STB REPORT #6 - MARCH 16 - 31, 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/ ****************************************************************************** DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-531 (Sub-No. 1X)] Pioneer Valley Railroad Company, Inc.--Abandonment Exemption--in Hampshire County, MA Pioneer Valley Railroad Company (PVRR) has filed a notice of exemption to abandon an approximately 4.6-mile line of railroad from milepost 9.4 near Easthampton to milepost 14.0 at Mount Tom, in Hampshire County, MA. The line traverses United States Postal Service Zip Code 01027. Provided no formal expression of intent to file an offer of financial assistance has been received, this exemption will be effective on April 17, 1998, unless stayed pending reconsideration. PVRR 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 PVRR's filing of a notice of consummation by March 18, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: March 10, 1998. Service Date: March 18, 1998 ----------------------------------------------------------------------- SURFACE TRA0NSPORTATION BOARD DECISION Docket No. AB-33 (Sub-No. 90X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN SUTTER COUNTY, CA (YUBA CITY BRANCH) By decision and notice of interim trail use or abandonment (NITU) served on March 29, 1996, a 180-day period was authorized for the County of Sutter, CA (the County) to negotiate an interim trail use/rail banking agreement with the Union Pacific Railroad Company (UP) for a 5.20-mile portion of the Yuba City Branch line between milepost 0.00 near Colusa Jct. and the end of the line at milepost 5.20 near Sutter, in Sutter County, CA. Subsequently, the negotiation period under the NITU was extended by decisions served on September 19, 1996, December 20, 1996, July 1, 1997, and December 23, 1997. The last extension expires March 19, 1998. By letter filed March 13, 1998, the County seeks to extend the NITU negotiation period for an additional 60 days. The County states that the respective staffs of the County and UP have reached an agreement regarding the purchase of the property but that additional time is needed to present the agreement to the Sutter County Board of Supervisors and UP management for signatures. On March 13, 1998, UP agreed to the 60-day extension so that the parties may formalize their agreement in principle. It is ordered: 1. The County's request to extend the NITU negotiating period is granted. 2. The NITU negotiation period is extended until May 18, 1998. Decided: March 18, 1998 Service Date: March 19, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-55 (Sub-No. 524X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION--IN HARLAN COUNTY, KY CSXT Transportation, Inc. (CSXT) filed a notice of exemption to abandon approximately 3.23 miles of its line of railroad between milepost WC-262.3 at Cumberland and milepost WC- 265.53 at the end of CSXT ownership near Lynch, in Harlan County, KY. The notice was served and published in the Federal Register on March 25, 1996. By decision served April 19, 1996, the exemption was made subject to the condition that CSXT retain its interest in and take no steps to alter the historic integrity of the line in its entirety until completion of the section 106 process of the National Historic Preservation Act. Subject to that condition, the exemption became effective on April 24, 1996. On May 14, 1996, CSXT informed the Board that it had taken the 3.23-mile line of railroad out of service effective May 10, 1996, and that physical removal of the rail assets would await completion of the section 106 process. On February 11, 1998, the City of Benham, KY (City), late-filed a request for the issuance of a notice of interim trail use (NITU), under the National Trails System Act, and for a public use condition under 49 U.S.C. 10905, in order to negotiate with CSXT for use of the line as a trail. The City's requests cannot be granted. By letter dated February 25, 1998, and filed on March 3, 1998, CSXT maintains that the Board no longer has jurisdiction to impose either a public use condition or an interim trail use condition. CSXT refers to its May 1996 letter, which, it asserts, indicates that the line was abandoned effective May 10, 1996. CSXT also states that it is not willing to negotiate with the City for interim trail use. Therefore, even without resolving the question of whether the Board retains jurisdiction here for any purpose, a NITU cannot be issued in this proceeding because the Trails Act permits only voluntary interim trail use. The Board no longer has authority to impose a public use condition. Section 10905 permits public use conditions to be imposed upon any abandonment authorized by the Board for a period running for no more than 180 days from the effective date of the Board's authorization. In this proceeding, the Board's authorization of the abandonment exemption became effective on April 24, 1996. Thus, even if a public use condition had been timely sought, no public use condition could be permitted to extend beyond October 21, 1996. In short, regardless of any continuing jurisdiction the Board may have over the line by virtue of the fact that the section 106 condition remains in effect, the Board would have no jurisdiction to impose the public use condition sought almost two years after the effective date of the abandonment exemption. It is ordered: 1. The requests for issuance of a notice of interim trail use/rail banking and for issuance of a public use condition are denied. Decided: March 12, 1998 Service Date: March 19, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-55 (Sub-No. 558X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION--IN FRANKLIN COUNTY, TN In the above-entitled proceeding, no environmental or historic preservation issues have been raised by any party or identified by the Section of Environmental Analysis. Accordingly, a Finding of No Significant Impact under 49 CFR 1105.10(g) will be made pursuant to 49 CFR 1011.8(c)(10). It is ordered: 1. Abandonment of the involved rail line will have no significant effect on the quality of the human environment and conservation of energy resources or on historic resources. Decided: March 11, 1998 Service Date: March 19, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-303 (SUB-NO.14X) WISCONSIN CENTRAL LTD. - ABANDONMENT EXEMPTION- IN WOOD COUNTY, WISCONSIN In this proceeding, the Wisconsin Central Ltd. has filed a notice seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of its railroad line located between Milepost 22 and Milepost 22.75 northwest of Wisconsin Rapids, Wisconsin, a distance of .75 miles in Wood County, Wisconsin. We recommend that no environmental conditions be placed on any decision granting abandonment authority. The United States Environmental Protection Agency, Region 5 has expressed concerns about the proper decommissioning of the line and salvage of the material, the impact of the decommissioning process on the surrounding environment and the future use of the property. Wisconsin Central Ltd. responded by stating that it intends to remove all rail and track materials from the right-of-way and reuse them wherever possible. Wisconsin Central Ltd. Further stated that it intends to plow the rails and ties out of the ballast which will preserve the integrity of the earthen structure underneath the track and will prevent soil erosion and storm water runoff. In response to future use of the right-of-way Wisconsin Central Ltd. explained that the purpose of the abandonment is to provide Superior Cranberry Creek Landfill, Inc., which owns property on both sides adjacent to the line, with the opportunity to purchase property on which the line sits for further expansion of its landfill operations. 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. If abandonment and salvage of the rail line does take place, the right-of-way may not be suitable for other public use. The Wood County Office of Planning and Zoning has already informed the Wisconsin Central Ltd. that the line, in their view, was not suitable to bicycle or other pedestrian uses. The Wisconsin Department of Natural Resources has informed Wisconsin Central Ltd. that it has no interest in acquiring the line as a recreational trail. Service Date: March 19, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33528 EFFINGHAM RAILROAD COMPANY OPERATION EXEMPTION LINE OWNED BY TOTAL QUALITY WAREHOUSE On December 3, 1997, Effingham Railroad Company (ERRC) filed a verified notice of exemption to operate over approximately 9,201 feet of railroad line that will be constructed for and acquired by Total Quality Warehouse (TQW), located in an industrial park in Effingham, IL. Notice of the exemption was served and published in the Federal Register on December 30, 1997. On December 9, 1997, Joseph C. Szabo, on behalf of United Transportation Union-Illinois Legislative Board (UTU-IL), filed a petition to stay the operation of the notice of exemption and to reject the notice or revoke the exemption. In a decision served December 16, 1997, the request for a stay was denied. The petition to reject or revoke raises issues that require further consideration by the Board. By this decision, the Board is instituting a proceeding to consider UTU-IL's revocation request. At this time, there does not appear to be a need for the parties to submit additional evidence. It is ordered: 1. Under 49 U.S.C. 10502(d), a proceeding is instituted to consider UTU-IL's petition to revoke the notice of exemption. 