STB REPORT #25 - JANUARY 1 - 15, 1999 ****************************************************************************** A compilation of decisions and notices published by the Surface Transportation Board. Includes information on track abandonments, ownership changes and trackage rights agreements. Condensed for readability. The full text is available at www.stb.dot.gov/ ****************************************************************************** SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-103 (Sub-No. 11X) THE KANSAS CITY SOUTHERN RAILWAY COMPANY--ABANDONMENT EXEMPTION--IN HEMPSTEAD, LAFAYETTE AND COLUMBIA COUNTIES, AR On January 9, 1998, a decision and notice of interim trail use or abandonment (NITU) was served, authorizing a 180-day period for the Director of Parks, Recreation and Tourism for the City of Hope, AR (HPRT), to negotiate an interim trail use/rail banking agreement with the Kansas City Southern Railway Company (KCS) for its line of railroad between milepost 4.00 at or near Hope, and milepost 46.78 at the Arkansas-Louisiana State Line, a distance of 42.78 miles, in Hempstead, Lafayette and Columbia Counties, AR. The negotiation period was subsequently extended through January 4, 1999, by decision served July 20, 1998. On December 31, 1998, HPRT filed a request for an additional 180-day extension of the negotiation period. Also on December 31, 1998, KCS advised that it is agreeable to the extension request. It is ordered: 1. The negotiating period under the NITU is extended to July 3, 1999. Decided: January 5, 1999 Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION AND NOTICE OF INTERIM TRAIL USE OR ABANDONMENT STB Docket No. AB-391 (Sub-No. 5X) RED RIVER VALLEY & WESTERN RAILROAD COMPANY--ABANDONMENT EXEMPTION--IN BURLEIGH, KIDDER, & STUTSMAN COUNTIES, ND Red River Valley & Western Railroad Company (RRVW) filed a notice to abandon approximately 59.70 miles of rail line from milepost 21.55, west of Woodworth, to milepost 81.25, in Regan, in Burleigh, Kidder and Stutsman Counties, ND. Notice of the exemption was served on December 9, 1998. The exemption is scheduled to become effective on January 8, 1999. By petition filed December 15, 1998, the City of Tuttle filed a request for issuance of a notice of interim trail use (NITU) for the entire line, and for a public use condition so that it could negotiate with RRVW for acquisition of the right-of-way for use as a recreational trail. The City requests that RRVW be prohibited from disposing of the corridor, other than the tracks, ties and signal equipment, except for public use on reasonable terms, and that RRVW be barred from removing or destroying any trail-related structures, such as bridges, trestles, culverts and tunnels, for a 180-day period from the effective date of the abandonment exemption. The City states that it needs the full 180-day period to review title information, complete a trail plan, and commence negotiations with RRVW. By reply filed January 4, 1999, RRVW indicated that it is not opposed to interim trail use. RRVW states that, while it owns the rail line for which it is seeking abandonment authority, RRVW s line enjoys an easement over real property owned by The Burlington Northern and Santa Fe Railway Company (BNSF). RRVW also states that, upon abandonment of the line, its easement will terminate and BNSF will own an unencumbered interest in the right-of-way. In view of RRVW s representation that BNSF owns the underlying real property, the opportunity for the City or others to negotiate the acquisition of the line for public use outside the context of interim trail use might not be available. It is ordered: 1. This proceeding is reopened. 2. Upon reconsideration, the notice of exemption served on December 9, 1998, exempting the abandonment of the line described above is modified to the extent necessary to implement interim trail use/rail banking as set forth below, subject to the condition that RRVW keep intact the right-of-way underlying the track, including bridges, trestles, culverts and tunnels (but not track or track materials), for a period of 180 days from the January 8, 1999 effective date (until July 7, 1999), to enable any state or local government agency, or other interested person to negotiate the acquisition of the line for public use. If an interim trail use/rail banking agreement is executed before the expiration of the 180-day period specified above, the public use condition will expire to the extent the trail use/rail banking agreement covers the same line. 3. If an interim trail use/rail banking agreement is reached, it must require the trail user to assume, for the term of the agreement, full responsibility for management of, for any legal liability arising out of the transfer or use of (unless the user is immune from liability, in which case it need only indemnify the railroad against any potential liability), and for the payment of any and all taxes that may be levied or assessed against the right-of-way. 4. Interim trail use/rail banking is subject to the future restoration of rail service and to the