STB REPORT #17 - SEPTEMBER 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/ ****************************************************************************** DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33639] Dakota, Missouri Valley & Western Railroad, Inc.--Acquisition and Operation Exemption--A Line of The Burlington Northern and Santa Fe Railway Company Dakota, Missouri Valley & Western Railroad, Inc. (DMVW), a Class III rail carrier, has filed a notice of exemption to acquire (by purchase) ownership rights in (a permanent and exclusive rail service easement) and to operate over approximately 45.3 miles of rail line, owned by The Burlington Northern and Santa Fe Railway Company (BNSF), known as the McKenzie- Linton Line, between milepost 0.0 at McKenzie, Burleigh County, ND, and milepost 45.3 in Linton, Emmons County, ND. DMVW will also acquire BNSF's interest in all railroad tracks, track materials and related track structures and facilities located between milepost 0.0 at McKenzie and milepost 28.7 at Hazelton, ND. BNSF will convey to DMVW the exclusive right to conduct rail freight transportation business on the entire McKenzie-Linton Line. The transaction is scheduled to be consummated on or before September 1, 1998. Decided: August 25, 1998. Service Date - September 1, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33646] Twin Cities & Western Railroad Co.--Relocation Exemption--Hennepin County Regional Railroad Authority and The Burlington Northern and Santa Fe Railway Company On August 3, 1998, Twin Cities & Western Railroad Co. (TCW), filed a notice of exemption to relocate certain overhead trackage rights in Hennepin County, MN. The transaction was expected to be consummated on or after August 10, 1998. In 1991, as part of the purchase of its lines from Soo Line Railroad Company, doing business as Canadian Pacific Railway (CPR), TCW was granted incidental trackage rights over the Merriam Park Line, extending from the eastern terminus of TCW's line at Tower E-14 near Hopkins, MN (milepost 435.06), to milepost 416.43, and operating rights beyond to the St. Paul Yard, where it interchanges with CPR pursuant to an interchange agreement. The Merriam Park Line was purchased by the Hennepin County Regional Railroad Authority (HCRRA) pursuant to a Purchase Agreement dated December 23, 1992. As part of the Purchase Agreement, CPR and TCW were given a grant-back easement on the Merriam Park Line for continued rail operations. The Merriam Park Line includes a portion of the Hiawatha/Cedar Avenue Wye, from milepost 423.59+/-, near the eastern edge of Cedar Avenue, to milepost 421.21+/-, near the eastern edge of Hiawatha Avenue (State Highway 55); the remainder of the wye is from milepost 423.59+/- to milepost 423.26+/-. Included in the Purchase Agreement is the condition that CPR will ultimately relocate those operations currently moving through the wye track to enable the Minnesota Department of Transportation to rehabilitate and upgrade Highway 55 and avoid restoration of two railroad crossings over a main highway artery to and from downtown Minneapolis. In STB Docket No. AB-57 (Sub-No. 40X) (STB served June 26, 1998), CPR was granted an exemption to discontinue service over but not abandon the 1-mile wye until after TCW obtains approval or an exemption to discontinue its trackage rights and CPR informs any party requesting a public use condition or a NITU if and when those trackage rights are discontinued. In TCW's Trackage Rights Agreement with CPR, dated July 26, 1991, there is a stipulation that if operations over the Merriam Park Line are interrupted, CPR will provide an alternate route over the Kenilworth Route, which is a line that extends between Hopkins and Cedar Lake/Minneapolis, MN. The Kenilworth Route is also owned by the HCRRA. CPR and TCW have existing trackage rights over the Kenilworth Route, which had been out-of-service and in disrepair. HCRRA has rehabilitated the Kenilworth Route and by this notice of exemption, CPR and TCW are relocating their overhead operations using the Kenilworth Route and their existing trackage rights over a line of The Burlington Northern and Santa Fe Railroad Company, between Minneapolis and St. Paul, MN, to reach the St. Paul Yard. Incidental to the relocation, TCW is also discontinuing its trackage rights over the portion of the Merriam Park Line extending from milepost 428.0 to milepost 416.43. The transaction will simplify rail operations. TCW states that, because it operates only overhead trackage rights over the Merriam Park Line, no shippers will be affected by the relocation, and, thus, separate approval or an exemption is not required for the discontinuance of trackage rights. Decided: August 25, 1998. Service Date - September 1, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33647] Georgia Southwestern Railroad, Inc. Lease Exemption The Georgia Department of Transportation Georgia Southwestern Railroad, Inc. (GSWR), a Class III rail common carrier, has filed a notice of exemption to lease from the Georgia Department of Transportation (GDOT) and operate approximately 67.63 miles of rail lines as follows: (i) the rail line between milepost 577.85, at Vidalia, GA, and milepost 645.00, at Rochelle, GA, a distance of 67.15 miles; and (ii) the Abbeville Wye Track between Main Line Valuation Station 3429+40 and Wye Track Valuation Station 25+10, at Abbeville, GA, a distance of .48 miles. The transaction is expected to be consummated on or after October 6, 1998. Decided: August 25, 1998. Service Date - September 1, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD CERTIFICATE AND DECISION Docket No. AB-3 (Sub-No. 131) MISSOURI PACIFIC RAILROAD COMPANY--ABANDONMENT--HOPE- BRIDGEPORT LINE IN DICKINSON AND SALINE COUNTIES, KS Docket No. AB-8 (Sub-No. 37) THE DENVER AND RIO GRANDE WESTERN RAILROAD COMPANY-- DISCONTINUANCE OF TRACKAGE RIGHTS--HOPE-BRIDGEPORT