2. The proceeding will be completed by December 9, 1998. Decided: March 18, 1998 Service Date: March 19, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-55 (Sub-No. 556X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION-- IN RALEIGH COUNTY, WV By petition filed December 1, 1997, CSX Transportation, Inc. (CSXT) seeks an exemption to abandon a portion of its C&O Business Unit, the Jarrolds Valley Subdivision, between milepost CLP-15.3 at R.O. Junction and milepost CLP-18.3 at the end of the track at Picard, a distance of 3.0 miles in Raleigh County, WV. We will grant the exemption, subject to standard employee protective conditions. The segment at issue is part of an 18.3-mile line. CSXT indicates that only one shipper has shipped or received freight on the subject line in recent years: Zalkin Coal Sales, Inc. Zalkin operated a coal mine, the Bonny Mine, located at the end of the line proposed for abandonment at Picard. In 1992, Zalkin shipped 3,521 carloads of coal from the Bonny Mine. CSXT indicates that the last coal shipment occurred on May 23, 1992. After that date, the mine was closed. Petitioner adds that Zalkin has since declared bankruptcy. According to CSXT, two of the locomotives that were used by Zalkin to switch the mine were sold to Elk River Railroad, Inc. (Elk River). On May 28, 1996, CSXT transported these locomotives from Picard to CSXT's junction point with Elk River at Gilmer, WV. CSXT states that, other than the movement of these locomotives, no other traffic has moved over the line in five and one-half years. According to CSXT, no traffic is anticipated in the future. Based on SEA's recommendation, we conclude that the proposed abandonment will not significantly affect either the quality of the human environment or the conservation of energy resources. 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 set forth in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979). 2. CSXT must serve a copy of this decision on the Trustee in Bankruptcy for Zalkin 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 April 19, 1998. 4. 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 March 20, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: March 13, 1998 Service Date: March 20, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-55 (Sub-No. 559X)] CSX Transportation, Inc.--Abandonment Exemption--in Atlanta, Fulton County, GA On March 2, 1998, CSX Transportation, Inc. (CSXT), filed with the Surface Transportation Board (Board) a petition to abandon a portion of its Atlanta Service Lane, Atlanta Terminal Subdivision, extending from milepost 4.87 at Memorial Drive, to milepost 5.22 at Wylie Street, a distance of 0.35 miles, in Atlanta, Fulton County, GA. The line traverses U.S. Postal Service ZIP Code 30318. CSXT indicates that there are no stations on the line. By issuance of this notice, the Board is instituting an exemption proceeding. A final decision will be issued by June 19, 1998. Decided: March 13, 1998. Service Date: March 20, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33563] Texas Rock Crusher Railway Company Acquisition and Operation Exemption The Burlington Northern and Santa Fe Railway Company Texas Rock Crusher Railway Company (TXRC), a noncarrier, has filed a verified notice of exemption to acquire from The Burlington Northern and Santa Fe Railway Company (BNSF) and to operate two disconnected lines of railroad (subject lines). The first of these lines, known as the Camp Bowie Industrial Spur, extends between mainline milepost 349.01, on BNSF's Clovis, NM, to Houston, TX, mainline, and the end of track (no milepost), at the Camp Bowie Industrial Park in Brownwood, TX, a distance of 4.4 miles. The second of these lines, known as the Rock Crusher Spur, extends from mainline milepost 349.3 on BNSF's above-described mainline to end of line (no milepost), in Brownwood, TX, a distance of 1.25 miles. In addition, BNSF will grant TXRC incidental overhead freight trackage rights for ten 99-year terms between milepost 348.6 and milepost 349.4, near Brownwood, TX, including the use of the wye, to allow traffic originating on the Rock Crusher Spur to have access to BNSF's Brownwood Yard for interchange. BNSF will also grant TXRC incidental trackage rights over BNSF's Brownwood Yard trackage between milepost 345.5 and milepost 349.4 for switching and interchange and to allow movement to and from the Camp Bowie Industrial Spur and the Rock Crusher Spur. The parties state that TNW Corporation (TNW), TXRC's corporate parent, entered into an agreement on February 11, 1998, with BNSF for the purchase of the subject lines. TNW subsequently assigned that agreement to TXRC. The earliest the transaction could be consummated was March 6, 1998, the effective date of the exemption (7 days after the notice of exemption was filed). This transaction is related to STB Finance Docket No. 33564, TNW Corporation Continuance in Control Exemption Texas Rock Crusher Railway Company, wherein TNW has concurrently filed a verified notice to continue in control of TXRC upon its becoming a Class III rail carrier. Decided: March 12, 1998. Service Date: March 20, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33564] TNW Corporation Continuance in Control Exemption Texas Rock Crusher Railway Company TNW Corporation (TNW), a noncarrier shortline railroad holding company, has filed a notice of exemption to continue in control of Texas Rock Crusher Railway Company (TXRC), upon TXRC's becoming a carrier. TNW owns all of the outstanding stock of TXRC. The earliest the transaction could be consummated was March 6, 1998, the effective date of the exemption (7 days after the notice of exemption was filed). This transaction is related to STB Finance Docket No. 33563, Texas Rock Crusher Railway Company Acquisition and Operation Exemption The Burlington Northern and Santa Fe Railway Company, wherein TXRC seeks to acquire and operate two adjacent but disconnected lines from The Burlington Northern and Santa Fe Railway Company. TNW owns and controls three existing Class III rail carriers: Texas North Western Railway Company, operating in the State of Texas; Texas, Gonzales & Northern Railway Company, operating in the State of Texas; and Nebraska Northeastern Railway Company, operating in the State of Nebraska. Decided: March 12, 1998. Service Date: March 20, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 112X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN LANCASTER COUNTY, NE A decision and notice of interim trail use or abandonment (NITU) served on September 24, 1997, established a 180-day period (until March 23, 1998) for the City of Lincoln (the City) to negotiate an interim trail use/rail banking agreement with the Union Pacific Railroad Company (UP) for a portion of the line between milepost 492.88 near 33rd Street and milepost 494.166 at 18th Street, in Lincoln, NE. (UP indicated its intent to donate to the University of Nebraska that portion of the line between 18th Street and milepost 494.76 near 10th Street.) Thereafter, pursuant to the offer of financial assistance provisions of 49 U.S.C. 10904, Lincoln Lumber Company was authorized to acquire the portion of the line between 19th and 24th Streets (mileposts 494.166 and 492.88, respectively). Otherwise, the trail use condition remains viable for the remainder of the line between 24th Street and 33rd Street and the 8,400 square foot parcel between 18th Street and 19th Street. On March 9, 1998, the City filed a request to extend the NITU negotiation period for an additional 180 days or until September 19, 1998. The City states that negotiations were delayed by the intervening OFA process and that additional time is needed to continue negotiations on an agreement. By letter filed March 16, 1998, UP agreed to the extension of the negotiation period. It is ordered: 1. The City's request to extend the NITU negotiation period is granted. 