user s continuing to meet the financial obligations for the right-of-way. 5. If interim trail use is implemented, and subsequently the user intends to terminate trail use, it must send the Board a copy of this decision and notice and request that it be vacated on a specified date. 6. If an agreement for interim trail use/rail banking is reached by July 7, 1999, interim trail use may be implemented. If no agreement is reached by that time, RRVW may fully abandon the line. Decided: January 5, 1999 Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT NO. AB-557X TRUSTEES OF THE CINCINNATI SOUTHERN RAILWAY --ABANDONMENT-- NO. AB-290 (SUB-NO.187X) THE CINCINNATI, NEW ORLEANS & TEXAS PACIFIC RAILWAY COMPANY --DISCONTINUANCE OF OPERATIONS--AT CINCINNATI, OHIO In this proceeding, the Trustees of the Cincinnati Southern Railway ( CSR ), a municipal trust, and The Cincinnati, New Orleans & Texas Pacific Railway Company ( CNO&TP ) have filed a notice in connection with the CSR s abandonment and CNO&TP s discontinuance of operations under a lease with CSR of the line of railroad lying between Stations 722+19 and 71+11 a distance of 1.2 miles in Cincinnati, Hamilton County, Ohio. The National Geodetic Survey (NGS) has identified three geodetic 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: Trustees of the Cincinnati Southern Railway shall consult with the National Geodetic Survey and provide NGS with 90 days notice prior to disturbing or destroying any geodetic markers. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33688] State of Georgia, Department of Transportation--Acquisition Exemption--Line of Central of Georgia Railroad Company The State of Georgia, Department of Transportation (GDOT), a noncarrier, has filed a verified notice to acquire from Central of Georgia Railroad Company (COG) certain railroad assets, including approximately 42.4 miles of rail line. The assets consist of two portions of rail line: (1) a previously abandoned line of railroad between milepost GF-152.2 near Vidalia, Toombs County, GA, and milepost GF-171.0 near Kirby, Emanuel County, GA; and (2) COG s active rail line between milepost GF-171.0 near Kirby and milepost 194.6 near Midville, Burke County, GA. GDOT, COG, and Ogeechee Railway Company (Ogeechee), a Class III rail carrier, will enter into certain agreements whereby GDOT will acquire from COG fee title to certain railroad assets, but not including the right to conduct common carrier freight operations. The assets will be sold by COG to GDOT, with COG retaining a permanent easement to conduct operations over the line. In a separate and concurrently executed agreement, COG will transfer its retained easement and all rights and obligations pertaining to the assets, including but not limited to the right to maintain and repair the physical assets on the line to Ogeechee, which will continue to conduct freight operations over the line. Ogeechee currently leases and operates over both portions of the line. It is intended that Ogeechee will assume COG s common carrier obligation, and that neither COG nor GDOT will have a common carrier obligation to provide freight services when the transaction is completed. The transaction was scheduled to take place as soon as possible after the December 18, 1998 effective date of the notice of exemption. Decided: December 29, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33689] Ogeechee Railway Company--Acquisition and Operation Exemption--Line of Central of Georgia Railroad Company The Ogeechee Railway Company, a Class III rail carrier, has filed a verified notice to acquire from Central of Georgia Railroad Company (COG) the right to conduct common carrier freight operations over approximately 42.4 miles of rail line as follows: (1) a previously abandoned line of railroad between milepost GF-152.2 near Vidalia, Toombs County, GA and milepost GF-171.0 near Kirby, Emanuel County, GA; and (2) COG s active rail line between milepost GF-171.0 near Kirby and milepost 194.6 near Midville, Burke County, GA. Ogeechee currently leases and operates over both portions of the line. The transaction was scheduled to take place as soon as possible after the December 16, 1998 effective date of the notice of exemption. This transaction is related to STB Finance Docket No. 33688, wherein the State of Georgia, through its Department of Transportation is acquiring certain railroad assets of COG, including the above-noted 42.4-mile line of railroad, but not including the right to conduct common carrier freight operations. Decided: December 29, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33690] State of Georgia, Department of Transportation--Acquisition Exemption--Line of Central of Georgia Railroad Company The State of Georgia, Department of Transportation (GDOT), a noncarrier, has filed a verified notice to acquire from Central of Georgia Railroad Company (COG) certain railroad assets, including approximately 48.9 miles of rail line extending between milepost CC-445.4 near Chattanooga, Hamilton County, TN, and milepost CC-396.5 near Lyerly, Chattanooga