LINE IN DICKINSON AND SALINE COUNTIES, KS Missouri Pacific Railroad Company (MPRR) filed an application for it to abandon, and for the Denver and Rio Grande Western Railroad Company to discontinue its overhead trackage rights on, a line of railroad extending from milepost 459.20, near Hope, to milepost 491.20, near Bridgeport, a distance of approximately 31.24 miles (milepost 478.05 = milepost 478.81) in Dickinson and Saline Counties, KS. The abandonment was authorized as part of the Board's Decision No. 44 in UP/SP, which was served on August 12, 1996. On September 10, 1996, a decision and certificate of interim trail use or abandonment (CITU) was served authorizing a 180-day period for parties interested in trail use to negotiate an interim trail use/rail banking agreement with MPRR for the entire Hope-Bridgeport line. Extensions of the negotiating period were granted by decisions served on February 10, 1997, January 26, 1998, and August 5, 1998. The negotiation period under the latest extension is scheduled to expire on August 8, 1999. MPRR merged into Union Pacific Railroad Company (UPRR) on January 1, 1997. By letter filed November 12, 1997, UPRR notified the Board that service had been discontinued on the line as authorized in the CITU served on September 10, 1996. On August 24, 1998, UPRR filed a letter stating that it had requested the latest extension of the CITU because it expected to finalize a donation of the right-of-way to an organization called the Kansas Horseman Foundation (KHF). UPRR states that KHF will be unable to acquire the property due to strong local opposition and other reasons. UPRR also states that it had contacted Saline County to determine if the County had an interest in acquiring the right-of-way and reports that the County has expressed no interest in acquiring the line for trail use. UPRR further states that it is no longer willing to negotiate interim trail use because there is no realistic prospect of a trail transaction and requests that the Board issue a certificate permitting the line to be fully abandoned, effective immediately. Because the parties are unable to reach an interim trail use and UPRR indicates that it is not willing to negotiate trail use on the right-of-way, an appropriate certificate and decision will be issued. It is certified: The present and future public convenience and necessity permit the abandonment and discontinuance of service over the described line of railroad, subject to employee protective conditions and the 14 general mitigation conditions specified in the August 12 decision. It is ordered: 1. This proceeding is reopened. 2. The CITU served on September 10, 1996, is vacated. 3. The railroad may cancel any tariff relating to service over this segment of line on not less than 10 days notice. Any cancellation of tariffs must refer to this certificate and decision by date and docket number. 4. This decision is effective on its service date. Decided: August 31, 1998 Service Date - September 2, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-290 (Sub-No. 194X) IN THE MATTER OF AN OFFER OF FINANCIAL ASSISTANCE NORFOLK AND WESTERN RAILWAY COMPANY --ABANDONMENT EXEMPTION--BETWEEN SOUTH BEND AND DILLON JUNCTION IN ST. JOSEPH AND LAPORTE COUNTIES, IN Norfolk and Western Railway Company (NW), a wholly owned subsidiary of Norfolk Southern Railway Company (NS), filed a notice of exemption to abandon the South Bend to Dillon Junction branchline extending from milepost SK-2.5, near South Bend, to milepost SK- 24.0, near Dillon Junction, a distance of approximately 21.5 miles in St. Joseph and LaPorte Counties, IN. The notice of exemption was filed on June 23, 1997, in conjunction with the railroad control application docketed as STB Finance Docket No. 33388. In STB Finance Docket No. 33388, Decision No. 12, which was published in the Federal Register on July 23, 1997, the Board accepted for consideration the primary application and related filings, and the related abandonment proposals. In Decision No. 89, served on July 23, 1998, in the STB Finance Docket No. 33388 proceeding, the Board authorized the exemption in STB Docket No. AB-290 (Sub- No. 194X), granted the request for a public use condition, and provided no OFA had been received, granted the exemption in STB Docket No. AB-290 (Sub-No. 194X) effective on Day One (unless stayed pending reconsideration). Day One (also known as the Closing Date) is the date on which CSX and NS will effect the division of the operation and use of Conrail's assets. With respect to the South Bend-Dillon Junction abandonment, the St. Joseph Parks and Recreation Department requested a 180-day public use condition and also filed a statement under the National Trails System Act On August 21, 1998, American Electric Power Service Corporation (AEP) submitted an OFA to subsidize rail operations over the line operated by NW. AEP states that it was an active participant in the proceedings, seeking to maintain necessary rail service at one of its electric generating stations. AEP further states that the reason it did not file the requisite notice of intent by July 31, 1998, is because its management responsible for railroad transportation matters and its counsel were unaware until now of AEP's interest in maintaining rail operations over the line in question. AEP states that its timely filed OFA should moot its failure to have filed a notice of intent to submit an OFA by July 31, 1998. AEP also indicates, as further discussed below, that NS has agreed to waive this notice requirement. In its OFA, AEP did not submit an actual dollar amount, but states that NS is willing to negotiate with AEP over a mutually agreeable amount to permit it to continue rail operations over the line, and that AEP is willing to enter into negotiations with NS as soon as possible. AEP states that its counsel promptly notified the lead counsel for NS on