2. The negotiation period under the NITU is extended to September 19, 1998. Decided: March 19, 1998 Service Date: March 23, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-55 (Sub-No. 552X) CSX TRANSPORTATION, INC.--ABANDONMENT EXEMPTION--IN RALEIGH COUNTY, WV STB Docket No. AB-290 (Sub-No. 201X) NORFOLK AND WESTERN RAILWAY COMPANY--DISCONTINUANCE OF TRACKAGE RIGHTS EXEMPTION--IN RALEIGH COUNTY, WV By petition filed December 3, 1997, CSX Transportation, Inc. (CSXT), and Norfolk and Western Railway Company (N&W) -- a wholly owned subsidiary of Norfolk Southern Railway Company (collectively, petitioners) seek an exemption for CSXT to abandon and N&W to discontinue trackage rights over a 6.24-mile railroad line between milepost 0.58 at Beckley Junction and milepost 6.82 at the end of the track at Cranberry, in Raleigh County, WV. A notice was published in the Federal Register on December 23, 1997, instituting an exemption proceeding. A request for imposition of a public use condition and issuance of a notice of interim trail use (NITU) was filed by the City of Beckley (the City). The United Transportation Union requests imposition of labor protective conditions. We will grant the exemption, subject to a public use condition and standard employee protective conditions. The line of railroad proposed for abandonment was originally part of the Piney River and Paint Creek Railroad Company (PR&PC), which was incorporated in 1905. The property was owned by the New River Company (New River) and was leased from 1912 to 1917 by The Virginian Railway Company (Virginian), predecessor of NS. Virginian granted an undivided one- half interest in its leasehold to the Chesapeake & Ohio Railway Company (C&O), predecessor of CSXT. Under an agreement dated April 19, 1917, the stock of PR&PC was conveyed to C&O with a provision that C&O continue to operate over the track. On November 1, 1917, Virginian, C&O, and New River entered into a joint facility agreement covering the use of the subject track, as well as other rail properties. PR&PC merged with C&O in 1918, and, through a series of rail mergers, ultimately became CSXT. On December 1, 1959, Virginian merged with N&W. Under the 1917 joint facilities agreement, which is still in effect, CSXT owns the line and NS has trackage rights to operate over it. CSXT states that there were only four shippers on the line in recent years and that they required only minimal rail service. Petitioners state that only CSXT has been providing rail service; presumably no traffic has moved under N&W's trackage rights. According to CSXT, these shippers have either relocated, are in the process of relocating, or use truck transportation exclusively. Austin Powder Company (Austin Powder) formerly operated an explosives manufacturing plant at Beckley. However, as of March 1997, it began receiving all of its rail shipments at its new rail-served facility in Mt. Hope, WV. Dowell Schlumberger, Inc. (Dowell), operates an oil and gas service company in Beckley and is in the process of relocating to another rail-served facility in Raleigh. Beckley Newspapers operates a newspaper publishing company in Beckley and, although it used rail service in the past, it now uses motor carriers exclusively to meet its transportation needs. CSXT states that, in the unlikely event that Beckley Newspapers may desire to use rail service in the future, there are team-track facilities in Raleigh, which is located approximately two highway miles from Beckley. Southern West Virginia Asphalt (SWVA) operates an asphalt plant at Sprague, WV, and has used both rail and truck transportation to receive its inbound aggregates and truck transportation exclusively for all outbound traffic. CSXT states that, since late 1996, SWVA has used truck transportation exclusively to receive its inbound aggregates. In addition, CSXT states that SWVA has alternative CSXT rail-served facilities located at Dunbar and Nallon, WV. Petitioners certify that a copy of the petition was served on Austin Powder, Dowell, Beckley Newspapers, and SWVA. On March 5, 1998, Acme Limestone, Co., Inc. (Acme), filed a comment (letter) in opposition to the abandonment proceeding. Acme manufactures and ships, by rail and truck, crushed limestone from Fort Spring (Snowflake), WV, to SWVA at Sprague. Acme opposes the abandonment because the receiver of its limestone is located on the line. Acme states that it would ship substantial traffic over the line and alleges that CSXT has deliberately failed to upgrade the track at Sprague. On March 18, 1998, SWVA filed a comment (letter) joining Acme's opposition to the proposed abandonment. SWVA states that its preferred and most cost effective means of receiving raw materials into its plant is by rail. It states that Acme, its materials supplier, has been unable to ship materials to it for over 2 years because the track has not been maintained and upgraded. SWVA states that, as a result, it had to purchase materials from various other suppliers and transport them to its plant by truck at a much greater cost. Acme's and SWVA's letters do not indicate that they were served on CSXT as required by our regulations at 49 CFR 1104.12. Accordingly, we cannot consider them as protests because CSXT has not had an opportunity to respond. The City requests issuance of a NITU pursuant to the National Trails System Act. It has submitted a statement of willingness to assume financial responsibility for the right-of-way and acknowledged that use of the right-of-way is subject to possible future reconstruction and reactivation for rail service. By letter filed February 24, 1998, CSXT states that it is not willing to negotiate with the City for interim trail use. Therefore, we cannot issue a NITU in this proceeding. SEA has indicated in its EA that the right-of-way may be suitable for other public use after abandonment. As noted above, the City also requests imposition of a 180-day public use condition. 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, we 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. The City has met the public use criteria 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, commencing with the effective date of this decision. We note that a public use condition is not imposed for the benefit of any one potential purchaser. Rather, it provides an opportunity for any interested person to acquire a 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. The late-filed requests for a NITU under 49 U.S.C. 1247(d) and for a public use condition under 49 U.S.C. 10905 are accepted. 2. The request for issuance of a NITU is denied. 3. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903, the abandonment by CSXT and the discontinuance of trackage rights by N&W of the above-described line, subject to: (a) the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979); and (b) the condition that CSXT shall leave intact all of the right-of-way, including bridges, trestles, culverts and tunnels (but not track and 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. 4. CSXT is directed to serve a copy of this decision on Austin Powder, Dowell, Beckley Newspapers, SWVA, and Acme within 5 days after the service date of this decision and to certify to the Board that it has done so. 5. Provided no OFA has been received, this exemption will be effective April 22, 1998. 6. CSXT 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 CSXT's filing of a notice of consummation by March 23, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: March 19, 1998 Service Date: March 23, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-33 (Sub-No. 119X)] Union Pacific Railroad Company--Abandonment Exemption--In Rock, Green and Dane Counties, WI On March 4, 1998, Union Pacific Railroad Company (UP) filed with the Surface Transportation Board (Board) a petition to abandon and discontinue service on a line of railroad known as the Harvard Subdivision, extending from railroad milepost 119.0 near Evansville to railroad milepost 134.0 near MX (a crossing of Wisconsin & Southern Railroad Company near Madison), a distance of 15.0 miles in Rock, Green and Dane Counties, WI. The line traverses U.S. Postal Service Zip Codes 53536, 53575 and Area 537 (near Madison), and includes the non- agency rail station of Oregon at milepost 128.1. By issuance of this notice, the Board is instituting an exemption proceeding. A final decision will be issued by June 22, 1998. Decided: March 17, 1998. Service Date: March 24, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-167 (SUB-NO. 1182X) Consolidated Rail Corporation Abandonment Exemption -- In Indiana County, Pennsylvania In this proceeding, the Consolidated Rail Corporation (Conrail) has filed a notice of exemption in connection with the abandonment of its railroad line, known as the Blairsville Secondary Track, located between railroad milepost 5.70 and railroad milepost 17.50, a distance of 11.8 miles in Indiana County, Pennsylvania. We recommend that no environmental conditions be placed on any decision granting abandonment authority. 