County, GA. GDOT, COG, and Chattooga and Chickamauga Railway Company (CCKY), a Class III rail carrier, will enter into certain agreements whereby GDOT will acquire from COG fee title to certain railroad assets, but not including the right to conduct common carrier freight operations. The assets will be sold by COG to GDOT, with COG retaining a permanent easement to conduct operations over the line. In a separate and concurrently executed agreement, COG will transfer its retained easement and all rights and obligations pertaining to the assets, including but not limited to the right to maintain and repair the physical assets on the line to CCKY, which will continue to conduct freight operations over the line. CCKY currently conducts operations over the line pursuant to its lease agreement with COG. It is intended that CCKY will assume COG s common carrier obligation, and that neither COG nor GDOT will have a common carrier obligation to provide freight services when the transaction is completed. COG and CCKY will retain their existing interchange arrangement at Chattanooga, TN. The transaction was scheduled to take place as soon as possible after the December 18, 1998 effective date of the notice of exemption. This transaction is related to STB Finance Docket No. 33691, wherein CCKY seeks to acquire the right to conduct common carrier freight operations over the line being acquired by GDOT. Decided: December 31, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33691] Chattooga and Chickamauga Railway Company--Acquisition and Operation Exemption--Line of Central of Georgia Railroad Company The Chattooga and Chickamauga Railway Company (CCKY), a Class III rail carrier, has filed a verified notice to acquire from Central of Georgia Railroad Company (COG) the right to conduct common carrier freight operations over approximately 48.9 miles of rail line extending between milepost CC-445.4 near Chattanooga, Hamilton County, TN, and milepost CC-396.5 near Lyerly, Chattanooga County, GA. CCKY currently conducts operations over the line pursuant to its lease agreement with COG. The transaction was scheduled to take place as soon as possible after the December 17, 1998 effective date of the notice of exemption. This transaction is related to STB Finance Docket No. 33690, wherein the State of Georgia, through its Department of Transportation is acquiring certain railroad assets of COG, including the above-noted 48.9-mile line of railroad, but not including the right to conduct common carrier freight operations. Decided: December 31, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33694] City of Oakland, a Municipal Corporation of the State of California, acting by and through its Board of Port Commissioners--Acquisition Exemption--Union Pacific Railroad Company The City of Oakland, acting by and through its Board of Port Commissioners (Port of Oakland), a noncarrier, has filed a verified notice to acquire the physical assets of a rail line and the underlying right-of-way from Union Pacific Railroad Company (UP), between milepost 4.97 and milepost 5.80, in Oakland, CA, a distance of approximately 0.83 miles. UP will retain a permanent, exclusive easement to provide rail freight service over the line. The transaction is expected to be consummated on or shortly after December 18, 1998, but not later than December 31, 1998. Decided: December 29, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33695] Fredonia Valley Railroad, Inc.--Acquisition and Operation Exemption--in Caldwell County, KY Fredonia Valley Railroad, Inc. (FVRR), a noncarrier, has filed a notice to acquire and operate approximately 9.65 miles of rail line owned by Martin Marietta Materials, Inc., between milepost-87.60 near Fredonia and milepost 97.25 near Princeton in Caldwell County, KY. The line to be acquired is a segment of a railroad line authorized for abandonment in Western Kentucky Railway, L.L.C.--Abandonment--Between Blackford and Princeton, KY, STB Docket No. AB-449 (Sub-No. 2) (STB served June 21, 1996). The transaction was scheduled to be consummated on or after the December 17, 1998 effective date of the exemption. Decided: December 30, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33698] Union Pacific Railroad Company Operation Exemption A Line of Railroad Owned by the City of Los Angeles, CA, Through its Board of Harbor Commissioners Union Pacific Railroad Company has filed a verified notice to operate a rail line owned by the City of Los Angeles, CA, through its Board of Harbor Commissioners, a noncarrier. The 0.8-mile rail line involved in this transaction is located between milepost 17.0 and milepost 17.8, in Los Angeles, and will constitute part of the Alameda Rail Corridor. The exemption became effective on December 30, 1998, but the exempted transaction is not expected to be consummated until approximately March 2002. Applicant notes that the segment of track involved in this proceeding is located within the Port of Los Angeles and is currently being operated by UP and The Burlington Northern Santa Fe Railroad (BNSF) without prior Board