August 21, 1998, of AEP's willingness to enter into good faith negotiations with NS to provide the level of financial assistance to NS necessary to maintain rail operations on the line. AEP states that, since it only expressed interest in making an OFA to NS on August 21, these representations should satisfy the requirements, inasmuch as NS has not had an opportunity to provide AEP with the estimate required of the necessary subsidy. AEP indicates that, in consideration of AEP's representations, NS has agreed to waive the requirement that AEP should have filed a notice of intent to make an OFA by July 31, 1998. If NS and AEP are unable to arrive at a mutually agreeable dollar amount, either party may request the Board to establish terms and conditions. AEP states that it is a large, multi-State electric utility with very substantial assets, that it currently ships substantial quantities of coal over several of the nation's railroads, including NS, and that its financial responsibility is well known to NS, as well as other railroads, and presumably to the Board. AEP requests the Board to (a) waive the obligation to have filed a notice of intent to submit an OFA by July 31, 1998; (b) accept its OFA filed August 21, 1998, as satisfying the prerequisites of the applicable regulations; and (c) postpone the effectiveness of the condition as to public use negotiations until such time as AEP and NS are able to engage in good faith negotiations to determine a mutually agreeable amount of financial assistance necessary to permit rail operations to continue on the line. AEP's requests are reasonable and will be granted. Because AEP, a financially responsible entity, has offered financial assistance, the effective date of the exemption authorizing abandonment of the line will be postponed, pending completion of the OFA process. It is ordered: 1. The obligation of AEP to have filed a notice of intent to submit an OFA by July 31, 1998, is waived. 2. The effective date of the decision authorizing abandonment of the line, is postponed in order to permit the OFA process under 49 U.S.C. 10904 and 49 CFR 1152.27 to proceed. 3. The effectiveness of the condition providing an opportunity for public use negotiations is postponed in order to permit the OFA process under 49 U.S.C. 10904 and 49 CFR 1152.27 to proceed. 4. If NS and AEP cannot agree on terms and conditions, either party may request the Board to establish the terms and conditions on or before September 21, 1998. If no agreement is reached and no request is submitted by that date, the Board will serve a decision vacating this decision and reinstating effective dates for the decision authorizing abandonment of the line and the condition as to public use negotiations. Decided: August 31, 1998 Service Date - September 2, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-318 (Sub-No. 3X) LOUISIANA & DELTA RAILROAD, INC.--ABANDONMENT EXEMPTION--IN TERREBONNE PARISH, LA Louisiana & Delta Railroad Inc. (L&D) filed a notice of exemption to abandon 1.8 miles of its line of railroad known as the Houma Branch between milepost 0.20 and milepost 2.0, in Terrebonne Parish, LA. Notice of the exemption was published in the Federal Register on May 28, 1997. The May 28, 1997 notice stated that, if consummation has not been effected by L&D's filing a notice of consummation by May 28, 1998, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. By decision served June 26, 1997, the exemption was made subject to the condition that L&D consult with the U.S. Army Corps of Engineers, New Orleans District, prior to salvaging the right-of-way to determine if permits are required under section 404 of the Clean Water Act. On August 29, 1997, a decision and notice of interim trail use or abandonment (NITU) was served authorizing a 180-day period for American Trails Association, Inc. (ATA) to negotiate an interim trail use/rail banking agreement with L&D for the entire line until February 25, 1998. On August 17, 1998, ATA informed the Board that it had entered into an agreement in principle with L&D to acquire the right-of-way, but that no final agreement for trail use/rail banking was reached by the parties. ATA states that it had informed L&D on July 22, 1998, that it is no longer interested in acquiring the right-of-way for interim trail use. On August 24, 1998, L&D filed a notice of consummation of the abandonment along with a petition requesting an extension that would permit it to file its notice of consummation later than May 28, 1998. L&D confirmed that it and ATA had reached an agreement in principle but were unable to reach a final agreement for interim trail use. L&D also acknowledged that it was notified on July 22, 1998, that ATA was no longer interested in an interim trail use agreement with respect to the line. L&D further states that it believed that the parties were awaiting only formalization of the documentation for interim trail use and that, because of its belief, it did not request an extension of the NITU negotiating period or file a notice of consummation prior to May 28, 1998. While the relief L&D seeks has been couched in terms of a request for a retroactive extension of time to file the notice of consummation, the petition is based on L&D's recognition, on July 22, 1998, that negotiations for trail use were over and would not produce a trail use agreement. Upon its realization that its earlier assumptions about the continuation of the trail use negotiation process were faulty, L&D proceeded to file its notice of consummation and sought relief to permit it to file at that time. Under these circumstances, a retroactive extension will not be authorized, but the notice of consummation will be accepted as having been timely filed. While L&D's delay in filing its notice of consummation is understandable under the unique circumstances described in this decision, and thus acceptance of the notice is warranted here, neither L&D nor any other rail carrier should count on the Board's acceptance of late-filed notices of consummation of abandonment authority. It is ordered: 1. L&D's notice of consummation is accepted as having been timely filed. 