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: March 24, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-459 (SUB-NO.2X) CENTRAL RAILROAD COMPANY OF INDIANA- ABANDONMENT EXEMPTION-IN DEARBORN, DECATUR, FRANKLIN, RIPLEY AND SHELBY COUNTIES In this proceeding, the Central Railroad Company of Indiana has filed a petition in connection with the abandonment of its railroad line located between milepost 23.0, near Thatcher, IN, to milepost 81.0 near Shelbyville, IN(the Shelbyville Line ), a distance of 58 miles in Dearborn, Decatur, Franklin, Ripley and Shelby Counties, in the State of Indiana. The right-of-way climbs out of the Ohio River Valley through a curvy, hilly terrain between Greendale and Sunman. Between Sunman and Shelbyville, the railroad is essentially flat and travels through primarily agricultural land. There are only five shippers located on the Shelbyville Line: Premier Ag Coop ( Premier )(milepost 63.2), Greensburg Milling, Inc. ( Greensburg Milling )(milepost 63.0), Kolkmeier Bros. Feed & Grain ( Kolkmeier )(milepost 73.0); Kova Fertilizer ( Kova )(milepost 63.0) and Lowe's Pellet & Grain Co. ( Lowe's )(milepost 63.0). In 1996, Premier shipped or received 3 carloads of corn and 43 carloads of various fertilizers; Greensburg Milling shipped or received 31 carloads of corn, 18 carloads of soybeans and 9 carloads of fertilizers; Kolkmeier shipped or received 93 carloads of corn and 27 carloads of soybeans; Kova shipped or received 59 carloads of fertilizers; and Lowe's shipped or received 365 carloads of various agricultural products. When CIND began operations on the Shelbyville Line in 1992, it was generally in Federal Railroad Administration ( FRA ) class 2 condition, which permitted operations up to 25 miles per hour. By November 1994, approximately 30 miles of the Shelbyville Line were down to FRA class 1 condition, good for operations not exceeding 10 miles per hour. In February of 1997 CIND halted operations over the segment from milepost 23.0 to milepost 39.0 due to slippage of the right of way , erosion, slides, wash outs, drainage, and other problems in the area. Abandonment of the line would allow CIND to abandon approximately 108 public grade crossings and 40 private grade crossings, thereby reducing the possibility of vehicle delay time or accidents at those crossings. The National Geodetic Survey (NGS) has identified 63 geodetic station markers along the rail line and requests 90 days notice to plan relocation of any markers which may be disturbed or destroyed. Therefore, we recommend that the following condition be imposed on any decision granting abandonment authority: The Central Railroad Company of Indiana shall consult with the National Geodetic Survey and provide NGS with 90 days notice prior to disturbing or destroying any geodetic markers. The Indiana Department of Natural Resources, Division of Historic Preservation and Archeology has not completed its evaluation of the potential impact of this project on historic resources. Accordingly, we recommend imposition of the following condition: Central Indiana Railroad Co. shall 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. The Fish and Wildlife Service (FWS), Bloomington Field Office, stated that the proposed abandonment will occur in close proximity to 21 wetlands as well as the Big Blue River. To avoid adverse impacts on these water resources, FWS recommends that the railroad: (1) post DO NOT DISTURB signs at the construction zone boundaries; (2) keep tree removal to a minimum in all forested areas; (3) avoid all degradation of wetlands and waterways when conducting salvage activities and revegetate all disturbed soil areas upon project completion; and (4) avoid channel work during the fish spawning season (April 1 through June 30). Although CIND does not anticipate the removal of any bridges on the subject line, we recommend that a condition be imposed requiring the railroad to consult with the FWS field office at Bloomington prior to salvaging the right-of-way. The Indiana Department of Environmental Management (IDEM) states that if, in the course of removal of construction materials from the abandoned railroad track area, any contaminated materials are encountered, the materials must be characterized for proper disposal. The IDEM recommends that the applicant contact the Special Waste Section of IDEM's Office of Solid and Hazardous Waste Management for assistance in both materials characterization and identification of the appropriate means of materials disposal or reuse options. We recommend that a condition be imposed requiring the railroad to consult with the IDEM prior to salvaging or disposing of the entire right-of-way. Based on the information provided from all sources to date, and subject to the recommended conditions, 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: March 24, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 30186 (Sub-No. 3) TONGUE RIVER RAILROAD COMPANY--CONSTRUCTION AND OPERATION--WESTERN ALIGNMENT On December 19, 1997, the Tongue River Railroad Company (TRRC) formally notified the Board of TRRC's intention to file a rail construction application for authority to construct and operate a 17-mile line of railroad near Decker, MT, referred to as the Western Alignment. On February 27, 1998, TRRC filed a petition to establish a procedural schedule for the proceeding. Under TRRC's proposed schedule, the proceeding would be concluded in approximately 9 months following the filing date of the application. We will deny the petition. GNPLP replied in opposition on March 18, 1998. TRRC currently has authority to construct and operate a line of railroad between Ashland and Decker, MT, subject to various conditions. See Finance Docket No. 30186 (Sub-No. 2) (STB served Nov. 8, 1996). In that proceeding, the Board considered two alternative routes for the Ashland Decker line. The first proposed route, TRRC's preferred route, closely follows the Tongue River, and the Board found that this route presented adverse environmental impacts which could not be effectively mitigated. The second route, the Four Mile Creek Alternative, partially avoids the Tongue River, but follows a more circuitous route and allegedly offers less favorable operating characteristics than TRRC's preferred route. For reasons set forth in the November 1996 decision, we rejected TRRC's preferred route and approved the Four Mile Creek Alternative. On July 15, 1997, TRRC petitioned to reopen the November 1996 decision. In its petition, TRRC proposed the Western Alignment, a new alignment for an approximately 17-mile portion of the Four Mile Creek Alternative routing that would allegedly require less construction and offer improved operating characteristics over the approved Four Mile Creek Alternative routing. We denied the petition by decision served December 1, 1997, but stated that TRRC could file a new application for authority to construct the Western Alignment. As a result of that decision, TRRC has filed a notice of intent, informing the Board that TRRC will file at the earliest practical time a new construction and operation application in this proceeding. TRRC has not yet filed its application. TRRC states that the proposed procedural schedule is broadly modeled after procedural schedules adopted by the Board in recent Class I railroad control proceedings. TRRC asserts that those proceedings involved complex environmental and public interest issues well beyond the scope of issues likely to be raised in this proceeding. TRRC also maintains that the environmental analysis performed under Finance Docket No. 30186 (Sub-No. 2) will shorten the environmental process required by this proposal because much of the route for the Western Alignment is contiguous to or overlaps the Four Mile Creek Alternative. For these reasons, petitioner asserts that 270 days would be an adequate time period to fully resolve this matter. Petitioner adds that establishing a schedule at the outset of this case will provide guidance to all interested parties and promote efficient and orderly consideration of the issues presented. Because TRRC has not yet filed its application, we cannot determine the scope of the potential public interest issues at this point. Moreover, SEA has not received input from interested governmental agencies, businesses, and affected individuals on the potential environmental issues. Until SEA receives their input, the scope of the likely environmental