request and there is no indication that cross examination of witnesses will be necessary. Therefore, the request for oral hearing will be denied. It is ordered: 1. The request for oral hearing is denied. Decided: January 12, 1998 Service Date: January 13, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-290 (Sub-No. 190X) NORFOLK SOUTHERN RAILWAY COMPANY--ABANDONMENT EXEMPTION--IN FAYETTE COUNTY, AL OFFER OF FINANCIAL ASSISTANCE By decision served December 29, 1997, the Board granted the Norfolk Southern Railway Company (NSR) an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon a line of railroad known as the Berry-Belk Line, extending from milepost 862.8 at Berry, AL, to milepost 884.9 at or near Belk (Covin), AL, a distance of 22.1 miles in Fayette County, AL. The exemption was scheduled to become effective on January 28, 1998, unless an offer of financial assistance (OFA) was filed with NSR and the Board by January 8, 1998. On January 8, 1998, the City of Fayette, AL (City), filed an OFA to purchase a 7.2-mile segment of the line, from milepost 884.9 to milepost 877.7. In its petition, NSR estimated the net liquidation value (NLV) of the entire line at $1,663,532. In its offer, the City states that a fair price for the section of line between mileposts 884.9 and 877.7 is approximately $350,000. Because the City, a financially responsible entity, has offered financial assistance, the effective date of the exemption authorizing abandonment of the segment from milepost 884.9 to milepost 877.7 will be postponed, pending completion of the OFA process. Unless otherwise ordered, the exemption authorizing abandonment of the remainder of the line will become effective as scheduled on January 28, 1998. It is ordered: 1. The effective date of the exemption authorizing abandonment of the segment from milepost 884.9 to milepost 877.7 is postponed in order to permit the OFA process under 49 U.S.C. 10904 and 49 CFR 1152.27 to proceed. 2. If the railroad and the offeror cannot agree on the purchase price for the line, either party may request, on or before February 9, 1998, that the Board establish the terms and conditions of the purchase. If no agreement is reached and no request is made by that date, the Board will serve a decision vacating this decision and allowing the abandonment authorization for the entire line to become effective. Decided: January 12, 1998 Service Date: January 13, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-439 (Sub-No. 3X) DALLAS RAPID TRANSIT--ABANDONMENT EXEMPTION-- IN DALLAS, TX The Dallas Rapid Transit (DART) filed a notice of exemption under 49 CFR 1152 Subpart F-- Exempt Abandonments to abandon a 6.99-mile line of railroad between milepost D-762.26 in the vicinity of Mockingbird Lane and milepost D-755.27 in the vicinity of the Kansas City Southern Railway Company bridge overpass, in Dallas County, TX. Notice of the exemption was served and published in the Federal Register on December 15, 1997. The exemption is scheduled to become effective on January 14, 1998. The Board's Section of Environmental Analysis (SEA) has issued an environmental assessment (EA) in this proceeding, served December 31, 1997. In the EA, SEA states that the National Geodetic Survey (NGS) has identified eight geodetic station markers that may be affected by the abandonment. NGS requests that it be notified 90 days in advance of any activities that may disturb or destroy the eight geodetic station markers. Therefore, SEA recommends that a condition be imposed requiring DART to consult with the NGS and provide NGS with 90 days notice prior to disturbing or destroying any geodetic markers. SEA also indicates that DART has advised that the bridges at mileposts D-759.94, D- 758.7 and D-758.5 may be potentially eligible for inclusion in the National Register of Historic Places and that it intends to replace both the ballast deck pile trestle bridge at milepost D-758.7 and the I-beam girder bridge at milepost D-759.94 prior to DART's future transit use of the corridor. Dart intends to relocate the steel bridge at milepost D-758.5 to match an identical historic bridge in Garland and preserve its historic integrity (which was included with DART s environmental report). Based on this information, an evaluation of the potential impact on historic resources has not been completed. Therefore, SEA recommends that DART retain its interest in and take no steps to alter the historic integrity of all sites and structures on the line that are 50 years old or older until completion of the section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f. The recommended conditions will be imposed. It is ordered: 1. This proceeding is reopened. 