2. L&D may consummate the abandonment on the effective date of this decision, subject to its meeting any remaining conditions on the authority being exercised. 3. This decision is effective on its service date. Decided: September 1, 1998 Service Date - September 3, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-547X ROARING FORK RAILROAD HOLDING AUTHORITY -- ABANDONMENT EXEMPTION -- IN GARFIELD, EAGLE, AND PITKIN COUNTIES, COLORADO In this proceeding, Roaring Fork Railroad Holding Authority (RFRHA) has filed a petition in connection with the abandonment of its railroad line located between Milepost 360.22, near Glenwood Springs, and Milepost 393.66, near Woody Creek, a distance of 33.44 miles in Garfield, Eagle, and Pitkin Counties, Colorado. If the exemption becomes effective, RFRHA will be able to salvage track, ties and other railroad appurtenances and to dispose of the right-of-way. However, at this time, RFRHA intends to preserve the line as an interim trail and leave the track and appurtenances intact for possible future rail commuter operations, and, if feasible, restoration of rail freight service. RFRHA is an inter-governmental agency formed to acquire the line to ensure its preservation for rail and other compatible public purposes. RFRHA acquired the line from the Southern Pacific Company in 1997. The line handled 20 carloads of freight in 1996, and 4 carloads in 1997. No traffic has moved on the line in the first half of 1998. The U.S. Department of Commerce, National Geodetic Survey (NGS), has advised that 19 geodetic station markers have been identified that may be affected by the proposed abandonment. NGS requests that the railroad notify NGS 90 days in advance if any of these markers might be disturbed or destroyed by abandonment activities, so that plans to relocate affected markers can be completed. The Colorado Historical Society (SHPO) has determined that segments of the line are eligible for inclusion in the National Register of Historic Places. The SHPO did not further identify the segments. However, the SHPO states that the Colorado Department of Transportation and RFRHA will be in consultation with the SHPO regarding the SHPO's concerns before any construction or other physical use of the rail line occurs. The SHPO is therefore of the opinion that the proposed abandonment will have no adverse effect on the qualities of significance of this historic property, provided that historic properties are considered as part of a major investment study process and the subsequent actions the study authorizes. We therefore recommend that the railroad be required to notify us when the Section 106 process is completed in the consultation procedure outlined by the SHPO. Service Date - September 3, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD STB Finance Docket No. 33388 Decision No. 93 CSX CORPORATION AND CSX TRANSPORTATION, INC., NORFOLK SOUTHERN CORPORATION AND NORFOLK SOUTHERN RAILWAY COMPANY CONTROL AND OPERATING LEASES/AGREEMENTS CONRAIL INC. AND CONSOLIDATED RAIL CORPORATION On August 12, 1998, Indiana Rail Road Company (INRD or petitioner) filed a petition for leave to intervene for the purpose of seeking reconsideration of one aspect of the transaction we authorized in Decision No. 89, served July 23, 1998. Petitioner seeks to intervene to advance its position that we allegedly overreached our authority to impose remedial conditions in rail consolidation proceedings when we required it to grant trackage rights to NS that would enable NS to serve the Stout plant of Indianapolis Power and Light Company (IP&L) directly, rather than via a switching arrangement with INRD. Petitioner states that, because of CSX's 89% ownership interest in INRD, INRD is an applicant carrier," but it is not an applicant and has not previously been a party in this proceeding. Petitioner maintains that CSX has not approved the filing of its request and that it is seeking to intervene through the action of its senior management, which is affiliated with the non-CSX minority interest in INRD. Petitioner argues that our decision giving IP&L the right to be served at Stout directly by NS far exceeds the adverse competitive effects alleged by that shipper. According to petitioner, instead of placing IP&L in the same competitive posture after the transaction as it was before, our decision unjustifiably improves IP&L's position at the expense of petitioner. INRD argues that our decision in regard to Stout is inconsistent with our policy of not granting broader relief than necessary to remedy the adverse competitive effects of a rail consolidation. INRD owns and operates a rail line between Newton, IL, and Indianapolis, IN, where it interchanges traffic with Conrail at a point on the Indianapolis Belt Railway (IBRT). INRD states that it is the only rail carrier currently serving IP&L's Stout plant, which is located on INRD's line approximately 2 miles south of its interchange with Conrail. INRD indicates that it also has in place a switching agreement enabling it to move cars to the Stout plant for other carriers from its interchange point with Conrail. According to petitioner, IP&L has acknowledged that its pre-transaction railroad competition at Stout consisted of either an INRD switch with Conrail, or a build-out potential from Stout to Conrail on the IBRT. Petitioner contends that, other than maintaining this build-out potential, direct rail service to Stout by a carrier unaffiliated with INRD was never within IP&L's competitive options or proposed remedies for its situation there, so that the remedy we imposed was unnecessary. CSX indicated that it accepts the Board's conditions, and