issues cannot be fully identified. Thus, neither we nor any persons who might comment on a proposed procedural schedule are in a position at this point to assess whether TRRC's proposed procedural schedule would be compatible with the environmental and other issues that may be raised in this proceeding. Accordingly, we will deny TRRC's petition. It is ordered: 1. TRRC's petition to establish a procedural schedule is denied. Decided: March 19, 1998 Service Date: March 24, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33520] Consolidated Rail Corporation--Trackage Rights Exemption--The Wheeling and Lake Erie Railway Company The Wheeling and Lake Erie Railway Company (W&LE) has agreed to grant local trackage rights to Consolidated Rail Corporation (Conrail) over certain railroad trackage, being a portion of W&LE's River Line, and more particularly described as follows: (1) initial rights for a period of 6 months from the date Conrail begins operations under the trackage rights agreement, or for such extensions of time as may be mutually agreed, shall begin at the connection between Conrail and W&LE at Shannon Run, OH, in the vicinity of W&LE milepost R-1.5+/-, and shall extend to the American Electric Power (AEP) Cardinal Plant at Brilliant, OH, in the vicinity of W&LE R-5.0+/-; and (2) permanent rights, after the term of the initial rights, shall begin at a new connection to be constructed between Conrail's River Line at milepost 26.40+/- and W&LE's River Branch at milepost R-3.0+/-, thence extending on W&LE's River Branch to the AEP Cardinal Plant at Brilliant, OH, in the vicinity of W&LE milepost R-5.0+/-. The trackage rights exemption will be effective on March 19, 1998. The actual commencement of operations by Conrail pursuant to the trackage rights will depend upon Conrail's commercial arrangements with AEP, but will not take place before the March 19, 1998 effective date. Decided: March 17, 1998. Service Date: March 24, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33553] Ventura County Transportation Commission--Acquisition Exemption--Southern Pacific Transportation Company Ventura County Transportation Commission (VCTC), a Class III carrier, has filed a verified notice of exemption to acquire approximately 31.73 miles of rail line from Southern Pacific Transportation Company (SP) between milepost 435.07 and milepost 403.34 at Montalvo Station near Ventura, CA, where the line connects with the SP Coast Line (the Santa Paula Branch Line). This notice of exemption amends and supersedes the earlier notice of exemption that VCTC had filed, on February 10, 1998. VCTC entered into an agreement with SP to purchase the line, and consummated the transaction on October 27, 1995, apparently without appropriate authority from the Board. Under the agreement, SP retained the right to continue to provide freight common carrier service over a portion of the line, but, according to VCTC, VCTC became a carrier at the time of the purchase in 1995. VCTC did not file its verified notice of exemption, as amended, with the Board until February 27, 1998. VCTC has acknowledged that the effective date of the exemption was March 6, 1998 (7 days after the amended notice of exemption was filed). Decided: March 17, 1998. Service Date: March 24, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-167 (Sub-No. 1164X) CONSOLIDATED RAIL CORPORATION ABANDONMENT EXEMPTION IN ERIE COUNTY, NY By notice of exemption in STB Docket No. AB-167 (Sub-No. 1164X), served and published in the Federal Register on July 23, 1996, Consolidated Rail Corporation (Conrail) invoked the class exemption at 49 CFR 1152.50 to abandon 5.10 miles of its lines of railroad in Erie County, NY, comprising the Walden Running Track between mileposts 414.00 and 418.50 and the JD Industrial Track between mileposts 0.00 and 0.60. By decision served September 30, 1996, R. J. Corman Railroad Company/Allentown Lines, Inc. (RJCN) was authorized to acquire the lines from Conrail under the offer of financial assistance (OFA) procedures. In a petition filed March 9, 1998, Buffalo Crushed Stone, Inc. (BCS) seeks to vacate the notice of exemption, claiming that the notice contains false or misleading information. BCS also seeks to revoke the transfer of the line to RJCN under the OFA procedures. By joint motion filed on March 24, 1998, RJCN and Conrail request an 11-day extension to April 10, 1998, to file their answers to BCS's petition in STB Docket No. AB-167 (Sub-No. 1164X). According to RJCN and Conrail, counsel for BCS has been informed and consents. The requests are reasonable and will be granted. It is ordered: 1. RJCN's and Conrail's extension requests are granted. 2. RJCN's and Conrail's answers to BCS's petition in STB Docket No. AB-167 (Sub- No. 1164X) are due April 10, 1998. Decided: March 25, 1998 Service Date: March 26, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT DOCKET NO. AB-531 (Sub. No. 1X) Pioneer Valley Railroad Company, Inc. -- Abandonment Exemption in Hampshire County, New Hampshire In the above entitled proceeding, Pioneer Valley Railroad Company, Inc.(PVRR)has filed a notice of exemption in connection with the abandonment of its line of railroad between Milepost 9.4 near Easthampton and Milepost 14.0 at Mount Tom, a distance of approximately 4.6 miles in Hampshire County, New Hampshire. The right-of-way lies within the Town of Easthampton. If abandonment is approved, PVRR plans to salvage the rail and fasteners and to leave the ballast, ties and bridges in place. PVRR states in its application that the Town of Easthampton proposes to purchase the right-of-way for recreational development. We recommend that no environmental conditions be placed on any decision granting abandonment authority. 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: March 26, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION Docket No. AB-3 (Sub-No. 123X) MISSOURI PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN PETTIS COUNTY, MO On September 29, 1995, a decision and notice of interim trail use or abandonment (NITU) was served in the above proceeding, which authorized a 180-day period for the State of Missouri Department of Natural Resources (MDNR) to negotiate an interim trail use/rail banking agreement with Missouri Pacific Railroad Company (MP) for a 2.16-mile segment of rail line between milepost 226.84, near Sedalia, and the end of the line at milepost 229.0, in Pettis County, MO. Extensions of the negotiating period were granted by decisions served April 5, 1996, September 27, 1996, April 18, 1997, and September 23, 1997. The negotiating period was scheduled to expire on March 24, 1998. By letter filed March 19, 1998, MDNR requests a 90-day extension of the negotiating period. MDNR states that the parties are negotiating in good faith to consummate a conveyance/acquisition of the segment of rail line for use as a hiking and biking trail. MDNR further states that the parties have not yet been successful in reaching an agreement regarding the terms of the conveyance to the State of Missouri. MDNR adds that both parties are working diligently to arrive at acceptable terms. MP, by letter filed March 20, 1998, agrees to an extension of the NITU, but suggests an extension of 180 days. MP states that every possible effort will be made to reach an agreement during the 180-day period, to avoid the need for another extension of the NITU. MP indicates in its letter that MDNR agrees to the 180-day extension request. It is ordered: 1. The request to extend the interim trail use negotiating period is granted. 