authority. According to applicant, upon substantial completion of the Corridor, on or about March 2002, the segment of track will become part of the Corridor, and at that time, operations over the track will require the Board authorization being requested in this proceeding. UP and BNSF will operate the rail line as part of an overall coordination of rail operations along the Corridor that will give UP and BNSF access to facilities and terminals in the Ports of Los Angeles and Long Beach, CA. BNSF has filed a separate notice of exemption to operate the line in STB Finance Docket No. 33700. As part of the coordination project, UP has concurrently filed a verified notice of exemption in STB Finance Docket No. 33702, to acquire overhead trackage rights. Decided: December 30, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33700] The Burlington Northern and Santa Fe Railway Company Operation Exemption A Line of Railroad Owned by the City of Los Angeles, CA, Through its Board of Harbor Commissioners The Burlington Northern and Santa Fe Railway Company (BNSF) has filed a verified notice to operate a rail line owned by the City of Los Angeles, CA, through its Board of Harbor Commissioners, a noncarrier. The 0.8-mile rail line involved in this transaction is located between milepost 17.0 and milepost 17.8, in Los Angeles, and will constitute part of the Alameda Rail Corridor. The exemption became effective on December 30, 1998, but the exempted transaction is not expected to be consummated until approximately March 2002. In order to comply with the funding requirements for the Corridor construction project, applicant states that authorization by the Board for these operating rights must be effective by December 31, 1998. Applicant notes that the segment of track involved in this proceeding is located within the Port of Los Angeles and is currently being operated by BNSF and the Union Pacific Railroad Company (UP) without prior Board authority. According to applicant, upon substantial completion of the Corridor, on or about March 2002, the segment of track will become part of the Corridor, and at that time, operations over the track that are authorized by this exemption will begin. BNSF and the UP will operate the rail line as part of an overall coordination of rail operations along the Corridor that will give BNSF and UP access to facilities and terminals in the Ports of Los Angeles and Long Beach, CA. UP has filed a separate notice of exemption to operate the line in STB Finance Docket No. 33698. As part of the coordination project, BNSF has concurrently filed a verified notice of exemption in STB Finance Docket No. 33701, to acquire overhead trackage rights. Decided: December 30, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33701] The Burlington Northern and Santa Fe Railway Company Trackage Rights Exemption Union Pacific Railroad Company Union Pacific Railroad Company (UP) has agreed to grant overhead trackage rights to The Burlington Northern and Santa Fe Railway Company (BNSF) over UP s rail line located between UP milepost 484.9 and UP milepost 500.95, in Los Angeles, CA, that constitutes a portion of the Alameda Rail Corridor (Corridor). The rail line is being constructed by the City of Los Angeles and the City of Long Beach on property acquired from predecessors of BNSF and UP. The exemption became effective on December 30, 1998, but the exempted transaction is not scheduled to be consummated until approximately March 2002. While Board authorization of these trackage rights must be effective by December 31, 1998 in order to comply with the funding requirements for the Corridor construction project, the trackage rights will commence upon substantial completion of the Corridor, which is currently expected to be on or about March 2002. The trackage rights are part of the overall coordination of rail operations along the Corridor that will give BNSF and UP access to facilities and terminals in the Ports of Los Angeles and Long Beach, CA. Decided: December 30, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33702] Union Pacific Railroad Company Trackage Rights Exemption The Burlington Northern and Santa Fe Railway Company The Burlington Northern and Santa Fe Railway Company (BNSF) has agreed to grant overhead trackage rights to Union Pacific Railroad Company (UP) over BNSF s rail line located between BNSF milepost 27.6 and BNSF milepost 28.3, in Los Angeles, CA, that constitutes a portion of the Alameda Rail Corridor. The rail line is currently being constructed by the City of Los Angeles and the City of Long Beach on property acquired from predecessors of UP and BNSF. The transaction was scheduled to be consummated on substantial completion of the Corridor but not sooner than the December 30, 1998 effective date of the exemption. Applicant notes that the trackage rights must be effective by December 31, 1998 in order to comply with funding requirements for the Corridor construction project. In other related filings, UP and BNSF have indicated that substantial completion of the Corridor is expected to be