that it does not support the relief sought by INRD in its petition for reconsideration. INRD's petition to intervene will be denied. Even though it has not become a party, as a railroad affiliated with and controlled by applicant CSX, INRD had ample notice of the pendency of this proceeding. Petitioner had constructive, if not actual, notice of the relief sought by the U.S. Department of Justice (DOJ), Indiana Southern Railroad, Inc. (ISRR), and IP&L as regards IP&L's plant at Stout. Both DOJ and IP&L expressly requested that NS be granted direct access, via trackage rights over INRD, to IP&L's Stout plant as a remedial condition to the CSX/NS/CR transaction, and ISRR sought similar access for itself. Such access clearly risked the loss of switching revenue by INRD, the potential harm that is the basis for INRD's intervention request here. INRD is incorrect in claiming that IP&L, in seeking direct access to its Stout plant by a carrier unaffiliated with CSX, was requesting that Stout be served via an INRD switch, rather than by trackage rights over INRD. Petitioner should have presented its case before the record was closed and our decision on the merits of the transaction was rendered. It is now too late for INRD to intervene for the purpose of arguing its position for the first time in this proceeding. Moreover, it seems anomalous at best to permit INRD to make an argument not made by its majority owner, which has now acquiesced in the Board's grant of this particular remedy. Having permitted itself to be represented by its majority owner throughout this case, it is too late for INRD now to take a different stance. It is ordered: 1. The petition for leave to intervene by Indiana Rail Road Company is denied. Decided: September 1, 1998 Service Date - September 3, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33643] Union Pacific Railroad Company--Trackage Rights Exemption--Wisconsin Central, Ltd. Wisconsin Central, Ltd. (WC) has agreed to grant overhead trackage rights to Union Pacific Railroad Company (UP) between milepost 308.5 near Owen, WI, extending to milepost 352.2 at Chippewa Falls, WI, extending to milepost 432.1 Withrow, MN, a distance of 123.6 miles. The transaction was scheduled to be consummated on August 25, 1998. The purpose of the trackage rights is to permit UP to use WC's trackage in an efficient and economical routing of through traffic. Decided: August 27, 1998. Service Date - September 3, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 119X) IN THE MATTER OF AN OFFER OF FINANCIAL ASSISTANCE UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION IN ROCK, GREEN AND DANE COUNTIES, WI By decision served on June 23, 1998, the Board exempted the abandonment by Union Pacific Railroad Company (UP), of a 15-mile line of railroad known as the Harvard Subdivision, extending from milepost 119.0 near Evansville to milepost 134.0 near MX , a crossing of Wisconsin and Southern Railroad Company, near Madison, in Rock, Green and Dane Counties, WI, subject to trail use, public use, environmental and employee protective conditions. The decision authorizing abandonment and discontinuance was scheduled to become effective on July 23, 1998, unless an offer of financial assistance (OFA) was filed on or before July 2, 1998. By decision served July 14, 1998, the time for filing an OFA was tolled 60 days until August 31, 1998, and the effective date of the exemption was stayed until September 20, 1998. On August 31, 1998, the City of Fitchburg/The Village of Oregon Partnership (the Partnership) timely filed an OFA to purchase the entire line for $813,426. The Partnership's offer is substantially less than UP's estimated purchase price of $1,623,515 ($803,515 for the track materials plus $820,000 for the real estate). The Partnership explains the disparity by asserting that the real estate and track materials may be worth considerably less than the amount determined by UP if its methodology for calculating the value of the real estate is considered and the August 21, 1998 prices stated in the American Metal Market Newsletter and additional track removal costs are factored in. Because the Partnership, a financially responsible entity, has offered financial assistance, the effective date of the decision authorizing abandonment and discontinuance of the line will be postponed. It is ordered: 1. The effective date of the decision authorizing abandonment and discontinuance of the line is postponed in order to permit the OFA process under 49 U.S.C. 10904 and 49 CFR 1152.27 to proceed. 2. If UP and the Partnership cannot agree on the purchase price of the line, either party may request the Board to establish the terms and conditions of the purchase on or before September 30, 1998. If no agreement is reached and no request is submitted by that date, the Board will serve a decision vacating this decision and allowing the abandonment and discontinuance authorization to become effective. Decided: September 3, 1998 Service Date - September 4, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-550X] R.J. Corman Railroad Company/Allentown Lines, Inc.