2. The NITU negotiating period is extended to September 20, 1998. Decided: March 25, 1998 Service Date: March 27, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION Docket No. AB-290 (Sub-No. 168X) NORFOLK AND WESTERN RAILWAY COMPANY--ABANDONMENT EXEMPTION--BETWEEN KOKOMO AND ROCHESTER IN HOWARD, MIAMI, AND FULTON COUNTIES, IN On May 14, 1996, a decision and notice of interim trail use or abandonment (NITU) was served authorizing a 180-day period for the Hoosier Rails-to-Trails Council, Inc. (HRTTC), and Indiana Trails Fund, Inc. (ITF), to negotiate an interim trail use/rail banking agreement with Norfolk and Western Railway Company (N&W) for the segment of the line between milepost I-57.2 at or near Kokomo, IN, and milepost I-74.2 at Peru, IN. Because of the pendency of an offer of financial assistance to purchase the line, which was not consummated, the exemption did not become effective until October 7, 1996. On that date the initial 180-day negotiating period began, but before it expired on April 5, 1997, it was extended to October 2, 1997, by decision served April 3, 1997, and again to March 31, 1998, by decision served September 30, 1997. On March 20, 1998, ITF filed a request to extend the negotiation period for an additional 180 days. ITF states that despite diligent attempts, the parties have been unable to conclude negotiations, and that the additional time is needed for them to do so. By letter also filed March 20, 1998, N&W states that it has not consummated the abandonment of the line and that it consents to the extension request. It is ordered: 1. ITF'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 September 27, 1998. Decided: March 24, 1998 Service Date: March 27, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-492 (Sub-No. 1X)] Fillmore Western Railway Company--Abandonment Exemption--in Fillmore, Jefferson, Saline and Thayer Counties, NE On March 9, 1998, Fillmore Western Railway Company (FWRY) filed with the Surface Transportation Board (Board) a corrected petition under 49 U.S.C. 10502 for exemption to abandon the following lines of railroad: (1) the Bruning Line extending from railroad milepost 10.0 near Geneva, to railroad milepost 24.5 near Bruning; (2) the Daykin Line extending from railroad milepost 35.8 at East Strang Junction to railroad milepost 23.2/28.4 at Tobias and continuing to the end of the line at railroad milepost 36.2 at Daykin; and (3) the Shickley Line extending from railroad milepost 37.5 near West Strang Junction to railroad milepost 45.0 at Shickley, a total distance of 42.40 miles in Fillmore, Jefferson, Saline and Thayer Counties, NE. The lines traverse U.S. Postal Service Zip Codes 68146, 68406, 68361, 68436, 68444, 68322, 68453 and 68338. The lines include the stations of Shickley (milepost 45.0), Bruning (milepost 24.5), Ohiowa (milepost 29.8), Tobias (milepost 23.2/28.4), and Daykin (milepost 36.2). By issuance of this notice, the Board is instituting an exemption proceeding. A final decision will be issued by June 26, 1998. Decided: March 17, 1998. Service Date: March 27, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-503 (SUB-NO. 1X) Bootheel Rail Properties, Inc. -- Abandonment Exemption -- in Pemiscot and Dunklin Counties, MO NO. AB-502 (SUB-NO. 1X) Bootheel Regional Rail Corporation -- Discontinuance Exemption -- in Pemiscot and Dunklin Counties, MO In this proceeding, Bootheel Rail Properties, Inc. (BRPI) has filed a petition seeking exemption from the requirements of 49 U.S.C. 10903 in connection with the abandonment of its railroad line located between milepost 212.73 near Hayti, MO and milepost 230.00 near Kennett, MO, a distance of 17.27 miles in Pemiscot and Dunklin Counties, MO. The Bootheel Regional Rail Corporation (BRRC) has jointly filed this petition to discontinue its trackage rights over this rail line. BRPI is the owner and BRRC is the operator of the rail line. Local traffic on the consists of building materials, fertilizer, and cotton seed. Only 78 carloads moved on the line in 1996, and no local traffic has moved since October 30, 1996. The line has no overhead traffic. On April 7, 1997, one of the bridges on the line was completely destroyed by fire. The line is in very poor condition and in need of substantial repair. The Missouri State Historic Preservation Office has not completed its evaluation of the potential impact of this project on historic resources. Accordingly, we recommend imposition of the following condition: Bootheel Rail Properties, Inc. and Bootheel Regional Rail Corporation shall 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. The National Geodetic Survey (NGS) identified 2 geodetic station markers along the rail line that may be affected by the proposed abandonment and requests 90 days notice to plan relocation of any markers which may be disturbed or destroyed. Therefore, we recommend that the following condition be imposed on any decision granting abandonment authority: Bootheel Rail Properties, Inc. and Bootheel Regional Rail Corporation shall consult with the National Geodetic Survey and provide NGS with 90 days notice prior to disturbing or destroying any geodetic markers. Based on the information provided from all sources to date, and subject to the recommended conditions, 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. Following abandonment and salvage of the rail line, the right-of-way may not be suitable for other public use. BRRC and BRPI state that the line traverses a predominately rural area and there is little likelihood that the rail corridor is needed for a transit or highway corridor or for other public uses. Service Date: March 27, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-57 (Sub-No. 40X)] Soo Line Railroad Company--Abandonment Exemption--in Hennepin County, MN On March 10, 1998, Soo Line Railroad Company, operating under the trade name Canadian Pacific Railway, filed with the Surface Transportation Board (Board) a petition to abandon its line of railroad known as the Hiawatha/Cedar Avenue Wye, extending from milepost 423.59+/-, near the eastern edge of Cedar Avenue to mileposts 423.26+/- and 423.21+/-, respectively, near the eastern edge of Hiawatha Avenue, a total distance of approximately 1 mile, in Hennepin County, MN. The line traverses U.S. Postal Service Zip Code 55407, and includes the station of Minneapolis at milepost 423. By issuance of this notice, the Board is instituting an exemption proceeding pursuant to 49 U.S.C. 10502(b). A final decision will be issued by June 26, 1998. Soo Line requests expedited handling of this petition to enable it to facilitate the removal of rail materials and structures from the right-of-way before the State of Minnesota resumes construction of Highway 55 on July 1, 1998. If the record supports an abandonment, we will attempt to accommodate Soo Line's request. Decided: March 23, 1998. Service Date: March 30, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-290 (SUB-NO. 184X), Norfolk and Western Railway Company Petition for Exemption in Cincinnati, Hamilton County, OH No. AB-532, The Cincinnati Terminal Railway Company (Indiana & Ohio Railway Company, Successor) Notice of Exemption Discontinuance of Lease in Cincinnati, Hamilton County, OH No. AB-167 (Sub-No. 1180X), Consolidated Rail Corporation Notice of Exemption Discontinuance of Trackage Rights in Cincinnati, Hamilton County, OH No. AB 31 (Sub-No. 30), Grand Trunk Western Railroad Incorporated Adverse Discontinuance of Trackage Rights Application and Petition for Waivers by Norfolk and Western Railway Company in Cincinnati, Hamilton, OH In this proceeding, the Norfolk and Western Company (NW), Consolidated Rail Corporation (Conrail) and The Cincinnati Terminal Railway Company (CTER), Indiana & Ohio Railway Company, Successor (IORY) have filed a combined application, petition, and notices. The filings are as follows: (1) in AB-290 (Sub-No. 184X), NW seeks to abandon segment of line know as the Riverfront Running Track between Oasis and Plum Street in the City of Cincinnati, Hamilton County, OH, a distance of 1.5 miles long; (2) in AB-167 (Sub-No. 1180X), Conrail seeks discontinuance of trackage rights over the Riverfront Running Track extending from a point near Oasis Block Station to a point in the southern line of Front Street near its intersection with Smith Street; (3) in AB 532, CTER, IORY Successor seeks to discontinue service under a lease limited to certain overhead movements by CTER, IORY Successor, over the Riverfront Running Track; and (4) in AB 31 (Sub-No. 30), NW seeks adversely to permit the discontinuance of the limited overhead trackage rights that may be held by Grand Trunk Western Railroad over the Riverfront Running Track. The track, along with the Fort Washington Way expressway and existing surface parking lots serve as barriers between Cincinnati's central business district and the north bank of the Ohio River. According to applicants, permanent removal of the Riverfront Running Track will allow the Riverfront revitalization project to proceed and the improvements to be used without being limited by the existing track structure. There has been no local traffic on the line for more than two years. There are no remaining active shippers on or near the line. The National Geodetic Survey (NGS) has identified two geodetic station markers that may be affected by the proposed abandonment. Therefore, we recommend that Norfolk and Western Railway Company notify NGS at least 90 days in advance of conducting any activities that would disturb or destroy these markers. Based on the information provided from all sources to date, and subject to the recommended condition, 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: March 30, 1998 ----------------------------------------------------------------------- Surface Transportation Board STB Finance Docket No. 33407 Dakota, Minnesota & Eastern Railroad Corporation -- Construction