approximately March 2002. The trackage rights are part of the overall coordination of rail operations along the Corridor that will give UP and BNSF access to facilities and terminals in the Ports of Los Angeles and Long Beach, CA. Decided: December 30, 1998. Service Date - Late Release January 6, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 114X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT EXEMPTION-- IN WASHBURN COUNTY, WI On January 16, 1998, a decision and notice of interim trail use or abandonment (NITU) was served, authorizing a 180-day period for the Wisconsin Department of Natural Resources, acting through the Wisconsin Department of Transportation (collectively referred to as WisDNR/DOT), to negotiate an interim trail use/rail banking agreement with Union Pacific Railroad Company (UP) for UP s 12.68-mile line of railroad known as the Hayward Industrial Lead, extending from milepost 83.32 near Trego to milepost 96.0 near Hayward Junction, in Washburn County, WI. By decision served July 13, 1998, the negotiation period under the NITU was extended an additional 180 days until January 11, 1999. By letter filed on September 14, 1998, UP and WisDNR/DOT advised the Board that the easterly .8-mile segment of the right-of-way from milepost 95.2 to milepost 96.0 was not subject to negotiations because the segment is subject to acquisition for railroad purposes by Wisconsin Central Limited. On September 21, 1998, the Washburn County Transit Commission (WCTC), a new negotiation party, filed a request for issuance of a NITU so that it could negotiate with UP for the portion of the line extending from milepost 83.32 to milepost 95.2. By decision served on October 8, 1998, a NITU was served, authorizing WCTC to negotiate an interim trail use/rail banking agreement with UP until January 11, 1999, when the 180-day period under the NITU is scheduled to expire. On January 6, 1999, WisDNR/DOT and WCTC jointly filed a request for an extension of the NITU negotiation period for an additional 180 days. WisDNR/DOT acknowledges and welcomes WCTC s commitment to preserve this rail corridor and states that WCTC plans to work with WisDNR/DOT in the acquisition and management of the right-of-way. By letter dated January 6, 1999, UP agreed to the extension of the negotiation period. It is ordered: 1. WisDNR/DOT s and WCTC s request to extend the NITU negotiation period is granted. 2. The negotiation period under the NITU is extended until July 10, 1999. Decided: January 11, 1999 Service Date - Late Release January 11, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-33 (Sub-No. 120X) UNION PACIFIC RAILROAD COMPANY--ABANDONMENT AND DISCONTINUANCE OF SERVICE EXEMPTION--IN WARREN COUNTY, IA On July 15, 1998, a decision and notice of interim trail use or abandonment (NITU) was served in this proceeding, authorizing a 180-day period for the cities of Carlisle and Indianola, IA, the Warren County Conservation Board, and the Iowa Natural Heritage Foundation (Agencies) to negotiate an interim trail use/rail banking agreement with Union Pacific Railroad Company (UP) for a segment of rail line extending between milepost 368.5 near Carlisle and milepost 379.13 near Indianola. The 180-day period under the NITU is scheduled to expire on January 11, 1999. By motion filed January 5, 1999, and clarification filed January 7, 1999, the Agencies request an extension of the negotiation period until July 30, 1999. The Agencies state that they have been actively negotiating with UP and are close to reaching an agreement. They add, however, that several issues relating to the agreement have yet to be resolved and they need more time to complete negotiations. By letter filed January 7, 1999, UP states that it is agreeable to the extension request. It is ordered: 1. The negotiating period under the NITU is extended until July 30, 1999. Decided: January 8, 1999 Service Date - January 11, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-103 (Sub-No. 14) THE KANSAS CITY SOUTHERN RAILWAY COMPANY ADVERSE DISCONTINUANCE APPLICATION A LINE OF ARKANSAS AND MISSOURI RAILROAD COMPANY On November 30, 1998, Arkansas and Missouri Railroad Company (AMR) filed an application requesting that the Board find that the public convenience and necessity require and permit the discontinuance of trackage rights held by The Kansas City Southern Railroad Company (KCS) over an approximately 5.5-mile segment of rail line owned by AMR in Sebastian County, AR, and LeFlore County, OK. Notice of the application was served on December 18, 1998. On January 6, 1999, KCS filed a motion to compel responses to the following two discovery requests: (1) that AMR produce its 100 percent traffic waybill data from January 1, 1995, through the present date; and (2) that AMR state the factual basis for the assertion on page 6 of its application that there has been no relevant decline in traffic over the Subject Line. KCS submits that these requests were contained in its third set of discovery requests that were served on AMR on December 9, 1998. When AMR served its responses on December 22, 