--Abandonment Exemption--in Lehigh County, PA R.J. Corman Railroad Company/Allentown Lines, Inc. (RJCN) has filed a notice of exemption to abandon a 1.945-mile line of railroad known as the Barber's Quarry Industrial Track between milepost 93.144 in the vicinity of Union and 3rd Streets in Allentown and milepost 95.089 in the vicinity of Lawrence Street and Lehigh Parkway in the township of Salisbury, Lehigh County, Pa. RJCN 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 RJCN's filing of a notice of consummation by September 8, 1999, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: September 1, 1998. Service Date - September 8, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 124X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN SEDGWICK COUNTY, KS Union Pacific Railroad Company (UP) filed a notice of exemption to abandon and discontinue service over a 0.56-mile line of railroad on the Midland Valley Industrial Lead extending from the end of the line at milepost 312.09 to milepost 312.65 in Wichita, Sedgwick County, KS. Notice of the exemption was published in the Federal Register on August 14, 1998. The exemption is scheduled to become effective on September 13, 1998. On July 9, 1998, UP filed a petition for exemption from offers of financial assistance and public use conditions. The August 14 notice stated that requests for OFAs had to be filed by August 24, 1998, and that requests for public use conditions had to be filed by September 3, 1998. The Board's records indicate that no OFAs or requests for a public use condition have been filed in this proceeding. Therefore, the petition is now moot and will be dismissed. It is ordered: 1. The petition for exemption from the requirements of 49 U.S.C. 10904 and 10905 is dismissed. Decided: September 9, 1998 Service Date - September 10, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 124X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN SEDGWICK COUNTY, KS Union Pacific Railroad Company (UP) filed a notice of exemption to abandon and discontinue service over a 0.56-mile line of railroad on the Midland Valley Industrial Lead extending from the end of the line at milepost 312.09 to milepost 312.65 in Wichita, Sedgwick County, KS. Notice of the exemption was published in the Federal Register on August 14, 1998. The exemption is scheduled to become effective on September 13, 1998. SEA states that the U.S. Army Corps of Engineers (Corps) has indicated that if the abandonment requires excavation or the discharge of dredged fill material in any waters, including wetlands, a Department of the Army permit will be required. Therefore, SEA recommends that a condition be imposed requiring UP, prior to engaging in any salvage activities, to consult with the Corps, Kansas City District, to determine if permits are necessary. The condition 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 condition that UP, prior to engaging in any salvage activities, consult with the U.S. Army Corps of Engineers, Kansas City District, to determine if permits are necessary. Decided: September 9, 1998 Service Date - September 10, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-33 (Sub-No. 125X)] Union Pacific Railroad Company--Abandonment Exemption--in Orange County, CA On August 24, 1998, Union Pacific Railroad Company (UP) filed with the Surface Transportation Board a petition to abandon a 3.84-mile line of railroad known as the Los Alamitos Branch extending from milepost 514.26 near Los Alamitos Junction to the end of the line at milepost 518.10 near Los Alamitos, in Orange County, CA. The line traverses U.S. Postal Service Zip Code 90720, and includes the non-agency station of Los Alamitos at milepost 518.10. By issuance of this notice, the Board is instituting an exemption proceeding. A final decision will be issued by December 11, 1998. Decided: September 1, 1998. Service Date - September 11, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33438 ALABAMA & GULF COAST RAILWAY, LLC ACQUISITION AND OPERATION EXEMPTION THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY On July 23, 1997, the Alabama & Gulf Coast Railway, LLC (ALA), a noncarrier, filed a verified notice of exemption to acquire from The Burlington Northern and Santa Fe Railway Company (BNSF) and to operate a 140.58-mile rail line between milepost 776.10 near Kimbrough, AL, and milepost 916.68 in Pensacola, FL. The notice also provided that ALA would acquire incidental trackage rights over 13.6 miles of BNSF's line between milepost 776.10 near Kimbrough, AL, and milepost 762.5 near Magnolia, AL. ALA's notice of exemption indicates that these trackage rights enable the carriers to interchange traffic at Magnolia. Under this notice, ALA would also temporarily be assigned trackage rights over a 43.1-mile line of CSX Transportation, Inc. between milepost L621.7 near Atmore, AL, and milepost L635.4 near Catonment, FL, pending completion of repairs to the line to be acquired from BNSF. The transaction was scheduled to be consummated on or after September 1, 1997. Notice of the exemption was published in the Federal Register on August 14, 1997. On August 7, 1997, the United Transportation Union (UTU) filed a petition to revoke the exemption. On August 26, 1997, ALA and BNSF filed replies. By decision served November 5, 1997, the Board instituted a proceeding to consider the petition to revoke. We will deny the petition to revoke. UTU claims that the trackage rights sought over BNSF's line between Kimbrough and Magnolia, AL, are not incidental to the transaction. UTU asks that the exemption either be revoked entirely or partially, and that ALA be required to seek authority for trackage rights in a separate proceeding, citing STB Finance Docket No. 33180 (STB served Feb. 3, 1997) (I&O). ALA responds that UTU has failed to meet the statutory standards for revoking the exemption and has failed to show that the notice of exemption contains false or misleading information. ALA further claims that UTU has failed to establish that the trackage rights are not incidental. BNSF responds that the trackage rights it proposes to grant ALA are clearly incidental to the sale of the Kimbrough-Pensacola rail line. BNSF argues further that UTU has misconstrued the I&O decision. BNSF notes that, in I&O, we considered a grant of trackage rights by the selling carrier to the purchaser for more efficient interchange and the assignment of existing trackage rights over three segments of track owned by other carriers. We find that UTU has not met the statutory standards for revoking the exemption and has not presented any reasons under the RTP for regulating the trackage rights transaction. Nor has