2. Upon reconsideration, the exemption of the abandonment of the line described above is subject to the conditions that DART shall: (a) consult with the NGS and provide NGS with 90 days notice prior to disturbing or destroying any geodetic markers; and (b) retain its interest in and take no steps to alter the historic integrity of all sites and structures on the right-of-way that are 50 years old or older until completion of the section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f. Decided: January 12, 1998 Service Date: January 13, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-477 (SUB-NO. 3X) Owensville Terminal Company, Inc. -- Abandonment Exemption -- in Edwards and White Counties, IL and in Gibson and Posey Counties, IN In this proceeding, the Owensville Terminal Company, Inc. (OTC) has filed a petition under 49 U.S.C. 10502 seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of its railroad line located between milepost 205.0 near Browns, IL and milepost 227.5 near Poseyville, IN, a distance of 22.5 miles in Edwards and White Counties, IL and in Gibson and Posey Counties, IN. No traffic has originated or terminated on the Browns-Poseyville line during the past two years; and no overhead traffic has moved over the line for over nine months. OTC has not owned the rail line continuously during the immediately preceding two-year period during which the line has been out of service. The U.S. Fish and Wildlife Service in Marion, IL stated that the abandonment is not likely to adversely affect any known threatened or endangered species. However, since the Service is implementing conservation agreements to protect the copperbelly watersnake, it recommends the killing of any snakes encountered during salvage operations be prohibited. The U.S. Fish and Wildlife Service in Bloomington, IN recommended nine specific mitigation measures to minimize adverse impacts on fish and wildlife resources. The National Geodetic Survey has identified one geodetic station marker along the rail line and requests 90 days notice to plan relocation of markers which may be disturbed or destroyed. The Indiana SHPO has identified Bridge Nos. 215.67 and 221.4 as eligible for listing in the National Register of Historic Places. The Indiana Department of Environmental Management raised concerns about impacts on ambient air quality in the project area, specifically, disposal of organic debris from land clearing and fugitive dust. It also expressed concern regarding disposal of contaminated soils. The Illinois Department of Natural Resources noted that the federally endangered Clubshell mussel is located in White County, IL. While the abandonment is not likely to result in adverse impacts to this species, if the rail line, including ties, bridges, and other structures were to be removed, further coordination would be necessary with both ILDNR and the U.S. Fish and Wildlife Service. SEA recommends that the following conditions be imposed on any decision granting abandonment authority: 1. Owensville Terminal Company shall consult with the U.S. Fish and Wildlife Service in Marion, IL concerning measures that OTC may take to protect the copperbelly watersnake during salvage operations. 2. Owensville Terminal shall, prior to salvaging or disposing of the entire right-of-way, consult with the U.S. Fish and Wildlife Service office in Bloomington, IN to implement the specific mitigation measures to minimize adverse impacts on fish and wildlife resources. 3. Owensville Terminal shall consult with the National Geodetic Survey and provide NGS with 90 days notice prior to disturbing or destroying geodetic markers. 4. Owensville Terminal shall retain its interest in and take no steps to alter the historic integrity of Bridge Nos. 215.67 and 221.4, until completion of the Section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f. 5. Owensville Terminal shall, prior to salvaging or disposing of the entire right-of-way, consult with the Indiana Department of Environmental Management to implement mitigation measures to minimize adverse impacts on air quality and to address disposal of contaminated soils. 