1998, AMR assertedly objected to the first request as irrelevant, overbroad, and unduly burdensome, and objected to the second request as irrelevant information that was already included in the application. KCS requests that the Board issue an order compelling AMR to provide the requested information, and also asks that the January 14, 1999 deadline for filing written comments or protests to the application be extended until 15 days after AMR has provided the information. KCS should have filed its motion to compel by January 4, 1999. Therefore, KCS seeks waiver or a two-day extension of the filing deadline because of the intervening holidays and the absence of counsel from the office during those holidays. In its reply filed January 7, 1999, AMR argues that the motion to compel should be rejected as not timely filed, or, alternatively, that it be denied. AMR submits that KCS has failed to explain how 100 percent waybill data for AMR s entire system would be relevant to this proceeding. Moreover, AMR submits that the information sought in the second request is already in KCS s possession. In addition, on January 8, 1999, AMR filed a motion to compel responses to 46 interrogatories and 26 document production requests that it served on KCS on December 18, 1998. According to AMR, when KCS served its responses and objections by facsimile on January 4, 1999, KCS assertedly objected to every discovery request and refused to provide any responsive information. Therefore, AMR requests that the Board order KCS to provide meaningful responses to the discovery requests by January 19, 1999. Action on AMR s motion will be handled in a later decision. However, because AMR s motion warrants expedited action, KCS should file any reply to the motion no later than January 13, 1999. KCS has failed to show good cause why its late-filed motion to compel should be accepted for filing. The Board s stated policy is that contested discovery will be granted in abandonment proceedings only when the party seeking discovery shows that the information sought is relevant and might affect the result of the case, and that it ought to be obtained through discovery rather than some other means. Under the circumstances here, the request for waiver or a two-day extension of the due date for filing a motion to compel will be denied and the late-filed motion to compel will be rejected. Even if the motion to compel had been timely filed, KCS has failed to show that the information that it seeks is relevant and might affect the result of the proceeding. For example, the relevance of AMR s traffic over its entire system in a proceeding that involves an adverse discontinuance of overhead trackage rights held by KCS has not been shown. Moreover, because the only overhead traffic moving over the line is that moved by KCS, KCS would already know whether AMR s statement that there has been no relevant decline in traffic over the subject line is true or false. It is ordered: 1. The request for waiver or a two-day extension of the due date for filing a motion to compel under 49 CFR 1114.31 is denied, and KCS s late-filed motion to compel responses to interrogatories and production of documents is rejected. 2. If KCS wishes to reply to AMR s motion to compel filed January 8, 1999, it should do so no later than January 13, 1999. Decided: January 11, 1999 Service Date - Late Release January 11, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 33696] Dallas Area Rapid Transit--Acquisition and Operation Exemption--Lines of Union Pacific Railroad Company Dallas Area Rapid Transit (DART), a political subdivision of the State of Texas, has filed a notice to acquire (by purchase) approximately 1 mile of rail line owned by Union Pacific Railroad Company (UP) between approximately milepost 748.25 and approximately milepost 747.25 in the vicinity of Rowlett, TX. Applicant states that it will grant trackage rights to UP (or UP s designee) on the subject line and that freight railroad operations on the subject line will be conducted by UP (or UP s designee) pursuant to the trackage rights. According to DART, UP (or UP s designee) will seek the Board s approval for the trackage rights in a separate filing. The earliest the transaction could be consummated was December 22, 1998. Decided: January 7, 1999. Service Date - January 14, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Finance Docket No. 33706 ILLINOIS RAILNET, INC. ACQUISITION AND OPERATION EXEMPTION THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY The petition to stay the effectiveness of the exemption in this proceeding is being denied. By notice filed on January 8, 1999, Illinois Railnet, Inc. (IR), invokes the class exemption to allow its acquisition and operation of an approximately 23.5-mile line of railroad in Illinois owned by The Burlington Northern and Santa Fe Railway Company (BNSF). The line runs between (a) milepost 11.69 at Davis Junction, IL, and (b) milepost 23.79 at Rockford, IL. I&M Rail Link (IMRL) currently operates over part of the line under trackage rights with BNSF, and, after the