it shown that the notice of exemption contains false or misleading information. UTU has not supported its claim that the ALA's acquisition of trackage rights over BNSF's line should be considered in a separate proceeding. Section 10901 applies both to the sale by BNSF of its line to ALA, a noncarrier, and the grant of incidental trackage rights acquired as part of the sale. The exemption procedures in 49 CFR 1150.31 specifically include the acquisition of incidental trackage rights, which is defined as: the grant of trackage by the seller . . . that occurs at the time of the acquisition or operation. And here the grant of trackage rights by BNSF has occurred at the time of the acquisition as contemplated under our rules. In I&O, we determined that the trackage rights at issue were incidental to a line sale. We observed there that the trackage rights segments had no independent economic utility apart from the lines that [were] being transferred and that the rest of the lines had no economic utility without those trackage rights segments. BNSF states that the trackage rights it proposes to grant ALA will extend the north end of ALA's line to provide an efficient and economic rail interchange. According to BNSF, most of the rail traffic the carriers intend to interchange currently moves over BNSF's routes north and west of Magnolia. BNSF's operating plans assertedly are geared to an interchange at Magnolia, where traffic moving to and from Mobile will be separated or combined with traffic moving from or to stations south of Kimbrough. BNSF further says that an interchange at Magnolia would be faster and more efficient for handling trains for most BNSF-ALA interline rail traffic than an interchange at Kimbrough. According to BNSF, there is insufficient yard capacity at Kimbrough to accommodate an efficient interchange. There are only two yard tracks at Kimbrough, one on each side of the main line. Often at least one of the tracks is filled with cars interchanged with the Norfolk Southern Railway Company. BNSF says that these tracks cannot handle a new interchange. BNSF indicates that the tracks at Magnolia can accommodate current traffic and can be expanded for future traffic. BNSF states that there are currently three existing interchange tracks at Magnolia located on the west side of the main line, and three more tracks could be added. BNSF says that Magnolia offers the capacity for both current and future interchange and classification operations. Trackage rights over the 13.6 miles of BNSF track between Kimbrough and Magnolia have no independent economic utility apart from the line that ALA is acquiring from BNSF. ALA and BNSF must interchange traffic. BNSF has provided extensive evidence that it and ALA cannot efficiently interchange traffic at Kimbrough. Magnolia is the closest point to Kimbrough on the BNSF line that affords adequate facilities for interchange. Here, as in I&O, requiring the seller to transfer the Kimbrough to Pensacola Line and the Magnolia to Kimbrough trackage rights in two separate cases would preclude effective consideration of these transfers. Requiring or even permitting the segmentation of the transfer into separate proceedings requiring separate evaluation under different statutory standards would be inconsistent with the exercise of our authority under the statute to provide a vehicle for a comprehensive review of the impact of what is a single transaction on the public interest. Accordingly, we will deny UTU's petition to revoke. It is ordered: 1. UTU's petition to revoke the exemption is denied. Decided: August 31, 1998 Service Date - September 11, 1998 ---------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33557 APPLICATION OF VENTURA COUNTY TRANSPORTATION COMMISSION FOR AN ORDER REQUIRING JOINT USE OF TERMINAL FACILITIES IN VENTURA COUNTY, CA On September 1, 1998, the Ventura County Transportation Commission (VCTC) filed a notice of withdrawal of its application filed February 12, 1998, in which VCTC sought an order to require Union Pacific Railroad Company (UP) to permit VCTC to use certain of its terminal facilities and 18.6 miles of main line trackage for commuter rail operations, operated for VCTC by the Southern California Regional Rail Authority (SCRR). VCTC states that it has reached an agreement with UP that permits continued use of the line segment at issue in this proceeding for commuter rail service by VCTC and SCRR. Accordingly, VCTC will be permitted to withdraw its application and this proceeding will be discontinued. It is ordered: 1. VCTC is permitted to withdraw its application and the proceeding is discontinued. Decided: September 9, 1998 Service Date - September 11, 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 By decision served on April 22, 1998, the Board found that the public convenience and necessity permit Boston and Maine Corporation (B&M) to abandon and Springfield Terminal Railway Company (ST) to discontinue service over 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. Before the decision authorizing abandonment and discontinuance became effective, Dalton Enterprises, Inc., timely filed an offer of financial assistance to purchase the line. By decision served on May 5, 1998, Dalton was found to be financially responsible and the effective date of the April 22 decision authorizing abandonment and discontinuance was postponed to permit the financial assistance process to proceed. Subsequently, as no agreement was reached, Dalton filed a request that the Board establish the conditions and amount of compensation for the sale of the line. By decision served on July 1, 1998, the Board set the purchase price for the line and established terms for transfer of the line. By letter filed on July 10, 1998, Dalton accepted the Board's terms and conditions to purchase the line. By decision served on July 20, 1998, Dalton was authorized to acquire the line and the application was dismissed effective on the date the sale is consummated. In a motion filed on August 31, 1998, Dalton requests permission to substitute its corporate affiliate, Canal Line Railroad Company (CLRC), as the purchaser of the line. Dalton owns 100% of the issued and outstanding stock of CLRC and guarantees CLRC's financial responsibility. Therefore, the substitution of CLRC for Dalton will be permitted. It is ordered: 1. Dalton's motion is granted. 