6. If Owensville Terminal intends to remove the rail line (including ties, bridges, and other structures), it shall consult with the Illinois Department of Natural Resources and the U.S. Fish and Wildlife Service to further assess potential impacts on the Clubshell mussel. Service Date: January 13, 1998 ------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33136 CANADIAN PACIFIC LIMITED, CANADIAN PACIFIC RAILWAY COMPANY, AND NAPIERVILLE JUNCTION RAILROAD COMPANY--CORPORATE FAMILY TRANSACTION EXEMPTION--ST. LAWRENCE & HUDSON RAILWAY COMPANY LIMITED By petition filed June 2, 1997, the American Train Dispatchers Department of the International Brotherhood of Locomotive Engineers (the Train Dispatchers) seeks to revoke the exemption in this proceeding that was the subject of a notice served and published in the Federal Register on October 9, 1996, authorizing a series of intracorporate transactions involving Canadian Pacific Limited (CPL), Canadian Pacific Railway Company (CPR), Napierville Junction Railway Company, Ltd. (NJR), and St. Lawrence & Hudson Railway Company Limited (St. L&H) (collectively, the CPR parties). The CPR parties filed a reply to which the Train Dispatchers also filed a reply. We will deny the Train Dispatchers petition. Prior to the instant proceeding, the Interstate Commerce Commission (ICC), the Board's predecessor, authorized CPL, through its wholly owned subsidiary, D&H Corporation, to acquire the assets, properties, and business of the bankrupt Delaware & Hudson Railway Company (Delaware & Hudson). Since that time, train movements and traffic on the Delaware & Hudson rail lines have been controlled by members of the Train Dispatchers, working first at offices in Albany, NY, and, since 1993, in Milwaukee, WI. Dispatching on the Delaware & Hudson has been performed by another CPR subsidiary in Milwaukee, the Soo Line Railroad Company (Soo). By letter dated June 28, 1996, CPR notified the Train Dispatchers that five Delaware & Hudson dispatch jobs would be moved from Milwaukee to Montreal, Canada. In the letter, CPR stated that a new carrier, the St. L&H, was to be formed to operate CPR's business in eastern North America and that, for operating purposes, it would be necessary for the St. L&H to manage its own train dispatching functions. CPR also wrote that the transfer of the dispatching functions from Milwaukee to Montreal was in accordance with CPL/DHRC. The transfer of the Delaware & Hudson dispatching function to Canada would result in five Train Dispatchers members losing jobs. In Montreal, the dispatching of Delaware & Hudson trains would be handled by a separate desk in the St. L&H's facility. Subsequently, on September 23, 1996, CPL, CPR, NJR, and the St. L&H jointly filed the verified notice of exemption at issue in this proceeding, notifying the Board that CPR would transfer its interest in certain identified U.S. rail assets to St. L&H, a newly-created subsidiary of CPR and a noncarrier. The transactions were to be consummated on or after October 1, 1996. The St. L&H would become a carrier on consummation of the transactions. CPR represented in the notice of exemption that the transactions were intracorporate family transactions that were exempt from prior review and approval under 49 CFR 1180.2(d)(3). As noted previously, notice of the exemption, which the Train Dispatchers seek to have revoked here, was served and published on October 9, 1996. To support a petition to revoke an exemption from part or all of the statute, the petitioner must show that regulation is necessary to carry out the national rail transportation policy (NTP) of 49 U.S.C. 10101. The party seeking to revoke the exemption has the burden of proof. A petition to revoke must be based on reasonable, specific concerns, demonstrating that reconsideration of the exemption is warranted and regulation of the transaction is necessary. The CPR parties notice in this proceeding stated that their proposed transactions came within Board regulations at 49 CFR 1180.2(d). Specifically, the CPR parties used the category of transactions found at section 1180.2(d)(3), which provides that an exemption is available for: Transactions within a corporate family that do not result in adverse changes in service levels, significant operational changes, or a change in the competitive balance with carriers outside the corporate family. The Train Dispatchers assert that the transfer of dispatching functions from Milwaukee to Montreal, and the resulting loss of five Train Dispatchers jobs, constitutes a major operational change that renders the previously authorized corporate simplification transactions ineligible for the class exemption set forth at 49 CFR 1180.2(d)(3). Specifically, the Train Dispatchers argue that, if allowed to occur, this change in operations would remove train dispatching on these U.S. lines from the regulatory and enforcement authority of U.S. federal regulatory agencies, including the Federal Railroad Administration (FRA). As such, the Train Dispatchers state, the Hours of Service Act and federal drug and alcohol testing requirements and protections would not apply to the train dispatchers controlling rail traffic on these domestic lines. The Train Dispatchers maintain that this lack of regulatory control would adversely affect employees working on the trains and tracks, shippers that ship goods