transaction, IMRL will retain its trackage rights as a tenant of IR. The parties propose to consummate the transaction on or after January 15, 1998. By petition filed on January 13, 1999, Joseph C. Szabo, on behalf of the United Transportation Union-Illinois Legislative Board (Szabo), requests that we stay operation of the exemption pending the filing and disposition of a petition to reject or to revoke it. On January 14, 1999, IR filed a reply to Szabo s petition for stay. Szabo s request for stay must be denied because petitioner has little likelihood of prevailing on the merits of a petition for rejection or revocation of the exemption. Szabo s only argument on the merits of the notice is to assert that it does not comply with our requirement that notice be filed at least 60 days before the effective date of the notice for a transaction that will result in the creation of a carrier whose projected annual revenue will exceed $5 million. Szabo maintains that, in certifying that the $5 million revenue threshold for the 60-day notice requirement was met, IR failed to include revenue accruing to IMRL. The purpose of the 60-day notice requirement is to provide notice to employees affected by certain line sales. The employees of IMRL are not affected by the transaction. IR is acquiring the line from BNSF subject to IMRL s rights. The revenues of an operator on the line whose operations are unaffected by the transfer does not implicate the scope of the transfer insofar as it affects employees. Also, one of the purposes of the regulations in establishing the $5 million threshold requirement is to exempt smaller transactions and smaller carriers from the 60-day notice requirement. Adding the revenues of tenant carriers operating on the line would effectively lower the threshold for reasons unrelated to the purpose of the regulations and would thus erode the purpose served by the $5 million threshold. Szabo has failed to show that any BNSF employees will be irreparably harmed by failure to stay the transaction. Nor does Szabo allege that such employees will not be able to obtain other nearby positions with BNSF. IR, a small Class III carrier, has asserted that it would be harmed if the transaction were stayed. Thus, Szabo has failed to show that a stay is warranted under the applicable criteria. It is ordered: 1. UTU s petition for stay is denied. Decided: January 14, 1999 Service Date - Late Release January 14, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD ENVIRONMENTAL ASSESSMENT STB Docket NO. AB-55 (SUB-NO. 568X) CSX Transportation, Inc.--Abandonment Exemption--in Franklin County, PA In this proceeding, CSX Transportation, Inc. (CSXT) has filed a petition in connection with the abandonment of a portion of its Baltimore Service Lane, Lurgan Subdivision, between milepost BAV-20.5 at 4th Street and milepost BAV-22.4 at Commerce Street, a distance of 1.9 miles in Chambersburg, Franklin County, PA. In its petition, CSXT states that there is only one shipper on the line. Chambersburg Engineering (CE) shipped six carloads of scrap, iron or steel in 1997. In 1995, 1996, and during the first nine months of 1998, CE did not ship or receive any carloads via rail. CSXT also states that following abandonment, overhead movement will be routed via trackage rights over Conrail trackage east of Chambersburg and CE will not lose rail service as a result of the abandonment. The line has been primarily used to handle overhead traffic to Franklin Storage, Inc. (FSI) and the Letterkenny Army Depot at (Letterkenny). In 1996, FSI received 303 carloads of printing paper at its leased warehouse facility in Chambersburg. However, in late 1996, FSI begin receiving all of its rail shipments in Cambersburg at a CSXT served warehouse facility in the Chambersburg Industrial Park. FS also operates another warehouse facility in Chambersburg that is owned by Conrail. As a result, in 1997 and 1998, CSXT did not handle any shipments for FSI. CSXT states that in 1996 and 1997, it handled 218 and 189 rail shipments of ordinances or accessories to Letterkenny. During the first nine months of 1998, CSXT handled 105 shipments. CSXT also states that following abandonment all overhead traffic will be routed via trackage rights over Conrail trackage east of Chambersburg. The abandonment will eliminate nine at grade railroad crossing and thus improve public safety in the Borough. The right-of-way varies in width from 37 to 230 feet with the preponderance being 60 feet wide. We recommend that no environmental conditions be placed on any decision granting abandonment authority. Service Date - January 15, 1999 ------------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB-55 (Sub-No. 570X)] CSX Transportation, Inc.--Abandonment Exemption--in Putnam County, IN CSX Transportation, Inc. (CSXT) has filed a notice to abandon .35 miles of its line of railroad between milepost LQ-189.65 and milepost LQ-190.00 in Cloverdale, Putnam County, IN. Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on February 14, 1999, unless stayed pending reconsideration. CSXT shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by CSXT s filing of a notice of consummation by January 15, 2000, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Decided: January 11, 1999. Service Date - January 15, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-289 (Sub-No. 4X) THE CENTRAL RAILROAD COMPANY OF INDIANAPOLIS--DISCONTINUANCE OF SERVICE EXEMPTION--IN CLINTON, HOWARD AND TIPTON COUNTIES, IN By petition filed September 29, 1998, The Central Railroad Company of Indianapolis (CERA) seeks to discontinue service over two segments of railroad lines owned by Norfolk and Western Railway Company (NW). The lines, known as the Kokomo Lines, extend 33.54 miles from milepost I-41.0 near Tipton to milepost I-51.8 at Kokomo, and from milepost TS-183.7 at Kokomo to milepost TS-206.44 at Frankfort, in Clinton, Howard and Tipton Counties, IN. As part of the exemption, CERA also seeks to discontinue 4.54-miles of incidental trackage rights (used at various points for interchange only) over NW s track between milepost TS-206.44 and milepost TS-207.80 near Frankfort, between milepost I-39.76 and milepost I-41.0 near Tipton, and between milepost SP-209.28 and milepost SP-211.22 near Tipton. We will grant the discontinuance exemption, subject to standard employee protective conditions. CERA is a Class III railroad that was authorized to operate the Kokomo Lines and the incidental trackage rights under a lease arrangement with NW. (In addition to the lines at issue, CERA operates approximately 85 miles of rail lines in the north central part of Indiana.) In June of 1998, RailTex, Inc. (RailTex), acquired indirect control of CERA and its affiliate, The Central Railroad Company of Indiana (CIND), and, in connection with that transaction, CERA states that RailTex and NW agreed to changes in the lease and operating arrangements between CERA and NW. Among the changes were the exclusion of the Kokomo Lines and the incidental trackage rights from the lease and the resumption of service over these lines by NW. According to CERA, its lease with NW was terminated effective July 31, 1998, and NW resumed service on the Kokomo Lines on August 1, 1998. In recent years, the three local shippers on the Kokomo Lines, Ag Max, Inc., Terra International, and TOPAG, have collectively shipped an average of less than 100 carloads per year (63 carloads in 1997). CERA submits that no shippers will lose rail service on the Kokomo Lines as a result of the discontinuance, because NW has resumed providing all common carrier service. While CERA was providing service under the lease, the stations on the Kokomo Lines were apparently treated as NW stations for rating and routing purposes. Therefore, according to CERA, NW was accountable for the service being provided by CERA on the Kokomo Lines during that period. CERA also seeks to be exempted from the OFA subsidy provision. Exemptions from this provision are only rarely granted (i.e., there must be a compelling need to use the property for a valid public purpose and no overriding public need for continued rail service). Here, CERA s private lease agreement with NW has been terminated and, although service over the lines has continued with NW resuming service, Congress has established a procedure to address the need for continued rail service when a carrier is authorized to abandon or discontinue service over a line. It would be inappropriate for us to subordinate that process to a private agreement simply because interested parties find it preferable to use such a mechanism. Any financially responsible person has the right to offer financial assistance to avoid abandonment or discontinuance. Moreover, the statute specifically contemplates that multiple offers to subsidize a rail line may be made. Thus, CERA s request for an exemption from the OFA subsidy provision will be denied. It is ordered: 1. Under 49 U.S.C. 10502, we exempt from the prior approval requirements of 49 U.S.C. 10903 the discontinuance of service by CERA of its operations as described above, subject to the employee protective conditions in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 (1979). 2. CERA is directed to serve a copy of this decision on all shippers on the lines within 5 days after the service date of this decision and certify to us that it has done so. 3. Provided no OFA to subsidize continued rail service has been received, this exemption will be effective on February 14, 1999. Decided: January 13, 1999. Service Date - January 15, 1999 ------------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD DECISION STB Docket No. AB-531 (Sub-No. 2X) PIONEER VALLEY RAILROAD COMPANY, INC.-- ABANDONMENT EXEMPTION--IN HAMPSHIRE COUNTY, MA 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 will be made. 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: January 8, 1999. Service Date - January 15, 1999 ============================================================ Comments or questions about this compilation should be directed to Paul Moore at 71367.1057@Compuserve.com. ============================================================