2. Canal Line Railroad Company is substituted as the purchaser of the line effective on the service date of this decision. Decided: September 9, 1998 Service Date - September 14, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-317 (Sub-No. 5X)] Indiana Harbor Belt Railroad Company--Abandonment and Discontinuance of Trackage Rights Exemption--in Cook County, IL and Lake County, IN On August 25, 1998, Indiana Harbor Belt Railroad Company (IHB) filed with the Surface Transportation Board a petition to abandon a line of railroad known as the East Chicago Belt Branch, extending from railroad Valuation Station (-0+17) beginning at a point 168 feet west of the Illinois/Indiana State line in Burnham, IL, near Brainard Avenue, extending generally eastward through Hammond, IN, to and including a point 100 feet east of the east edge of Indianapolis Boulevard in East Chicago, IN, at railroad Valuation Station (140 + 00), a distance of 2.3 miles in Cook County, IL, and Lake County, IN. The line includes approximately 0.4 mile of track in Hammond, in the vicinity of Sohl Avenue and Hohman Avenue, owned by the Elgin, Joliet and Eastern Railway Company, over which IHB seeks to discontinue trackage rights. The line traverses U.S. Postal Service Zip Codes 60603, 46320, and 46312. 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 December 11, 1998. Decided: September 8, 1998. Service Date - September 14, 1998 ---------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION SURFACE TRANSPORTATION BOARD [Finance Docket No. 33556] Canadian National Railway Company, Grand Trunk Corporation, and Grand Trunk Western Railroad Incorporated -- Control -- Illinois Central Corporation, Illinois Central Railroad Company, Chicago, Central and Pacific Railroad Company, and Cedar River Railroad Company Action: Notice of Environmental Review Process Schedule. Summary: On July 15, 1998, Canadian National Railway Company (CN) and Illinois Central Corporation (IC), along with their railroad affiliates, collectively referred to as CN/IC or Applicants, filed a joint application with the Surface Transportation Board seeking authority for CN to acquire control of IC. (This proposed transaction is subsequently referred to as the Acquisition or the CN/IC Acquisition.) The proposed CN/IC system would extend to both coasts of North America and the Gulf of Mexico. The Chicago area would serve as the hub of the combined system. This new system would cover approximately 18,670 miles of rail lines and related facilities, of which, approximately 4,520 miles would be in the United States. The Applicants state that integrating CN and IC operations would allow both rail systems to provide more reliable, efficient, and competitive service. In Decision No. 6, served August 14, 1998, the Board accepted for consideration the proposed CN/IC Acquisition and issued a 300-day procedural schedule that will provide for the issuance of the Board's final written decision no later than May 11, 1999. The Board also announced that preparation of an Environmental Assessment is appropriate for this proceeding. The purpose of this notice is to advise that the Board's Section of Environmental Analysis (SEA) plans to issue a Draft Environmental Assessment (Draft EA) on the proposed CN/IC Acquisition for public review by November 1998. The public will then have 30 days to review and comment on the Draft EA. After reviewing all public comments on the Draft EA and conducting additional analyses, SEA will complete the Final Environmental Assessment (Final EA). SEA will issue the Final EA prior to the Board's Oral Argument which is currently scheduled for March 8, 1999. The Board will consider all public comments, the Draft EA and Final EA, and SEA's environmental mitigation recommendations in making its final decision on the proposed Acquisition. For Further Information: A Fact Sheet on the proposed Acquisition, which includes a general discussion on the environmental review process and schedule, is available by calling SEA's toll- free environmental hotline at 1-888-869-1997. For additional information regarding environmental issues, or the environmental review schedule, contact SEA's Project Manager for the proposed CN/IC Acquisition, Michael Dalton, at (202)565-1530. Service Date - September 14, 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, Lincoln Lumber Company (LLC) 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. By decision served March 23, 1998, the NITU negotiation period was extended until September 19, 1998. On August 17, 1998, the City filed a request to extend the NITU negotiation period for an additional 180 days or until March 20, 1999. The City states that negotiations have been further delayed because the line is being used to deliver grain trains to the Omaha, Lincoln, and Beatrice Railroad Company and to provide service to LLC, while new trackage is being constructed. By letter filed August 24, 1998, UP agrees to the extension of the negotiation period. By decision served July 7, 1998, UP was granted a 1-year extension of time (until September 24, 1999) to exercise the abandonment authority. 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 March 20, 1999. Decided: September 11, 1998 Service Date - September 15, 1998 ============================================================ Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ============================================================