over those tracks, carriers that possess hauling rights on the tracks, and the public in general. The Train Dispatchers also assert that the transfer threatens the NTP goals of promoting a safe and efficient rail system. For these reasons, the Train Dispatchers argue that the proposal violates the exemption criteria and, therefore, the previously authorized exemption must be revoked. The CPR parties respond that the relocation of the DHRC dispatch desk to Montreal will not, in fact, produce any major operational change. They state that all dispatchers working the Delaware & Hudson territory will be fully trained and qualified regarding the appropriate operating rules and FRA regulations, and that St. L&H will comply with all FRA operating and recordkeeping requirements as they apply to the dispatching of Delaware & Hudson trains. The CPR parties also attach a copy of a letter addressed to the FRA wherein CPR notified that agency of CPR's plan to move the dispatching function to Canada. According to CPR, FRA has not registered any objection to the proposal. The CPR parties also state that their U.S. train operations have been dispatched from facilities located in Canada for more than a century with FRA's knowledge and subject to FRA's regulations. These parties further state that there will be no change in the manner in which Delaware & Hudson trains are dispatched, but that only the physical location of the dispatching function will change. The CPR parties also allege that no shipper will experience an adverse change in service, that St. L&H and Delaware & Hudson will continue to compete in all of the markets that they serve today, and that the railroads will continue to provide the same train services as before. Finally, these parties argue that the transaction at issue advances several NTP goals and does not, contrary to the Train Dispatchers position, adversely impact any such goals. We find no merit to the Train Dispatchers arguments that the proposed transfer of dispatching functions will hinder NTP goals and result in significant operational changes. The basis for these arguments is the Train Dispatchers allegation that such transfer will remove dispatching from U.S. regulatory and enforcement authority and lead to serious safety problems. However, the Train Dispatchers do not support assertions that there will be operational changes. Operational changes embrace changes in operating procedures and functions or in services offered shippers. The record here shows that no changes of that nature will occur as a result of the transfer. Nor is there sufficient evidence on the record to support a cause for concern about safety. In particular, FRA, which has primary responsibility over railroad safety enforcement, has been notified of CPR's plan to move the dispatching function to Canada and has not raised any objections to the proposal. The Train Dispatchers have not sustained their burden of proof that the transfer of five dispatcher positions threatens NTP policies favoring a safe and efficient rail system, nor has the union demonstrated that such transfer constitutes a significant operational change. Accordingly, we find no grounds for revoking the previously authorized exemption at issue here, and we will deny the Train Dispatchers request that we do so. It is ordered: 1. The Train Dispatchers motion for leave to file a reply is granted. 2. The Train Dispatchers petition to revoke the exemption is denied. Decided: January 7, 1998 Service Date: January 13, 1998 ------------------------------------------------------------ SURFACE TRANSPORTATION BOARD DECISION Docket No. AB-167 (Sub-No. 1148) CONSOLIDATED RAIL CORPORATION--ABANDONMENT--BETWEEN WALKERS MILL AND BURGETTSTOWN, IN ALLEGHENY AND WASHINGTON COUNTIES, PA By decision and certificate of interim trail use or abandonment (CITU) served July 14, 1995, a 180-day period was authorized for National Pike Trail Council (NPTC) and Allegheny County, PA, to negotiate an interim trail use/rail banking agreement with Consolidated Rail Corporation (Conrail) for the 15.7-mile right-of-way between milepost 11.00 at Walkers Mill and milepost 26.7 at Burgettstown, in Allegheny and Washington Counties, PA. At NPTC's request, the 180-day trail use negotiating period was extended through January 5, 1998, by decisions served December 22, 1995, August 22, 1996, January 14, 1997, and July 14, 1997. By letter filed December 31, 1997, NPTC requests another 180-day extension of the trail use negotiating period stating that the additional time is needed to continue negotiations, build political support, further assemble and review title information, and evaluate structures on the corridor. NPTC states that Conrail has consented to the extension. It is ordered: 1. The CITU negotiating period is extended through July 4, 1998. Decided: January 9, 1998 Service Date: January 14, 1998 ------------------------------------------------------------ SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-487 (Sub-No. 3X) PITTSBURG & SHAWMUT RAILROAD, INC.