and Operation of New Rail Facilities in Campbell, Converse, Niobrara, and Weston Counties, Wyoming, Custer, Fall River, Jackson, and Pennington Counties, South Dakota, and Blue Earth, Nicollet, and Steele Counties, Minnesota. Action: Notice of Intent to Prepare an Environmental Impact Statement (EIS), Request for Comments on the Proposed EIS Scope, and Notice of Scoping Meetings. Summary: On February 20, 1998, the Dakota, Minnesota & Eastern Railroad Corporation (DM&E) filed an application with the Surface Transportation Board for authority to construct and operate new rail line facilities in east-central Wyoming, southwest South Dakota, and south- central Minnesota. The project involves a total new construction of 280.9 miles of rail line. Additionally, DM&E proposes to rebuild 597.8 miles of existing rail line along its current system to standards acceptable for operation of unit coal trains. Because the construction and operation of this project has the potential to result in significant environmental impact, the Board's Section of Environmental Analysis (SEA) has determined that the preparation of an Environmental Impact Statement (EIS) is appropriate. The proposed rail construction project, referred to as the Powder River Basin Expansion Project, would involve the construction and operation of 280.9 miles of new rail line by the Dakota, Minnesota & Eastern Railroad Corporation (DM&E), Brookings, South Dakota. The project would provide access for a third rail carrier to serve the region's coal mines and transport coal eastward from the Powder River Basin. New rail construction would include 262.03 miles of rail line extending off DM&E's existing system near Wasta, South Dakota, extending generally southwesterly to Edgemont, South Dakota and then westerly into Wyoming to connect with existing coal mines located south of Gillette, Wyoming. This portion of the new construction would traverse portions of Custer, Fall River, Jackson, and Pennington Counties, South Dakota and Campbell, Converse, Niobrara, and Weston Counties, Wyoming. New rail line construction would also include a 13.31 mile line segment around Mankato, Minnesota within Blue Earth and Nicollet Counties. DM&E currently has trackage on both sides of Mankato, accessed by trackage rights on rail line operated by Union Pacific Railroad (UP). The proposed Mankato construction would provide DM&E direct access between its existing lines, avoid operational conflicts with UP, and route rail traffic around the southern side of Mankato, avoiding the downtown area. The final proposed segment of new rail construction would involve a connection between the existing rail systems of DM&E and I&M Rail Link. The connection would include construction and operation of 2.94 miles of new rail line near Owatonna, Steele County, Minnesota. The connection would allow interchange of rail traffic between the two carriers. In order to transport coal over the existing system, DM&E proposes to rebuild 597.8 miles of rail line along its existing system. The majority of this--584.95 miles-- would be along DM&E's mainline between Wasta, South Dakota, and Winona, Minnesota. An additional 12.85 miles of existing rail line between Oral and Smithwick, South Dakota would also be rebuilt. Rail line rebuilding would include rail and tie replacement, additional sidings, signals, grade crossing improvements, and other systems. DM&E plans to transport coal as its principle commodity. However, shippers desiring rail access could ship other commodities in addition to coal over DM&E's rail line. Existing shippers along the existing DM&E system would continue to receive rail service. Service Date: March 30, 1998 ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-290 (Sub-No. 190X) NORFOLK SOUTHERN RAILWAY COMPANY --ABANDONMENT EXEMPTION--IN FAYETTE COUNTY, AL IN THE MATTER OF A REQUEST TO SET TERMS AND CONDITIONS By decision served December 29, 1997, the Board granted the Norfolk Southern Railway Company (NSR) an exemption 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. By decision served January 13, 1998, the City was found financially responsible, and the effective date of the exemption authorizing abandonment of the segment from milepost 884.9 to milepost 877.7 was postponed to permit the OFA process to proceed. Also, as set out in that decision, the parties were given until February 9, 1998, either to reach an agreement on the purchase price for the line segment or for either party to file a request that the Board establish the terms and conditions of the purchase. On February 9, 1998, the City filed a request for an extension of the OFA negotiating period for 30 days to allow NSR to compile all necessary information, to allow the City to thoroughly review that information, and to allow the parties to negotiate voluntarily the terms of a possible purchase. By decision served February 12, 1998, the Board granted an exemption under 49 U.S.C. 10502 from the provisions of section 10904(e) and relief from the related regulatory requirements at 49 CFR 1152.27(g) and extended the negotiating period deadline to March 11, 1998. The Board's records reveal no subsequent filing by either NSR or the City. Accordingly, the decision served January 13, 1998, postponing the effective date of the decision authorizing abandonment of the 7.2-mile segment of rail line will be vacated, and the prior abandonment authorization will be effective on the service date of this decision. The exemption authorizing abandonment of the remainder of the line became effective on January 28, 1998, as scheduled. It is ordered: 1. The decision served January 13, 1998, is vacated, and the prior abandonment authorization will be effective on the service date of this decision. Decided: March 27, 1998 Service Date: March 31, 1998 ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 32760 (Sub-No. 21)] 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 [OVERSIGHT] ACTION: Decision No. 12; Notice of Oversight Proceeding. Requests for Additional Conditions to the UP/SP Merger for the Houston, Texas/Gulf Coast Area. SUMMARY: Pursuant to a petition filed February 12, 1998, by the Texas Mexican Railway Company and the Kansas City Southern Railway Company (Tex Mex/KCS) and a request filed March 6, 1998, by the Greater Houston Partnership (GHP), the Board is instituting a proceeding as part of the 5-year oversight condition that it imposed in Finance Docket No. 32760 (UP/SP Merger), Decision No. 44 (STB served Aug. 12, 1996), to examine their requests, and others that may be made, for additional remedial conditions to the UP/SP merger as they pertain to rail service in the Houston, Texas/Gulf Coast region. The Board is establishing a procedural schedule for the submission of evidence, replies, and rebuttal. DATES: The proceeding will commence on June 8, 1998. On that date, all interested parties must file requests for new remedial conditions to the UP/SP merger regarding the Houston/Gulf Coast area, along with all supporting evidence. The Board will publish a notice of acceptance of requests for new conditions in the Federal Register by July 8, 1998. Notices of intent to participate in the oversight proceeding are due July 22, 1998. All comments, evidence, and argument opposing the requested new conditions are due August 10, 1998. Rebuttal in support of the requested conditions is due September 8, 1998. SUPPLEMENTARY INFORMATION: In UP/SP Merger, Decision No. 44, served August 12, 1996, the Board approved 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) (collectively UP/SP), subject to various conditions. Common control was consummated on September 11, 1996. The Board imposed a 5-year oversight condition to examine whether the conditions imposed on the merger effectively addressed the competitive concerns they were intended to remedy, and retained jurisdiction to impose, as necessary, additional remedial conditions if the Board determined that the conditions already imposed were shown to be insufficient. In its initial oversight proceeding, the Board concluded that, while it was still too early to tell, there was no evidence at the time that the merger, with the conditions that the agency had imposed, had caused any adverse competitive consequences. Nevertheless, the Board indicated that its oversight would be ongoing, and that it would continue vigilant monitoring. UP/SP has experienced serious service difficulties since the merger, and the Board has issued a series of orders under 49 U.S.C. 11123, effective through August 2, 1998, to mitigate a rail service crisis in the western United States caused, in large measure, by severely congested UP/SP lines in the Houston/Gulf Coast region. In acting to relieve some of the congestion, the