--ABANDONMENT EXEMPTION-- IN JEFFERSON AND CLARION COUNTIES, PA By petition filed September 26, 1997, Pittsburg & Shawmut Railroad, Inc. (PSRR), seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10903 to abandon its line of railroad known as the Piney Branch, extending from milepost 0.00 (milepost 40.60 on the main line of the Laurel Subdivision), located at or near Coder to milepost 23.80 located at or near Piney, a distance of 23.80 miles, in Jefferson and Clarion Counties, PA. We will grant the exemption, subject to environmental, historic preservation and standard employee protective conditions. PSRR currently owns approximately 216 miles of rail lines in Pennsylvania. It purchased the line proposed for abandonment from the Mountain Laurel Railroad Company in April 1996, and has never provided service on the line. According to PSRR, the last time service was provided on the line was by its predecessor in December 1994. Because there are no active shippers on the line, PSRR does not expect that there will be any future need for service. PSRR states that the line, including the rail, ties, roadbed and approximately 25 railroad bridges constructed in the early 1900s, is in generally fair condition. The tunnel located at milepost 23.58, also constructed in the early 1900s, is deteriorating. PSRR submits that, because of the absence of traffic, there is no justification for PSRR to continue to incur the costs necessary to maintain and operate the line. The Pennsylvania Historical and Museum Commission has identified a tunnel and bridge as properties eligible for the National Registry of Historic Places under Criterion C for their engineering significance. Accordingly, SEA recommends that a condition be imposed on any decision granting abandonment authority requiring PSRR to retain its interest in and take no steps to alter the historic integrity of all sites and structures on the line, including the Coder Viaduct bridge, located at milepost 1.41, and the railroad tunnel located at milepost 23.52, until completion of the section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f. SEA also notes that the U.S. Department of Commerce, National Geodetic Survey (NGS), has identified three geodetic station markers that could be affected by the proposed abandonment. Therefore, SEA recommends that a condition be imposed requiring PSRR to consult with NGS and provide it with 90 days notice prior to disturbing or destroying any geodetic marker. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the abandonment of the above- described line, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979), and the conditions that: (1) PSRR shall retain its interest in and take no steps to alter the historic integrity of all sites and structures on the line, including the Coder Viaduct bridge, located at milepost 1.41, and the railroad tunnel located at milepost 23.52, until completion of the section 106 process of the National Historic Preservation Act, 16 U.S.C. 470f; and (2) PSRR shall consult with the NGS and provide it with 90 days notice prior to disturbing or destroying any geodetic marker. 2. Provided no OFA has been received, this exemption will be effective on February 13, 1998. 3. Pursuant to the provisions of 49 CFR 1152.29(e)(2), PSRR shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by PSRR's filing of a notice of consummation by January 14, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 12, 1998 Service Date - January 14, 1998 ------------------------------------------------------------ DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33532] West Isle Line, Inc. Acquisition and Operation Exemption The Burlington Northern and Santa Fe Railway Company West Isle Line, Inc. (WIL), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire from The Burlington Northern and Santa Fe Railway Company and to operate approximately 5.25 miles of rail line and associated assets between milepost 0+500 feet (milepost 0.09), at Stoil, CA, and milepost 5+2965.80 feet (milepost 5.56), at Alpaugh, CA. The earliest the transaction could be consummated was December 22, 1997, the effective date of the exemption (7 days after the exemption was filed). Decided: January 7, 1998. Service Date: January 14, 1998 ============================================================ Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ============================================================