Board made substantial temporary changes to the way in which service is provided in and around Houston. The Board directed UP/SP to release shippers switched by the Houston Belt & Terminal Railway Company (HB&T) or the Port Terminal Railroad Association (PTRA) from their contracts so that they could immediately route traffic over the Burlington Northern and Santa Fe Railway Company (BNSF) or Tex Mex, in addition to UP/SP. The agency also directed UP/SP to permit BNSF and Tex Mex to modify their operations over UP/SP lines to minimize congestion over UP/SP's Sunset Line, to move traffic around Houston rather than going through it, and to have full access to UP/SP's Spring, TX dispatching facility as neutral observers. More generally, the Board required UP/SP to cooperate with other railroads and to accept assistance from other railroads able to handle UP/SP traffic. UP/SP and BNSF recently have agreed to make other changes designed to improve service. In particular, the carriers have agreed to joint ownership of the Sunset Line between Avondale (New Orleans), LA and Houston; joint dispatching in the Houston area; and overhead trackage rights for UP/SP over the BNSF line between Beaumont and Navasota, TX. The Board found that, although merger implementation issues were involved, a key factor in bringing about the service emergency was the inadequate rail facilities and infrastructure in the region, and, as such, also ordered UP/SP, BNSF, and other involved railroads to submit to the Board their plans to remedy these inadequacies. Recognizing the limitations on its authority under the emergency service provisions of the law, the Board rejected proposals offered by certain shipper, carrier, and governmental interests in the Service Order No. 1518 proceeding to force UP/SP to transfer some of its lines to other rail carriers and effect a permanent alteration of the competitive situation in the Houston region; it adopted instead only those measures designed to facilitate short-term solutions to the crisis that did not further aggravate congestion in the area or create additional service disruptions. The Board declared, however, that interested persons could present proposals for longer-term solutions to the service situation including those seeking structural industry changes based on perceived competitive inadequacies in formal proceedings outside of section 11123, particularly in the UP/SP merger oversight process. Tex Mex/KCS has now requested that we invoke our oversight jurisdiction over the merger for the purpose of considering such proposals, including the transfer to it of various UP/SP lines and yards in Texas. GHP has also requested the Board's intervention to provide for Houston's long-term rail service needs, including the establishment of a neutral switching operation. That the service emergency in the Houston/Gulf Coast region remains ongoing is well known. In its progress report of March 9, 1998, UP/SP announced that it would take drastic action in 30 days including the refusal of new business and the transfer of existing business to its competitors if the steps it has taken to deal with the emergency are not successful. On March 24, 1998, the carrier announced an embargo of a significant portion of its southbound traffic destined for the Laredo, TX gateway to clear a backlog of 5,500 cars waiting to cross into Mexico. Given these circumstances, the Board will invoke its oversight jurisdiction over the UP/SP merger to consider new conditions to the merger of the kind proposed here, and others that may be made. We note that no party as yet has seriously suggested that SP's inadequate infrastructure would not have produced severe service problems in the Houston/Gulf Coast area even if there had been no merger. Nonetheless, the Board believes that, given the gravity of the service situation, it should thoroughly explore anew the legitimacy and viability of longer-term proposals for new conditions to the merger as they pertain to service and competition in that region. UP/SP and BNSF argue that Tex Mex/KCS request for conditions that have been previously rejected, without any new evidentiary justification, is insufficient grounds for the Board to begin a new oversight proceeding. We disagree. Our 5-year oversight of the UP/SP merger is not a static process, but a continuing one, so that the Board's prior rejection of Tex Mex/KCS or any other party's requested conditions whether in the Board's approval of the merger or in a subsequent oversight proceeding does not preclude their fresh consideration now. Through our oversight condition, we have retained jurisdiction to monitor the competitive consequences of this merger; to re-examine whether our imposed conditions have effectively addressed the consequences they were intended to remedy; and to impose additional remedial conditions if those previously afforded prove insufficient, including, if necessary, divestiture of certain of the merged carriers property. The virtual shutdown of rail service in the Houston/Gulf Coast area that occurred after the UP/SP merger and which, after many months, has yet to be normalized is unprecedented. In our judgment, those circumstances alone are sufficient for the Board to commence this proceeding now. Clearly, our 5-year oversight jurisdiction permits us to examine and, if necessary, re-examine at any time during this period whether there is any relationship between the market power gained by UP/SP through the merger and the failure of service that has occurred here, and, if so, whether the situation should be addressed through additional remedial conditions. We caution, however, that we will not impose conditions requiring UP/SP to divest property that would substantially change the configuration and operations of its existing network in the region in the absence of the type of presentation and evidence required for inconsistent applications in a merger proceeding; i.e, parties must present probative evidence that discloses the full effects of their proposals. Divestiture is only available when no other less intrusive remedy would suffice, and we will impose it only upon sufficient evidentiary justification. The Board will confine this proceeding under its continuing oversight jurisdiction to examining requests for new conditions to the merger relating to rail service in the Houston/Gulf Coast area. As we have noted, the service crisis in this region, and its significant impact on the regional economy, clearly warrant our discrete treatment of these matters now. As a result, the procedures set forth here will be separate from those in the more general oversight proceeding that, pursuant to UP/SP Oversight, Decision No. 10, will begin July 1, 1998. Decided: March 30, 1998 Service Date: March 31, 1998 PROCEDURAL SCHEDULE June 8, 1998 Requests for new remedial conditions (with supporting evidence) filed. July 8, 1998 Board notice of acceptance of requests for new conditions published in the Federal Register. July 22, 1998 Notice of intent to participate in proceeding due. August 10, 1998 All comments, evidence, and argument opposing requests for new remedial conditions to the merger due. Comments by U.S. Department of Justice and U.S. Department of Transportation due. September 8, 1998 Rebuttal evidence and argument in support of requests for new conditions due. The necessity of briefing, oral argument, and voting conference will be determined after the Board's review of the pleadings. ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33566] City of Tacoma and Beltline Division of Tacoma Public Utilities Change in Operator Exemption Tacoma Eastern Railway Company City of Tacoma (City),WA, has filed a verified notice of exemption for Beltline Division of Tacoma Public Utilities to operate approximately 131.5 miles of City rail line in Pierce, Thurston, and Lewis Counties, WA: (1) between milepost 2192.0, at Tacoma, and milepost 17.7, at Chehalis; and (2) between milepost 2192.0, at Tacoma, and milepost 64.2, at Morton. The lines have been operated previously by Tacoma Eastern Railway Company. Because the projected revenues of the rail lines to be operated will exceed $5 million, City has certified to the Board that the required notice of its change in operators was posted at the workplace of the employees on the affected lines on March 11, 1998. The earliest the transaction can be consummated is May 18, 1998, the effective date of the exemption (60 days after City's March 19, 1998 certification to the Board). Decided: March 23, 1998. Service Date: March 31, 1998 ============================================================ Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ============================================================